Introduction 2
Introduction 2
The above chart shows the resolution of very large software projects from 2003 to 2012 within
the CHAOS database. Successful projects are on time, on budget, and have a satisfactory
implementation. Challenged projects are over budget, late, and/or have an unsatisfactory
implementation. Failed projects are projects that were either canceled prior to completion or not
used after implementation.
A project that did not meet or exceed expected business value. Our view of project
success is relatively straightforward. If you do what you say you're going to do, then you
should be on-time and on-budget. If you deliver what you say you're going to deliver
then you should achieve or exceed the business value promised.
The Standish Group 2015 CHAOS Report showed that out of all 50K projects in the
study, 71% failed to meet these three criteria: on time, on budget, and satisfactory
results. The problem is even higher for big projects. Medium-sized projects failed at
91% and large projects at 94%. That's scary since PwC reported that capital projects and
infrastructure spending between 2014 and 2020 could reach $29 trillion! Does this mean
that $27 trillion is at some risk? That's crazy! Are we doing anything about this? And
what about all projects that include small, medium, and large? We read this as 70% of all
projects fail.[5]
The sad part of this story is that we are NOT getting better!
Management reasons
Ability to adapt to new resource combinations;
Differences between management and client;
Insufficient risk management;
Insufficient end-user management;
Insufficient domain knowledge;
Insufficient software metrics;
Insufficient training of users;
Inappropriate procedures and routines;
Lack of management judgment;
Lack of software development metrics;
Loss of key personnel;
Managing legacy replacement;
Poor vendor management
Poor software productivity;
Poor communication between stakeholders;
Poor contract management;
Poor financial management;
Project management capability;
Poor delegation and decision making;
Unfilled promises to users and other stakeholders.
Technical reasons
Inappropriate architecture;
Insufficient reuse of existing technical objects;
Inappropriate testing tools;
Inappropriate coding language;
Inappropriate technical methodologies;
Lack of formal technical standards;
Lack of technical innovation (obsolescence);
Misstatement of technical risk;
Obsolescence of technology;
Poor interface specifications;
Poor quality code;
Poor systems testing;
Poor data migration;
Poor systems integration;
Poor configuration management;
Poor change management procedures;
Poor technical judgment.
Judgments by project stakeholders about the relative success or failure of projects tend
to be made early in the projects life cycle. On examination of the project stage reports it
became apparent that many project managers plan for failure rather than success.
If we consider the inherent complexity of risk associated with software project delivery
it is not too surprising that only a small number of projects are delivered to the original
time, cost, and quality requirements.
Our evidence suggests that the culture within many organizations is often such that
leadership, stakeholder and risk management issues are not factored into projects early
on and in many instances cannot formally be written down for political reasons and are
rarely discussed openly at project board or steering group meetings although they may
be discussed at length behind closed doors.
Despite attempts to make software development and project delivery more rigorous, a
considerable proportion of delivery effort results in systems that do not meet user
expectations and are subsequently cancelled. In our view this is attributed to the fact that
very few organizations have the infrastructure, education, training, or management
discipline to bring projects to successful completion.
One of the major weaknesses uncovered during the analysis was the total reliance placed
on project and development methodologies. One explanation for the reliance on
methodology is the absence of leadership within the delivery process. Processes alone
are far from enough to cover the complexity and human aspects of many large projects
subject to multiple stakeholders, resource and ethical constraints.
Although our understanding of the importance of project failure has increased, the
underlying reasons still remain an issue and a point of contention for both practitioners
and academics alike. Without doubt there is still a lot to learn from studying project
failure.
Going back to the research undertaken there is little evidence that the issues of project
failure have been fully addressed within information systems project management.
Based on this research project failure requires recognition of the influence multiple
stakeholders have on projects, and a broad based view of project leadership and
stakeholder management.
Who failed?
Target Corporation, the second-largest discount retailer in the United States, behind
Walmart.
