Management Practices in IT : Understanding why IT enabled projects fail

By: Wanchoo.Rajat


At first sight it may seem IT-enabled business projects do not deliver because of
1. poor initial definition of the requirements
2. poor business management
3. poor project discipline.

So, if none of these reasons are compelling as causes of this underachievement scenario, then one basic conclusion we can reach is that these projects are “designed to fail” . That is, the way in which projects are developed and organized are fundamentally flawed

Let us see how this problem can be addressed and resolved by business managers

There are usually 4 stages of a project



Phase a. Project Launch
In this phase people usually set out the requirements. Usually these un-met or poorly met needs are developed into a project proposal or plan that addresses objectives, ROI assessment, required budgets, IT tools and software. Persons from the business side and IT are selected for the project team.


Phase b. Project Planning
It is usually at this point that the project team starts examining how to go about these operations, processes. Typically, the managers of the intended “users” over-specify the requirements hoping that they eventually get a portion of what they ask for.


Phase c. Project Development
During the deployment phase, the project team focuses on getting the new system up and running by the “release” date. The team works diligently on the building, integrating and testing steps in the project. Unfortunately, budgets and time allocated to these efforts are squeezed
at the end of the deployment cycle.


Phase d. Show Time
The team celebrates the successful “delivery” of the project. Managers also assume that the project is finished and all users have to do is employ the new system and the projected business benefits can be realised. Since the project budget and schedule are now consumed, the project team disperses and the system is now in the hands of the “users”.

But is the “delivery” of the project , the end or just the beginning of the story ??

Analysis 1:

In a typical IT design methodology , the following is the proportion of labor involved in the above mentioned 4 Phases.

<-----20%------><--------25%-----------><------------------55%-------------------><------>
......Phase a.................Phase b.....................................Phase c ..........................short delivery Phase

But analyse the basic flaw in this method. Why IT projects are failing in realizing business benefits .. because the actual users were never really involved in the project scoping at the start, nor consulted as it was deployed, nor accountable for integrating the new systems, database and functionality into their daily behaviors and actions around how they use information and IT on the job to achieve their business results.

Analysis 2:

Lets put forward an approach in which we involve the user and the focus on how people
Actually use information and IT in their workplace

.....User.........|..........User Preparation.................|....Usage Measurement &
Assessment.. .|...................................................|....Improvising the business

<--------------| -----------------------------------------|------------>

....................|<-----><--------><------------------>|<-->...........
....................|.....Ph.a....Ph. b...........Phase c........|..................

IT enabled business project is NOT about IT deployment alone, but about how people use IT and
information in the work place to achieve their benefi ts and the company’s benefi ts. So, by definition, an IT project is at best, half done, when it is delivered. Every IT project must incorporate a usage phase to address the effectiveness or ineffectiveness of information and IT usage .

Conclusion:
The projected usage of information and IT should drive deployment efforts and not the other way around. If 80% of the business value of IT is derived from using it and not just deploying it,
then it is clear that the effectiveness of people in a business area to use information should influence IT-enabled business projects at every stage


Understanding why user involvement increases the output of an IT project