Poor communication between business and IT departments is causing project failures
High failure rate hits IT projects
20 Aug 2007, Neon Kelly, Computing
http://www.computing.co.uk/ctg/news/1829160/high-failure-rate-hits-it-projects
Nearly half of the UK's largest companies suffered a failed IT project over the past three years, according to research.
A hefty 40 per cent of businesses experienced project failure between 2004 and 2006, according to consultant Avanade. Poor system specification was the largest cause of problems, contributing to 66 per cent of cases.
A lack of understanding between IT and business departments was blamed in 51 per cent of failures, while 49 per cent cited technology selection as a factor.
But only 28 per cent of companies said they measure the success of their IT projects after implementation. This lack of analysis is depriving UK companies of cost-saving feedback, said Avanade director of enterprise service solutions Brent Kronenberg.
'Businesses clearly understand the value of IT as they are willing to spend money on developing and updating their IT systems, but organisations are failing to receive the business benefits that the investment promised,' he said.
'Cost-implementation assessments will enable companies to achieve optimum levels of performance, so they can see a real return on their investments.'
Avanade interviewed IT and operations managers from 102 companies, each supporting over 10,000 users.
Reader comments
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Lack of understanding and poor system specification is a recipe for failure
It is regrettably not surprising to hear that nearly half of the largest companies in the UK have suffered a failed IT project.
A lack of understanding between IT and business departments is a recipe for failure. Many senior managers still do not fully understand the value IT can have when harnessed to business-driven goals, whilst CIOs will not be taken seriously as business leaders until they can align their departments and projects with these goals.
Equally alarming is the fact that poor system specification continues to undermine the success of IT projects. Proper planning is a must for any type of venture, particularly in IT. A project's goals should be clearly defined and its requirements and deliverables aligned with those of the business well before a project begins.
We hear too often about failing IT projects. Sadly such projects will continue to be doomed to failure whilst a lack of planning and communication exists. Only once this situation is addressed will more organisations truly start to benefit from IT as an integral business asset.
Posted by: Steve Gedney, MD, Borland UK 03 Sep 2007
Dont always take the obvious option
The lack of understanding is often the result of IT driving the business. IT is a tool of the business and should be treated accordingly.
The Board should be aware that the IT department has a vested interest in delivering projects that meet their own criteria. Self-enhancement, prestige and future proofing their CVs are often as big a driver as the business goals that are meant to be realised.
The initial scoping of requirements should be taken out of the hands of the vendor and the IT department. Appropriate working parties with complimentary skill sets should be engaged, keep asking the old question, Why, Why, Why?
Don't accept the first answer, look for innovative solutions - examine if you really need the change. As an example I recently overheard a comment from a very senior CIO that went along the lines of, "Did you see that (major) bank are still running Windows 2000, unbelievable? "
I know this bank well, what the CIO failed to grasp was that there was no real benefit for the bank to upgrade. They were happy with their service delivery, they had expensive applications that were running well, they had no need to change.
However they had actually recently made major change, they had replaced most of their hardware estate but by using Virtualisation had retained the original application delivery design. With Virtualisation they can now begin a transition programme away from legacy systems at a more benign pace. They have dramatically reduced the project risks.
The moral -Don't always listen to what IT has to say, examine options and build a project that really meets the business needs
Posted by: James McDougall - 4thQuadrant Ltd - Director: Advisory and Audit Practice 26 Nov 2008