The implementation of an information system in a non-profit organization in a developing country

Transcription

1 The implementation of an information system in a non-profit organization in a developing country Challenges and essential factors to take into consideration in the preliminary work and implementation process Author: Sebastian Kastrup Nielsen Supervisor: Per Svejvig

2 ABSTRACT In non-profit organizations, the use of information systems is not widespread in developing countries. Essential causes are weak financial situations, lack of resources, no experience with information systems, and a difficulty in seeing the potential of information systems for the organization. This thesis makes a step towards successful information system implementations for non-profit organizations in developing countries. Information systems have proven to be differentiating for organizations as a whole and this differentiation is possible in developing countries as well. One approach to this topic could be theoretical - but would new theories make a difference? This thesis takes an action research approach for two reasons: 1. There is a research gap in usage of action research within information systems in developing countries. 2. Action research gives a practical framework, where action taking is an important part of it. Action-taking in this thesis involves a project with two outcomes for an organization from the Philippines, which is in need of an information system. The products are a requirements specification and a suggestion for an implementation process. In the process of making the requirements specification, a standard system has been found to be the best solution for the organization. Important reasons are that the risk is lower, it requires less expertise to operate, and the features needed are often generic. A non-profit organization in a developing country cannot afford to fail to implement an information system, but this can often be the case because of little expertise on the area. So the standard system is a safe startup. The suggestion for an implementation process includes scrum and project management from the Project Management Institute (PMI). The flexible and adaptive mindsets from scrum, with planning processes from the PMI, were found to give the best possible implementation process for the organization. The organization has with its lack of experience from information systems and scarce resources a need for flexibility, but the flexibility also calls for planning processes that can put some structure to the flexibility. From the process of developing the two products in this thesis, five lessons were learned: 1. Involve users in the entire process. 2. Understand the organizational and national culture. 3. There is a need for flexibility within a thoroughly planned implementation process. 4. Be aware of IT infrastructure and hardware available in the organization. 5. The management needs to be committed to the project. These learned lessons are generic and can be used, I hope, in other non-profit organizations in a developing country. Action research, the requirements specification, and the suggestion for an implementation process give together with the lessons learned a holistic view on the benefits from implementation of information systems for non-profit organizations in developing countries. Keywords: Information system, developing country, action research, implementation, non-profit organization, requirements specification.

3 1 CHAPTER(1:(INTRODUCTION(...(2! BACKGROUND!FOR!THE!STUDY!...!2! KANLUNGAN!...!2! PROBLEM!STATEMENT!...!3! DELIMITATIONS!...!3! DEFINITIONS!...!4! STRUCTURE!OF!THE!THESIS!...!5! CHAPTER(2:(THEORY(...(5! REQUIREMENTS!SPECIFICATION!...!6! IMPLEMENTATION!PROCESS!...!8! CULTURE!...!9! INFORMATION!SYSTEMS!IN!DEVELOPING!COUNTRIES!...!11! CONCLUSION!...!13! CHAPTER(3:(METHODOLOGY(...(13! INTRODUCTION!TO!METHODOLOGY!...!13! THE!SETTING!...!14! ACTION!RESEARCH!...!15! INTERPRETIVE!RESEARCH!...!17! QUALITATIVE!RESEARCH!...!18! CONCLUSION!...!19! CHAPTER(4:(DATA(COLLECTION(...(19! INTERVIEWS!...!20! DOCUMENTS!...!21! CONCLUSION!...!21! CHAPTER(5:(REQUIREMENTS(SPECIFICATION(...(22! INTRODUCTION!...!22! AS!IS!PROCESSES!...!24! SYSTEM!DEFINITION!...!28! PROBLEM!DOMAIN!...!28! APPLICATION!DOMAIN!...!30! FUNCTIONAL,!NONGFUNCTIONAL!REQUIREMENTS,!AND!DESIGN!...!33! UNFINISHED!ELEMENTS!OF!REQUIREMENTS!SPECIFICATION!...!38! CONCLUSION!...!38! CHAPTER(6:(STANDARD(SYSTEM,(PROPOSALS,(AND(CONTRACT(...(39! STANDARD!SYSTEM!VERSUS!DEVELOP!A!SYSTEM!...!39! REQUEST!FOR!PROPOSALS!...!40! CONTRACT!...!42! CONCLUSION!...!43! CHAPTER(7:(SUGGESTION(FOR(AN(IMPLEMENTATION(PROCESS(...(43! PROJECT!APPROACH!...!43! INITIATING!PROCESSES!...!45! PLANNING!PROCESSES!...!45! EXECUTING!PROCESSES!...!46! MONITORING!&!CONTROLLING!PROCESSES!...!46! CLOSING!PROCESSES!...!47! CONCLUSION!...!47! CHAPTER(8:(LESSONS(LEARNED(...(47! CHAPTER(9:(MAIN(CONCLUSION(...(49! BIBLIOGRAPHY(...(51! APPENDIX(...(54!

4 CHAPTER 1: INTRODUCTION BACKGROUND FOR THE STUDY Information systems have for many years been an inevitable part of business. They give the user the best information to do the job better and more effectively (Stair & George, 2011). Previously, it could be a competitive advantage to have an information system (Ives & Gerard, 1984) whereas today it is more often seen as a competitive necessity (Carr, 2004). This is mainly the case for businesses in general in developed countries and for large businesses in developing countries. For small businesses and non-profit organizations in developing countries, the situation is different. To them the term information system is barely known. This thesis will focus on the development of an information system for non-profit organizations in developing countries. For non-profit organizations, information systems can be not only a competitive advantage, but also a social advantage. The thesis is based on a case study and will from an action research perspective look at Kanlungan sa ERMA Ministry Inc. (Kanlungan), a non-profit organization based in Manila, Philippines. One of Kanlungan s goals for 2012 is to implement an information system. This thesis will provide the requirements specification for their information system and suggest an implementation process. Furthermore, the thesis will use Kanlungan as a case and discuss a more generic perspective on the development of information systems for non-profit organizations in developing countries. This will be elaborated upon in the problem statement. First an introduction to Kanlungan is offered. KANLUNGAN Kanlungan is a non-profit organization that operates as a child-caring agency. Kanlungan was established in 1988 in response to the growing menace of abuse and exploitation of street children in Metro Manila. While Kanlungan means sanctuary or refuge, ER-MA stands for Ermita-Malate, the former red-light district of the capital. (Kanlungan sa ERMA). Kanlungan seeks through its programs and services to meet the various needs which a street child may have. The programs and services range from street education, day centers, residential centers, a training and development center to an after-care program. At different levels, Kanlungan offers street children a chance to get a life which is worth living. For more information on Kanlungan s programs, reference is made to the brochure in appendix 1. Kanlungan seeks to find an information system that can support Kanlungan in helping the children. The process is yet to start, so the product of this thesis is the preliminary work that will help them find and implement an information system. An agreement with Kanlungan is made which is seen in appendix 12. Kanlungan has since its beginning used hard-copy files for all their child cases using many forms to fill out when they enroll a child. It has worked well for many years, but with growth comes challenges. The organization runs programs at different locations. When a staff at location B needs access to a child case from location A, the case folder often has to physically be sent from A to B. That takes time and causes delays. Easier access, sharing, and editing of the child cases are some of the main reasons for implementing an information system. Working areas like sponsors and finance will also be a part of the information system because there is a need for better communication to the sponsors and to make the financial processes more efficient. To give Kanlungan the best possible chance for a successful implementation of an information system, several factors need to be included. The following problem statement is a description of these factors. 2

5 PROBLEM STATEMENT The problem statement provides insight into the research questions which the thesis will seek to answer: How to specify, select and implement an information system in a non-profit organization in a developing country? To elaborate the research questions, the thesis will seek to answer the following questions: Considering Kanlungan s need for an information system, how could the requirements specification look like? With the cultural dimensions and learning points from other studies in mind, what will be the best possible implementation process for Kanlungan? What are the lessons learned from the development of the requirements specification and implementation process that can be used in relation to information systems in non-profit organizations in other developing countries? Two research reasons underlie the problem statement. In the research field for information systems in developing countries there is a research gap for action research and use of information systems in developing countries in general (Walsham & Sundeep, 2006). This thesis will try to fulfill these two gaps through a holistic approach when writing/creating/developing the requirements specification and when suggesting an implementation process. Both efforts are done with help from former studies and with cultural dimensions in mind. The methodology used in the thesis is action research, which will be elaborated in chapter 3. I hope the learning points from the thesis can give insight into the development of information systems in non-profit organizations in other developing countries. To make the learning points more generic, it is important to take the cultural dimensions into account (Hofstede, 1980). What gives success in the Philippines does not necessarily ensure success in Australia, South Africa, or other countries with different cultural dimensions and stages of development. It opens for a possible transfer to other organizations to know the dimensions that are present in a developing country. The thesis focuses mainly on the process prior to the implementation of an information system, and there will not be any results from the implementation. Since this is one of the delimitations of this thesis, it is my wish that more research will be made on the benefits of information system implementations in non-profit organizations in developing countries, DELIMITATIONS The delimitations are areas that could be relevant for the thesis, but they are not included because of the limited time and the length of the thesis. The use of information systems in developing countries is a wide-scoped subject with many angles of approaches. The important part of this thesis is that it is an action research approach that pursues to help Kanlungan, and other non-profit organizations in the same situation, through a requirements specification and through a suggested implementation process. What the thesis will not cover is the actual implementation and the evaluation of the implementation of the information system at Kanlungan. This also means that project management elements are not elaborated in detail, but are included at an overall level. To keep the content focused and relevant, the thesis will not cover topics such as data quality, risk management, prototype, interface, or architectural design, and it will only briefly touch on contracts and the tendering process. 3

