I B M Rankan Failure Of I T Projects
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The document summarizes the reasons for failure of the IT project between National Air Traffic Services (NATS) and IBM to implement a new air traffic control system. Key reasons included unrealistic deadlines, unclear requirements, underestimating costs and time, changing objectives, and lack of open communication about problems. The go-live date was repeatedly delayed from 1996 to 2002 due to issues that were known but not openly discussed from the start.
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Introduction
Where last week we examined specific and quantifiable methods for tracking implementation progress,
this week we look at a few qualitative things managers can do to ensure that IT projects succeed. As
you will learn from the text, there are abundant examples of IT projects in the public sector that are not
deemed successful. Even the most seasoned IT manager gets a bit depressed when reading the
examples in these notes and the text. There are political/legal, structural, operational/managerial, and
cultural barriers to development of public information technology and e-government, forming a
complex intermixture of forces. Challenges in these area are even greater for inter-jurisdictional
and inter-sectoral initiatives than interdepartmental ones (Kernaghan, 2005). As a result, there is no
“formula for success” and even the most commonly cited success factors may prove inappropriate in
certain circumstances.
Success Factors?
Unfortunately, the rate at which IT projects fail in both the public and private sectors is very high. The
Center for Technology in Government suggests that more than half of all government IT projects are
viewed as failures by organizational stakeholders. Projects Fail. Typical reasons for failure are:
1. Complexity – projects are too large and complex
2. Commitment Failure – lack of commitment to the project from stakeholders
3. Planning Failure – creation of poor implementation plans
4. Vision Failure – underlying assumptions are unrealistic
5. Inappropriate Methods – agency methods may not match IT
6. Short Time Horizon – unrealistic schedules
7. Turbulent Environments- rapid rates of change can beget lack coordination and system failure
8. Failure to Support End Users – end users have no incentive to use the technology or are unable to
use it
IT Failures in the 1990s
In the 1990s, just before the U.S. federal government embraced enterprise resource planning (ERP)
systems on a massive scale, the corporate world had experienced a number of traumatic ERP incidents.
Universal Oil launched an ERP system in 1991 but found the system unusable and sued Andersen
Consulting, the vendor, for $100 million. Andersen countersued Universal for libel. In 1996, FoxMeyer
Corporation hired SAP and Andersen Consulting to install an ERP system, the problems with which
resulted in the bankruptcy of the company and a billion dollar lawsuit. Tri Valley Growers, a giant
agricultural cooperative, initiated a $6 million ERP system in 1996, finding none of the Oracle software
performed as promised, some was hardware incompatibility, and the company filed a $20 million
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MIS Quarterly Executive Vol. 6 No. 2 June 2007 67© 2007 Univ.docx
MIS Quarterly Executive Vol. 6 No. 2 / June 2007 67© 2007 University of Minnesota
IT Project Management
iT projeCT managemenT: infamous
failures, ClassiC misTakes, and besT
praCTiCes1
R. Ryan Nelson
University of Virginia
MISQUarterly
Executive
Executive Summary
In recent years, IT project failures have received a great deal of attention in the press as
well as the boardroom. In an attempt to avoid disasters going forward, many organizations
are now learning from the past by conducting retrospectives—that is, project postmortems
or post-implementation reviews. While each individual retrospective tells a unique story
and contributes to organizational learning, even more insight can be gained by examining
multiple retrospectives across a variety of organizations over time. This research
aggregates the knowledge gained from 99 retrospectives conducted in 74 organizations
over the past seven years. It uses the findings to reveal the most common mistakes and
suggest best practices for more effective project management.2
InFAMOuS FAILurES
“Insanity: doing the same thing over and over again and expecting different results.”
— Albert Einstein
If failure teaches more than success, and if we are to believe the frequently quoted
statistic that two out of three IT projects fail,3 then the IT profession must be
developing an army of brilliant project managers. Yet, although some project
managers are undoubtedly learning from experience, the failure rate does not seem
to be decreasing. This lack of statistical improvement may be due to the rising size
and complexity of projects, the increasing dispersion of development teams, and the
reluctance of many organizations to perform project retrospectives.4 There continues
to be a seemingly endless stream of spectacular IT project failures. No wonder
managers want to know what went wrong in the hopes that they can avoid similar
outcomes going forward.
Figure 1 contains brief descriptions of 10 of the most infamous IT project failures.
These 10 represent the tip of the iceberg. They were chosen because they are the most
heavily cited5 and because their magnitude is so large. Each one reported losses over
$100 million. Other than size, these projects seem to have little in common. One-half
come from the public sector, representing billions of dollars in wasted taxpayer dollars
and lost services, and the other half come from the private sector, representing billions
of dollars in added costs, lost revenues, and lost jobs.
