ICT failures  Why do they happen so often  What can we do about it?
Information Technology
 
 
 
Competent use of ICT in Non-profits is the exception Andrew Maher
Connecting Communities Auckland 2010
 
 
 
 
 
Dangerous Enthusiasms E-Government, Computer Failure  and Information System  Development Robin Gauld  & Shaun Goldfinch
The $10,000,000  Problem
Update: Still Happening New Auckland Super City computer system Political promise $126 million
Predicted final bill $576 million.
IAG Business Analysis Benchmark Surveys 100+ companies  role of business requirements on success with technology projects.  Projects over $250,000  Significant new functionality delivered to the organization.
Average project size $3 million.
Findings Review 68% of companies:  project success is ‘Improbable’: might succeed – but not by design.
50% of projects were “runaways” which had any 2 of: 180% + of target time to deliver
160% of estimated budget
Under 70% of the required functionality
The Usual Suspects Sales people
Staff
Process
IT Management
CEO/CFO
Technology
Board
Funders
Sales people They sold us something we don't need and can't use.
Sample  SAP - Waste Management failed ERP system.  WM - SAP used a "fake" product demonstration
SAP – WM  didn't define business requirements"
or provide "sufficient, knowledgeable,  decision-empowered users and managers"
Processes The “best practise” trap
Sample - NSW  Emergency departments FirstNet system  crippled by design flaws.
Staff They're afraid of “Innovation”
Herman Miller Furniture Great users of IT Design,
Layout
Product spec
Sales processing
Tracking
Service All out CRM anyone?
OH !!!!!!! NO !!!!!!!
YOU !!!!!!!
DON'T !!!!!!!
IT Management A paranoid empire builder Security
Budget stretching
Training CEO
CEO/CFO Decision-makers high level of knowledge of ICT  33.4% in 2005
36.3% in 2008 Key decision maker’s level of leadership in using ICTs  33.1%  Innovation = mostly failure.
NZ Charities Commission $1.5m into $3m Online services project
Cost to change 1 (One) digit $15,000 Throw away $1.5m
Start again Final cost $1m
Saving $0.5m
Technology Obedient servant
Speed matters
The uncontrolled amplifier
Computer fault - you can bank on it Expect more inconvenience and disruptions to services from computer glitches The CBA, NAB, ASX, Virgin Blue. Alan Fekete, University of Sydney “failures at the banks and stock exchange were to be expected.”

Earl Mardle presentation