ERP Failures Stressing on Reluctance †Free Samples to Students

Question: Discuss about the ERP Failures Stressing on Reluctance. Answer: Introduction The chaos reports on IT project failure for last few years are analyzed in order to understand the problems associated with the failed projects. Success of a project depends on many variable, similarly there are different reasons behind failure of a project. Going through the chaos reports of project failure helps in analyzing the different risks associated with a project, which further helps in identifying the risk mitigation approaches for similar projects in future (Hussain Mkpojiogu, 2016). For example, the ERP implementation project of Hershey, that failed due to improper project planning and project schedule. The findings of the chaos report from Standish group are elaborated in the following paragraphs. The chaos report by Standish groups identifies the scope of the software project failures, the major factors associated with a project and the process by which the project failures can be reduced. According to a report of Standish group, it is found out that almost 52.7% of the projects costs 189% of their original estimates while 31.1% of the projects are generally cancelled before their completion (The Standish Group Report, 2014). The main reason of cost overruns in the project is improper measurement and project planning. The research further show that in the year 2012, only 32% of all the project that is included in the Standish group chaos report succeeded or is delivered on time. In 2012, 18% of the project failed because it was cancelled before its completion. Another major cause of cost overruns in the projects is restart of the project as according to the Standish reports, with every 100 project, there are almost 94 restart. This however, does not imply that 94 individual p rojects will have a single restart. Some projects can have several restart and therefore the result is so drastic (Marques et al., 2013). Say for example, the project of California Department of Motor Vehicles that failed had many restarts. Apart from cost overruns, time overruns is a major cause of project failure. On an overage, the average time overruns is almost 222% of the original time estimate in failed projects. Content deficiency is another major cause of the project chaos and failure. Large companies generally have worst record as only 42% of the content functions in the end product (Oakes, 2016). Therefore improper specifications of the project functions is a major reason of chaos hat is faced in IT projects. In order to understand the reason why projects fail, the Standish group surveyed different IT executive mangers in understanding the reasons why project succeed. One of the major requirements of project success is proper planning. Cost and time overruns in the projects are faced mainly because of improper project planning. Furthermore, it is essential to set realistic expectations as well. The Hershey ERP implementation project failed mainly because of unrealistic expectation of completing the project in a much constricted time (Ghosh, 2012). The findings of the chaos report by Standish group are elaborated in the following section. In 1987, the IT project of California Department of Motor Vehicles failed because of poor planning, improper project designing and unclear objectives. While in the year 1994, the project of American Airlines failed sue to improper requirements analysis and lack of user involvement in the project. The project associated with the reservation system of Hyatt hotels failed because it was running ahead of schedule and under budget. On the other hand the project of Banco Itamarati failed as the project had no clear vision and documented specific objectives of the project. Therefore, it is found that improper planning and estimation plays a major role behind a project failure (Kerzner Kerzner, 2017). Conclusion The report analyzes the different data collected from the researches of Standish group on IT disaster and project failure. The report highlights the main reasons of project failure and cites some example of some famous projects that failed to implement according to the project plan. Having a clear vision about the project is an essential criterion of project success. Similarly setting up of a realistic expectation is needed as well. References Ghosh, R. (2012). A comprehensive study on ERP failures stressing on reluctance to change as a cause of failure.Journal of Marketing and Management,3(1), 123. Hussain, A., Mkpojiogu, E. O. (2016, August). Requirements: Towards an understanding on why software projects fail. InAIP Conference Proceedings(Vol. 1761, No. 1, p. 020046). AIP Publishing. Kerzner, H., Kerzner, H. R. (2017). Project management: a systems approach to planning, scheduling, and controlling. John Wiley Sons. Marques, A., Varajo, J., Sousa, J., Peres, E. (2013). Project Management Success ICE modela work in progress.Procedia Technology,9, 910-914. Oakes, G. (2016).Project reviews, assurance and governance. Gower. The Standish Group Report. (2014). Retrieved from