Human Factors in Technology Adoption
Janet Pucino
Information Technology Advisor
The human experience is at the core of adopting new technology and achieving benefits promised by the remarkable innovations released in the marketplace over the last five years. We now have to balance artificial, autonomous, electric, robotic everything, and ever increasing self-service and enterprise system automation with many aspects of our lives. Businesses and their respective practitioners are continually faced with making critical decisions about which technology to explore and invest in, for their organizations. To accelerate technology adoption, the consideration of human behaviors will need to become a top priority.
Before making an investment in new technology, include these reality checks in your decision-making process!
1. Technology that’s not ready for prime time
‘Fear of missing out’ is likely driving adoption of technology that isn’t proven, or may not be a good fit for you, your business or organization yet. Organizations are also under pressure from their Board members to quickly develop strategies, digital transformation plans and implementation commitments with aspirations for gaining efficiencies, solving labor shortages, or achieving market advantages. The reality is:
Generative and conversational Artificial Intelligence (AI) are prone to factual errors and are limited by available data sets. Of course, much more progress will be made throughout 2024 and beyond. But Humans still need to design and proliferate the data models for AI, and the extraordinary GPU computing and electrical power to support it will still take years to develop. As a result of the sudden management shakeup in OpenAI in November 2023, we have more insight into the unpredictability of AI start-ups, and the need for organizations to allocate their AI development efforts across multiple platforms to minimize risk.
As of 2023, Electric Vehicles (EVs) represented <8 % of the U.S. car market and are expected to reach between 9% - 10% market share by the end of 2024. (1) The biggest hinderance for EV buyers is the lack of charging infrastructure and battery capabilities to support longer distances. Government and manufacturer incentives are also waning, slowing the pace of adoption. Mandating the use of EVs in commercial enterprises as California has done as of 2024, introduced a number of business challenges at this stage as well as negative consequences for consumers. Truckers have had to shorten routes in order accommodate charging time and lighten loads due to weight limitations on EV trucks caused by extra battery weight. Those conditions extend delivery times and increase costs for customers. (2) Also, there remains uncertainty about the EV driving experience and the ability to control acceleration and deceleration, particularly for younger drivers, and the impact it could have on driver collisions as more EVs hit the roadways. In January 2024, Hertz announced that they were selling off their EVs and replacing them with internal combustion cars because of “higher expenses related to collisions and damage”. (3)
Safety issues remain a top factor in utilizing driver-less vehicles. With the launch of Autonomous Vehicles (AVs) in several U.S. major cities in 2023, we saw first-hand that city streets present unexpected traffic conditions. AVs are not yet equipped to react appropriately to these conditions and can interfere with emergency responders’ lifesaving duties. Waymo and Cruise claim AVs are safer than a human driven car, but they have much more learning and testing ahead of them to accommodate more human scenarios. As of the end of 2023, Waymo noted they were providing 10,000 rides per week across Phoenix and San Francisco. Additional launches are expected in Austin and Los Angeles in 2024. However, Cruise’s license to operate in San Francisco was suspended due to several serious accidents.
Scanners, handheld devices, and self-checkout kiosks are common sites at point-of-sale in restaurants, retail stores and grocers. However, several major chain stores such as Walmart, ShopRite, Wegmans, and Costco revised their approach to self-checkout due to ‘human factor’ issues involving customer discontent, user errors and also theft. (4) Several chains removed machines while others added more staff in self-checkout areas to assist customers and insure proper usage.
2. Beware of over-automating business processes
There are times when the investment in technology innovation outweighs the benefits. Business process automation is paramount for most organizations and is one of the leading drivers for adopting AI or implementing Enterprise Resource and Planning (ERP) systems for Sales, HR, Operations, Inventory Management, Finance, and other processes. However, when over-automation occurs, costs and inefficiencies can arise in other areas due to increased system integration work, maintenance costs, licensing fees, data modeling and governance tasks. In some cases, opportunities and revenue are lost due to impaired decision making. The reality is:
Not every business process or decision making step should be automated! Barnes and Noble CEO, James Daunt, discovered that the critical thinking skills and experience of sales managers and staff were more important than automation and more impactful to book sales. Barnes and Noble personnel were much more in tune with local behaviors. They knew that sports aficionados for example, would look for books about their favorite players in the sports section rather than the biography section, which was contrary to what their portable data terminal instructed them to do. By eliminating reliance on those devices, the staff could focus on improving the customer experience, which increased sales.(5)
How many times do websites ask for privacy preferences no matter how many times you use the site? This is an example of the type of automation companies rely on to prove their compliance with privacy laws, but the results are vexing at best for customers who are continuously asked to update their preferences.
Part of the over-automation dilemma stems from the notion that having more data and more automated controls will lead to faster and better outcomes. This can result in those dreaded wait times when another person needs to approve a simple transaction such as a correction, credit, or cancellation.
3. Avoid overly complex business systems
New technology should be adaptable and easier to use than what came before it! We’ve all experienced at one time or another, the complex processes and rules that hinder productivity and response time, particularly with business systems that require more and more data collection and management, months of training to use a system, or years to roll out. The reality is:
Many business process software products attempt to account for as many processes as possible inherent in specific industries which can make them overly complex. To be adaptable and easy to use for various customers, software vendors need to have flexible business flows, easy-to-configure screens, intuitive processes that stay true to their core product without a burdensome training cycle.
Also, some vendors are not always transparent about their software testing methodologies which can be detrimental to businesses after upgrades and enhancements are applied, putting customers at risk of losing productivity and revenue.
