The Business Impact of Failed IT Projects

Failed IT Projects

1-Top Three Goals Driving IT InvestmentsTop Three Goals Driving IT Investments

Not everyone is on the same page when it comes to the business value of IT., Increase speed of manufacturing and production , Increase speed to market , Ensure product service and quality

2-Most Perceived Technology-Critical AreasMost Perceived Technology-Critical Areas

Not as high as it should be across the board., Customer service: 67%, Financials: 63%, Sales and marketing: 50%, Distribution: 47%, Supply chain: 39%

3-How Often Are There IT Issues That Affect Performance or Productivity?How Often Are There IT Issues That Affect Performance or Productivity?

Almost half report they are consistently dealing with downtime., Every day or a few times a week: 48%, Few times each month: 28%, Few times each year: 21%

4-The Frequency of Technology FailuresThe Frequency of Technology Failures

75 percent report that IT failures are staying the same or increasing. Staying the same: 49%, Increasing: 26%, Decreasing: 25%

5-Last Significant IT FailureLast Significant IT Failure

More than 80 percent report that the same failure occurred multiple times. In the last year: 28%, Within the last few months: 26%, Within the last few weeks: 25%, More than six times: 12%, Don’t know: 5%

6-Which Areas Suffer From Tech Performance Issues?Which Areas Suffer From Tech Performance Issues?

Customer service bears the brunt of most IT failures., Customer service: 69%, Staff time and resources: 41%, Sales: 34%, Customer traffic: 34%, Production time: 32%

7-Causes of IT FailuresCauses of IT Failures

Products are by far the leading source of problems. Software and hardware provider: 51%, Utility failure: 22%, Unforeseen security threat: 16%, Don’t know: 16%, User error: 11%, Weather and environment: 10%

8-Action Taken in Response to IT FailureAction Taken in Response to IT Failure

Most organizations wind up throwing time and money at the problem. Purchased or upgraded hardware or software: 42%, Increased staff training: 33%, Alerted customers about issue: 24%, Increased IT staffing: 20%, Hired consultants: 17%, Switched vendors: 12%

9-Length of Time to Return to Normal OperationsLength of Time to Return to Normal Operations

The average length of time is 21 days, but perceptions vary widely. Line of business executives: 24 days, IT executives: 11 days

10-Does Your Company Collect and Quantify the Impact of IT Failures?Does Your Company Collect and Quantify the Impact of IT Failures?

One in four says rarely, never or don’t know., Sometimes: 41%, Always: 33%, Rarely: 13%, Don’t know: 8%, Never: 5%

11-Cost Impacts That Are QuantifiedCost Impacts That Are Quantified

Costs go way beyond just IT issues., Lost productivity: 71%, Lost sales revenue: 49%, Not meeting service level agreements: 46%, Temporary systems or processes: 44%, Additional staffing: 40%, Wasted product: 23%

12-Long-Term Business ImpactLong-Term Business Impact

Loss of market share: 24%, Loss of brand equity: 21%, Reorganization: 15%, Legal costs and issues: 9%, Don’t know: 9%

CIO Insight Staff
CIO Insight Staff
CIO Insight offers thought leadership and best practices in the IT security and management industry while providing expert recommendations on software solutions for IT leaders. It is the trusted resource for security professionals who need network monitoring technology and solutions to maintain regulatory compliance for their teams and organizations.

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