074 A Moral and Ethical Dilemma -- Systems that Fail -- by Dr James A Robertson PrEng

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The prevalence of IT project failure, the factors that cause failure, the Critical Factors for Success, the problem of IT people who lie, issues of integrity, morals and ethics, the need for a regulatory body and legislation

See also http://www.James-A-Robertson-and-Associates.com/

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074 A Moral and Ethical Dilemma -- Systems that Fail -- by Dr James A Robertson PrEng

  1. 1. 1 James A Robertson and Associates Effective Strategic Business Solutions A moral and ethical dilemma -- systems that fail Improve I.T. Conference 18 September 2008 Dr James Robertson PrEng (Copyright 2008 : James A Robertson and Associates)
  2. 2. 2 An industry characterized by failure “19 out of 20 E.R.P. Implementations do NOT deliver what was promised” Duncan McLeod
  3. 3. 3 Extreme failures Seven years and half a billion dollars -- international chemicals company $400 million -- multinational shoe corporation Multinational entertainment giant -- $878 million Major supermarket chain -- $195 million 1. 2. 3. 4. “Creating an IT Watchdog for the Board by Assembling an I.T. Oversight Committee” by Professor Rossouw von Solms of Nelson Mandela Metropolitan University at the I T Governance and Strategy Summit
  4. 4. 4 Pending disaster “This [I.T.] is an area where boards of directors will be named in stockholder suits” "Senior management is not engaged enough in strategic information technology decisions and situations that could put the company at risk.“ "Information systems could cause the next outbreak of Enron-like corporate scandals.“ "I.T. is the next corporate disaster waiting to happen” 1. 2. 3. 4. “Creating an IT Watchdog for the Board by Assembling an I.T. Oversight Committee” presented to the I.T. Governance and Strategy Summit by Professor Rossouw von Solms of Nelson Mandela Metropolitan University quoting Richard Nolan of Harvard Business School in Harvard Business Review
  5. 5. 5 Information technology project failure is at epidemic levels Seventy percent of I.T. investments fail TOTALLY when viewed from a strategic and commercial view point Another twenty percent fail to fully satisfy the original business requirement "19 out of 20 E.R.P. implementations do not deliver "what was promised" Ninety percent of strategic plans fail Seventy percent of B.P.R. investments fail "Most organisations are not making better decisions than they did five years ago." 1. 2. 3. 4. 5. 6. McLeod Gartner
  6. 6. 6 There is a need for a new approach
  7. 7. 7 Engineers do NOT design bridges to stand up
  8. 8. 8 They design them NOT to fall down Engineer against failure
  9. 9. 9 The bridge parallel -- significant software failure should be front page news
  10. 10. 10 Last year’s software will ALWAYS run on this year’s hardware Forced failure of “old” software
  11. 11. 11 The right to maintain and repair -- exhaust pipes and computer software
  12. 12. 12 Software as magic Thorough Accountable Attorney on the project team Project on time, meet realistic business expectations and come in on budget 1. 2. 3. 4.
  13. 13. 13 What is NOT an engineering approach?
  14. 14. 14 The content is the same -- always -- binary code
  15. 15. 15 Positioning this presentation Information technology can and should add value
  16. 16. 16 Maximize creation of value and minimize consumption of value Strategically valuable designs Designed and constructed NOT to fail 1. 2.
  17. 17. 17 What is strategy?
  18. 18. 18 Strategy Doing the right things Professor Malcolm McDonald
  19. 19. 19 Tactics Doing things right Professor Malcolm McDonald
  20. 20. 20 The relationship between strategy and tactics Strategy -- doing the right things Professor Malcolm McDonald Tactics -- things right Thrive
  21. 21. 21 The relationship between strategy and tactics Professor Malcolm McDonald Survive Strategy -- doing the right things Tactics -- things right
  22. 22. 22 The relationship between strategy and tactics Professor Malcolm McDonald Die Strategy -- doing the right things Tactics -- things right
  23. 23. 23 The relationship between strategy and tactics Professor Malcolm McDonald Die slowly Die fast Strategy -- doing the right things Tactics -- things right
  24. 24. 24 The relationship between strategy and tactics Professor Malcolm McDonald Die slowly Survive Die fast Thrive Strategy -- doing the right things Tactics -- things right
  25. 25. 25 What is strategy? The essence of why an organization exists and how it thrives
  26. 26. 26 Strategic application of I.T. Invest in software that is applied by the organization to enable it to thrive
  27. 27. 27 Critical factors to manage to prevent failure Information technology mythology (30%) Lack of executive custody and inappropriate policies (20%) Lack of strategic alignment (15%) Lack of an engineering approach (12%) Poor data engineering (10%) People / soft issues (8%) Technology issues (5%) 1. 2. 3. 4. 5. 6. 7. 65% Remember that technology is value inert
  28. 28. 28 Is maintaining individual systems practical?
  29. 29. 29 A critical ethical problem I.T. people who lie
  30. 30. 30 Time for tough customers An attorney on the project team
  31. 31. 31 Time for a peer reviewed and moderated professional body Voluntarily established Statutory underpinning Licence to practice Professional indemnity insurance Like engineers, doctors, lawyers, accountants, etc 1. 2. 3. 4. 5.
  32. 32. 32 Call to action What are the (three) most important insights you gained from this presentation? What are the (three) most important actions you propose arising from this presentation? What is your single most significant long term goal arising from this presentation? 1. 2. 3. Write it down If you gain an insight into something new and do not take some action within 48 hours the chances are you never will Justin Cohen citing Bill Gates
  33. 33. 33 Acknowledgement and dedication I would like to acknowledge the contributions and inputs of all my clients, associates, staff and families without whom the work on which this presentation is based would not have been possible Particularly my father and mother, Angus and Thelma, whose love and support for all my endeavours made it possible for me to gain this knowledge. I also acknowledge Fiona and Ingrid for all they contributed and Sandra and Helene for their unreserved love and giving This presentation is dedicated to The glory of the Eternal Creator who is the source and reason for our existence Psalm 136:5 "To Him who by wisdom made the heavens, for His mercy endures forever;"
  34. 34. 34 A moral and ethical dilemma -- systems that fail Questions? Dr James Robertson PrEng James A Robertson & Associates Telephone: +27-11- 782-5997 Cell: 083-251-6644 (preferred) P O Box 4206, Randburg, 2125, South Africa www.JamesARobertson.com email: James@JamesARobertson.com Finding the missing pieces of your I.T. and strategy puzzles

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