Why Do So Many Systems Projects Fail?

This article is Part I of a series of 3 articles outlining the pitfalls of implementing systems projects, and ultimately, how to avoid them. In Part I, Business Improvement Consultant Anne MacLeod explains some common mistakes made with IT projects.

The IT industry is in transition - some would describe it as a state of turmoil.

Virtually every client that Gartner Group has interviewed is in the midst of a significant shift in the way it views the importance of IT, and the approach it uses to implement enterprise IT solutions. With all the effort and expense to date, more than 80 percent have yet to do so.

• How many organizations do you know that have failed to manage systems projects that are on budget, on time, and meet stakeholders' needs?
  
  
• How many of us know of IT professionals or business executives who have lost their jobs in the last two years due to an IT project failure?
  
  
• How many complaints have you heard about outsourcers not meeting executive's expectations, especially as businesses are implementing complex enterprise applications?

Companies recognize the urgency to implement IT systems, but they often enter into projects without proper planning. Fear of extinction and fear of the competition is driving more and more companies to implement IT solutions that significantly impact their business. Along the way, they are missing the big picture.

What people are saying

Why do IT projects fall apart? Who or what is to blame? Here are some common responses from Executives, Project Managers, Project team members, and business users:

Cost overruns

• The vendor didn't understand the business process and under-scoped the project.
  
  
• The business misunderstood the implications of the system and chose the wrong application.
  
  
• The business didn't provide the capital and operating funds to improve technology, stay current, and train staff.

Late projects

• The vendor didn't understand the business urgency of the project and missed the window of competitive opportunity.
  
  
• The IT people overscoped the project by making the application more complex than what was requested.
  
  
• The business didn't follow the original plan, and tried to solve additional problems with one application.

Dissatisfied users and customers

• The business imposed the system upon customers without consulting them first.
  
  
• The business didn't consider the complexity of the environment/workforce/infrastructure.
  
  
• The business didn't follow project or business processes to implement what was wanted - and needed!

The Real Story

Does any of this sound familiar? BICS has met dozens of organizations large and small that have made these comments. Please read Part II of this article, where we let you in on the real story behind IT implementation mishaps by identifying a number of truisms between business people and IT people, and how these factors could impact IT applications in your company.

Part I  |  Part II  |  Part III