Wednesday, December 31, 2008

IT projects without a goal

I see a lot of IT projects that are undertaken without a clear goal and this gets reflected in the failures. A good example is the recent cancellation of an SAP implementation by Select Comfort hotels.

During periods of slow sales or recession, a company should be focused on improving productivity or reducing costs. Implementation of new software should be based on increased sales, improved productivity or reduced costs. In this case, Select Comfort is cancelling an SAP implementation to save money. This is contrary to what they should be doing, if the original purpose was valid.

As described in the referenced BLOG entry and original announcement, the SAP implementation didn't seem to have a business goal. There were no identified problems with the original ORACLE system and no defined need for the conversion.

If Select Comfort had a measurable goal, they wouldn't have cancelled it during a slow period. They would have intensified their efforts.

No comments: