|Publication:||Baschab, John; The Effective IT Organization; Baschab/Executive's; The Executive's Guide to Information Technology; 1-23; John Wiley & Sons, Inc. : Hoboken, NJ, USA|
This chapter discusses what causes senior management teams of a company having unproductive relationships with information technology (IT) departments, examining why IT managers too face trouble communicating with the senior management team. A 2001 survey by Robbins-Gioia of over 230 firms found that over a third of them were implementing an enterprise system. Fifty-one percent of those companies viewed the ERP system as unsuccessful. Every company spending money on an IT department has no choice but to grapple with these issues. Many organizations continue to throw money at the problem, escalating the issue even further. Ignoring the issues, or treating them with superficial infusions of additional investment, does not change the underlying problems. Software errors contribute to $3.45 billion tax-credit overpayment by U.K. Inland Revenue, while Hewlett-Packard Co.’s problems with ERP system contributed to $160 million loss. Customer relations management (CRM) upgrade problems led to revenue loss of $100 million for AT&T Wireless.