IS Failures - state of the art ?

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Despite efforts from IT practitioners as well as from IS researchers to assist organizations in adopting IT, a majority of IS projects fail.What is the state of the art in "failing"? Is it getting better? Do we learn from our mistakes? Learn all about it in this presentation.

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<p>Slide 1</p> <p> Jan Devos - 1Mislukking of succes?Stand van zaken</p> <p>Jan DevosELIT-Lab &amp; Industrial ManagementFaculty of EngineeringGhent UniversityGraaf Karel De Goedelaan 5BE-8500 KORTRIJK - BELGIUMT: +32 56 24 12 72F: +32 56 24 12 24e-mail: jan.devos@howest.bee-mail: jgdvos.devos@ugent.belinkedIn: www.linkedin.com/in/jangdevoswebsite: http://ela.howest.be/jdevos</p> <p>Projectbeheer: kan het beter?IS Failures Jan Devos - 2Recent paper (18 May 2010)</p> <p>Project failure en masse: a study of loose budgetary control in ISD projects</p> <p>K. Conboy (NUI Galway, Ireland) </p> <p>This paper represents a case of extreme information systems development (ISD) failure en masse, where all but two of the 22 projects in a business unit went over budget, causing senior executives to refocus their strategic priorities and cancel all current and potential projects that followed. This study focuses specifically on the two best performing (12 and 4% under budget) and worst performing (223 and 320% over budget) of these projects. European Journal of Information Systems (2010) 19, 273-287. doi:10.1057/ejis.2010.7; published online 18 May 2010 Jan Devos - 3</p> <p>Project/Company DamageYearLondon Ambulance Service (LASCAD)1,1 - 1,5 mio1992Denver International Airport$2.000.000.0001995Sydney WaterAU$61.000.0002000Feniks (Belgium)12.000.0002007Hersheys $112.000.0002000Fox-Meyer Drug Company$18.000.0001994Confirm (Hilton, Mariott, Rent-A-Car)$125.000.0001988TAURUS (UK Stock Exchange)75 - 300 mio1993Accounting System at Cambridge University10.000.0002001Royal Melbourne Institute of Technology (RMIT)AU$47.300.0002001Cambridge University (accounting system)10.000.0002001Hit Parade of IS FailuresBest kept (public) secret worldwide ?</p> <p>A lot of research for almost 45 years 1967, Management misinformation systems, (Ackoff)2010, Project failure en masse: a study of loose budgetary control in ISD projects (Conboy)</p> <p>Much is known - less is done ! 1975 / 1995, The mythical Man-Month (Brooks) </p> <p>Failure to learn ? CIOs - IS-Researchers1999, Learning failure in information systems development (Lyytinen &amp; Robey)MISQ, EJIS, ISR, JAIS, IS Failures Jan Devos - 5What are IS Failures ? Jan Devos - 6Engineering Failures? </p> <p>What are IS Failures ? Jan Devos - 7</p> <p>An IS Failure is an outcome of a human process19941996199820002004Failed projects31%40%28%23%18%Challenged projects 53%33%46%49%53%Succeeded projects16%27%26%28%29%Standish Group</p> <p>Research on IS failures What is an IS Failure ?</p> <p> What is an IS Success ? Does the iron triangle BTS measures success ? Does it prevent from failure ?</p> <p> Failure NOT(Success)</p> <p> How do we measure failures &amp; successes ?</p> <p> How do we prevent from failure ? Or how do we conduct successful IT projects ? Research on IS failures WHAT ?Expectation failures (Lyytinen &amp; Hirschheim) = the inability of an IS to meet a specific stakeholder groups expectations</p> <p>Termination failures (Sauer) versus Perpetual beta (calculation of ?)</p> <p>Project Runaways (Ewusi-Mensah, Keil) &amp; Project AbandonmentIS Project Runaways = Escalation of commitmentIS project abandonment is defined as a phenomenon that concerned with the anticipated failure of the project prior to its full implementation </p> <p>Outsourcing failures (Devos)Moral Hazard: lost of trust Adverse Selection: Lemon Markets</p> <p>Engineering failures ? MTBF ?</p> <p>Research on IS failures WHAT ?Expectation failures (Lyytinen &amp; Hirschheim) = the inability of an IS to meet a specific stakeholder groups expectations</p> <p>Correspondence failures</p> <p>Process failures</p> <p>Interaction failures </p> <p>de patint:</p> <p> wordt snel afgeleid schenkt weinig aandacht aan zijn omgeving kan niet goed zijn aandacht bij n zaak houden (concentratiegebrek) geeft onvoldoende aandacht aan details lijkt vaak niet te luisteren als hij/zij direct wordt aangesprokenantwoordt vaak al uit voordat de vragen afgemaaktverstoort vaak bezigheden van anderen of dringt zich op (bijvoorbeeld mengt zich zomaar in gesprekken)</p> <p>Managerial Attention