Understanding the Sources of Information Systems Project Failure

Management Services, Autumn 2007 by McManus, John, Wood-Harper, Trevor

* Researcher as observer;

* Exploratory, explanatory or descriptive;

* Focus on 'How?' and 'Why?'.

Given the complexity of the subject area and the need to build on earlier research and to broaden the horizon an approach based on cases and surveys was deemed applicable. The surveys looked at different projects (and their team structures) at the same time, interviews were conducted with a selective number of project managers to follow up issues or clarify points of interest. In this study a larger amount of data was analysed than the earlier cases. More consideration was given to identifying sample projects (through literature reviews) and identifying the key attributes for data analysis. The period of analysis covered 1998-2005 the number of information systems projects examined across the European Community was 214 comprised of both I public and private sector firms that included 63 projects from the public sector and 151 projects from the private sector (refer to tables 1 and 2 for breakdown by sector and project value).

Validity of research

When assuring the validity of information, it is always advisable to use different techniques to authenticate the substance and accuracy of the data and information used. In this respect triangulation was seen as a possible use for this purpose. Triangulation was used as a secondary source of information (eg to support an interview with data from a project). By undertaking this activity it was possible to find differences between what people said and what they did (ie, what they undertook).

Practical outcomes

One practical outcome envisaged from this research activity is a continuing debate amongst academics and practitioners in essence paving the way for new areas of study in relation to information systems project failure. The research should also provide an increased understanding of why information systems projects continue to fail.

Research questions and data analysis

This research builds on previous research undertaken and although by no means exhaustive this research aims to find answers to three questions. Namely:

1. At what stage in the project lifecycle are projects cancelled (or abandoned as failures)?

2. What is the average schedule and budget overrun?

3. What are the major causal factors contributing to failure?

Question 1

At what stage in the project lifecycle are projects cancelled (or abandoned as failures)?

When undertaking software development a number of different approaches and methodologies can be used however, the most common method in use is the waterfall method 3. It is also acknowledged that other approaches (eg DSDM, RAD, and Agile methods) could also be used in parallel with the waterfall method. Prior research by the authors 3 identified that 7 out of 10 software projects undertaken in the UK adopted the waterfall method for software development and delivery. Although some of the projects analysed did use a mixture of software development methods through a process of normalisation the authors were able to overlay all 214 projects onto the lifecycle outlined in table 3.