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Why IS projects fail

20 一月, 2016 - 15:30

Information systems related projects frequently fail; it has been reported that between 50%-80% of project fail. For example, projects in Business Process Re-engineering (BPR) have been failing at the rate of 70% (Grant, 2002).

Different projects regardless of their nature have experienced poor quality outcomes, missed deadlines, over budget and cancellations. In a survey (Whittaker, 1999) the nature of the failure was the result of:

  1. The project budget was overrun by 30 per cent or more; and/or
  2. The project schedule was overrun by 30 per cent or more; and/or
  3. The project was canceled or deferred due to its inability to demonstrate or deliver the planned benefits.
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Figure 5.2 Serious budget and schedule overrun by organization size  
 
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Figure 5.3 A) Projects overrunning budget by 50 per cent or more; B) Projects overrunning budget by 50 per cent or More
 

One of the common stated reasons for failures is: organizations are not adopting a sound methodology or lack planning. Other common reasons of failure have been also stated, such as the business case of the project was weak in several areas, missing several components and a lack of management involvement and support (Whittaker, 1999).

Methodologies are necessary; they can provide organizations with useful way to efficiently and effectively facilitate transformation to fully benefit from IS and to reduce the risks of project failures. Verner et al. (1999) surveyed twenty experienced software project managements, who agreed that the right choice of the methodology has an effect on the success of the project.