Deficit &amp; Disorder (MADD) Jan Devos - 12Research on IS failuresCover-UpOrganizationDeaf, Dumb and BlindOrganizationHealthy OrganizationOstrich OrganizationMum EffectDeaf EffecthighhighlowlowBlowing the whistle on troubled software projects (Keil, 2001) bad news is transmitted less frequently than good news reluctance to hear bad newsMoral Hazard (Opportunistic behavior)Trust versus Control</p> <p>Adverse Selection (Lemon Markets) </p> <p>2009, IT Governance in SMEs: Trust or Control? (Devos et al.)2011, The Theory of the Lemon Markets in IS Research (Devos et al.)Outsourced IS Failures Jan Devos - 14Lemon Market Jan Devos - 15</p> <p>= 1</p> <p>= 0.1</p> <p> ICTLemon Market Jan Devos - 16</p> <p>1</p> <p>0.1?</p> <p>Lemon Market Jan Devos - 17</p> <p>0.55</p> <p>0.55 - 1 = -450.55 - 0.1 = 0.45Lemon Market Jan Devos - 18</p> <p>0.55</p> <p>0.55 - 0.1 = 0.45</p> <p>0.55 - 0.1 = 0.45</p> <p>0.55 - 0.1 = 0.45</p> <p>Lemon Market Jan Devos - 19</p> <p>0.23</p> <p>0.23- 0.1 = 0.13</p> <p>0.23 - 0.1 = 0.13</p> <p>0.23 - 0.1 = 0.13Research on IS failures - HOW? Resistance against change</p> <p>1983Power, Politics and MIS implementation (Markus)</p> <p>20 years later:- 2003, "Computers can land people on Mars, why can't they get them to work in a hospital?" - Implementation of an Electronic Patient Record System in a UK Hospital (Jones)</p> <p>- 2004, Informating the Clan: Controlling Physicians' Costs and Outcomes (Kohli &amp; Kettinger)</p> <p> Jan Devos - 20Organizational Change</p> <p>Nov. 2010 Jan Devos - 21</p> <p>Organizational Change</p> <p>Research on IS failures - better ? Maturing the discipline of PM</p> <p>Alternative approaches to PM</p> <p>Real Options</p> <p>HRO</p> <p> Jan Devos - 23Alternative approaches to PMPM does not guaranteed success nor eliminates failuresPM too much focused on how-to-do</p> <p>Management of meaning iso management of control ? Critical perspective on projects: focus on values (technology is not neutral), ethics and morality equally important than efficiency &amp; effectiveness ?Research on SMEs:Trust vs Control ? (Devos, 2009)</p> <p>Political PLC</p> <p>2003, The chimpanzees tea party: a new metaphor for project manager (Drummond &amp; Hodgson) 2006, New Possibilities for Project Management Theory: A Critical Engagement (Cicmil &amp; Hodgson) Jan Devos - 24PLC and the Political PLC Jan Devos - 25InceptionConceptionRequirementsDesign &amp; Dev.ImplementationTerminationPLCWild enthusiasmDisillusionmentTotal confusionSearch for the guiltyPunishment of the innocentPromotion of non-participantsPPLCAlternative measures: real options Real Options Pricing Models (ROPMs)</p> <p>Suitable for large IT infrastructure investmentsFuture revenue streams are unclear (unsuccessful ?)Invest now harvest laterAn initial expenditure on IT creates the right, but not the obligation to obtain the benefits associated with further developmentManagement has the freedom to cancel, defer, restart, or expand the project</p> <p>Benaroch, M. and R.J. Kauffman, A Case for Using Real Options Pricing Analysis to Evaluate Information Technology Project Investments, Information Systems Research, 10 (1), 1999, pp. 70-86. </p> <p>John A. Campbell, Real options analysis of the timing of IS investment decisions, Information and Management, v.39 n.5, p.337-344, March 2002 </p> <p> Jan Devos - 26HRO concept High Reliability Organizations</p> <p> Jan Devos - 27HRO concept Organizing for High Reliability: Processes of Collective Mindfulness (Weick, 1999)</p> <p>Preoccupation with failure (Failure is not an option)Reluctance to simplify interpretation (beware of frameworks, models, mindsets, )Sensitivity to operations (situational awareness)Commitment to resilience (continuous management of fluctuations) Jan Devos - 28HRO concept Lessons from HROs</p> <p>The expectation of surprise is an organizational resource because it promotes attentiveness and discoveryAnomalous events should be treated as outcomes rather than as accidents, to encourage search for sources and causesErrors should be made as conspicuous as possible to undermine self-deception and concealmentReliability requires diversity, duplication, overlap, and a varied response repertoire, whereas efficiency requires homogeneity, specialization, non-redundancy and standardisationInterpersonal skills are just as important in HROs as are technical skills Jan Devos - 29EndQuestions ? Jan Devos - 303011/01/2011OASIS 2010 - J. DevosPhD Research J. Devos</p>

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