First Collaborative Discussion Summary: System Failure
Information systems are mandatory for the success of businesses. They can solve daily problems, save time, increase productivity, provide data insights, and help in future decisions. However, adopting a new information system is subject to failure if not planned carefully.
An example of such a scenario is a big failure that FoxMeyer, one of the largest drug wholesalers in the US, suffered from in the 90s. This company was seeking a software solution, Enterprise Resource Planning (EPR), to support their supply chain decisions by incorporating real-time data and automating processes. They planned 65 million US dollars for this project hoping to save 40 million US dollars/year. However, the actual cost of implementation rose to 100 million US dollars. The company was able to save only half of the planned amount and went into bankruptcy after a few months (Hamrouni, 2017).
It is surprising how important is planning for an information system. It is even more supervising that the percentage of successful software system development is lower than 40% in Japan and the US (Standish Group, 2016 as cited in Kobayashi, 2018).
The causes of software system failures can be massive. Lauesen (2020) found 37 causes of failure by investigating only 5 failed governmental projects. It is expected to have more causes of failures for different Industrial projects and different types of industries. (Lauesen, 2020; Kobayashi, 2018)
A study showed that 83% of prescription errors were due to the inability to access available information. This could have been solved by the investment in, and the implementation of a proper hospital information system (Lederman & Parkes, 2005). The benefits of such an implementation system extend to physicians, pharmacists, patients, and the hospital in general.
Lack of software testing due to inadequate communication between developers and sales employees is one of the most important factors that lead to failure (Lehtinen et al., 2014).
Although it is hard to constrict the solutions to avoid software failures in a shortlist, it appears that planning, understanding project objectives, good communication between stakeholders and developers/developing company, management, and testing are all important factors in successful systems from the commencement to the maintenance.
References
Hamrouni, W. (2017) 5 of the Biggest Information Technology Failures and Scares | eXo Platform. Available from: https://www.exoplatform.com/blog/5-of-the-biggest-information-technology-failures-and-scares/ [Accessed 12 March 2022].
Kobayashi, K. 2018. A Study on the Causes of Information System Failure. 2018 7th International Congress on Advanced Applied Informatics (IIAI-AAI), 8-13 July 2018 Yonago, Japan. 762-764.
Lauesen, S. (2020) IT Project Failures, Causes and Cures. IEEE ACCESS 8(72059-72067.
Lederman, R. M. & Parkes, C. (2005) Systems Failure in Hospitals—Using Reason’s Model to Predict Problems in a Prescribing Information System. Journal of Medical Systems 29(1): 33-43.
Lehtinen, T. O. A., Mantyla, M. V., Vanhanen, J., Itkonen, J. & Lassenius, C. (2014) Perceived causes of software project failures - An analysis of their relationships. INFORMATION AND SOFTWARE TECHNOLOGY 56(6): 623-643.