Managing information systems development in Libya's changing environment

Managing Information Systems Introduction

In the contemporary business environment, IS (information systems) have become the strategy weapons that organizations employ to achieve competitive advantages. With stiff competitions that organizations are now facing within the competitive business environment, many organizations have realized the importance of integrating the efficient information systems to enhance market efficiencies. Modern businesses now integrate highly efficient information systems for their business operations. Despite the importance of information systems for organization's efficiencies, management is still facing growing challenges in managing the information resources across business units. To remain competitive, organizations needs to adapt to the strategic changes brought about with the rapid information systems development. Competitive market environment has necessitated organizations to constantly design effective innovative products to remain competitive. While MIS (management information system) is critical to manage information resources, altering the design of existing information systems could alter organization changes. (Carson, & Griffeth. 1990). The problems are often identified with the large and multinational corporations where different subunits are allowed to adopt individual it resources compatible to their business operations. The shortcoming of this strategy is that it management might adopt local it resources not compatible with the organization's goals and objectives. Moreover, organizations adopting this model might face challenges in responding quickly to a new business model across business units. (Boh, & Yelling, 2007). Executive may also face extensive information overload making effective utilization of available information resources to be challenging. (Dutta, 2011).

Contrary to the developed countries that often manage information resources effectively, managing of information systems is more challenging in developing countries since institutional framework could not provide effective resources for organizations to manage information systems. Despite the challenges that developing countries face with the implementation of effective and efficient information systems, there is still a paucity of research focusing on the strategies to manage information systems in developing countries notably Libya.

The study formulates research aim to enhance greater understanding on the strategy to manage information systems development in a changing environment.

Research Aim

To apply management information system development in a changing environment in Libya within both national and organizational context.

The research formulates the following research objectives to achieve research aim.

Research Objectives

1) to critically investigate the current state of managing the information system development in a changing environment.

2) to explore and investigate the characteristics affecting information system development in Libyan context.

3) to present a model based on the findings from the two objectives above.

The model will serve two main objectives:

To fill the gap created with paucity of literature on the managing information system development in a changing environment in Libya.

To suggest a framework to manage changes in information systems in Libya.

The study develops research questions to pursue the aforementioned research objectives.

Research Questions

1. What are the key factors affecting the application of management information system development in a changing environment in Libya?

2. Why are these factors so important in the Libyan context?

3. What is the major information systems mostly needed in Libya?

Review of Literatures

Overview of Information Systems in developing countries

Abukhzam and Lee (2010) reveal that adoption of new information systems proves challenging in developing countries. Factors such as organizational, managerial, innovation characteristics and lack of management and government support have been the major factors affecting the effective management of information systems in developing countries. Adoption of information systems in developing countries is also being affected by technical difficulties, and lack of insufficient management support. Moreover, lack of understanding of information systems has been the major factor hindering the development of information systems in developing countries. Unlike many organizations in the developed countries, which have adopted effective information systems, organizations in developing countries are still struggling to adopt effective information systems to achieve organizational efficiencies.

Abukhzam et al. (2010) state that the development of information systems is still limited in Libya. While Gadaffi regime tried to provide the government support for the it development, however, public and private organizations in Libya still adopted limited form of information systems. For example, adoption of it tools in Libyan banking industry is still limited. Libyan banking industry only uses the information technology resources for operation procedures and accounting practice, which include balancing of books and interest calculation. The use of electronic banking is lacking in Libya causing long queues in many of the Libyan banks.

Williams & Boren (2008) provide similar argument by pointing out that many developing countries are still facing challenges in integrating effective information systems in their business operations. Issues such as war, political uprising, corruption and disaster have been the factors leading to the setback in the development of information systems in developing countries. While developed countries have already integrated robust information systems across various industries such as banking industry, the healthcare sector, manufacturing sector and retail sector, developing countries are still struggling to integrate it tools in their business operations. The authors cite the importance of electronic health record in the delivery of quality healthcare. Typically, many healthcare providers in developed countries have developed electronic medical records to facilitate the delivery of quality healthcare system. "Good health is not only important for individuals, but also for governments because it plays a central role in achieving sustainable economic development and growth as well as effective use of resources" (Williams & Boren 2008 P140). Despite the importance of information systems for the organization benefits, developing countries are still facing challenges to overcome some problems such as software and hardware compatibility, quality control issues, training and antiquated infrastructure.

