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Objective eyes in large IT-projects: Making sense of the expertise
Jönköping University, Jönköping International Business School.
Jönköping University, Jönköping International Business School, JIBS, EMM (Entrepreneurship, Marketing, Management).
2006 (English)Independent thesis Advanced level (degree of Magister), 10 points / 15 hpStudent thesis
Abstract [en]

Introduction: Over half of the Swedish IT-projects get delayed and more expensive than budgeted. Large corporations and governmental institutions stand before the process of investigating in new IT-systems in intervals of three to five years. In order to decrease the cost, an external consultant with large experience in IT-purchases could be used by the customers. These consultants does today work solely for the customers, helping them to find the best solution. We want to see if an external consultant instead could act as an inde-pendent moderator between the supplier and customer in the IT-systems lifecycle.

Purpose: The purpose of this study is to describe and analyze problems and possible solutions related to the involvement of third party consultants in larger IT-projects. In particular, we will investigate when and where in the project cycle it could be beneficial to use an independent moderator.

Method: We have conducted semi-structured interviews with six organizations to get an understanding about consultants in IT-projects. Four of the interviewed were IT-managers at organizations were large IT-systems are bought and implemented. Then, two of the in-terviewed represented the supplier companies that sell large IT-systems.

Frame of reference: Transaction cost theory and agency theory has been used. Transac-tion cost theory is a theory on whether you should conduct the service internally or purchase it from external firms. Agency theory describes problems in the relationship between a principal and an agent. The agent has a diversified interest towards the principal. In our case, the agent is a consultant.

Conclusion: The implementation phase benefits from using an external moderator who monitors what the customer needs, and then in a continuous interval measures if the project is aligning towards the stated goal. This can lower the failure of information and identify problem areas early and thereby prevent costly adjustments later in the project. An in-dependent moderator with a high degree of routine and specific knowledge could enhance communication, create a better fit of the implemented system and foresee opportunistic advices from suppliers. In the pre-study phase there are benefits for the customer with evaluating the need, stating specific demands and define a clear goal.

Place, publisher, year, edition, pages
2006. , p. 55
Keywords [en]
Consultants, Transaction cost theory, Agency theory
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-519OAI: oai:DiVA.org:hj-519DiVA, id: diva2:4229
Uppsok
samhälle/juridik
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Available from: 2006-08-10 Created: 2006-08-10

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Jönköping International Business SchoolJIBS, EMM (Entrepreneurship, Marketing, Management)
Business Administration

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf