Question

How can a system be a technical success, but an organizational failure?

Answer 1

A system can be a technical success when it has been set up in the Organization without any loop-hole in its performance. Also the system would had been taught to the employees how to use it in an efficient manner too, which again, vouches for its success. System could also mean a certain process or an activity in place, for the employees to undertake or work upon. However, the technical success of a system may not necessarily mean that it shall also be an Organizational success.

Lets us take an example of a Banking software, ABC. The Top management believed that the Organization needs to undergo an transition and for that, it is essential to migrate to a new software called, ABC to ensure smoother operations of the Banking activities. However, a few weeks after the implementation of the technically successful ABC Software, it was learnt that the software cannot be legally operated in the country owing to certain security concerns. In this case, in spite of successfully installing the system, the some could not be carried forward because of the legal constraints. Hence an organizational failure.

In this manner, there could be various other reasons wherein the system, although technically sound, may be either obsolete in the market or not popular in the industry due to efficiency issues, legal problems, etc., thereby making it an Organizational failure, if migrated to.