A company that is worth roughly 72.62 billion US dollars as of March 2016.[7]
They attempted to enter the Canadian market. It made perfect sense at the time as many
Canadians would cross the border and come down south to their United States neighbors
to do their shopping. Coupled with the fact that the company was reaching maturity in
the USA, Target felt it time to expand their operations.
The Canadian market was waiting with bated breath for the introduction of Target to the
Great White North. Excited for the far lower prices they were surely going to
experience, and heavier pockets, there was quite a bit of hype around this market entry.
But all was not as they thought.
Who failed?
The National Health Service is the publicly funded healthcare system for England. It is
the largest and the oldest single-payer healthcare system in the world.[7]
The NHS had great plans to create a unified electronic health records system for all
British citizens. With an intention to serve 40,000 GPs and over 300 British hospitals,
this project was going to be one of the worlds largest IT projects ever attempted.
The NHS bit off more than they could chew and started too big too quick. This project
was astronomical in size and was always going to be difficult to finish out successful.
The NHSs huge NPFIT project, intended to serve 40,000 GPs and 300 plus hospitals,
was claimed to be the worlds largest civil IT project. In fact, its ill-fated intended
central core, a nation-wide Electronic Health Record (EHR) facility, dramatically
illustrates one of the most serious causes of large IT Project failures.
Who failed?
The Death Star was the Empires (an army of sorts) ultimate weapon: a moon-sized
space station with the ability to destroy an entire planet. It is, of course, a fictional
weapon from the popular movie franchise, Star Wars. It was destroyed in the Battle of
Yavin.[7]
The Death Star was going to be the ultimate weapon. Capable of wiping out whole
planets with a single blast of its super laser, it was the deadly destroyer that the Empire
was going to use to control the galaxy.
4. Microsoft's Surface RT
Yes, new versions are now out that might still turn around the fortunes of Microsoft's
troubled sorta-tablet, sorta-PC. But no successful project forces a company to take a
nearly $1 billion write-off to cover unsold inventory. [7]
Customers just didn't know what to make of the original Surface RT. It straddled the
tablet-PC divide awkwardly, offering a keyboard cover, mouse support and an integrated
stand that made it look like a laptop replacement. Yet it ran a stripped down version of
the Windows 8 called Windows RT, which didn't support most older Windows
applications. (Its sibling, the Surface Pro, ran full-fledged Windows 8 and was much
more successful.)
The $499 price tagplus $130 for the keyboard covermade the RT fairly pricey, too.
And on top of all that, it just didnt perform well.
You might think that Microsoft learned its lesson. Think again. The upgraded Surface
RT, now dubbed the Surface 2, still uses Windows RT, and still appears to be just as
confusing.
5. Healthcare.gov
The Affordable Care Act was already a lightning rod for criticism, and that was before
the disaster called HealthCare.gov went online. Or rather, didnt. Mandating health
insurance and then not giving the public a way to evaluate their options shows a
stunning lack of foresightor at the very least, developer testing. That this disaster
likely cost $170 million dollars simply defies logic.[7]
The tech failure here mirrors the broken and fragmented nature of healthcare tech
systems. It's basically what happens when government agencies and insurance
companies, with their vast and incompatible databases, are suddenly called upon to
make their systems talk to one another.
Healthcare.gov has come a long way since October, but the site still reportedly has
issues. By early December, it met administration goals of serving 800,000 unique users
and 18,000 enrollment requests a daybut glitches in the system have also caused
roughly 15,000 applications to go astray, as insurers never saw them. There's little doubt
that this debacle will be remembered as the biggest government tech failure of 2013.
PROJECT FAILS IN BANGLADESH
DOEL LAPTOP
The government has identified the need for increasing the Internet penetration rate in the
rural areas of the country to fight against poverty and illiteracy. The first prerequisite is
to increase the rate of computer penetration in rural areas. The present status of
computer penetration is below ten per hundred people for the whole country and in rural
areas it is below two.
