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Attention Shaping and Software Risk—A Categorical Analysis of Four Classical Risk Management Approaches

Author

Listed:
  • Kalle Lyytinen

    (Department of Computer Science and Information Systems, University of Jyväskylä, Seminaarinkatu 15, PL 35, 40350 Jyväskylä, Finland)

  • Lars Mathiassen

    (Department of Computer Science, Aalborg University, Frederik Bajers Vej 7, DK-9220 Aalborg East, Denmark)

  • Janne Ropponen

    (Nokia Telecommunications, Network Management Systems, P.O. Box 759, 33101 Tampere, Finland)

Abstract

This paper examines software risk management in a novel way, emphasizing the ways in which managers address software risks through sequential attention shaping and intervention. Software risks are interpreted as incongruent states within a socio-technical model of organizational change that includes task, structure, technology, and actors. Such incongruence can lead to failures in developing or implementing the system and thus to major losses. Based on this model we synthesize a set of software risk factors and risk resolution techniques, which cover the socio-technical components and their interactions. We use the model to analyze how four classical risk management approaches—McFarlan's portfolio approach, Davis' contingency approach, Boehm's software risk approach, and Alter's and Ginzberg's implementation approach—shape managerial attention. This analysis shows that the four approaches differ significantly in their view of the manager's role and possible actions. We advise managers to be aware of the limitations of each approach and to combine them to orchestrate comprehensive risk management practices in a context. Overall, the paper provides a new interpretation of software risk management which goes beyond a narrow system rationalism by suggesting a contingent, contextual, and multivariate view of software development.

Suggested Citation

  • Kalle Lyytinen & Lars Mathiassen & Janne Ropponen, 1998. "Attention Shaping and Software Risk—A Categorical Analysis of Four Classical Risk Management Approaches," Information Systems Research, INFORMS, vol. 9(3), pages 233-255, September.
    • Handle: RePEc:inm:orisre:v:9:y:1998:i:3:p:233-255
    DOI: 10.1287/isre.9.3.233
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    References listed on IDEAS

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    1. Orlikowski, Wanda J. (Wanda Janina), 1993. "CASE tools as organizational change : investigating incremental and radical changes in systems development," Working papers WP 3579-93., Massachusetts Institute of Technology (MIT), Sloan School of Management.
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    Cited by:

    1. Mark A. Serva & Susan A. Sherer & Janice C. Sipior, 2003. "“When Do You ASP?” The Software Life Cycle Control Model," Information Systems Frontiers, Springer, vol. 5(2), pages 219-232, April.
    2. Jong Uk Kim & Rajiv Kishore, 2019. "Do we Fully Understand Information Systems Failure? An Exploratory Study of the Cognitive Schema of IS Professionals," Information Systems Frontiers, Springer, vol. 21(6), pages 1385-1419, December.
    3. Michael L. Harris & Rosann Webb Collins & Alan R. Hevner, 2009. "Control of Flexible Software Development Under Uncertainty," Information Systems Research, INFORMS, vol. 20(3), pages 400-419, September.
    4. Jengchung Victor Chen & I-Han Lu & David C. Yen & Andree E. Widjaja, 2017. "Factors affecting the performance of internal control task team in high-tech firms," Information Systems Frontiers, Springer, vol. 19(4), pages 787-802, August.
    5. Kobelsky, Kevin & Hunter, Starling & Richardson, Vernon J., 2008. "Information technology, contextual factors and the volatility of firm performance," International Journal of Accounting Information Systems, Elsevier, vol. 9(3), pages 154-174.
    6. Jengchung Victor Chen & I-Han Lu & David C. Yen & Andree E. Widjaja, 0. "Factors affecting the performance of internal control task team in high-tech firms," Information Systems Frontiers, Springer, vol. 0, pages 1-16.
    7. Sanjeev Dewan & Charles Shi & Vijay Gurbaxani, 2007. "Investigating the Risk-Return Relationship of Information Technology Investment: Firm-Level Empirical Analysis," Management Science, INFORMS, vol. 53(12), pages 1829-1842, December.
    8. Judy E. Scott & Iris Vessey, 2000. "Implementing Enterprise Resource Planning Systems: The Role of Learning from Failure," Information Systems Frontiers, Springer, vol. 2(2), pages 213-232, August.
    9. Bahli, Bouchaib & Rivard, Suzanne, 2005. "Validating measures of information technology outsourcing risk factors," Omega, Elsevier, vol. 33(2), pages 175-187, April.
    10. Narayan Ramasubbu & Chris F. Kemerer, 2016. "Technical Debt and the Reliability of Enterprise Software Systems: A Competing Risks Analysis," Management Science, INFORMS, vol. 62(5), pages 1487-1510, May.
    11. King, Stephen F. & Burgess, Thomas F., 2006. "Beyond critical success factors: A dynamic model of enterprise system innovation," International Journal of Information Management, Elsevier, vol. 26(1), pages 59-69.
    12. Jean-Grégoire Bernard & Suzanne Rivard & Benoit Aubert, 2002. "Évaluation du risque d'implantation de progiciel," CIRANO Project Reports 2002rp-15, CIRANO.
    13. Andrea MAKINGS & Brian BARNARD, 2019. "The Heuristics of Entrepreneurs," Expert Journal of Business and Management, Sprint Investify, vol. 7(2), pages 179-203.
    14. Jong Seok Lee & Mark Keil & Eliezer Shalev, 2019. "Seeing the Trees or the Forest? The Effect of IT Project Managers’ Mental Construal on IT Project Risk Management Activities," Information Systems Research, INFORMS, vol. 30(3), pages 1051-1072, September.
    15. Tianzi Bao & Yi Ding & Ram Gopal & Mareike Möhlmann, 2024. "Throwing Good Money After Bad: Risk Mitigation Strategies in the P2P Lending Platforms," Information Systems Frontiers, Springer, vol. 26(4), pages 1453-1473, August.
    16. Hansen, Bo & Rose, Jeremy & Tjørnehøj, Gitte, 2004. "Prescription, description, reflection: the shape of the software process improvement field," International Journal of Information Management, Elsevier, vol. 24(6), pages 457-472.
    17. Kobelsky, Kevin W. & Robinson, Michael A., 2010. "The impact of outsourcing on information technology spending," International Journal of Accounting Information Systems, Elsevier, vol. 11(2), pages 105-119.
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    19. Jaegul Lee & Nicholas Berente, 2012. "Digital Innovation and the Division of Innovative Labor: Digital Controls in the Automotive Industry," Organization Science, INFORMS, vol. 23(5), pages 1428-1447, October.

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