1 Jeanne Ross was the Senior Editor, Keri Pearlson and Joseph Rottman were the Editorial Board Members for
this article for this article.
2 The author would like to thank Jeanne Ross, anonymous members of the editorial board, Barbara McNurlin,
and my colleague Barb Wixom, for their comments and suggestions for improving this article.
3 The Sta ...
It for management 1
CASE STUDY ANSWERS
ASSIGNMENT SOLUTIONS
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ISBM / IIBMS / IIBM / ISMS / KSBM / NIPM
SMU / SYMBIOSIS / XAVIER / NIRM / PSBM / NSBM / ISM / IGNOU / IICT / ISBS / LPU / ISM&RC/ LPU / NMIMS / ISBS / MANIPAL
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www.mbacasestudyanswers.com
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aravind.banakar@gmail.com
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IEEE 2013 The flaws in the traditional contract for software development
We believe that the traditional contract model for software development is largely responsible for failures in IT projects. In this article we explain how in any IT project the contract model increases the risk of failure, and leads to a sub-optimal design and poor return on investment. We also put forward our proposals for an alternative approach based on the principles of complexity theory.
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Project Success/Failure
Presentation to ISACA Governance Event 11 Sept 2009 on factors affecting Project Success/Failure referencing ISO38500, Project Management, Standish and the CHAOS Report, also Sauer et all, Cadbury and drawing on Peter Salmon's varied and extnesive personal experience
Introduction Where last week we examined specific and quan.docx
Introduction
Where last week we examined specific and quantifiable methods for tracking implementation progress,
this week we look at a few qualitative things managers can do to ensure that IT projects succeed. As
you will learn from the text, there are abundant examples of IT projects in the public sector that are not
deemed successful. Even the most seasoned IT manager gets a bit depressed when reading the
examples in these notes and the text. There are political/legal, structural, operational/managerial, and
cultural barriers to development of public information technology and e-government, forming a
complex intermixture of forces. Challenges in these area are even greater for inter-jurisdictional
and inter-sectoral initiatives than interdepartmental ones (Kernaghan, 2005). As a result, there is no
“formula for success” and even the most commonly cited success factors may prove inappropriate in
certain circumstances.
Success Factors?
Unfortunately, the rate at which IT projects fail in both the public and private sectors is very high. The
Center for Technology in Government suggests that more than half of all government IT projects are
viewed as failures by organizational stakeholders. Projects Fail. Typical reasons for failure are:
1. Complexity – projects are too large and complex
2. Commitment Failure – lack of commitment to the project from stakeholders
3. Planning Failure – creation of poor implementation plans
4. Vision Failure – underlying assumptions are unrealistic
5. Inappropriate Methods – agency methods may not match IT
6. Short Time Horizon – unrealistic schedules
7. Turbulent Environments- rapid rates of change can beget lack coordination and system failure
8. Failure to Support End Users – end users have no incentive to use the technology or are unable to
use it
IT Failures in the 1990s
In the 1990s, just before the U.S. federal government embraced enterprise resource planning (ERP)
systems on a massive scale, the corporate world had experienced a number of traumatic ERP incidents.
Universal Oil launched an ERP system in 1991 but found the system unusable and sued Andersen
Consulting, the vendor, for $100 million. Andersen countersued Universal for libel. In 1996, FoxMeyer
Corporation hired SAP and Andersen Consulting to install an ERP system, the problems with which
resulted in the bankruptcy of the company and a billion dollar lawsuit. Tri Valley Growers, a giant
agricultural cooperative, initiated a $6 million ERP system in 1996, finding none of the Oracle software
performed as promised, some was hardware incompatibility, and the company filed a $20 million
lawsuit. Oracle countersued and the company went into bankruptcy. In 1998-1999, W. W. Grainger Inc.
launched a $9 million ERP system which miscounted inventory, crashed recurrently, and led to a $23
million loss in profits. Grainger persevered, however, and worked with the ve.
K0948387
IOSR Journal of Business and Management (IOSR-JBM) is an open access international journal that provides rapid publication (within a month) of articles in all areas of business and managemant and its applications. The journal welcomes publications of high quality papers on theoretical developments and practical applications inbusiness and management. Original research papers, state-of-the-art reviews, and high quality technical notes are invited for publications.
MIS Quarterly Executive Vol. 6 No. 2 June 2007 67© 2007 Univ.docx
MIS Quarterly Executive Vol. 6 No. 2 / June 2007 67© 2007 University of Minnesota
IT Project Management
iT projeCT managemenT: infamous
failures, ClassiC misTakes, and besT
praCTiCes1
R. Ryan Nelson
University of Virginia
MISQUarterly
Executive
Executive Summary
In recent years, IT project failures have received a great deal of attention in the press as
well as the boardroom. In an attempt to avoid disasters going forward, many organizations
are now learning from the past by conducting retrospectives—that is, project postmortems
or post-implementation reviews. While each individual retrospective tells a unique story
and contributes to organizational learning, even more insight can be gained by examining
multiple retrospectives across a variety of organizations over time. This research
aggregates the knowledge gained from 99 retrospectives conducted in 74 organizations
over the past seven years. It uses the findings to reveal the most common mistakes and
suggest best practices for more effective project management.2
InFAMOuS FAILurES
“Insanity: doing the same thing over and over again and expecting different results.”
