Failed IT Project - Research Paper Example

? Failed IT Project s of Learning: Failed IT projects Organizations operate in an environment that has rapid changes. The changes may be brought about by increases customer needs increase in competition. Thus, from time to time the organizations implement certain projects to increase their competitiveness and remain relevant in its industry of operation. However, project implementation faces many hurdles. For the ultimate success of a project, implementation should be systematic. The decisions taken at various stages of the project may aid in the success of the project or lead to the failure of the project. Managers of successful IT projects ensure the project forges together with the company's business strategy, employs the simplest strategy, and has modular systems, sell themselves to users and the users influence future improvements on the project. Lack of the above would lead to failure of the project as was evident in the automation of the baggage handling system if Denver International Airport. Denver International Airport Baggage System Upon successful implementation, the Denver International Airport Baggage System (DIA ABS) would have been the most advanced baggage handling system in the world. However, the system turned out to be a classic example of project failure. The system would facilitate the automation of baggage handling for the entire airport. However, the system turned to be much complex than it had initially been assumed. Complications in building the system made the newly completed airport sit idle for 16 months as engineers attempted to make the system operational. The initial cost of the system was $193 million with BAE Automated Systems designing and implementing it. However, the delay led to an increase of the cost of setting up the system to about $230 million. The daily loss of the incurred by the City of Denver due to bank bonds was approximately $1.1 million (Kock, 2006). Main Problems That Led To the Failure IT project teams emphasize on developing software using unsophisticated codes that would facilitate its functionality. Simplicity facilitates the ease of implementation of the project. In addition, monitoring the functionality of the project is far much easier (Smite, Agerfalk & Moe, 1998). Thus, a project that emphasizes on the complexity from the outset will ultimately faces many difficulties in its design and implementation. It was evident that the complexity of the baggage handling system would lead to enormous problems in implementation and design. The system was too complex that the programmers had to develop it in two years. In fact, it was the most complex baggage handling system ever developed. This was because the system would serve a mammoth airport that was twice the size of Manhattan that had more than 20 major airlines. In designing complex systems, it is vital that the complexity of the systems is manageable during the not only during its development but also in its maintenance. However, the BAE engineers designed a system that had high coupling and had widespread and inconsistent points of failure (Kerzner, 2004). This led to many problems during the testing of the system. In designing complex IT projects, the engineers must ensure that there is modularity in the operations. Modularity makes complexity of the projects manageable. In addition, it facilitates the undertaking of parallel work and accommodates future uncertainties. In projects with modular architecture, substitution of new designs with older ones is relatively cheap (Liso, 2009). However, in undertaking the automation of the DIA ABS there was not modularity in the activities of the project. Lack of modularity posed serious problems especially after DIA and BAE changed the design of the system to accommodate the requests made by the airline companies. Lack of modularity led to faults that were evident during the testing of the system in the media's presence. Telecars crushed into each other and flung the baggage spewing out the contents of the baggage (Kock, 2006). In designing new systems, it is imperative that the developers incorporate the views of the users of the system. Upon completion, all companies would use the DIA ABS. Other airline operators that had operations at the airport with the exception of United Airline did not incorporate their ideas into the designing of the system. The airline companies had no input in the initial design of the system (Ewusi-Mensah, 2003). Therefore, they did not “own” the system. DIA was unable to sell the system to the users, the airlines that had its operation at the airport. Thus, when the project failed they were quick to revert to their initial baggage handling methods. Coincidentally, only United Airlines, the only airline that had substantial participation in the design of the system adopted the system. All other companies used manual handling of baggage. The project management of DIA did not bring in line the activities that were taking place in developing the airport with IT. When the project was at an advanced stage, BAE and DIA made changes to the design of the project. This is despite the project being so complex that changes would significantly affect the success of the project. Thus, the DIA should have limited the changes for the success of the project. The DIA approved the changes despite the fact their consultants were against the changes. The changes requested by the airlines forced the DIA and BAE to change the designs. This led to the further delaying of the project (Ewusi-Mensah, 2003). In addition, the designers of the buildings did not work together with the system developers. Construction of the airport had already kicked off before prior to designing of the baggage handling system. Therefore, to facilitate the designing of the system, there were open spaces for installation of the system. Thus, the final design of the buildings meant that the telecars had to make sharp turns at high speeds. To solve this problem, DIA should have delayed the construction to facilitate the designing of the baggage handling system (Kerzner, 2009). Therefore, poor planning and failure to collaborate with the relevant parties during the early stages of the project played a key part in delaying the project. When it was evident that the project was in serious trouble, the Mayor of Denver stepped in. the Mayor contracted a different company to construct a manual baggage handling system. This led to the halting of the project by BAE. This was despite the fact that other airlines had put substantial input into the project by requesting the changes in the system. United Airlines was one of the companies that insisted that the project must be finished. The Mayor acted single-handed without any consultation from the users of the system (Kerzner, 2004). Conclusion The automation of the baggage handling system of the Denver International Airport is a classic case of how poor project management can lead to failure of a project. Upon successful implementation of the project, handling of baggage would have eased significantly. Complexity and lack of modularity of the systems were some of the problems that led to the failure of the project. Poor planning, lack of consultation and failure to incorporate the airlines in the initial stages of the project were some of the major problems. DIA later discarded the project making millions of dollars of taxpayers’ money go to waste. However, with proper project management the implementation of the project would have been successful helping the City of Denver raise billions of dollars. The project had many political implications. . References Ewusi-Mensah, K. (2003). Software development failures: anatomy of abandoned projects. Cambridge, MA: MIT Press. Kerzner, H. (2004). Advanced project management: best practices on implementation. Hoboken, NJ: John Wiley & sons. Kerzner, H. (2009). Project Management Case Studies. Hoboken, NJ: John Wiley & sons. Kock, N.F. (2006). Systems analysis & design fundamentals: a business process redesign approach. Thousand Oaks, CA: SAGE Publishers. Liso, N.D. (2009). Internationalization, Technological Change and the Theory of the Firm. London: Taylor & Francis Smite, D., Agerfalk, P.J. & Moe, N.B. (1998). Agility across time and space: implementing agile methods in global software projects. London: Springer Read More