Paper outline
Table of information system projects that have failed
S. FAA air traffic-control system
Nike Inc. CRM
Wal-Mart’s “Save Money. Live Better” project
Daimler-Chrysler Merger
Causes of failure according to Flynn’s category
Classification of project failures according to Flynn’s category
Possible solutions
Consulting users before developing systems
Information system projects that have failed
A table of information system projects that have failed and their possible causes
Projects
Nature of problem
Who sees it as a problem
Probable cause
Flynn category
Upgrading air-traffic-control system by the U.S. Federal Aviation Administration
A software hitch that ruled out the existence of one of the warehouses.
Players in the aviation industry and members of the information technology industry.
With the warehouse being “inexistence”, no goods entered or left the warehouse. The problem went unnoticed for three years since the employees still received their payments as this was handled by a different computer from the one that handled warehouse processes. In addition, the upper management colluded with the employees to conceal the hitch (Charette, para. 1).
Multiple Instruction, Multiple Data streams (MIMD)
Nike Inc. Supply Chain Management System (CRM)
Supply-chain-planning-software problems
Suppliers and the company
The center of the problem is that the developer of the system did not consider the users’ needs. Instructions on how to develop the system came from the top management rather than the end users themselves thus leading to lack of acceptance from the users. This failure led to loss of $100 million (Rosenfield, para 7).
Single Instruction-Multiple Data Stream (SIMD)
Wal-Mart’s project to transform from the strategy “Always low prices, always” to “Save Money. Live Better.”
The management failed to communicate adequately with their customers during the transition period.
Customers and managers of Wal-Mart Inc.
Due to poor communication on the new intended business model, customers were rigid about adopting the “Save Money. Live Better” policy. Customers of the company have been used to the “Low Price” strategy hence the new model failed to win customers (Furtwengler, para. 3).
Single Instruction, Single Data stream (SISD)
Daimler-Chrysler Merger
Cross-cultural conflicts between employees and management in the two companies.
Managers and employees of Daimler Inc. and Chrysler LLC.
Employees and managers of the two companies failed to solve cultural differences during the merger. Daimler is a Germany Company and the stakeholders of the company have a culture of informal systems of operations. Chrysler is a U.S.-based automobile company and its stakeholders believe in formal procedures. This caused conflicts between the stakeholders of the two companies leading to failure of the merger (Wolf, p. 5).
Multiple Instruction, Single Data stream (MISD)
Failure causes according to Flynn’s category
The problem encountered by the U.S. Federal Aviation Administration in upgrading air-traffic-control system falls in the MIMD Flynn’s category. This is because upper management and employees were involved in the hitch thus representing multiple instructions (Scribd, para 4) whereas the affected information technology field and the employees represent multiple data stream. The AT&T software failure is compared to the SIMD since a single instruction was issued by the management on developing the supply chain system. The users and the suppliers represent multiple data stream. The Daimler-Chrysler merger compares to the Multiple Instruction, Single Data stream (MISD) of Flynn’s category because the project involved two cultures being linked to pursue a single project. As such, two cultures represent multiple instructions while the pursuit of a merger represents a single data stream. Wal-Mart’s “Save Money. Live Better” strategy is comparable to Single Instruction, Single Data stream (SISD). The new strategy is equivalent to single instruction issued (Barney, p. 7) by the management whereas winning customers is the single data stream.
Possible solutions
To address the U.S. Federal Aviation Administration problem, it is important to establish a distributed information system that can detect errors in different subsystems in an organization. The failure encountered by AT&T can be addressed by consulting users before developing a system. Understanding multicultural work environments is a possible remedy to failure of projects similar to the Daimler-Chrysler merger. To avoid the problem encountered by Wal-Mart, the management of any company should improve communication with customers about new strategies being adopted. This creates awareness about the new strategy and prevents rejection of new projects.
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