I was introduced to two innovative technology companies in 2023 that struck me as role models for developing notable products that are easy to use by placing human needs and behaviors at the core of their product design; Pivotal and Corent Technologies. Pivotal recently launched a personal aviation aircraft called the Helix Light Electric Vertical Takeoff and Landing (eVTOL) aircraft. The ease-of-use design of the aircraft requires a few weeks of training, provides impressive distance on a single charge, and is even portable. Corent Technologies is an innovative cloud and digital business accelerator. The company rapidly, and cost effectively, enables migration and modernization of applications to the cloud, optimizes cloud resources and quickly enables software applications as a service by providing expert guidance to their customers throughout their digital transformation journeys.
4. Clarify Vendor Accountabilities
Technology vendors measure their success on sales and customer growth and may not be attentive to the success of their customers’ implementations after the sale. As we’ve seen with the dilemma within OpenAI, having clear accountabilities for the AI products organizations purchase from vendors is critical to successful adoption and implementation. Gartner often cites ERP implementation failure rates as high as 75% inclusive of cancelled projects and those that don’t achieve expected benefits. Why do so many implementations fail to deliver expected benefits? The blame is often placed on the customer for their lack of project management skills, change management skills, or training, but human factors are rarely the cause of failure. The reality is:
Project and change management education and certifications are at an all-time high. In 2023, there were over 1 million certified Project Management Professional (PMP) holders globally. (6) In the U.S., 153 universities and colleges offered degrees and courses in Project Management. Most organizations choose professional and experienced management executives to lead digital and data projects as well. It’s reasonable to expect vendors to take on greater accountability for the products they sell.
Many vendors outsource system implementations to 3rd party system integrators. Although many 3rd parties utilize specialized methodologies unique to their firms, or rely on best practice guidelines, these approaches are not the same type of standards and rules other industries such as construction, manufacturing, or software engineering are required to follow to insure successful and safe outcomes for their customers.
Product vendors continue to promote exclusivity over ease of use, for example, designing charging cables that can only be used with their products. Software vendors are also known for supporting a defined set of peripheral devices and applications that can only work with their software, and some restrict inter-operability between other valuable systems because of proprietary processes. Products that are able to connect to more systems and platforms will ultimately speed up adoption.
Customers need their vendors to deliver products that work and are fit for service. Currently Consumer Affairs, the Federal Trade Commission, and the Federal Communications Commission assist consumers with product complaints, product recalls, and communication service complaints. However, arbitration and litigation with many software vendors remains the only recourse for software failures and failed implementations which is often costly and time consuming.
To increase the rate of achieving expected benefits in technology investments in the absence of government oversight of software failures, Terry Groff, an expert attorney in contract due diligence, preparation and negotiation, advises that customers should approach investments with “eyes wide open” during the sales process and “educate themselves” on how the products or services are intended to benefit them, along with unique issues such as liability for cyber security attacks and data breaches, protection of intellectual property, physical security and regulatory concerns. Certainly, there is much more guidance to share on this topic and I look forward to exploring the details in the coming months.
Ultimately the best investment decisions about new technology will be guided by management principles. Ask these questions to ensure that the human factor remains at the core of technology adoption.
Is your technology plan aligned with your strategy?
Does your strategy have a synergistic relationship between humans and technology?
Is the technology fit for service?
Do you know what problem or problems you will solve?
Is the technology safe?
What are the potential unintended consequences or ‘unhappy’ paths?
(1) Welch, S. (2024, January 4) Electric vehicle growth slows, experts weigh in on 2024 EV adoption. KATU.com; Brdar, D. (2024, January 2) EV trends for 2024: What to expect from the electric vehicle market. Nasdaq.com
(2) McClain, S. D. (2023, December 29) Electric mandates have California truckers charging overtime. The Wall Street Journal
(3) White, J. ( 2024, January 12) Rental giant Hertz dumps EVs, including Teslas, for gas cars. Reuters.com
(4) Meyersohn, N. (2023, November 11) Walmart, Costco and other companies rethink self-checkout. CNN.com
(5) Cohen, B. (2023, July 29) That cool new bookstore? It’s a Barnes & Noble. The Wall Street Journal
(6) Davis, K. D. (2023, September 4) PMP holders by country: check out worldwide statistics. Knowledgehut.com/blog
Janet Pucino is a highly accomplished Information Technology (IT) advisor, leadership specialist and author. She held numerous senior level positions throughout her 30-year technology career and developed a keen focus for optimizing IT investments and leading organizations through change. She holds an MBA from the University of Chicago Booth School of Business and an undergraduate degree from Northern Illinois University. Janet is passionate about leadership development within organizations and served multiple terms as a member of the Leadership committees for the University of Chicago Booth Advisory Council and Northern Illinois University Foundation Board of Directors. Janet’s leadership and industry experience includes:
• CIO, Vanguard Logistics – Global Ocean Logistics company specializing in LCL shipments
• CIO, Prolacta Bioscience – Bioscience company specializing in nutritional products for neonatal ICUs
• CEO, Deep Canyon Media – Consulting firm specializing in leadership development and CIO services
• IT Governance Officer, VP Office of the CIO, VP Worldwide Application Development and Director of Enterprise Architecture and Planning, Warner Bros. Entertainment Inc. – A leading global film, television, and animation entertainment company
• CTO, Art Center College of Design – Renowned transdisciplinary design college specializing in transportation, product, graphic, and digital design