6 DEFINITIONS Throughout the thesis, several terms will be used. To ensure consistency, the terms are defined here. INFORMATION SYSTEM The reference used for the definition of an information system is Buckingham et al (2008): Information system is a system which assembles, stores, processes and delivers information relevant to an organization (or to society), in such a way that the information is accessible and useful to those who wish to use it, including managers, staff, clients and citizens. An information system is a human activity (social) system which may or may not involve the use of computer systems Kanlungan has an information system already. The Excel sheets and Word documents which they are currently using is an information system because they store information that can be used for those who want it. It involves software (Excel or Word) on a computer (stand-alone PC). This thesis focuses on the implementation of an information system that still uses software on a computer but does it at a more advanced level, supporting the processes at Kanlungan so the data can become valuable information. This involves advanced software including a database accessible to all users. When the term information system is used, it therefore refers to the new and advanced information system. The definition of an information system is versatile because of the diversity of these types of systems. CHILD The term child refers to children, 3-23 years of age, who are in need of special protection and have been referred to or have availed themselves of the various programs and services of Kanlungan. Kanlungan also uses the term client in some of their material. For consistency reasons, the term child is used throughout the thesis. NON-PROFIT ORGANIZATION Kanlungan refers to itself as a non-profit organization (NPO), but also as a non-governmental organization (NGO). A NPO refers to an organization that has the focus on achieving its goals. Surplus is not a goal in itself. A NGO works independently of governments. Therefore, a non-profit organization can also be referred to as a non-governmental organization if it is independent of a government, which is the case with Kanlungan (Shah, 2005). In this thesis, I will only refer to Kanlungan as a non-profit organization. DEVELOPING COUNTRY There is no clear definition of a developing country but this thesis takes the Human Development Index (HDI) published by United Nations Development Program in the Human Development Report for 2011 (United Nations Development Program, 2011) as a starting point. HDI includes parameters like poverty, education, reading and writing proficiency, health conditions, and many other parameters which give a complete and complex picture of a country. This is the reason for choosing HDI. In the HDI, the Philippines ranks as number 112 and is therefore categorized as a developing country. This is the foundation for calling the Philippines a developing country and the reason for using it in this thesis. Denmark, where this thesis is produced, is rated as no. 16 in the HDI index. SPONSOR Kanlungan has both sponsors and benefactors that contribute to Kanlungan s funding and programs. To avoid confusion, it is chosen only to use the term sponsor in the thesis. 4

7 PROGRAM To make it easier for Kanlungan to use and understand the requirements specification and the thesis in general, it is chosen to use their own terminology, which is the reason for using the term programs. In an IT context, it could be understood as a type of software, but in this case it is used as a collective name for the various programs that Kanlungan is running; e.g. the Open Day Center, Farm Development Project, etc. Program is therefore used in a broad sense. SUPPLIER In the thesis, the term supplier will be used multiple times, and it refers to the software supplier that delivers the information system to Kanlungan. STRUCTURE OF THE THESIS As a point of departure, the problem statement and key terms are now defined. Secondly, a review of various literature, focusing on developing countries, requirements specifications, implementation processes and culture, will be made. This is to get a profound knowledge of the most relevant studies and theories on these topics. The theories provide tools to analyze the case, and they give knowledge that helps to make qualified choices. Therefore, the theory chapter is necessary in order to get a solid foundation when writing the requirements specification and the suggestions for Kanlungan s implementation process. Culture will be an on-going theme to make the thesis relevant for the Filipino context. The approach to developing the requirements specification and the implementation process is described in the methodology chapter where action research sheds light on how this study is accomplished. Thereafter, the actual product of this thesis is examined, i.e. the requirements specification and suggestions for an implementation process. This is followed by a more general discussion in the lessons learned chapter. CHAPTER 2: THEORY In this chapter, I will go through a literature review, which covers four theory parts: IS in developing countries, requirements specification and implementation processes. The knowledge about culture is used as an optic that is used to understand the other theories in a cultural context. The cornerstone of this thesis is the requirements specification and the suggestion for an implementation process as illustrated in figure 1. It shows the output that Kanlungan needs e.g. the goal with this thesis. What is outside the dotted lines are the means to reach the goal. The elements outside the dotted lines are theories and background information about information systems in developing countries, requirements specification and FIGURE 1. THE ROLE THE THEORY HAS IN THE DEVELOPMENT OF THE REQUIREMENTS SPECIFICATION AND IMPLEMENTATION PROCESS. 5