— Albert Einstein
If failure teaches more than success, and if we are to believe the frequently quoted
statistic that two out of three IT projects fail,3 then the IT profession must be
developing an army of brilliant project managers. Yet, although some project
managers are undoubtedly learning from experience, the failure rate does not seem
to be decreasing. This lack of statistical improvement may be due to the rising size
and complexity of projects, the increasing dispersion of development teams, and the
reluctance of many organizations to perform project retrospectives.4 There continues
to be a seemingly endless stream of spectacular IT project failures. No wonder
managers want to know what went wrong in the hopes that they can avoid similar
outcomes going forward.
Figure 1 contains brief descriptions of 10 of the most infamous IT project failures.
These 10 represent the tip of the iceberg. They were chosen because they are the most
heavily cited5 and because their magnitude is so large. Each one reported losses over
$100 million. Other than size, these projects seem to have little in common. One-half
come from the public sector, representing billions of dollars in wasted taxpayer dollars
and lost services, and the other half come from the private sector, representing billions
of dollars in added costs, lost revenues, and lost jobs.
1 Jeanne Ross was the Senior Editor, Keri Pearlson and Joseph Rottman were the Editorial Board Members for
this article for this article.
2 The author would like to thank Jeanne Ross, anonymous members of the editorial board, Barbara McNurlin,
and my colleague Barb Wixom, for their comments and suggestions for improving this article.
3 The Sta ...
It for management 1
CASE STUDY ANSWERS
ASSIGNMENT SOLUTIONS
PROJECT REPORTS AND THESIS
ISBM / IIBMS / IIBM / ISMS / KSBM / NIPM
SMU / SYMBIOSIS / XAVIER / NIRM / PSBM / NSBM / ISM / IGNOU / IICT / ISBS / LPU / ISM&RC/ LPU / NMIMS / ISBS / MANIPAL
MBA - EMBA - BMS - GDM - MIS - MIB
DMS - DBM - PGDM - DBM – DBA - PGDBM
www.mbacasestudyanswers.com
www.casestudysolution.in
www.casestudies.co.in
aravind.banakar@gmail.com
ARAVIND
09901366442 - 09902787224
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CASE STUDY ANSWERS
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ISBM / IIBMS / IIBM / ISMS / KSBM / NIPM
SMU / SYMBIOSIS / XAVIER / NIRM / PSBM / NSBM / ISM / IGNOU / IICT / ISBS / LPU / ISM&RC/ LPU / NMIMS / ISBS / MANIPAL
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DMS - DBM - PGDM - DBM – DBA - PGDBM
www.mbacasestudyanswers.com
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aravind.banakar@gmail.com
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cloud services are: perceived benefits and opportunities, organization’s risk culture and perceived risks.
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Study’s subjects (N=24) were recruited from three UK Government organizations to attend a semi
structured interview. Transcribed texts were analyzed using the approach termed interpretive
phenomenological analysis. Results showed that the most important factors influencing risk acceptance of
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We focused on perceived risks and perceived security concerns. Based on these results, we suggest a
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Information Technology Project Management,
Fifth Edition
IRJET- Schedule Delay Analysis in Construction Management using Primavera P6
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SMU / SYMBIOSIS / XAVIER / NIRM / PSBM / NSBM / ISM / IGNOU / IICT / ISBS / LPU / ISM&RC/ LPU / NMIMS / ISBS / MANIPAL
MBA - EMBA - BMS - GDM - MIS - MIB
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www.mbacasestudyanswers.com
www.casestudysolution.in
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phenomenological analysis. Results showed that the most important factors influencing risk acceptance of
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number of implications for risk managers, policy makers and cloud service providers
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cloud computing services.
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structured interview. Transcribed texts were analyzed using the approach termed interpretive
phenomenological analysis. Results showed that the most important factors influencing risk acceptance of
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I B M Rankan Failure Of I T Projects
- 1. The Reason for Failure of IT Projects Rankanidhi Panigrahy,Bcom,ACA Chartered Accountant FICO Consultant Global Business Service IBM INDIA PVT LTD Rankan and IBM Confidential
- 5. A survey on factors affecting project success Reason for Failure of IT Projects
- 15. Coming together is a beginning. Keeping together is progress. Working together is success. We together is IBM. Thank You! Rankan_2011_01……… Reason for Failure of IT Projects