Exploring Costs Associated With Implementation Challenges

Exploring Costs Associated With Implementation Challenges

Every time an organization experiences challenges with technological updates, both hard and soft costs are incurred. Unfortunately, most IT departments work solely in a reactive manner to challenges. Working reactively often results in skyrocketed costs to the organization. Most of these are a result of misalignment and not understanding the three customers.

Regular software update installations or system platform implementation changes often result in business interruptions, particularly when proper planning doesn’t occur. According to McKinsey, nearly 95% of all ERM implementation projects experience failures on some level. And, according to the Meta Group in 2001, 55-75% of all CRM projects fail.
Faulty implementation can result in significant costs to an organization. Common factors impacting the frequency of external or internal IT incidents include:
• Physical security
• Lack of IT policies
• Hardware/software incompatibilities
• Faulty hardware or software
• Hardware/software maintenance
• Lack of IT resources
• Improper end-user training

It is important for organizations to note that software, hardware, system integration and personnel costs are all affected during an IT program implementation.

How do IT projects integrate into your organizations processes and procedures? Does it align with organizational goals or that of IT best practices? Do the project team and managers know who the customers are and how they get affected if the project misses requirements? Is it during the implementation of projects that organizations realize the degree of misalignment?

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David Peterson

David G. Peterson is a business consultant and author of Handling the Remedy. He has extensive international experience managing projects and operations for large financial institutions. He has worked in North America, Europe, Middle East and Asia skillfully managing business and technical requirements, core systems enhancement and support, merger and acquisition integration's, business process reengineering, off-shoring and outsourcing.