Selection and implementation of an information system: A General Motors case

Abstract

As part of an effort to minimize cost, a group of General Motors divisions has consolidated the disbursement function of its divisions into one central, efficient system. Before the consolidation, the divisions used different systems. A careful analysis and selection process, performed by a committed team, resulted in an effective and efficient central system that saves the company millions of dollars annually. This article follows the analysis, selection, and implementation processes of the system. An evaluation of the processes is done along the lines of four typical failures of information systems: correspondence failure, process failure, interaction failure, and expectation failure. The evaluation illustrates how a large, multi-divisional organization can avoid these failures by adhering to a few rules: secure an organizational and personal commitment to the project, involve the prospective users, ensure a managerial consensus in decision-making, use a structured selection method, and outline a realistic time-table for implementation.