Part of human life is that we all experience some failure throughout the course of our life. When developing Information Systems people fail a large proportion of then time.
Each year it is estimated that between 50-70% of Information Systems undergoing develpoment fail. Hundreads of thousands of Euro is wasted each year by companies who fail to develop sucessful Information Systems. For example in 2004 the Ford car manufacturing company lost an estimated $400 million after the development of a purchasing system was cancelled before completion.
What are the main causes of I.S. failure? Why is it that in a time where technology is such a key factor in society and for the success of businesses that companies are losing so much money?
No one factor can be held responsible for the failure of I.S., it comes down to a large variety of factors. While one would expect technological difficulties to be the main and only reason, this is not the case. All the following contribute to failure also:
- Capital Costs
- Human resources and the lack of resources available
- Failure to meet the design objectives
- Breakdown of communication between the system design analyst and the end user
- Missed deadlines
- Cancellation before completion.
It is estimated that 30% of I.S projects are cancelled by the end user before they are completed, resulting in firms losing any capital they have invested in the project up to this date.
In order to have a sucessful information system it is critical that the objectives are clearly identified by the end user and that these objectives are passed onto the system designer. Deadlines must be met and the correct resources must be available to the designers be in capital or human resources.