Navigating Technology – Part 1 – State of IT Implementation
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Today, the importance of information technology to organization’s viability and future prospect cannot be overstated. For customer facing endeavors, technology may already be the primary interface, not only in B2C but also in B2B. For middle- and back-office, technology is at the heart of operational efficiency. IT failures are clearly visible, just look at the fiasco with the recent rollout of Healthcare.gov. In Part 1 of this short presentation, we explore the reasons behind the challenges of implementing technology and we conclude with six major root causes of technology failure. In another presentation, Part 2 will present a simple framework on technology implementation.
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Navigating Technology – Part 1 – State of IT Implementation
- 1. State of IT Implementation N AVIG AT ING T EC H N O L OGY – PART 1
- 2. Strategic Business Execution Framework Value, Behavior, Attitude Important Competencies Execution Excellence Integrating Processes PROPRIETARY AND CONFIDENTIAL Core Disciplines
- 3. Where in SBE does Navigating Technology fit? Navigating Technology Decision Making Project Management Problem Solving PMO Managerial Courage Process Improvement … Value, Behavior, Attitude Program Management … Important Competencies Integrating Processes Follow-through Governance Integrity Change Management Teamwork Knowledge Management Resiliency Issue and Risk Management … … PROPRIETARY AND CONFIDENTIAL Core Disciplines
- 4. Navigating Technology What is the State of IT Implementation? 32% of IT projects are considered successful. • 25% were considered failures • 44% were considered to be challenged Success rate was 25% a decade ago – little improvement. PROPRIETARY AND CONFIDENTIAL
- 5. Navigating Technology What are the Challenges of IT Implementation? o Technology ◦ Rapid Change ◦ Resource Scarcity ◦ Cost ◦ But technology is often a modest component of the overall challenge o Business processes and its evolution o People factor PROPRIETARY AND CONFIDENTIAL
- 6. Navigating Technology What are the main causes for IT implementation failure? PROPRIETARY AND CONFIDENTIAL
- 7. Contact Information o Email: advisor@pmoadvisory.com o Phone: 201.688.0680 o Web: www.pmoadvisory.com Management Consulting with A Social Conscience PROPRIETARY AND CONFIDENTIAL 7
Editor's Notes
- According to a 2009 Standish Group survey, only 32% of IT projects are considered successful.Almost 25% were considered failures, and44% were considered to be challenged as they were either late, over budget, did not meet scope, or some combination Considering the success rate was around 25% in the last decade, the improvement is rather insignificant, especially when considering the huge advancements in fields such as project management.There are many reasons for these failures. The next slide presents a taxonomy of failures.
- IT projects today are challenging, for a multitude of reasons:TechnologyTechnology is changing rapidly. There are inherent risk, especially at cutting edge.Scarcity of talented resources. For my current project, it took over 9 months just to find someone with SAP skills.Cost is often over budgetApplication have a long life. This means not only the upfront implementation cost is high, the maintenance and regular updates are also high. The is reflected in the growing concern over total cost of ownership.But technology is often the least of the concerns.Business processesIn the 1970’s and 1980’s, the focus was an automation.In the 1990’s, the focus turned to integration with the rise of ERP (enterprise resource planning tool) as business re-engineered.In the 2000’s, the focus turned to Customer Relationship Management (CRM).Today, the attention is business intelligence – how to tap into the wealth of knowledge about customers, products, industry, and organization.With each new level of focus, the need for integration, process reengineering, usability, and now intelligence increases. The complexity is rising quickly.But business process, while challenging, are still “deterministic”.People factorOften the biggest challenge deals with people and organizationIdiosyncrasies of the sponsors, expertsDifficulty of defining requirementsUsers
- According to this paper, there are six root causes of failure:Project management – the ability to provide proper planning and controlTop management – this is a question of ownership and commitmentTechnology factors – in addition to resource expertise, there is the challenge of extending technology beyond its limit thus creating uncertaintyOrganization factors – One of the most important factor is decision making style and the ability of the organization to adhere to its decisionComplexity – we discussed this great detail alreadyProcess factors – there are many ways to do things. From expertise, it is often more important for an organization to choose one set of processes and follow it through.