¶ … Information Technology System Projects Fail
Information system projects mostly end up in a failure. Along with inherent factors such as technical issues delaying implementation and indefinable expectations of customers, inappropriate budgeting and opposition to business process reengineering also makes the project go up in smoke. (Scott and Vessey, 2002) The first step towards a project's success is its objectives which should be specific, measurable and realistic. Researchers have previously emphasized on the importance of defined objectives and highlighted that approximately 50-70% of projects fail due to objectives being vague and uncertain. Shortly thereafter, the significance of budgeting was also highlighted in a 1998 fortune article which stated that around 90% of ERP projects are delayed as costs go beyond the amount estimated, and even after all these hurdles, only one-third of ERP projects prove to be successful. This is a notable calamity which affects the entire world; one of the most affected nations being China where ERP failures are predicted to be around 90%. (Zhang et al., 2003)
To this date, we have not come across any evidence that can give us some surety that the problems are close to extinction; not that they are overlooked by researchers but the fact that success rates haven't changed leaves us in a dilemma.
IS Projects and their Success
As advocated by Tornatzky and Fleischer (1990), there are three components that can be associated to the success of IS (Information Systems) applications; the external environment, organizational context and technological context. Where the external environment signifies the effect of customers, suppliers, competitors and government, organizational and technological context focuses mainly on the internal factors influencing a project. The technological framework points out how problems in hardware, software and telecommunication lead to a project's failure. On the contrary, factors such as corporate culture, leadership and IS based knowledge are included in the organizational context.
As mentioned earlier, the problem of IS failure was not ignored by researchers; as a result different writers have different theories giving various reasons of why projects fall short. Kumar, (2000) who is a predecessor of ERP implementation, is of the view that organizational framework plays the most important part in IS development. Certain aspects of organizational structure for instance, its culture and attitude of senior management are crucial to a project's success. Lack of synergy in an organization, unprofessional attitude from senior management, and incompetent leadership are three prerequisites that make the project a sinking ship.
As leadership surpasses all other organizational factors, it would not be wrong to establish it as a single endorser to any project's downfall (Roepke, Agarwal, and Ferratt, 2000).
Organizational factors can be explained in the form of a paradigm, with leadership being in the centre affecting all other components, such as culture, strategy and staff commitment. Along with these constituents, it also impinges on system development, implementation and maintenance. A strong and competent leadership can enhance the success rates of IS projects. Therefore, it should be given due consideration. To classify it as a Critical Success Factor in theoretical books is not the answer to this solution, researchers should dig into this concept, analyze it further and leave no stone unturned. This is a key to all solutions, an answer to all questions, but a lot of hard work is required to make it work as all aspects of leadership, including its meaning, challenges faced in IS development, various forms of leadership to assess which style suits the situation and also the way it has to deal with external influences.
Why Information Technology Systems Projects Fail
Despite the fact that primary focus has always been on successful IS developments, the literature is stuffed with various cases pertaining to IS breakdown (Oz and Sosik, 2000).
There are a number of editorials that present us with a detailed scrutiny of such illustrations. The starting point of any research is surveillance, which is either based on conventional presumptions such as self-justification and escalation theory or on the archives of similar assignments in past.
Whether it's general project risk or IS research risk, the spotlight has always been on the underlying factors that boost the chances of disappointment. Amongst other researchers, Barki, Rivard and Talbot's (1993) work is worth mentioning as their study of IS risk literature acknowledged five components that are related to project risk; one of these components being ineffective communication which was given the name of "Organizational environment."...
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