Identifying Organizational Issue for Digital Transformation by an Analysis Based on Kaizen

Abstract

Digital transformation requires utilizing information technology (IT) system as well as collaboration between IT vendor and IT user. However, we have been observing disputes between the users and the vendors to compensate for individual loss due to failures of IT projects (IT disputes), which waste tremendous resources and opportunities. Nevertheless, not only root causes of IT disputes, but also why they failed to avoid the disputes, are not clear in most cases. The business risk caused by such IT disputes has been difficult to be visualized sufficiently enough to avoid the same dispute in the future. This paper tries to make it possible for them to manage the business risk of the IT disputes by visualizing the risk. By applying a new method based on Kaizen to analyze IT dispute cases of actual IT projects, where recent technologies of package software and agile are introduced for quick response to individual new challenge, we specify individual root cause and visualize a business risk, whose threat has not been understood by organizations. Furthermore, we also discuss development of improved management to cope with the threat of the visualized business risk, from the aspect of organization.