Many I.S systems fail because systems analysts try to build wonderful systems without even understanding the organistion. A common reason for I.S failures is the fact that companies buy a commercial off the shelf (COTS) package and customize it. The only way for a business to be successful with a (COTS) package, is that they must decide from the very outset that their going to reengineer their business to the limitations of the (COTS) package.
Heres just some famous examples of I.S failures with a costly effect:
– Ford motors in 2004 had their purchasing system abandoned after deployment costing approx $400 million.
-AT&T also in 2004 had problems with their customer relations management systems which led to costing them a $100 million loss.