The issues that caused loses in IT
investment:
Firstly,
a complexity of business processes a
flawed business model
may be the main problem (Rettig 2007, pp. 21-22). The business processes get
more complicated, the software need to be updated to adapt them. However, in some cases, it cannot meet the need of
companies. Besides, business models can suffer
common flaws such as poorly defined target market, wrong marketing strategies,
disorganized distribution, etc. Enterprise software is applied for these
models, so it tends to bring to business ineffective results.
Secondly,
the cost for ERP projects has been high. It's not just the cost of ERP systems,
implementation, which are expensive, but the added fee for consultants needed
to install and run the software. The IT department has invested a lot of money
for them (Rettig
2007, pp. 23).
Thirdly, there is an inherent nature
of software itself while the data is changed frequently (Rettig 2007,
pp. 24).
Could Enterprise Architecture
(EA) have helped?
According to Rettig:
- Companies can focus on
service-oriented architecture (SOA).
Updating and changing the legacy system by creating cross-system
business processes can help enterprises be successful in applying software.
These processes combine IT
systems in the way to be easy to update systems or correct problems. However,
before making SOA become a frame of systems, companies should consider some
main issues such as robust protocols for accessing
the Applications, high-quality integrated data stores, a sound methodology for managing the overall process. In
other words, it is necessary to streamline and simplify business
processes of Enterprise systems.
- Companies would
prepare business modules for their core processes, so then they would be able
to update these processes easily, snapping out and in functional pieces of code
from enterprise system suitably.
- IT engineers can
upgrade enterprise software basing on adding layers of code superimposed on the
existing layers. Therefore, in order to correct errors technicians need to deal
with the layers of enterprise applications below the modular business
processes.
- However, Rettig
noticed that there are no easy fixes, so careful analysis, simplicity and
efficiency should be focus on, and business
staff needs to be educated to use
software.
“EA
is not IT-focused, but business-driven and comprehensive. The future-state
vision helps coordinate the analysis of—and develop a plan to
harmonize—required changes in business functions and processes, information and
data provisioning, technology capabilities and application solutions. An
effective EA program will help align IT investments with long-term strategy,
reduce risk, deliver higher-quality information and engineer adaptive solutions
and technical services”
(http://www.gartner.com/it/initiatives/pdf/KeyInitiativeOverview_EnterpriseArchitecturePlanning.pdf)
Enterprise architecture solutions
can:
- Help management analyze, plan and execute change faster and with better insight.
- Get IT and business stakeholders collaborating for better alignment around requirements.
- Create enterprise blueprints as a roadmap for exploiting IT architectural building blocks and achieving business transformation.
- Attain improved compliance and more predictable project outcomes.
- Improve IT contribution to business returns with improved integrity and agility.
(http://www-01.ibm.com/software/info/itsolutions/enterprisearchitecture/)
Reference:
Rettig,
C 2007, ‘The trouble with enterprise software’, MITSloan, Fall 2007, vol. 49,
no. 1, pp. 21-27.
http://www-01.ibm.com/software/info/itsolutions/enterprisearchitecture/
This is the other links about IT project
failure for reference:
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