Overview

An interesting phenomenon occurs with information technology. Companies invest millions of dollars in computer hardware and application software. Technology users, however, eschew these powerful tools for the spreadsheet technology in one of its simplest and least expensive forms. Executives are disappointed that the anticipated performance improvements and financial benefits from their technology investments are not achieved.

One cause of the phenomenon is that executives all too often are looking for the Holy Grail a one-step solution to their companies' performance problems. They look to technology more than people and processes for the solution. Once the technology is implemented, executives expect people and processes to fall in place.

In reality, it does not work that way. Technology users are looking for software that is easy to use and supports how they currently get their work done. If it does not, they find ways to work around the technology. The end result? Disappointment all around.

The situation described above is not isolated to companies of a specific size or industry. It is widespread throughout business today. A study by AMR Research on implementations of customer relationship management technology showed that 47 percent of the projects were in jeopardy of failing. Why? The needs of end users (employees, partners, and customers) were not considered in defining the technology requirements. ^[1]

Technology fails for other reasons as well. Some prime examples: After spending $120 million on planning technology, software incompatibility problems caused candy-maker Hershey Foods to miss or delay shipments during...