Abstract
Previous research offers limited and fragmented frameworks for information systems project alignment (ISPA). This study fills this gap by providing a comprehensive overview of the interplay between an IS project and its broader organizational context, and clarifying how contextual alignments relate to IS project success. ISPA is explored by observing a five-year implementation of an Enterprise Resource Planning (ERP) system within a logistics service provider based in Europe and North Africa. The study's findings and key contributions highlight the plural, complex, and multifaceted nature of ISPA resulting from the interaction of strategy, structure, process, people, and culture between the project, business, and IS organization. This chapter presents a comprehensive ISPA framework and is expected to increase project managers' awareness of the context in which IS projects are managed.
TopIntroduction
Each year, thousands of information system (IS) projects are launched “using hardware, software, and/or networks to create a product, service, or result” (Schwalbe, 2019, p.3). Worldwide, IS spending was expected to reach 4.5 trillion dollars in 2022, representing an increase of 5.5% from 2021 (Gartner, 2021). Moreover, the COVID-19 pandemic compelled companies to accelerate digital transformation to remain competitive and adapt to clients’ move toward online channels (Seiler, 2020). Hence, IS projects have become essential for companies’ survival after the pandemic and continued development in an uncertain era. The 2020 Standish Group CHAOS Report indicates that almost half (47%) of all IS projects are late, over budget, or do not meet original specifications, and about one-fifth (19%) are canceled before completion (Johnson, 2020). These alarming considerations indicate significant difficulties for IS projects’ delivery of expected outcomes on schedule and budget.
Project misalignment has been determined as the origin of disappointing business results and project failure (Box & Platts, 2005; Srivannaboon & Milosevic, 2006; Patanakul & Shenhar, 2012; Alsudiri et al., 2013). Specifically, IS project alignment (ISPA) is defined as “the degree to which information system (IS) project deliverables are consistent with the project’s objectives, which are shaped by the organization’s IS strategy” (Jenkin & Chan, 2010, p.35). According to Jenkin and Chan (2010), ISPA influences project and firm performance. Project alignment, specifically ISPA research, has primarily focused on aligning project management (PM) with business strategy and ensuring alignment among project stakeholders. The broader organizational context in which IS projects are executed mainly revolves around strategic and social factors. Scarce are the studies that adopt a more open system approach to ISPA. Yet, the interplay between projects and their surrounding permanent organizations has long been the subject of research (Blomquist & Packendorff, 1998; Grabher, 2002; Engwall, 2003; Manning, 2008; Klimkeit, 2013) and still are in recent literature (Ren et al., 2019; Sydow & Windeler, 2020; Nilsson Vestola et al., 2021). These studies fall under the organizational perspective of project (Winter et al., 2006), considering projects as complex temporary systems (Packendorff, 1995) strongly influenced by the organizational context in which they are embedded. Organizational context can be understood at the project level as permanent organizational characteristics that facilitate or constrain successful project implementation. These characteristics have been addressed by previous research (Shenhar, 1999; Engwall, 2003; Manning, 2008; Klimkeit, 2013; Ren et al., 2019; Pinto, 2019), which advocates consideration of the interplay of critical elements (i.e., strategy, structure, system or process, people, politics and culture) between projects and their parent organization. Contextual alignment issues (i.e., alignment between projects and their organizational context) are even more salient within the framework of IS projects as management of information system (MIS) literature repeatedly documents misfits between information technology (IT) artifacts (such as ERP system) and their implementing organization (Soh et al., 2000; Krumbholz & Maiden, 2000; Yusuf et al., 2004; Leidner & Kayworth, 2006; Sia & Soh, 2007; Strong & Volkoff, 2010; Hustad et al., 2016; Morquin et al., 2023) that significantly influences IS project success (Holland & Light, 1999; Nah et al. 2001; Hong & Kim 2002; Ram & Corkindale, 2014). Based on previous research, we suggest that gaining a deeper insight into the success or failure of IS projects requires a comprehensive perspective on project alignment. This perspective should consider IS projects as open systems that influence and are influenced by the context of their immediate surroundings. However, limited attention has been paid to the linkages between IS projects and their parent system and few studies have attempted to explain how contextual alignments influence IS project success. For five years, we were immersed in the international implementation of an ERP project within a logistics service provider, allowing us to enhance the ISPA construct and explore the influence of contextual alignments on IS project success. Through a longitudinal case study, we address the following research questions:
Key Terms in this Chapter
IS Project Contextual Alignments: The set of alignments between an IS project and its larger organizational context that influence project success, encompassing project management and product success.
Alignment Between the IS Organization and Project Organization: The extent to which IS strategy, structure, process, people, and culture support and are supported by project strategy, structure, process, people, and culture.
IS Project Alignment: Alignment between an IS project and its larger organizational context comprising the business organization and the IS organization.
Alignment Between the IS Organization and the Business Organization: The extent to which IS strategy, structure, process, people, and culture support and are supported by organizational strategy, structure, process, people, and culture.
Alignment Between the Business Organization and the Project Organization: The extent to which organizational strategy, structure, process, people, and culture support and are supported by project strategy, structure, process, people, and culture.
IS project organizational context: The permanent organizational characteristics (i.e., strategy, structure, process, people, and culture of the business and the IS organizations) that can facilitate or constrain successful IS project implementation.
IS Project Supportive Organizational Context: A supportive organizational context promotes IS projects and increases the likelihood of success.
IS Project Non-Supportive Organizational Context: A non-supportive organizational context hinders IS projects and decreases the likelihood of success.