1 / 16

Understanding Information Technology System Project Failure

Understanding Information Technology System Project Failure. By: Michael Bury MIS 4-22-10. Abstract. Over the last 20 years failure has become synonymous with Information Systems (IS) Projects. This research is aimed to understand the reasons for IS project failure.

kylynn-davis
Download Presentation

Understanding Information Technology System Project Failure

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Understanding Information Technology System Project Failure By: Michael Bury MIS 4-22-10

  2. Abstract • Over the last 20 years failure has become synonymous with Information Systems (IS) Projects. • This research is aimed to understand the reasons for IS project failure. • IS project failure does not occur in any single industry and can happen anywhere at anytime. • IS Failure is not caused by just tech failures but organizational and functional problems in a business. • 20 Critical Success Factors (CSF) are introduced that are vital to the success of a project.

  3. Introduction • Case Studies chosen from the last fifteen years from Ireland, UK, and USA will act as examples to show that IS project failure can occur anywhere and anytime. • Four case studies of Information System development are analyzed (Taurus, DIABHS, ISIS, and NATS)

  4. Information System (IS) • Serves to coordinate the work of different organizational functions and is the core of any business. • Aims to increase efficiency and effectiveness of business practices. • Implementation of an IS involves the design, delivery, and use of the software systems in the organization. • Information Technology (IT) is the enabling tool that powers the IS. IT is used by IS.

  5. Defining an Information System • The authors Definition: “An Information system is composed of software, hardware, communication systems, and people. It is a critical investment for organizational survival. It increases the efficiency and effectiveness of daily business by integration organizational processes and structures”

  6. Critical Factors for Project Success

  7. Analysis of CSF • Most occurring qualities of Successful systems: -On time, under budget. -Project Delivers its functionality. -Clear Vision & Objectives -Executive Management Support

  8. Understanding IS Project Failure • 70% of large-scale IS investment fail. • Project must meet a number of objectives and goals. • Important parameters to meet will be: -Return on Investment -Profitability -Competition -Market Ability

  9. Defining Project Failure • Author believes in a degree of failure.

  10. Levels of Failure • Level one is considered minor. Final IS project does still meet its objectives and is completed. • Level two failure is major. IS project does not meet all requirements and will not be achieved within budget and one time. • Level three is critical failure. IS project odes not meet any of its requirements and objectives. Most likely to be scrapped after running over time and budget.

  11. Case Studies • Two of the four case studies resulted in failure (Taurus and ISIS) • Two cases succeeded (DIABHS and NATS)

  12. Taurus • Develop an automated transaction settlement system for the London Stock Exchange. • Electronics submission would enable the securities Industry to eliminate paper transactions. • Project began in 1998. • Aim to create a simple system for large investment houses.

  13. Design and Implementation • An 18-month time frame was demanded for completion. • Involvement of new and untested technology and project complexity made this deadline nearly impossible. • The Design Stage initially scheduled for two months lasted two years. • Lack of Leadership and the spread of ownership steered project toward failure.

  14. Design and Implementation (Continued) • Decision was made to use off-the-shelf software to speed up development cycle. • The software was nearly 20 years old. • The use of state of the art technology and software on hardware that was twenty years old was illogical. • Project team believed that building the outward part of the system first would make interested parties happy.

  15. Outcome • Original budget = £6 Million • Ending budget = £800 • Main factors due to failure of project were identified as power, politics, and responsibility. • The persistence to deny failure dragged the project on and is identified as a socio-economic problem rather than technological. • Lack of Leadership and Management had detrimental effect on the project/project team. • Taurus project was labeled a project 3 failure because the majority of the CSF were not achieved.

More Related