Risks Associated with Business and IS/IT Change

Hubport Interactive is an IT based company that enables a business to build an imperative subsistence in the online B2C (Business-to-Consumer) space. They empower their customers' websites to attain optimum function and revolutionizes business by creating online channels to effectively connect with existing clients and successfully tap new ones. Their accomplished E-Commerce Storefront encoders, Retail Shop Managers, and Online Marketing Consultants provide the technology backbone that launch prospering and profitable websites.(http://www.hubportinteractive.com/about-us.htm)

As the interviewee say, the company started only with eight people, which is composed of six(6) developers and two(2) designers. They don't really have an IS to keep track of their business' movement. They only use one(1) computer and basic softwares for their business. Records for the deadline is aided by pen and paper. From that very simple alliance they have evolve into something big that they even reached and surpassed the boundary of the Philippines. Now, they've been working with more or less one hundred and fifty(150) staffs. The speaker added that they started establishing and using IS for their growing business in the year late 2006, particularly on the month of November.

As he has discussed that the role of IS/IT in the business is, it is the core or the backbone of their business, in which these systems keep track of their customers, old and new, and their staffs. He define IT/IS very important, that is ranging from software, which is essential for website developing and it can identify errors and split them up much faster than usual, with manual; hardware on the other hand, acts as the server and it is necessary for the staffs to have at least one(1) computer each, these hardwares are connected to each other, which is technically called networking, particularly by WAN or wide-area network, they use WAN because the company is based from the main office, which is located at the United States of America or USA, through internet; peopleware as the speaker says, are the one who develops, secures and maintains hardware and software, thus software and hardware relies on the people ware. As he said, "Hardwares would just be there without peopleware". These three things work together to uphold the business thus, enabling them to reach the full functionality of their company so they can provide the very best solution they can give for their clients and customers.
The risk associated with Information System change in Hubport Interactive.

Hubport Interactive is the same organization or company we have visited for the first assignment, which is identifying their best practices regarding Information System. Now, I would have to tackle about the risks associated with IT change in the company.

As the IT Officer enumerated, the following are the risks they would have to take when changing IS:

* Data loss
Data loss may come in two reasons, first is, the data which is stored for quite sometime will be given up for the new data. Since system's memory is limited and coming in of new data is a continuous process, they would have to delete old data and will try to use the space for the new data; a secondary reason is, changing into new IS will tend to risk their data, especially when the new system has features that won't be compatible with the old system.

* Rejection of staffs
This may also come in to two situations. First, as from what we all know that there is always resistance between technology and people, meaning people tend to deny that IS/IT is a big help when it comes to maximizing time. Thus, when a new system is implemented, staffs will tend to reject it. The staffs will choose to use the old one other than the new one. It is maybe because, they find it hard or time consuming to learn the new system without knowing that they would have a better use of their time on the future if and only if they give time on learning the new system. The second reason may be hiring new personnel who knows best regarding the new IS, will push the company to ask the old IS personnel to resign, which is a very critical choice. It may be a bad move but that's business, the company will have to hire people or staffs who have a better understanding of what the position their trying to fill and reject those who are not needed.

Further problem with regards to rejection of staff/s may also give high risk regarding the cost of the new personnel. This may push the company to pay bigger amount than the older system and personnel.