Project failures can happen due to cost overruns, poor quality, or missed deadlines. These setbacks can impact team morale and client trust, making them challenging for project managers. 

However, project managers must learn from these failed IT projects and improve their skills to prevent similar issues in the future.

 

What is a failed project?

A project is deemed unsuccessful if it does not deliver the required outcomes within the specified cost, quality, and timeline aligned with expectations and the business case. The perception of a project determines whether it is a success or failure.

Research shows that most projects exceed budgets, experience delays, and generate less value than predicted. Public-sector projects tend to fare worse than private-sector projects regarding delays and cost overruns.

IT project success is influenced by four key factors: strategy, technology, governance, and adoption.

Read the full article: Unlocking the Potential of public-sector IT Projects.

 

Importance of Learning from Failed IT Projects

Even renowned companies like IBM experience project failures. The IBM Stretch Project was considered a failure because it needed to achieve its goal of creating a computer 100 times faster than the previous system. These failures provide opportunities to refine processes, workflows, and plans.

Examining past failed projects can be a powerful way to grasp the importance of project management and why it is crucial. This blog focuses on lessons learned from famous failed IT projects, emphasising the importance of reflecting on failures and capturing valuable insights.

 

Insights from IT Project Failures

Here are 5 failed projects and some insights from these failed IT projects

 

Apple Lisa

The Apple Lisa, the first computer to feature a mouse, faced significant challenges that led to its failure in the market. Priced at $9,995, it was considerably more expensive than its competitors, such as the more affordable IBM PC, which hindered its appeal to cost-conscious consumers.

Apple tried to advertise Lisa a lot, but their ads made the product seem better than it was, which made people hesitant to buy it.

Reasons for Failed Project

• High price point
• Poor performance
• Disconnect between marketing promises and actual capabilities

 

Amazon Fire Phone

The Fire Phone was Amazon’s first attempt at making a smartphone in 2014, but it didn’t go well. People preferred something other than the fancy 3D face-scanning feature and thought it was too expensive.

The phone was also only sold by one company, AT&T, so only a few people could buy it. The app store could have been better. Amazon lost $170 million when they had to stop making the phone.

Reasons for Failed Project

• Ineffective Execution
• Expensive
• Not Customer-centric product
• No clear goals, Ineffective Leadership

 

Nest’s software refresh

Nest, the smart thermostat powered by Google, faced a significant setback in 2016 when a software update went wrong. The update drained the device’s batteries, causing it to lose temperature control and leaving customers without heating or hot water during the winter.

Although Nest quickly released another update to fix the problem, some customers were still unhappy with the experience.

Reasons for Failed Project

• No thorough testing before updates
• Faulty software updates left customers without heating or hot water.
• The batteries drained, rendering the device unable to control its temperature.
• Some customers felt dissatisfied and frustrated.

 

Airbus A380

The Airbus A380, launched in 2007, failed to meet expectations and was eventually sold for spare parts after just ten years. Manufacturing challenges, including communication issues and incompatible CAD programs, led to a costly $6 billion mistake.

The aircraft’s large size also prevented it from finding a second-hand market, and assembly problems further compounded the project’s setbacks.

Reasons for Failed Project

• Undefined or inadequate programs and systems
• Poor internal communication
• Lack of alignment across borders and time zones
• Failure to consider the significance of the second-hand market
• Overreliance on initial sales in the business case

 

Sainsbury’s warehouse automation

Sainsbury’s invested in an automated fulfilment system for its distribution centre. Errors in reading barcodes caused significant issues from the beginning.

Despite claiming the system was working correctly, they ultimately abandoned the project. Over £150 million in IT costs were written off.

Reasons for Failed Project

• Don’t ignore issues and let them worsen over time.
• Address problems in the initial phases of a project.

 

Lessons Learned from IT Project Failures

Here are six lessons you can take away from failed IT projects and apply to your projects as IT project managers to ensure that you don’t make the same mistakes.

 

Communication is Key: Delays in an IT project occur due to team members needing to communicate more effectively.

For example, by implementing a daily stand-up meeting where team members provide updates and discuss challenges, the project team improved collaboration and kept everyone informed.

 

Set realistic goals: A project falling behind schedule highlighted the importance of setting more realistic goals.

For example, by thoroughly analysing project requirements and involving key stakeholders in the goal-setting process, the team establishes realistic expectations and avoids overcommitting.

 

Prepare for contingencies: An unforeseen hardware failure disrupted project progress. To mitigate such risks in the future, the team implemented backup systems and improved hardware maintenance protocols.

For instance, they invested in redundant hardware infrastructure and established regular maintenance schedules to minimise the impact of potential failures.

 

Identify Opportunities for Growth: Project failures offer insightful information about potential areas for development and improvement. This information identifies training needs and explores mentorship programs, facilitating the development of necessary skills for future success.

For example, after a project failure, the team may invest in training programs to enhance technical expertise or implement a mentorship initiative where experienced team members guide and support junior members.

 

Effective Project Management: Project failure can often be traced back to poor management practices, such as weak leadership, unclear objectives, and inadequate monitoring. These factors can lead to delays, cost overruns, and even project abandonment.

For instance, clear roles, defined objectives, and intense monitoring improve project management practices, increasing success rates.

 

Process Improvement: Post-project failure, the team identified the need for better pre-production meetings and system evaluation to avoid repeating mistakes and improve future projects.

For example, by conducting comprehensive pre-production meetings that involve all stakeholders and upgrading project management software to meet evolving needs, the team enhances collaboration and streamlines project processes.

It’s easy to notice problems in other people’s projects and feel tempted to point them out. However, it takes much work to recognise and fix issues in our projects.

IT Project managers must keep an eye on many different things around them. But learning from past project failures and sharing those lessons with the right people in our organisation increases our chances of success in future projects.

 

Final Notes

It is essential to examine failures and identify areas for improvement in IT projects, such as communication strategies and project goals. Using these lessons, project managers can create a path for success and continuous improvement.

Creating software is more complex than building a house. While constructing a house follows established rules and plans, software development involves dealing with unique data structures. It’s like inventing new ways of plumbing and wiring for every building project.

Boost your IT project’s success with Markup Camp. We offer real-time visibility, practical solutions, and expert assistance for enhanced speed and cost predictability in technology operations. From digital transformation to ongoing initiatives, we tackle challenges, drive initiatives, and provide comprehensive insights. Share your challenge, and let us help you overcome it.