04 Nov Project Failure Case Studies
When a project has failed to deliver on its promises, it’s important to look at the hard data behind the project and the people working on it if lessons are to be learned from the mistakes made and those mistakes are not repeated.
All business analysts and project managers know that the only way to progress and have more project success in the future, is to learn from the mistakes of the past. But knowing and doing in the heat of a complex project and moreover, one that is not going to plan, are two different things. (PM360Consulting)
Henrico Dolfing research on project failures and write case studies about them because it is a great way (for both of us) to learn from others’ mistakes.
Oracle quoted BBSI a cost of $5.4M to implement their HCM Cloud Solution. The new quote was $33M and would take twice as long. But the critical functionality gaps in the cloud solution could also not be cured with the additional dollars and months.
International automotive fleet management company LeasePlan has been hit by a massive bill for a failed SAP implementation. LeasePlan has since dropped SAP to pursue an alternative IT infrastructure, citing the “monolithic nature” of the ERP system as being incompatible with its more agile needs – but not before sinking almost €100 million into its SAP efforts.
The payroll system implementation disaster at Queensland Health in 2010 is said to be the most spectacular technology project failure in the Southern Hemisphere and arguably the worst failure of public administration in Australia’s history.
Car rental giant Hertz is suing consultant mammoth Accenture over a website redesign that ended in something that never saw daylight. Hertz is suing for the $32 million it paid Accenture in fees, and it wants more millions to cover the cost of fixing the mess.
> Case Study 7: The $2.5 Billion Cross-Border Expansion Mistake by Target
Less than two years after entering Canada, Target shocked the retail world by pulling out. After accumulating $2.5 billion in losses, the Minneapolis-based company shut down all of its 133 Canadian locations and laid off 17,600 employees. Unmanageable deadlines and disastrous IT wrecked this top U.S. retailer’s attempt at international expansion. Just another proof that nowadays technology can make or break an enterprise.
Revlon is the latest in a string of recent SAP enterprise resource planning (ERP) failures. Lidl, National Grid, and Haribo are just a few other companies that have experienced such massive challenges. ERP problems, including implementation failures, are common. But an ERP problem that results in an investor lawsuit is rare.
California’s Sacramento City Unified School District thought they were getting a good deal when they hired software as a service (SaaS) provider Workday and their service partner Sierra-Cedar for a program intended to improve the management of the district’s finances, payroll, and human resources. Unfortunately, the school district’s high hopes of cutting costs and increasing efficiency in these areas were more than dashed. They were completely destroyed.
Knight Capital Group was an American global financial services firm engaging in market making, electronic execution, and institutional sales and trading. It took 17 years of dedicated work to build Knight Capital Group into one of the leading trading houses on Wall Street. And it all nearly ended in less than one hour. What happened to Knight on the morning of August 1, 2012, is every CEO’s nightmare: A simple human error, easily spotted with hindsight but nearly impossible to predict in advance, threatened to end the firm.
The SAP project that was three years in running and marred by delays and budget overruns was scheduled to go live on November 5. Failure to go live meant a delay of another five months, likely another $50 million in additional spending, and a trip back to the Utilities Rate Commission to request approval to pay for the overruns. National Grid had to know they had a bumpy ride coming when they made the decision to go live. What they clearly didn’t understand was just how bumpy the ride would be.
With clients locked out of their bank accounts, mortgage accounts vanishing, small businesses reporting that they could not pay their staff and reports of debit cards ceasing to work, the TSB Bank computer crisis of April 2018 has been one of the worst in recent memory.> Case Study 1: The £10 Billion IT Disaster at the NHS
The National Program for IT (NPfIT) in the National Health Service (NHS) was the largest public-sector IT program ever attempted in the UK, originally budgeted to cost approximately £6 billion over the lifetime of the major contracts.