School of Computing
FACULTY OF Engineering
COMP3470 IS33
People-Centred Information
Systems Development
Week 5 : Lecture 1
Failure Case Study –
Denver International Airport
Weeks 5(1) 2008
IS33 DIA
1
The Denver International Airport
Case Study
Why study this?
Any recent escalating IT project?
Search for ‘NHS IT project over budget’
- In Google
- In BBC News
12th Oct 2004 – http://news.bbc.co.uk/1/hi/health/3734504.stm
GP worries http://news.bbc.co.uk/1/hi/health/3750474.stm
-
An update May 2007
http://www.computerweekly.com/Articles/2007/05/17/218050/nhs-nationalprogramme-for-it-in-the-spotlight.htm
Does it ring a bell?
See NAO’s value for money report on the National
Programme for IT in the NHS published in June
2006. – CW2!
Weeks 5(1) 2008
IS33 DIA
2
The Denver International Airport
Case study
Why study this?
- Appreciate the range of issues in
developing complex system
- Introduce the concept of de-escalation
- Appreciate the roles of people in complex
projects
Weeks 5(1) 2008
IS33 DIA
3
Sources of information
Montealegre R & Keil M, De-escalating
Information Technology Projects:
Lessons from the Denver International
Airport, MIS Quarterly, Vol 24, No. 3,
Sept 2000, pp.417-447
 Donaldson A.J.M., Narrative Case
Study of the Denver Airport Baggage
Handling System, SFC TR 2001-02,
May 2002 access via

http://www.cs.mdx.ac.uk/research/SFC/Reports/TR2002-01.pdf
Weeks 5(1) 2008
IS33 DIA
4
Business drivers (i)
Early 80s, City of Denver would like a
‘state-of-the art’ modern airport to act as a
hub for major American airlines – a project
for job and trade creation
 Sept 89, $60m was authorised to build DIA
with target opening date in Oct 93
 Feb 90 & Dec 91, Continental and United
Airlines sent their commitment to use DIA
as hub (hence they have a concourse
each, A & B)

Weeks 5(1) 2008
IS33 DIA
5
Business drivers (ii)



Traditionally, major airlines would look after their
own system for handling baggage. UA
commissioned BAE to build an automated baggage
handling system for their concourse. Tug-&-cart was
a common baggage handling system in those days.
In 92, DIA project management team began to see
the benefits of an airport-wide automated baggage
handling system, as “the friendliness of an airport is
measured in time”.
Apr 92, BAE was awarded the contract to build the
system (despite BAE originally turned down the
opportunity because the project was overambitious) and UA’s requirements became part of
the project.
Weeks 5(1) 2008
IS33 DIA
6
What happened (i)





May 92, head of DIA project resigned
Aug 92- Jan 93, numerous changes to
requirements (from UA and Continental)
Oct 92, Chief Airport Engineer (strong
proponent of the baggage system) died
Feb 93, Mayor delayed opening to Dec 93
and then to Mar 94.
Summer 93, cars were running but
programming not completed (BAE controlled)
Weeks 5(1) 2008
IS33 DIA
7
What happened (ii)



Sept 93, BAE negotiated maintenance
contract with City of Denver and lost the
contract (intended to pay £12 per hr for jobs
that the union wanted £20 per hr) –
occasioned a 2-day strike of millwrights and
electricians
Sept 93, opening delayed until May 94, and
then 7 times over the next few months
Jan 94, UA requested alterations to odd-size
baggage inputs
Weeks 5(1) 2008
IS33 DIA
8
What happened (iii)



Mar 94, still dealing with ‘unclean’ electricity
supply and needed additional equipment that
took months to arrive
Apr 94, City of Denver invited reporters to
observe the first test of the baggage system
without notifying BAE – reporters saw piles of
damaged clothes and personal items lying
beneath the Telecar’s tracks
May 94, Mayor hired the German firm
‘Logplan’ to assess the state of the baggage
handling system ….beginning of the ‘deescalation’
Weeks 5(1) 2008
IS33 DIA
9
The solution at the end

DIA opened on 28 Feb 95 with
5
runways
 99 gates
 Cost of $5.2 billion
 3 different baggage handling systems:
UA with an automated system
 Continental with a tug-and-cart system
 Others with a very conventional, highly labour
intensive system

Weeks 5(1) 2008
IS33 DIA
10
Concept of de-escalation

The MIS Quarterly paper tried to
articulate a process to get out of a
troubled escalating project (they
acknowledged the limitation of drawing
conclusion from one case) see table 4
on p.438
 Problem
recognition
 Re-examination of prior course of action
 Search for alternative course of action
 Implementing an exit strategy
Weeks 5(1) 2008
IS33 DIA
11
People issues
Who were the stakeholders? And their
relationships?
 Project management teams

 Inadequate
skills set
 Poor communications

Leading figures
Weeks 5(1) 2008
IS33 DIA
12