Why Do IT-Projects Fail ?

Presented by:
Candidate ID: 389552, Aston Business School
Context / Significance
Problems Being Addressed
Research Methodology
Data Collection & Analysis
Projects generally fail due to varied reasons:
Size | Sector | Complexity | Scope | Type
Time | Money | Requirements
Researches say that IT-projects are uncertain and
most likely to fail, unless dealt in the best way in
which they are meant to be handled.
Research conducted by The Standish Group in 1995 indicated that
31.1% of projects evaluated were cancelled before they were
completed, some 50% challenged, whilst the remaining succeeded
(The Standish Group, 1995).
Market research group Gartner complemented these findings stating
the 30% of Information Technology (IT) projects will not meet their
desired end goal via project completion.
Comparisons of these percentage figures show project failure
to be consistently high across many industries.
IT project failure depending on:
Size (Big Size v/s Small Size)
◦ How does IT project failure depend on size of the project ?
Sector (Private Sector v/s Public Sector)
◦ How does IT project failure depend on sector under which it
is being undertaken ?
IT projects are increasingly being implemented each year due
to the need to simplify, whilst making use of the expanding
IT usage and consumerisation.
The IT industry faces many challenges within its everexpanding marketplace, the foremost of which are the high
levels of IT project failure when introducing new technological
innovations via project form.
Therefore, the need to identify critical success and
failure factors has become highly sought after.
Discussion on a balanced view over the influence of SIZE &
SECTORS on IT project outcomes.
Data and theoretical information has been primarily collected
from academic journals, statistics, and prior reports.
Secondary Research
The final conclusion derived is a result of weighing both
discussed problems equally.
Analysis based on
NHS’s - National Programme for IT (NPfIT - UK)
 Integration of Information Technology System
 Capacity shortages of Workforce
FBI’s - Virtual Case File (VCF - US)
 Mistakes of time and resource estimate
 Communication Problems
 Objective Changes
Sector Analysis
NHS’s - National Programme for IT (NPfIT - UK)
 Poor Leadership
 Largest Public Sector Project of UK, hence degree of risk estimation
went flawed.
 Over Ambitious
 Lack of user involvement
Hershey’s Food Corporation (US)
Problems with Hershey’s Systems Integration
Time Mismanagement
Lack of user involvement
Failure of rapid implementation of ERP at peak time, due to which
system users found it hard to use and bring the system into action.
IT project failure has occurred numerous times since the
introduction of technology into global existence and use.
We have considered just two variables (viz. Size and Public &
Private Sector) from a myriad of options in which project
failure has been previously attributed.
Key to project success is, and would always
be attributed to Effective Project
Management, a broad term which needs to
be scaled down, understood and put into
action in the real sense of its words.
Thank You!