Abstract

Information systems (IS) are strategic in so far as they are used to realize strategic intent. Yet, while much has been said about aligning IS functionality with the strategic intent and how to organizationally implement strategically aligned systems, less is known of how to successfully implement strategic change associated with system use – a truly critical challenge within strategic IS implementation. Drawing on a strategy-as-practice perspective we address this gap by developing a multi-dimensional view of IS strategy, conceptualizing three key challenges in the IS strategy process, to explain how and why a paper mill, despite successfully implementing a strategic production management system, failed to produce intended strategic change. We call this outcome strategy blindness: organizational incapability to realize the strategic intent of implemented, available system capabilities. Using a longitudinal case study we investigate how cognitive rigidity of key actors and fixed, interrelated practices shaped the implementation of the new production system. We also identify core components and dynamics that constitute a richer multi-dimensional view of the IS strategy implementation (alignment) process. In particular, we identify three salient factors that contribute to strategy blindness – mistranslation of intent, flexibility of the IT artifact and cognitive entrenchment – and discuss how they affect strategic implementation processes. We conclude by discussing implications of our findings for IS strategy theory and practice, especially the contribution of strategy-as-practice to this stream of research.

Highlights

  • Claims that strategic investments in information technology (IT) are instrumental to firms’ long-term survival are regarded as truisms

  • We review the research on strategy-as-practice and discuss the concept of cognitive entrenchment (Dane, 2010), which we argue is a common cause for the type of strategic failure we call strategy blindness

  • The mill largely operates as before. This is unexpected given that the strategic intent necessitated change to routines and values – e.g. integrating work teams across the mill and making production more flexible – and that the capabilities offered by the system appear aligned with this intent

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Summary

Introduction

Claims that strategic investments in information technology (IT) are instrumental to firms’ long-term survival are regarded as truisms. The truth behind these truisms, is that IT investments matter only as far as IT capabilities become embedded in new organizational practice (Doherty and Terry, 2009; Galliers, 2011; Markus and Robey, 2004; Peppard and Ward, 2004; Sambamurthy et al, 2003). Information systems (IS) strategies should complement high-level.

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