8 implementation processes. These provide the necessary insight to make the requirements specification and suggest an implementation process. Still, it is essential to use the theories in relation to the cultural context. Therefore, the theories need to be read and interpreted through a cultural filter, which is illustrated as the blue box in the top. Some parts of the theories do not have to be read in a cultural context, so they can have directly influence on the requirements specification and implementation process. REQUIREMENTS SPECIFICATION The requirements specification serves as an analysis of needs (Lauesen, 2002). In this case, the purpose of the requirements specification is to analyze Kanlungan and it s needs in relation to an information system. It describes the content for the system in a language that a supplier understands. The purpose of a requirements specification is to ensure coherence between Kanlungan s expectations and what they get from the supplier. The approach of making a requirements specification is taken from Mathiassen, Munk-Madsen, Nielsen & Stage (2000) because this approach gives good tools to develop smart and thorough requirements specifications and has an object-oriented approach with a clear structure. Making a requirements specification is proven to be important, but it is also a difficult task within system development (Lauesen, 2002: 1). It needs to be handled with due care. In the process of making a requirements specification, close collaboration is important. In this case, I am located in Denmark during the writing process. The collaboration is therefore limited and it rests on my previous work at Kanlungan and the trust that we established at that time. In my previous job at Kanlungan I was working as a volunteer. From January to May in 2009 I was volunteering at Kanlungan helping in one of Kanlungan s residential centers and one of the day centers. During Christmas and New Year 2011/2012 I was also on a 3-week visit at Kanlungan. My working areas are described in chapter 3. The requirements specification serves as a solid basis for the coming implementation process but it still needs to be further developed together with Kanlungan, after the thesis has been handed in. The geographic distance also gives challenges when exchanging information, because I cannot always get the information needed at the time when it is needed. This process has forced me to be proactive, far-sighted and to plan ahead of schedule. It has helped me, though, to be very precise about the information requested. The content of the requirements specification will among other things involve an understanding for the scope through a rich picture, process views, classes, functional requirements, non-functional requirements and use cases. The content gives the best process of developing the requirements specification. The content is elaborated in the following. SCOPE, RICH PICTURE AND PROCESSES When starting a project, the scope always needs to be defined. The scope helps to understand what should be excluded and what should be included (Lauesen, 2002: 292). It also serves as a matching of expectations, because it is decided in a dialogue how comprehensive the system should be. This ensures a common direction. The scope is often a text only, but in this case the text is complemented by a visual scope through a rich picture. A rich picture gives my own subjective understanding of the situation at Kanlungan and helps to know the context and what is included in the project, e.g. the scope. In other words, the rich picture is an informal drawing (Mathiassen, Munk-Madsen, Nielsen, & Stage, 2000: 26) and can be interpreted in various ways. The appurtenant text to the rich picture makes it clear what thoughts I have behind the rich picture. But the full understanding of Kanlungan does not come with a rich picture alone. An understanding of the processes is necessary as well. 6

9 When making a process view of Kanlungan, the level of understanding increases compared to the rich picture. The rich picture shows what Kanlungan does, whereas the processes help to understand how they do it. To find a system that matches Kanlungan, an understanding of the as-is processes is essential. The as-is processes describe the working processes as they are at Kanlungan now. The method for diagramming the processes is horizontal rows called swim lanes (Harmon, 2007: 236) which can be divided into organizational departments, roles etc. They are characterized by being very user-friendly since they are easy to understand and to convert into action. At first, the plan was to use EPC (Microsoft) as diagramming method. EPC can be confusing, because the connection between the processes can be difficult to cope with. Therefore, since it is important that Kanlungan fully understands the project from A to B, swim lanes are used. SYSTEM DEFINITION, PROBLEM DOMAIN, AND APPLICATION DOMAIN When choosing an information system, it is essential to take a step back and ask questions like: What problems will we solve with the system? Is our planning of the system effected by what we think is the best solution? The system definition gives an insight into the system in its context and is defined as follows: A concise description of a computerized system expressed in natural language (Mathiassen, Munk-Madsen, Nielsen, & Stage, 2000: 24). It is used in the thesis to have an: indispensable foundation for continuing analysis and design activities. (Mathiassen, Munk- Madsen, Nielsen, & Stage, 2000: 24). The scope, rich picture, and as-is processes therefore guide the writing of the system definition. It gives knowledge of where we are and where we want to go. The system definition also helps to compare information systems, which is important, especially here, where it is chosen to implement a standard system of reasons that are described in chapter 6. When starting a process of wanting to implement an information system, a decision that always needs to be made is whether to choose between a standard system (also called COTS (Lauesen, 2002: 9)) or having a supplier to develop a system from the beginning. It could be a project with inhouse development, product development, tender (often used), etc., but the focus is on standard systems. A standard system is an information system that has been developed by a supplier and is sold on a license basis to give access to use the system. The various standard systems can be compared through the system definition (Lauesen, 2002: 8). It is not sufficient to choose a system based on the system definition. Therefore, the problem domain and application domain are analyzed. The problem domain shows: the real world, as future users will see it. (Mathiassen, Munk-Madsen, Nielsen, & Stage, 2000: 45). With a tender project for example, where Kanlungan sends out requests upon which suppliers can submit their proposals, the content of the problem domain analysis would be classes, behavior and structure, e.g. a full requirements specification. But the content in this requirements specification is limited to classes. The classes are objects like the children Clark and Selma for example are individual objects, but they can also be classified and put into one common category; child. The reason for the focus on classes is that the best solution for Kanlungan is found to be a standard system. With a standard system, it will not make sense to describe how the structure and behavior should be, because this is already incorporated in a standard system. The classes are relevant, because they are key elements when knowing if a system matches Kanlungan. Kanlungan can more easily adjust the structure and behavior to make it match the information system. Where the problem domain gives insight into what information will be handled in the system, the application domain focuses on how the system should be used. The application domain is specified through a determination of what type of actors and use cases there are. An actor is a user that interacts with the system in this case often a staff member from Kanlungan. Use cases are patterns for the interaction between actors and the system. When the use cases are determined they can be connected in a use case diagram, where the interaction between the use cases and the actors is seen. The notation in the requirements specification is based on Unified Modeling Language (Harmon, 2007: 232) since it is one of the most well-known and well-used notation methods in modeling. It is also known in the Philippines. 7

