Business Systems Development and Implementation Essay

Business Systems Development and Implementation - Essay Example Many of the projects became a failure due to lack of proper skills in order to undertake these projects successfully. On the other hand the companies which initiated and successfully implemented these projects enjoyed the hyper growth. In order to make these projects different tools and techniques were introduced by the management gurus in order to increase the success rate of these projects. The implementation cost of the new information system often have some hidden costs which cannot be calculated at the beginning of a project (Anderson and Dawes, 1991). Often workers are required to be trained to effectively use the technology being implemented but this training reduce the working hours. Currid (1995) states the same fact as: When a new system is introduced, it rocks day-to-day activity so much that some people don't adjust quickly. They stay less productive than they were without the new computer. And, if this situation goes unchecked, they may never recover. In Standish Group's CHAOS Report, the group analysed 8380 Information projects that were underway in 365 companies and reported failure and success rates. The report used some indicators and divided the companies into following three categories which are as follows: Resolution Type 2 is "Project Challenged." These were completed, but were over cost, over time, and/or lacking all of the features and functions that were originally specified. 52.7% of all studied projects fell into this Resolution Type 2 (Challenged) category. Resolution Type 3 is termed "Project Impaired/Failed." These projects were abandoned or cancelled at some point and thus became total losses. A disturbing 31.1% of all studied p