Risks associated with business and IS/IT change.

Based on the organization(s) that you visited, what do you think are the risks associated with business and IS/IT change?

Company visited: Concentrix

Concentrix’ MIS department said that they are constantly evolving because Concentrix, like all other Business Process Outsourcing (BPO) Company, is a fast transforming corporation. But what are the consequences with the changes that they do and what are the factors that they first consider before implementing a change on their system?

According to the MIS Supervisor of Concentrix’ MIS department, before a modification on their system will be done a feasibility study should be made regarding the proposed changes of the system. Generally, before approving for a change on the system they make sure that the change is necessary and/or that it could truly enhance the system. In addition, since there is an approval needed before taking any changes on the system thus the management will have an overview of what are the downsides or what will be the risks of changing the system.

So, what are the possible things that might happen in changing a system? Why should a comprehensive study be made before implementing a change?

• System failure
• Security
• Loss of data
• Design
• Cost
  

System Failure - a breakdown or decline in the performance of the system. Concentrix is a large company with numerous employees; a system breakdown will surely interrupt the entire business especially that their clients are from outside the country and the communication process is through the use of telephones and distribution of calls is part of their system. And as far as I remember the MIS Supervisor said that the MIS department is the core of the company because they are a technological call center therefore, a system failure will really discontinue the operation of the business.

Security – confidential data might be accessible to people who doesn’t have the right to access that particular data. In Concentrix’, the employees have limited access to the applications that they have; it depends on the position of the particular employee.

Loss of data – when a certain data had been removed, deleted or in anyway not accessible anymore. Loss of data is losing a client in Concentrix’ state, so they are really careful in implementing a system change because if there will be a loss of data, there will be no documents to be shown to their clients.

Design – the actual design of the system fails to capture essential business requirements. Information may not be provided quickly enough to be helpful; it may be in a format that is impossible to digest and use; or it may represent the wrong pieces of data. A system may be designed with a poor user-system interface. The way in which nontechnical business users must interact with the system is excessively complicated and discouraging. As a result, a system may go unused and eventually may have to be discontinued.

Cost – some systems operate quite smoothly, but their cost to implement and run on a production basis is way over budget. Good thing though, the people under the MIS department of Concentrix are the one who creates their system that is why it will not be that costly.


Information systems facilitate the acquisition, transformation, and distribution of information. Information systems can improve decision making, enhance organizational performance, and help increase firm profitability, thus contributing to corporate value.

Often, a change in the business's strategy, rules, or procedures requires changes in the information systems software, hardware, databases, and telecommunications. An organization’s present and future accomplishments depend in many aspects on what its systems will permit it to do now and later. Also, system projects are increasing in reach and scope. Whereas early information systems addressed primarily technical or operational issues, contemporary information systems are integral to the management and strategic goals of the firm. Today information systems affect a much larger part of the organization itself, such as organizational products, objectives, and structure.

Reference:
Management Information Systems, 8th edition (Laudon)