ICT Acceptability Essay Example
ICT Acceptability Essay Example

ICT Acceptability Essay Example

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  • Pages: 5 (1280 words)
  • Published: September 5, 2018
  • Type: Research Paper
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Information and Communication Technology (ICT) has experienced an unparalleled development, revolutionizing the way people work, live, and communicate. ICT has become pervasive in various aspects of life and work across different nations and cultures. However, the implementation strategies of ICT systems must consider the influence of existing work cultures and societal cultures. The effort to introduce electronic trading in the London insurance market is an example of an ICT endeavor that faced challenges due to its failure to address interpersonal requirements in the conventional system. The difficulties of implementing a western Management Information System (MIS) in China are also discussed, highlighting the importance of cross-cultural collaboration. In the case of the London insurance market, the adoption of ICT was driven by significant losses and increased global competition, aiming to streamline business processes, reduce costs, and improve se

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rvice quality and inter-organizational relationships.The project for creating the Management Information System for the Chinese Financial Analysis Agency (CFAA) involved a technology transfer. It was funded by a Western donor agency.

The two endeavors not only differed in their situational and cultural contexts, but also in their orientation, objectives, stakeholders and prime movers. The players in the London insurance market had a work culture oriented around the traditional way of doing business. Personal interactions between underwriters and brokers played a crucial role in decision making and risk taking. However, the introduction of the London Insurance Market Network (LIMNET) Electronic Placing System (EPS) eliminated the need for personal contact. Both brokers and underwriters saw this as a handicap, as they believed that relying solely on data from LIMNET EPS would limit their ability to conduct negotiations for complex risk assessment. The

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felt that depending entirely on electronically processed data was not sufficient for their business needs. Additionally, the system could not transmit supporting documents such as images and spreadsheets for risk evaluation. The resistance to LIMNET EPS arose from a perceived change in crucial elements of the work culture that had developed around the traditional way of operating in the London insurance market.

However, opposition to the development and implementation of the MIS for CFAA was more entrenched and originated from the socio-cultural foundations of Chinese society. Chinese society is built upon networks of relationships, with individuals primarily identifying themselves as members of a group. Consequently, Chinese business culture places great importance on personal connections. As a result, there is a greater reliance on informal or verbal communication rather than formal or written communication. This is contrary to the principles of an MIS, which aims to formalize and streamline information flow, thus conflicting with Chinese cultural values.

Both examples observed a major objection to the introduction of ICT tools due to perceived lack of personal interactions. This required a change in user orientation. Comparing the situational aspect of the two examples reveals that similar change in orientation may be required due to socio-cultural factors and the development of traditional work culture.

In China, centralized decision making reduced the need for information exchange between managers, negatively affecting the relevance of an MIS. In the London insurance market, even without centralized decision making, there were doubts about the relevance of information provided by the LIMNET EPS. The brokers and underwriters questioned its ability to provide quality information for complex risk assessment.

Unlike the Chinese experience, resistance to the LIMNET EPS in London

was not inherent, but arose from a reluctance to deviate from conventional work practices. In Chinese society, information is viewed as a tool of personal power and owned by the powerful.

The concept of broadcasting or providing information through an MIS goes against Chinese cultural norms. However, the article on the London insurance market neglects to explore the importance of exclusive information for brokers and underwriters. In industries like insurance, it is crucial to have access to additional and restricted information in order to outperform competitors. This idea is indirectly suggested in the principle of Utmost Good Faith, which requires brokers to disclose all relevant information about the client and the insurance risk to underwriters when presenting the risk to them. Therefore, it can be assumed that the inclination to view information as a privilege for a select few could exist even without a cultural predisposition. The examples at hand share two similar traits: communication heavily influenced by context and decision-making based on intuition and experience.

When underwriters and brokers rely on cues such as body language and tone of voice to assess risks, it suggests that they are using their interpretation of the context, intuition, and experience to make decisions. ICT tools like MIS and Inter-Organizational Systems may encounter similar obstacles in implementation regardless of the cultural context. The introduction of ICT tools and services can face resistance from traditional work practices and societal culture. For instance, the MIS for CFAA faced challenges in China due to the cultural attitude of adapting to the environment rather than controlling it, resulting in a reduced need for business planning and scenario analysis. However, this factor is not present

in the London insurance market. Geert Hofstede's Cultural Dimensions offers an interesting perspective on these examples.

Hofstede’s Cultural Dimensions provide a way to measure the attitudes and responses of people from different cultures, based on countries and regions. It includes aspects such as business and change. One of these dimensions is the Power Distance Index (PDI), which measures how much less powerful members of society accept authority and expect unequal power distribution. China has a high score of 80 on this scale, indicating a strong acceptance of unequal power distribution and submission to a dominant central authority. In contrast, the United Kingdom has a low score of 35, indicating a lack of acceptance for unequal power distribution. This suggests that the British society is not bound by any accepted system of unequal power distribution. In Chinese firms, centralized structures are common, where key decisions are often made by the owner or a close relative. This organizational structure may not prioritize information dissemination throughout the entire organization.

The London insurance market is not affected by any reluctance to share information, but the brokers and underwriters were still worried about the power dynamics involved in a system that allowed unrestricted access to information. Both parties were concerned about the potential undermining of their respective spheres of influence. The Hofstede Cultural Dimensions can also be applied to other visible aspects in both examples. China has a score of 20 on the Individuality scale, while Britain has a high score of 89. This suggests that the Chinese identity is more oriented towards the collective. Additionally, both China and the United Kingdom have the same rating of 35 on the Hofstede Uncertainty

Avoidance Index (UAI).

In both societies, tolerance for change is essentially the same. A critical assessment of the LIMNET EPS example in the London Insurance Market and the development of the MIS for the CFAA reveals that the introduction of ICT tools and services face similar challenges in terms of acceptability, regardless of cultural settings. The resistance to these changes primarily arises from work cultures. To address the specific needs for attitude and work practice adjustments, all ICT initiatives should strive to provide tailored training and orientation programs. Nevertheless, certain resistances can be attributed to users' cultural backgrounds.

These changes can be overcome by persuading users of the practical effectiveness and usefulness of ICT tools and applications. The solution lies in incorporating the essential elements of the prevailing work culture and adapting to the societal culture.

References

  1. Hofstede, G., 2003, Geert Hofstede Cultural Dimensions, China, ITIM International, Kluwer Law International, Retrieved February 16, 2008 from http://www. geert-hofstede. com/hofstede_dimensions. php
  2. Walsham, G., 2001, Making a World of Difference; IT in a Global Context, Chichester, Wiley.
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