Research highlights that only one in eight information technology projects can be
considered truly successful (failure being described as those projects that do not meet the
original time, cost and (quality) requirements criteria).
Despite such failures, huge sums continue to be invested in information systems projects
and written off. For example the cost of project failure across the European Union was
142 billion in 2004.
The research looked at 214 information systems (IS) projects at the same time,
interviews were conducted with a selective number of project managers to follow up
issues or clarify points of interest. The period of analysis covered 1998-2005 the number
of information systems projects examined across the European Union.
1 Manufacturing 43
2 Retail 36
3 Financial services 33
4 Transport 27
5 Health 18
6 Education 17
7 Defence 13
8 Construction 12
9 Logistics 9
10 Agriculture 6
Total 214
01 51 23.831 23.831
12 20 9.346 33.177
5 - 10 4 1.869 55.607
10 - 20 87 40.654 96.261
20 - 50 6 2.804 99.065
50 - 80 2 0.935 100.000
Totals 214 100.00 100.00
At what stage in the project lifecycle are projects cancelled (or abandoned as failures)?
Prior research by the authors in 2002 identified that 7 out of 10 software projects
undertaken in the UK adopted the waterfall method for software development and
delivery. Results from the analysis of cases indicates that almost one in four of the
projects examined were abandoned after the feasibility stage of those projects completed
approximately one in three were schedule and budget overruns.
One notable causal factor in these abandonment's was the lack of due diligence at the
requirements phase, an important factor here was the level of skill in design and poor
management judgment in selecting software engineers with the right skill sets. Equally
the authors found some evidence in poor tool set selection in that end users found it
difficult to sign-off design work - in that they could not relate process and data model
output with their reality and practical knowledge of the business processes.[9]
By making this project we observe that, many reasons have for IT project failing around
the world. Some projects are failing for poor preparation, some are failing for poor
budget, some for bad leadership. So obviously, we need to identify this reasons and
solve this problem.
We can clear to know about the important reason for project failure by drawing pie
diagram with percentage__
Figure: Percentages of IT Project Failures
CONCLUSION
We have argued that, many of the reasons given for the failure of large IT projects is an
inadequte respect for the projects understanding of requirements. We have tried to show
that requirements drift either underlies the main reasons given for failure, or contributes
to them in a signicant way. We have shown, in a model, that the diminishing returns
experienced in a large projects as its product gets bigger is exacerbated by drift to the
extent that projects may never achieve the kind of quality that makes their product
acceptable. And nally, while oering no silver bullet, we have suggested that a true
belief in requirements drift among engineers and their managers may itself go a long
way towards mitigating its eects.
Project managers can easily reduce the risk of failure by identifying the common reasons
that pave the way for project failure. They will have to take steps to prevent these factors
from casting negative shadows on their projects. If you want your project to complete on
time, then you will have to deliver all the required resources to project managers and
prevent project creep from getting out of control.
Keep things organized and avoid mismanagement. Ensure that all your team members
are on the same page and united for a common cause. Involvement of stakeholders is
critical to your project success. All this will go a long way in helping you in reducing the
chances of project failure.
REFERENCES
[1] https://en.wikipedia.org/wiki/Information_technology
[2] http://searchcio.techtarget.com/definition/IT-project-management
[3] https://project-management.com/top-10-main-causes-of-project-failure/
[4] https://opentextbc.ca/projectmanagement/chapter/chapter-3-the-project-life-cycle-
phases-project-management/
[5] https://www.projectsmart.co.uk/white-papers/chaos-report.pdf
[6] http://www.standishgroup.com/outline
[7] https://www.brightwork.com/blog/3-projects-that-failed-
miserably#.WY5z_TXmPIV
[8] https://en.wikipedia.org/wiki/Doel_(computer)
[9] http://www.computerworld.com/article/2533563/it-project-management/it-s-
biggest-project-failures----and-what-we-can-learn-from-them.htm