The Wall Street Journal reports (subscription required) that $2-300 million of fraudulent US tax refunds were paid due to an IT project screw-up. From the article:“The management efforts of both the IRS and its contractor to improve our automated-refund fraud-detection system were insufficient and are unacceptable,” IRS Commissioner Mark Everson said in a statement Friday.
Beyond IT Failure
Michael Krigsman is a recognized authority on the causes and prevention of IT failures.
Michael Krigsman is recognized internationally as an analyst, strategy advisor, enterprise advocate, and blogger. Interact with Michael on Twitter at @mkrigsman.
Government Computer News reports that cost over-runs on software projects are a problem at the Department of Defense. Anyway, from the article:The problem is huge.
Senior Journal reports that the Medicare program erroneously sent out $50 million in drug refunds to seniors, due to an unspecified computer glitch. Unfortunately, the seniors who received over-payments must return the money.
Most of the project failures described in this blog are BIG: huge projects, global system integrators, and so on. This case study shows that even the smallest companies are not immune to software stupidity, with negative impact on customers.
Hugger-Mugger Yoga Products is a $5 million supplier of yoga-related products such as clothes, yoga mats, and so on. After struggling with a variety of individual software products that did not integrate well, the company decided to implement open source ERP package Compiere.
In the ERP and More blog, Chris Shaul describes “7 Ways to Fail in an ERP Selection.” Here is his list:1.
The following items are taken from an article in Baseline Magazine:70% TO 85% OF ALL PROJECT REWORK COSTS are due to errors in requirements, says a 1997 article in American Programmer.30% TO 50% OF THE TOTAL EFFORT EXPENDED on a software project comes from rework, according to an estimate by Borland Software.
Kevin Brady poses the title question on his interesting blog. He makes the following argument:I pointed out during a challenging exchange that the only reason why the building and engineering industries had 95% + project success rates is because of strong regulation /legislation backed up by local government inspection and enforced professionalism i.
Three years and $18 million later, the city of Philadelphia has temporarily stopped work on Project Ocean, “the most complex and biggest IT system in [Philadelphia’s] government.” The project was slated to be completed in one year, at a cost of $7 million.