Real Life Examples Of Failures In Information Systems

11 Mar

An information system can be extremely beneficial to a company, however when an information system fails the results can be devestating and can even lead to the demise of the company. There have been many examples of companys collapsing due to a failure in an information system. I would like to discuss examples of companies and organisations that have suffered huge financial loss due to the failure of an information system.

 

Irish Electronic voting Failure 2004   

This information technology failure is perhaps the most famous in irish polotics and is widely regarded as the biggest waste of the tax payers money ever recorded in irish history with the failure causing the irish economy 55 million euro. It was implemented by Taoiseach Bertie Ahern who wanted to make the irish voting system more efficient.

Reason For Failure: The implementation of the system was not well  recieved by the general public who worried that it would lead to a lack of transparency and also the elections could be open to manipulation if these electronic voting systems were used. It then transpired that the electronic voting machines could be easily hacked and manipulated. The system was never implemented and lead to 55 million euro of the tax payers money being wasted.

Hilton Hotels Information system failure

Hilton Hotels attempted to implement a system that allowed customers to Confirm reservations  for hotel bookings and Car rentals online. This information system was to be brought in with the intention of making the booking system easier for both the consumers and the company.

Reason For Failure: After 4 years and 125million dollars invested the project crumbled in 1992 when it became clear that the company would miss its deadline by 2 years.

 

Tri Valley Growers Information System Failure

A giant agricultural co-operative, Tri Valley bought at least $6 million worth of ERP software and services from Oracle in 1996. This lead to a $20 million lawsuit claim by Tri Valley against Oracle.

Reason For Failure: None of the software worked as promised and some of it could not be installed by Tri Valley. Oracle denied any wrong doing. Tri valley lost the court case and was left with a net loss of $30 million.

 

 

Sourceshttp://www.computerworld.com/computerworld/records/images/pdf/44NfailChart.pdf

http://en.wikipedia.org/wiki/Electronic_voting_in_Ireland

One Response to “Real Life Examples Of Failures In Information Systems”

  1. sad112759089 March 12, 2013 at 12:17 am #

    Good examples used! Great Blog!

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: