According to ZD Nets article “Who’s accountable for IT failure”, almost 70 percent of IT projects fail in some capacity, putting the economic impact worldwide at three billion dollars, which is 4.7 percent of global GDP.. This article is focused around why IT’s are continuing to fail from an business & economic standpoint, and who is behind the failures. The contributor points attention to senior executives because they are allowing the conditions where failures are happening to exist. The article points to three underlying reasons to why these failures are happening:
1. Unrealistic and mismatched expectations
2. Conflicts of interest among customers, vendors and integrators
3. Corporate organization structure that conspires toward failure
Unrealistic and mismatched expectations: Too many executives expect technology magically to solve business problems, an almost delusional misconception that leads to unhealthy risk. Dr. Paul Kedrosky, a well-known investor and economics writer, explains why: “Software is super malleable and appears to create infinite productivity,” he says, “which creates a nearly perfect trap for senior executives.”
Conflicts of interest among customers, vendors and integrators: Implementing enterprise software typically involves multiple groups, each with its own set of interests, goals, and measures of success. For example, when IBM faced lawsuitsin the Philippines over a failed government project involving the company’s DB2 database product, tensions rose among the customer, IBM, and the system integrator. All three parties pointed fingers at each other in a series of public accusations.
Corporate organization structure that conspires toward failure: Since most CIOs don’t have the board-level status of other business leaders, they lack the ability to marshal crucial resources that could dramatically improve the likelihood of IT project success. Executive Director of the Center for CIO Leadership, Harvey Koeppel, believes that many companies treat IT as a second-class citizen: “Instead of integrating IT into broader business activities, many organizations position IT as a technology black box.” It is clear that executive attitudes toward the CIO vary substantially. While some organizations treat the CIO as a strategic senior executive, many companies relegate IT to substandard status and prestige
To Learn more visit: http://www.zdnet.com/blog/projectfailures/whos-accountable-for-it-failure-part-one/15451.