10 There will be some overlapping between the use cases and the events from the problem domain, but it still gives different perspectives as to what information the system should contain and how it should handle it. FUNCTIONAL REQUIREMENTS AND NON-FUNCTIONAL REQUIREMENTS Functional requirements describe what data should be used for; how it can be transformed into useful information. So the functional requirements specify what the information system should be able to do in an interaction with users. An example of a functional requirement is that an information system should have a search function. To have efficient functions, it is important with a strong user interface because the functions will be shown through the interface (Lauesen, 2002: 71). The interface is also affected by the non-functional requirements, and they will be identified as well. The non-functional requirements describe how the performance on the functions in the information system should be. It could for example be the response time. Again, it would be ideal to include the users throughout the process, but instead of this on-going involvement, the users will be involved in a retrospective evaluation. With the described content of the requirements specification, Kanlungan will have a requirements specification that goes in depth with the understanding of Kanlungan and the future system, and still be a good mix of details and overview; from the insight into what Kanlungan is, to what system they will have, how the model of the system should look like, how the use of it is and, finally, what one should be able to do within the system and how efficiently it should be done. IMPLEMENTATION PROCESS An implementation process is the execution of a strategy or plan for a project. In this case: the steps that Kanlungan will go through when implementing a new information system. This section will look at literature and theories that can help when suggesting an implementation process for Kanlungan. I will look at factors that influence the implementation process, explain a lifecycle model that follows beneficial principles and finally use good practice planning processes. This together gives a project approach. Implementing an information system is difficult. Newell (2003) writes that only % get the return they expected from implementing a Customer Relationship Management (CRM) system. A CRM system is an example of an information system, and it has some similar characteristic in relation to what Kanlungan needs, which will be elaborated in chapter 5. When implementing an information system in a developing country, it gets even harder because there are other factors to be aware of, for example the level of IT knowledge. Therefore, there has to be an implementation process that step-by-step guides Kanlungan to a successful use of the new information system. The implementation process can take a lifecycle model as its point of departure. An example of a typical lifecycle model is the waterfall model, which has different phases that are followed sequentially, but with the possibility for feedback in the modified waterfall model (Guntamukkala, Wen, & Tarn, 2006). The waterfall model was one of the first lifecycle models, but today we have several models to choose among. Some of them are code-and-fix, spiral, evolutionary prototyping, and scrum (Guntamukkala, Wen, & Tarn, 2006). What is characteristic for the newer lifecycle models is that they split the project into smaller iterations and are more iterative and adjustable. In the waterfall model, the steps are to be followed as they are put in sequence. In the newer models, the phases can vary a lot, if there are any phases at all. In this thesis, the project approach to be used in the implementation process is a combination between scrum and phases from the Project Management Institute (Project Management Institute, 2008). Scrum focuses on the entire lifecycle of developing software, but here the focus is on the process after the software is developed. Therefore, a combination is needed because scrum is not very strong in the implementation phase. 8

11 A scrum project starts with a vision for the system that is to be developed (Schwaber, 2004). The work in scrum is done in sprints. The sprints are iterations of 30 calendar days, which are started with a planning meeting. At the planning meeting, the highest priority in the Product Backlog is chosen. The Product Backlog is a list of functional and non-functional requirements. When the 30- day sprint is started, there is a daily scrum meeting where the following questions are answered: What have you done on this project since the last Daily Scrum meeting? What do you plan on doing on this project between now and the next Daily Scrum meeting? What impediments stand in the way of you meeting your commitments to this Sprint and this project? (Schwaber, 2004: chapter 1). Scrum could be elaborated much more, but for Kanlungan, the important aspect of scrum is the thoughts behind scrum, the iterative and flexible mindset with daily follow-up to get the work done. This gives the possibility for on-going adjustments so the project does not go too far in a wrong direction. Imagine a situation, where a problem occurs with the education of the users. They still do not know how to use it and the plan therefor needs to be adjusted. At the daily meeting the situation is talked through and a strategy is made to increase the knowledge of the system. Kanlungan does not have any experience with the implementation of information systems. A more fixed planning model is therefore needed, so they have something more tangible to relate to. The Project Management Institute has made the PMBOK guide as a result of realizing that project management is difficult. They have gathered processes, skills, tools and techniques that are recognized as good practice (Project Management Institute, 2008). This means that they are applicable to most projects. I have decided to include the process groups from the PMBOK guide. The processes are described and elaborated in the suggestion for implementation process (chapter 7) because it gives the best understanding for Kanlungan and the reader to explain the process, where they can be related to other theories. Therefore, it is chosen to combine the lifecycle model scrum with processes from the PMBOK guide because it gives the project a point of departure for the implementation with tools that can be beneficial to Kanlungan in its context and situation. This I choose to call the project approach. The approach helps to improve the efficiency and effectiveness in the implementation process. There is a guideline for how to do the implementation. What should be done is planned between the supplier and Kanlungan. When choosing an approach to the implementation, the factors that can cause failure should be taken into consideration. This requires an understanding of the organization and the context in which the information system is implemented, where the culture is an important part of the context when suggesting an approach. CULTURE It is not possible to ignore the cultural aspect when doing research in a country different to the one which you originate from yourself. The following section is a description of how culture is understood within this thesis, and which factors will be taken into account when analyzing the need for an information system and suggesting the implementation process. Cultural differences can be found even in countries that apparently look similar. Hofstede (1981) defines culture as follows: Culture is the collective programming of the human mind that distinguishes the members of one human group from those of another. Culture in this sense is a system of collectively held values. 9

