The Impact of National Culture On the Meaning of Information System Success

This article explores how people from different national cultures; France, Canada and Germany, define and perceive information systems success. Research has confirmed that different national cultures define information systems success differently. However, there were many limitations in this research.

1. The research was only done on one single multinational organization.

2. The number of respondents in the study was limited.

Despite the research limitations, multinational organizations should know that the implemenation as well as long term success of a standard information system will not be the same througout countries. Information quality and other systems based concepts are defined diffrently among cultures.

This article supports the chapter and the case study on Nestle's globalized IT system. It is extremely difficult to implement a standardized system throughout countries that not only use different IT systems, but perceive the success of an information system differently. This is largely due to the vast array of cultures and languages across the globe.

This study analyzed countries that were relatively similar compared to an African or Middleastern country and there were still a great difference in the countries perception. There is no doubt that it is easier to use different IT systems in a multinational organization. I know that McKesson uses different IT systems throughout the world and its main branches are in the United States, Europe, and Australia. All relatively similar compared to the possibilties globally. I respect what Nestle has tried to accomplish in standardizing its system, it is no easy task!

Hafid Agourram, John Ingham. (2007). The impact of national culture on the meaning of information system success at the user level. Journal of Enterprise Information Management, 20(6), 641-656. Retrieved June 2, 2008, from ABI/INFORM Global database.

Nestle Tries for an All-for-One Global Strategy

2. What type of global business and systems strategy did Nestle adopt? Was this strategy appropriate for Nestle's business model?

In the past, Nestle allowed each local organization to conduct business in its chosen manner. This decentralized approach allowed for differences in culture and language between each branch. At one point, there were eighty different information technology systems utilized. However, Nestle decided to abandon that traditional approach in managing a multinational company. It wanted to standardize all business processes globally to better serve its customers. It wanted to adopt a single set of business processes and systems for procurement, distribution, and sales management. They wanted to operate as a single country globally.

According to the norm, this was not the appropriate strategy for Nestle's business model. However, it seems to be working despite IT budgeting, data capacity, and delays in implementing the system across all branches. Nestle has achieved better operational efficiencies and is much closer to standardizing all processes, data, and systems. I really didn't think this would work as I read the case study, but it looks like Nestle could reach this goal in the near future.

3. What management, organization, and technology challenges did Nestle have to deal with to standardize its business processes and systems?

Nestle had the overwhelming task of merging eighty different information technology units into one designed system. None of its products are considered to be a truly global brand, so standardizing its processes and systems is quite complex. The biggest challenge Nestle faced was not technical, but personal. Previous attempts in developing cooperate standards had mixed results, most branches responded to the idea in a negative manner. Branches stated how a standard system wouldn't work globally. Branch managers feared the loss of decision-making power. Initially, the project staff was not large enough to design such a system.

Then there was the time challenge, the deadline for the rollout of the new standardized IT system was changed several times. This was also a large financial investment to embark on. Nestle had to invest billions of dollars in this project and still had the challenge to stay in budget. It was challenged to implement the new business processes concurrently with the new systems while not making it noticeable to anyone outside of the company. Managers and workers had no time to train on the system before it was deployed. Finally, Nestle had to deal with some technical issues as the system rolled out across the globe. Specifically, Canada had a problem with the amount of data storage it was allotted to allow for promotion data.

Great Project Management = IT Success

This article is closely related to the material discussed in the chapter. Kropf and Scalzi explain that it can be difficult to implement new information technology. They specifically analyze IT in health care. Senior management and professional project management must work together to overcome significant obstacles during IT implementation. Kropf and Scalzi suggest that a team of trained project managers should be created to monitor the progress of the implementation and provide accessible information form all projects. Software tools can be utilized by the team to collect, analyze and communicate the information on projects.

Health care organizations should:

1. Hire a staff member certified in project management or send an existing staff member for project management training.

2. Form a project management office (PMO). The PMO can free physicians to focus on the development of IT projects that can create benefits to the organization.

3. Appoint someone that can make decisions on money spent on IT.

I think that these 3 suggestions should definitely be implemented by health care organizations designing new information systems. As the chapter, case study and this article reiterate, a project management team should be experienced, have the proper support and knowledge to minimize risks.

Roger Kropf, Guy Scalzi. (2008). Great Project Management = IT Success. Physician Executive, 34(3), 38-40. Retrieved June 1, 2008, from ABI/INFORM Global database.