The Misery of IT Projects. Why IT Projects Fail (PDF)

Bachelor Thesis from the year 2007 in the subject Computer Science - Commercial Information Technology, grade: 1,7, , language: English, abstract: This dissertation studies possible reasons for information technology (IT) project failure or success. In general, projects have a defined goal with clear boundaries and defined resources. They are limited in time, highly complex and run by a specific organisation. In particular, software projects are characterised by complexity, simple modifications, abstraction, technology changes, incomplete requirements and undefined practices. In addition, the environment plays an important role. The key players consist of: senior management, project sponsor, project manager, project team and users. To successfully run projects, a formal methodology is fundamental. Project management involves initiating, planning, executing, controlling and closing.

The Standish Group has proved that IT project failure is common. The Chaos Report publishes facts on failure every two years. In 2004, 18% of projects in the U.S. failed, 53% were challenged and 29% were successful. The reasons for project failure are related to incomplete requirements, lack of user involvement, lack of resources, unrealistic expectations, lack of executive support, changing requirements and specifications, lack of planning and lack of IT management. These factors were also crucial for the failure of the FBI's Trilogy project. This project consisted of upgrading the FBI's hardware and software, their communications network and five most important investigative applications. The Trilogy project was 15 months over schedule, $201.3 million over budget and has never been finished.

Other success factors however include user involvement, executive management support, experienced project manager, clear business objectives, minimised scope, clear requirements, standard software infrastructure, formal methodology, reliable estimates and skilled staff. For the successful implementation of Mentec's AGRESSO Financial Management System in Irish Local Government these issues were extremely relevant. The new system could be distributed to 72 local authorities on plan and within budget. This dissertation theorises a successful IT project process. Whereas formalised project management practices cannot guarantee an effective project, they only provide for better opportunities to reach the goal.