Last time I discussed the different types of IS failures and now I will give some examples of these failures.
The first is a system called “Confirm”, which was a system designed for hotel booking and reservations. It failed after 4 years of development in 1992 and $125 million was spent on it. Confirm failed because it was going to be late for its deadline by 2 years. Such delays are vary common in IS and are caused by miscommunication and poor planning.
Another example I found was a conversion to a new order entry system for a tools company called Snap-On Inc. It took 3 years to develop and implement the system but the company lost $50 million in sales beacsue it failed. It dalayed orders and miscounted invertory, which caused extra costs for the company.
Finally, a system called “Trips” was disgned as a reservation and bus dispatch system. The customer, Greyhound Lines Inc, lost $61.4 million when Trips crashed. It caused ridership to decrease by 12% in just 1 month.It only lasted a few weeks after being introduced and the CEO had to resign. The company never regained the good reputation it had.
These examples show that IS failures can cause a reduction in sales, increased expenses and a loss of reputation.