12 It is difficult to determine all the cultural differences, the collectively held values, between for example Denmark and the Philippines. But several cultural dimensions have been developed for the sake of understanding the cultures that we live in. Hofstede developed 5 dimensions in 1980, which for the Philippines can be seen in figure 2, Denmark in figure 3 and Malaysia in figure 4. New dimensions have been examined since 1980, but Hofstede s 5 dimensions are still widely acknowledged and used. Denmark is chosen because I am from Denmark, and Malaysia because a study used in the thesis is from Malaysia. The study from Malaysia is described later in this chapter. In the following, you will find an exposition of the Hofstede s 5 cultural dimensions. FIGURE 2. THE SCORE IN THE FIVE CULTURAL DIMENSIONS IN THE PHILIPPINES (HOFSTEDE 1980). POWER DISTANCE (PDI) Power distance refers to the inequalities in society. With a high power distance level, people in the Philippines expect and accept unequal distribution of power. It is a hierarchical society where subordinates expect to be told by the leader what to do (Hofstede, 1980). The situation is the same in Malaysia with the score 104, whereas Denmark has low power distance with a score of 18. In Denmark, there is high employee autonomy and employees expect to be coached. Even though the national culture gives an indication of how the organizational culture is at Kanlungan, my experience was that there is a higher level of autonomy among the staff at Kanlungan than seen elsewhere in the Philippines. One of the reasons can be that Kanlungan is based on Christian values, where everyone is an equal part of the body (Paul, 2011). INDIVIDUALISM (IDV) Individualism refers to the degree of interdependence in society and defines whether people have a self-image that is defined as we or I. When the self-image is defined as we, it is a collectivistic country, where people take care of each other (Hofstede, 1980). With a score of 32, this is the case for the Philippines and also for Malaysia with a score of 26. In Denmark, with a score of 74, it is expected that you take care of yourself. FIGUR 3. THE SCORE IN THE FIVE CULTURAL DIMENSIONS IN DENMARK (HOFSTEDE 1980). MASCULINITY (MAS) Masculinity indicates the level of how society is driven by competition, achievement and success. With a low masculinity (femininity) level, the dominant values are instead caring for each other and quality of life (Hofstede, 1980). With a score of 64 the Philippines is a masculine country, where people live in order to work. The score is a bit lower in Malaysia, but still comparable to the Philippines, whereas Denmark with a score of 16 focuses on having a work/life balance. 10

13 UNCERTAINTY AVOIDANCE (UAI) Uncertainty avoidance has to do with the level of uncertainty of the future that people can cope with. With a score of 44, people in the Philippines are more relaxed towards changes, and schedules are flexible, but they cannot cope with huge changes. The adjustment to changes is easier in Malaysia and Denmark because of the lower uncertainty avoidance in those two countries. LONG-TERM ORIENTATION (LTO) Long-term orientation relates to how futureoriented people are. With a score of 19, people in the Philippines are very short-term oriented. The research has not been done in Malaysia, which is why they do not have any score on that dimension. Since the other dimension scores are close to the Philippines, it must be assumed FIGURE 4. THE SCORE IN THE FIVE CULTURAL DIMENSIONS IN MALAYSIA (HOFSTEDE 1980). that a Malaysian score on long-term orientation would have been close to the Philippine score. Denmark is also considered a short-term country, with a score at 46, but closer, though, to the middle. This implies that people from the Philippines find it more difficult to think of the future in a longer perspective, contrary to Denmark where visions are widely used. Therefore, it can be difficult for the staffs from Kanlungan to see the positive sides of an information system, if it does not benefit them in the short run. In the beginning of the implementation of the information system for Kanlungan, there will occur difficulties because of the learning curve. In those situations, it is essential to explicitly explain how and why Kanlungan, and thereby the children, can benefit from the information system. All the cultural dimensions have implications for the implementation of an information system in a non-profit organization in the Philippines, which will be elaborated, mostly in chapter 7. INFORMATION SYSTEMS IN DEVELOPING COUNTRIES Several studies have been made on the topic information systems in developing countries throughout the years, and some of them are relevant for this thesis. This section will deal with one of the studies, which gives insight into important issues when implementing an information system in a developing country. Mohtasebi (2011) gives in the book Failure Elements of Implementing CRM Systems in Malaysian Enterprises reasons to why CRM fails to work in a developing country like Malaysia. The analysis is very relevant for the Philippines, because the cultural dimensions are comparable between the Philippines and Malaysia. Even though Malaysia ranks higher on the HDI, as number 61, it can still be considered a developing country. It is a more developed country than the Philippines, and the report deals with enterprises and not with non-profit organizations. There can thus be issues that require attention when comparing the two countries and enterprises versus Kanlungan. Some of the functions that Kanlungan needs are in some way similar to the functions in a CRM system. A CRM system focuses on the clients, which in most cases are customers. It helps an organization to understand the clients, their needs and their demands (Paas & Kuijlen, 2001). But what is most comparable with Kanlungan s needs is that a CRM system keeps an overview of all clients and can keep track of the development with the client. This is one of the main functions that Kanlungan needs as well. So lessons learned from a CRM implementation can also be used in the 11

