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• W1506329604 abstract "CURRENT INFORMATION TECHNOLOGY (IT) ISSUES The rate of information systems development project failure in the 1980s and 1990s was routinely documented to be above 50%, the larger the development; the more likely it was unsuccessful (SIMPL & NZIER, 2000). A 1994 study of IS development projects in the British public sector estimated that 20% of expenditures were wasted, and further 30% to 40% did not produce perceivable benefits (Wilcocks, 1994). Also in 1994, the U.S. General Accounting Office reported that spending of more than US$200 billion in the previous twelve years had led to few meaningful returns. A 1995 study of over 8,000 IS projects by Johnson revealed that only 16% were completed on time and within budget (Johnson, 1995). The U.S. Internal Revenue Service, with an annual computer budget of US$8 billion, managed a string of project failures that have cost taxpayers $50 billion year [mainly defined as revenue forgone]--roughly as much as the yearly net profit of the entire computer industry (James, 1997). Collins and Bicknell (1997) estimated that public sector failures in the United Kingdom cost 5 billion [pounds sterling]. The Wessex Health Authority's Regional Information Systems Plan was cancelled after more than 43 million [pounds sterling] had already been spent, with little achieved (Collins et al., 1997). The New Zealand Police abandoned an IS development in 1999, at cost of more than NZ$100 million, after years of development provided little more than an e-mail system and number of terminals run by 1970s-era mainframe. A study by SIMPL & NZIER (2000) found that the success rate was only 55% for projects under US$750,000; however, for those with budgets over US$10 million, no projects were successful. A 2001 U.S. Standish Group survey of IS projects found success rates were as follows: 59% in the retail sector, 32% in the financial sector, 27% in manufacturing, and 18% in government. Overall, the average success rate was 26%. In all, 46% of the projects had problems, including being over budget, behind schedule, or delivered incomplete. Another 28% failed altogether or were cancelled, and cost overruns averaged nearly 200% (SIMPL & NZIER, 2000). The beginning of the 21st century showed little improvement in IS development project performance. In 2002, the United Kingdom's National Health Service initiated the largest-ever public sector project at an estimated cost of 11 billion [pounds sterling]. This led to the introduction of new information systems in almost every hospital, but it was still considered failure (Rainer & Turban, 2009). A benefit payment scheme involving the British Post Office, the Department of Social Security, and the computer company ICL was abandoned after three years and cost of 300 million [pounds sterling] (The Economist, 2002). An already obsolete air-traffic support system opened at Swanson in the United Kingdom, in 2002, six years late and 180 million [pounds sterling] over budget (The Economist, 2002). The Canadian Firearms Program increased from initial estimates of C$113 million to more than C$1 billion, an overrun of almost 900% (Auditor, 2002). Georgiadou (2003) found five out of six corporate projects are considered unsuccessful, with one-third cancelled. Of the two-thirds that were not cancelled, price and completion times were almost twice what had originally been planned. Dalcher and Genus (2003) reported US$150 billion was wasted per annum on information and communications technology failures in the public and private sectors in the United States and US$140 billion in the European Union. A 2004 Standish Group report estimated success rate of 29%, with 53% of the projects having problems, and failure rate of 18%. The Royal Academy of Engineering and the British Computer Society (2004) found that 84% of public sector projects resulted in failure. Vast sums of money, mostly provided by aid agencies, have been spent on health and other information systems in South Africa, on donor-funded IS projects in China, and on World Bank funded projects in Africa. …" @default.
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• W1506329604 date "2011-01-01" @default.
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• W1506329604 title "A Survey of Information Systems Development Project Performance" @default.
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