TxM 032 Section 3.5 The Factors Causing Integrated Business Information System (IBIS) Investment Failure Created by James on 7/3/2013 1:58:23 PM
The Critical Factors causing failure were identified starting in 1990 and were catalogued in 2002. They have been refined over time to the factors set out below:
1. I.T. Mythology – 30%
All the mistaken and false beliefs, believing computer are magic, believing you can have anything you say, using traditional methods that have consistently failed and expecting a better outcome, do-it-yourself mentality, delegation of executive level decisions to junior staff, the audit project model, process obsession, lack of precision, etc. Expecting computers to do things only people can do. Thinking you can use any team who work any way they like and it will work.
2. Lack of Executive Custody – 19%
A huge issue. The CEO must be the custodian of the IBIS / ERP / DW / BI investment – see article on this subject. Executives must drive the project and the taxonomies and high level configuration must be determined by executive level advisors assisting client executives.
SEPT taxonomies are one manifestation of a project with excellent executive custody and their absence is generally an indication of poor or absent executive engagement.
3. Poor strategic architecture and alignment – 16%
Lack of a clear definition of the essence of the business and how it thrives, lack of focus on configuring the fundamentals of the business, failure to accurately model the real complexity of the business. SEPT taxonomies result in part from excellent strategic definition and engagement and their absence is frequently an indication of a lack of strategic engagement.
4. Poor or absent Information Engineering – 14%
While the SEPT taxonomies and precision configuration are a reflection of the previous weaknesses they are an essential component of a high value configuration. They are the piece that stays behind when all the stuff in 1, 2 and 3 above and 5 and 6 below have moved on.
SEPT Precision Configuration is THE ESSENCE of a high value configuration.
5. Soft issues – change impacts – 12%
All change produces resistance. It is vital that this is managed by way of high levels of strategic executive direction, leadership and custody, excellent and compassionate communication, effective training, proper support, etc. SEPT configuration, by being practical and making sense reduces the resistance to change.
6. Lack of an Engineering approach – 6%
Lack of rigour, sloppy work, use of poorly trained or untrained personnel, lack of precision, everything that is the antithesis of "engineering" contributes to project failure.
7. Technology issues – 3% or less
Today technology is hardly an issue. For the most part major hardware or software failures are relatively infrequent. It is the way the technology is configured and commissioned that causes the problems. Poor software configuration can make software clumsy and difficult to use and in extreme cases can render it unusable – consider the big brand ERP implementation where the business was being run on Excel.
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