Previous Research regarding IS implementation Barriers

There are several barriers to the implementation of information systems. One of the barriers may come from employee within an organization. Employees may resist the implementation of information systems if there is a general believe that IS implementation may lead to the massive layoff or jeopardize financial performances of the company. Employees are very important for the organization performances. Before IS implementation, organizations are required to engage the internal stakeholders in the IS implementation to enhance successful implementation of the information systems. Furuholt, (2006) argues that lack of management engagement to the acceptance of information systems has been a barrier to the implementation of information systems. The issues are even common with organizations in the developing countries where management does not give enough priority to the information systems implementation. Importantly, implementation of information systems requires management support since management will need to approve fund that would be used for IS implementation. Generally, younger people are more interested in the it tools than older people. In a situation where number of older working team outnumbers younger working team within an organization, the IS implementation may be cumbersome.

More importantly, lack of knowledge of information systems may serve as barrier to its implementation. In the developed countries, private and public organizations have already aware the importance of information systems to the organizations. Many organizations in developed countries already realize that it tool is a strategic weapon that organizations employ to achieve competitive advantages. "Organizations investing in information technology (it) over the past decades have categorically seen the uses of it change. At one point, it was considered a key strategic tool to gain competitive advantage." (Knight & Radosevich 2011 P. 1).

Contrarily, many public and private organizations in developing countries have yet to understand the importance of information systems. Typically, management in developing countries still lack knowledge on the importance of information systems to the organizational performances. (Wilson, 991). Based on the identification of barriers to the implementation of information systems, there are issues that need to be considered before embarking on the implementation of information systems.

General issues affecting IS adoption and implementation

The most important issue affecting the implementation of information systems is finance. Furuholt, (2006) argue that finance is very critical for the successful implementation of information systems. In many developing countries, poor management of country resources often has impact on the implementation of information systems. Moreover, efficient organizational structure is very critical to the implementation of information systems. More importantly, skilled and efficient personnel are very important in the implementation of information systems. Typically, it tools are to be run by people skilled in it and management. Organization needs to be manned with articulate people versatile in management technique to achieve IS success. Poor organizational management is one the critical factor that could affect the IS implementation. If an organization is managed by incompetent group of personnel, the IS implementation will be problematic.

Similar to other developing countries, there are many factors affecting the information systems implementation in Libya.

Factors affecting Information systems implementation in Libya

"E-Government services represent a fundamental shift in the design and methods of government efficiency, accountability and commitment" (Ali, 2010 P. 5) and Libya is one of the few African countries that have adopted the e-Government to achieve government efficiencies. Despite the effort of the Libyan government in the e-Government implementation, Libya is facing unique challenges with reference to the implementation of information systems which include the e-Government, e-learning, e-commerce, and ERP (Enterprises Resources Planning). Typically, "people, skills, knowledge, innovation, leadership, technology and others are an integral part of successful business and government institutions." (Ali, 2010 P14). However, the country often lacks sufficient infrastructure, expertise and resources to implement the large scale project on e-Government services.

Moreover, a large number of Libyan populations have little contact with internet and computer making the successful implementation of e-government to be cumbersome. Similar to other government around the world, Libyan government has also realized that ICT (Information and Communication Technologies) could assist them to communicate effectively with businesses and public. Thus, adoption of e-Government services has become a necessity for the Libyan government. Typically, the Libyan governments adopt the e-Government services because of the intention to survive within the global competition. The government believes that a harness of modern technology could improve the quantity and quality of the services rendered to people. Despite the Libyan government intention to implement e-government services, the transformation from the traditional to e-Government service is a complex issue because its implementation touches cultural, political, and technical aspects. Typically, there is a lack of new technology awareness in Libya making adoption of e-Government services to be challenging. In 2005, Libyan government launched its first official government website to provide information about the legislative laws and government activities, however, majority of Libyan residents do not understand the method to use internet to interact with government and as well as conducting e-commerce. Many people in Libya have little contact with computer since large number of population does not possess computer skills.

Moreover, cultural challenges are another factor affecting the implementation of information systems in Libya. Many people and government workers are still unable to change from the tradition habit to modern habit of conducting businesses. Since large percentages of population do not posses computer skills, it is often challenging to change people from using manual method of processing information to modern ICT method. Typically, implementation of e-Government is challenging in Libya because internet access costs is very high. Compared to other countries that offer internet services almost free, in Libya, the internet service providers do not often get the government support to offer large internet bandwidth making the internet costs to be very high. Thus, Libya does not have a reliable telecommunication tool making large-scale implementation of information systems in the country to be challenging. (Hamed, 2009).

Conclusion

Businesses and governments in both developed and developing countries are putting critical information online as well as using automating process to interact electronically with customers and citizens. However, the private businesses often take the lead because the world economy is gradually changing from tangible to intangible assets. The proposal focuses on the strategies to manage information systems in developing countries notably Libya. The paper explores the challenges that developing countries face in the IS implementation. The paper also examines the factors affecting IS implementation in Libya.