14 case with Kanlungan. The failure elements in Malaysian enterprises give an awareness of what risks there can be for Kanlungan. The study is a quantitative study that bears mark by a Master s thesis. There can be issues that are not touched on, because there have not been any qualitative research. And the standard of the book is not at level with what one would normally see in research in general. Even though there should be taken some precautions with the use of this study, it is still found to be relevant and useful in this thesis. A reason is that the failure elements are found in other studies as well. The research done in Malaysia by Mohtasebi (2011) resulted in a category and elements ranking of failure issues. The categories were found in a literature review from other major studies (Newell, 2003). The failure issues are experienced in several implementations of information systems. Awareness towards these issues makes it easier to avoid them. The categories and elements are ranked as seen in table 1. Category (ranked) Element (ranked) 1. Strategy Issues 1) Lack of strategy alignment 2) Lack of IT strategy 3) Lack of CRM alignment with business needs 2. Execution Issues 1) Poor planning and ineffective project management 2) Lack of skills + lack of user involvement 3) Budget problem 3. Managerial Issues 1) Lack of top management commitment 2) Lack of organizational change program 3) Company politics and inertia 4. Evaluation Method and 1) Difference between metrics for adapting and evaluation Requirement Study 2) Bad advice 5. Technical Issues 1) Software and infrastructure problems TABLE 1. ISSUES FOR FAILURE IN CRM IMPLEMENTATIONS IN MALAYSIAN ENTERPRISES (MOHTASEBI, 2011) Kanlungan needs to be aware of these failure issues. It can be used in this thesis to know what to put extra effort into during the implementation process. The issues regarding the strategy alignment, IT strategy and top management commitment are difficult to handle from Denmark. But what can be done thoroughly is to make a good planning for the execution process. More generally, make a thorough planning so Kanlungan can avoid risks and be prepared for what it is possible to be prepared for. Another finding which Mohtasebi (2011: 81) did was in an interview where he was told that small and medium enterprises can have difficulties in finding low-cost and easy-to-install information systems which is exactly what Kanlungan needs. They do not need a very complex information system. This means that it can be difficult for Kanlungan to find an information system that meets their requirements or is possible to pay for. 12

15 The study from Mohtasebi is the main study of information systems in developing countries because it has the most relevant content and conclusions that are useful for Kanlungan. Besides this study, several articles on the same topic will be referred to in chapter 7 to give insights that can benefit Kanlungan in the process of the implementation. This is necessary in order to give a varied picture of information systems in developing countries. CONCLUSION Knowledge is gained when spending time on a literature review. It can help avoiding to reinvent the wheel because several studies are already made on the topic. It can serve as inspiration. Most of the theory described in this chapter is the foundation for the thesis, because it comprises theories that will be put together as pieces in a puzzle during the following chapters, and the puzzle cannot be finished without one of the pieces. The pieces in this chapter have given tools that can help to make the requirements specification for Kanlungan. It has also given a project approach that will be used as a point of departure for the implementation process. There are lessons learned from other studies in developing countries, which can improve the implementation process. These are essential theories without which the products of this thesis cannot be made. But what makes it relevant and even more useful for Kanlungan are the cultural dimensions, which help to see the other theories in a new perspective so that they make sense, also in a Filipino context. The literature review also helped to identify methods that could serve as inspiration for the methodology in chapter 3. CHAPTER 3: METHODOLOGY INTRODUCTION TO METHODOLOGY The methodology in this thesis is a guideline on how the challenges with the implementation of the information system can be solved. It is a systematic way of approaching the challenge and helps a thesis to be valid and reliable, because the methods lay the foundation for a thesis that can give the best possible result for Kanlungan and the scientific world. The framework for the methodology in this thesis consists of the different methodologies. The first methodology is action research, which sets the direction to make changes for Kanlungan that the organization and the children in Manila can benefit from. Action research requires one to be a part of the field, which can be done in different ways. I will use interpretive research where I am a part of the research field and interact with Kanlungan. This is because I have lived in Manila myself and been a part of Kanlungan s work. The action research is the framework and overall methodology, FIGURE 5. THE FIGURE SHOWS THE CONNECTION BETWEEN THE METHODOLOGIES USED. THEY COMPLEMENT EACH OTHER AND POINT IN THE SAME DIRECTION. 13

