2. IT PROJECT FAILURE
1. CHRISTOPHER PETER – 1302159/T.14
2. EFATA KILEO – 1302140/T.14
3. PAUL LAURENT – 13040137/T.14
4. LOYANI KISULA – 1302149/T.14
5. LUNODZO MWINUKA – 1302090/T.14
6. DARIAH JOHN – 1302136/T.14
7. FRED AMON – 1302116/T.14
8. JOSEPH PROSPER – 1302132/T.14
9. LAWRANCE MASSANJA – 1302122/T.14
10. REGULAR EMMANUEL – 1302152/T.14
Understanding IS concept from different authors
Describe contribution of 20 critical success factors for IS projects
Understanding IS projects
Understanding IS project failure.
Explaining categories of IS project failure
Exploring Levels of IS project failure
Analyzing IS project success and failure from the case studies
4. Introduction to Information Systems
According to (Lally, 2004) an Information System is composed of software,
hardware, communication systems and people. It is a critical investment for
organizational survival. It increases the efficiency and effectiveness of daily
business by integrating organizational processes and structures. Generally the
Information System is the core of any business.
The IS can also be defined as the collection of technical and human resources
that provide the storage, computing distribution and communication for the
information required by all or some part of an enterprise/organization
5. Critical success factors
This part describes factors that contributes to the success or failure of Projects.
Number of Authors, define different Critical Success Factors (CSFs) that they believe to
be vital for project success
Twenty Critical Success Factors
8. Understanding IS project failure
A project can be defined as an achievement of a specific objective, which involves a
series of activities and tasks which consume resources. It must be completed within a
set specification, having definite start and end dates (Munns and Bjeirmi, 1996)
Chaos Report analyses that 70% of large-scale IS investment fail.
We must first analyze the roots of failure and define a clear and precise definition of
9. Understanding IS project failure
What is Project Failure
Project failure in the generic context can be defined as, projects that are late
or over budget, an inability to fully realize the expected benefits or gain the
acceptance and enthusiastic support of users and management
10. Categories of IS project failure
Due to difficulties observed in defining failure of projects as whole, It is more
plausible to have a number of degrees of failures.
Authors define four major categories of IS project failure as: -
Correspondence failure - The IS fails to meet it’s design objectives.
Process failure - The IS overruns it’s budget or time constraints.
Interaction failure - The users maintain low or non-interaction with the IS.
Expectation failure - The IS does not meet stakeholders’ expectations.
11. Categories of IS project failure
The type of failure and the level of failure must also be defined clearly, as
failure can represent different circumstances to different people or
Within IS failure you can have
12. Levels of IS project failure
Failure can be analyzed in different levels that is minor, major and critical.
This improves previous definition of failure since it incorporates the twenty
different Critical Success Factors.
Minor (Level 1) - the final IS project does still meet its objectives and is
Major (Level 2) - the IS project does not meet all of its requirements and will
not be achieved within budget and on time.
There are two scenarios in this case: -
The project can continue and will be completed, but will have run over its
schedule and financial budget.
It will also not complete all of its objectives, but the solution is workable.
13. Levels of IS project failure
Critical (Level 3) - IS project does not meet any of its requirements or objectives.
It is most likely to be scrapped after running over time and budget.
There is also probably no end in sight for the project.
The levels of failure are cumulative and level three cannot be reached without going
through level one and level two failures.
At level one the project team should be critically aware of the downward spiral of the IS
project. They should be willing to respond effectively to the changing environment that
has resulted in level one failure.
If the project moves into level two it becomes apparent that the IS project is in major
difficulty and is at risk been cancelled, thus falling into level three failure.
15. An analysis of IS project case studies
The analysis procedure aims to integrate the reasons for project success and
The table below identifies the critical success factors that were present in the
life of the ITS projects that were examined in the case studies: Taurus,
DIA(Denver International Airport), ISIS(ILCUTECH Standardised Information
System) and NATS(National Air Transport Service).
The table describes the reason for failure and success of projects discussed.
Two projects where executed to success (DIA and NATS) while the remaining
two were failed(Taurus and ISIS).
Projects with 10 or more than 10 critical factors was able to reach completion
while one with less than 10 critical factors(critical level) failed
18. An analysis of IS project case studies
From analysis of past literature and research on Taurus:
power, politics and responsibilities were the main contributing factors in the failure of the
project(Drummond,1996), (Drummond,1999) and (Goulielmos,2003)
The persistence to deny failure, a socio-economic problem that is widespread across all
The Taurus project was a level three failure as the majority of the critical success factors
were not achieved.
It was created to promote centralized use of technology within the credit Union.
It experienced a third level failure as there was lack of standardization of software and
19. An analysis of IS project case studies
By creating a centralized system balance of power shifts from individual
Credit Union, thus loosing their identity
There was lack of strong management as for three months the project was
viewed as been at schedules and management.
It was created to improve ground efficiency, reduce closeout time for hub
operations and decrease time-consuming manual sorting and handling
It was overbudgeted
20. An analysis of IS project case studies
And also used a new technology,
It became complex as top management failed to redefine business practices and its
organizational structure in relation to the technology investment to be used
Although it suffered level two failure it was a critical component for the airport to operate
hence failure was incomprehensible
it was created as an upgrade to the existing system.
There were three providers of technology(IBM,Loral and lockhead Martin)
The project team were new to to the area of air traffic control and did not understand
the working of an air traffic control system
The two case studies that had critical failure (Taurus & ISIS) had very few CSFs present in the
life of the project. The Taurus project had seven CSFs present and the ISIS had two CSFs
21. An analysis of IS project case studies
This is an alarmingly low number of CSFs and if the project management team
had created adequate risk analysis of the project prior and during the life of
the project, they could had averted or stopped the project from escalating
into failure. The projects that suffered major failure (DIA and NATS), but
eventually got finished, also had a number of CSFs missing during the
The DIA automated baggage handling system had ten CSFs present according
to the author’s findings. It had 50% of the factors, thus succeeding after major
disruptions. The NATS project also had eleven CSFs present in the author’s
findings. It was also an essential service to the UK, so failure was not a
22. An analysis of IS project case studies
The CSFs that were identified were used to examine the successes or
failures of each individual case study.
This enabled the author to draw conclusions on the reasons why IS
projects have such a high rate of failure.
The author proposes a system that can be used by researchers and
developers to investigate if ITS projects are following a path to success.
Information Technology System project failures has never really evolved into a
success, because failure is not accepted and future prevention techniques are not
developed, as all the facts are not disclosed.
The issue of risk management techniques used in project development could be
examined to compliment the CSFs model.
Another important area that could be examined further is social constructivism and
how it influences the outcome of an IS project.
IS :- is any organized system for the collection, organization, storage and
communication of information.
Projects :- is a temporary endeavor undertaken to create unique product,
service or result
20 Critical success factors are user involvement, competent staff,
ownership, executive management support, Realistic Expectations, clear
vision and objectives, Smaller Project Milestones, hard working, focus staff,
Adequate Resources and Funding, Minimum start-up difficulties, Absence
of bureaucracy and politics, Project achieves its purpose and objectives, It
satisfies the needs of the owners, users, project team and stakeholders,
Commercially profitable for the contractor, Delivered to budget, on
schedule, and to technical specification, Smaller Project Milestones,
Realistic Expectations, Proper Planning i.e. cost and time estimate.
Four categories of IS failure
Level of IS project failure