Failures in IS

26 Feb

More than half of all IS projects fail and 30% don’t even make it to completion. Such failures can be very costly for a firm or organisation. For example, in America, the FBI spent over $100million on case management software which was eventually cancelled. Another example is the $160million loss made by Hewlett-Packard on problems with their Enterprise Resource Planning System. The fact is that most of these expenses can be avoided if the analyst fully understands what the organisation really needs. An Oxford survey revealed that there are 4 main types of IS failures;

1. Correspondence failures: This is when the design specifications are simply not met. It is considered a success when all objectives are met. However, this does not take into account the possibility that the user may want more than originally decided.

2. Process failures: These failures are caused by poor project management. It occurs when the IS cannot be finished within the budget or timeframe.

3. Interaction failures: Often, the amount of usage a customer gets out of a system is associated with the performance of the system itself. However, the customer may just be using the IS out of necessity or a lack of alternatives.

4. Expectation failures: This refers to the level of satisfaction of the end-user. Not only should the IS meet the technical requirements but it should also satisfy the customer.

The above failures can be evaded by good planning and time management. Any faults can be very costly, therefore, information systems are vital to the success of an organisation


2 Responses to “Failures in IS”

  1. sad111526987 February 27, 2013 at 4:03 pm #

    Very interesting example. Where did you find these facts?

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