16 whereas the interpretive research is the approach to the field. This is seen in figure 5. To realize the research, semi-standardized interviews are needed together with a collection of documents. These are qualitative methods (Flick, 2009). The connection between the methodologies can give the data and approaches that are needed to make the project possible. Why the different methodologies are chosen, and how they will be carried out, is explained later in this chapter. First, it is good to know the setting of the thesis. THE SETTING The introduction in the thesis gave a short insight into Kanlungan. I will here give some more facts on how the setting is on the location, where I will implement the project (Alber, 2011). Kanlungan has its main office in Manila, which is the largest city in the Philippines with thousands of street children. Kanlungan is a Christian organization, which is also seen in the mission statement: To serve, protect and develop children in need of special protection and their families through a holistic approach and Christian care to improve their quality of life and well-being. (Kanlungan) This is the mission that this thesis will support and try to help realize with the information system. My volunteer period gave me an understanding for the mission and Kanlungan s work in general. During the volunteer period, I helped with basic teaching, conducted activities, had a choir, and assisted in the office whenever needed. It gave me valuable insight into the organization and its working procedures and processes. But most importantly I discovered during my volunteer period what a difference Kanlungan does for children in Manila, and I know that Kanlungan is able to help even more through an optimization of the time they use on paperwork. The following table gives an overview of the staff and children that Kanlungan has registered at the different programs. Program Street Education Program Number of Children *300+ (approximate number of children/young people reached out annually) Number of Staff 2 Open Day Center *350+ (approximate number of children reached out annually, *40-65 daily) 3 Tunasan Community Center During weekdays average of kids; Except Thursday around 30 children. Total of 286+ reached out annually 2 Residential Care and Training Center Level 1 Residential Care and Training Center Level 2; Girls Home Residential Care and Training Center Level 2; Boys Home Kanlungan Farm House (Learning, Training and Development Center) 17 (as of March 10, 2012) After-Care Program 16 1 TABLE 2. ISSUES FOR FAILURE IN CRM IMPLEMENTATIONS IN MALAYSIAN ENTERPRISES (MOHTASEBI, 2011) 14

17 As can be seen in table 2, the total number of staff members is 19, but there is also an administration staff of 4 persons. The age of the staff members ranges between 21 and around 60. All, except the housefathers/housemothers that take care of the household, have an education that for most of the staff is an education as a social worker. Some have an education as an alternative educator or health worker. Social work, alternative education, and health work are the various working areas that the staff members find themselves in. The time frame of the thesis is from February 1 st 2012 to May 1 st. There are two target groups for the thesis. The one is Kanlungan, which will use the requirements specification and suggestion for the implementation process. The other target group is the scientific world, which hopefully can use the thesis as a whole, and as an example of a case study conducted in a developing country. It is my hope that some of the results from the thesis can be used on other non-profit organizations in developing countries. Even though it is only a single-case study, it can still be used to contribute to scientific development. The reason is that in many places you can find organizations like Kanlungan that deal with human affairs (Flyvbjerg, 2006). It is central that the thesis is trustworthy, and with the methodology used it is desired to make a procedure that creates trust. So the single case can be used to give indications of how reality is, but not to say that something is certain. With the settings set, the focus can be turned to action research. ACTION RESEARCH Action research is an important part of this thesis. One can make a thesis that focuses on giving new information or making change to society or an organization. The focus here will be on the change that comes with an information system implemented at Kanlungan. To have the best possible work progress for the thesis, action research is chosen as the foundation for the process. The reason is that action research has strong focus on the employment of knowledge and development, so what is important is not the methods used but how the methods are used. The action research in this thesis takes as starting point the definition by Hult and Lenning (1980: 247): Action research simultaneously assists in practical problem-solving and expands scientific knowledge, as well as enhances the competencies of the respective actors, being performed collaboratively in an immediate situation using data feedback in a cyclical process aiming at an increased understanding of a given social situation, primarily applicable for the understanding of change processes in social systems and undertaken within a mutually acceptable ethical framework. The two main functions of action research are problem-solving and simultaneously contribute to science. The purpose of this thesis is to solve problems with knowledge sharing, among other things at Kanlungan, through an information system and help with the implementation process. This can simultaneously be used to gain scientific knowledge about how to specify, select and implement an information system in a non-profit organization in a developing country. From the definition of action research, the thesis should also serve as a learning process for both Kanlungan and me, which are two of the participants. The content of the thesis is unfortunately focused on the process before Kanlungan gets deeply involved in the project because of my location in Denmark. It will mostly be later in the search for and implementation of the information system that Kanlungan will be involved in collaborative work, where they will enhance their competencies. Most of the work behind this thesis is in my hands, but it will of course not be fulfilled without the approval from Kanlungan. The fact that the thesis is produced in Denmark, however, makes the collaborative part difficult. More information on how the collaboration has been in the development of the thesis between Kanlungan and me is described in chapter 4. 15