Statistics from the Famous 1995 Standish Group Report

Survey 365 Companies (small, medium, large) Major Industry Segments (banking, health care, insurance, etc.) Software Applications

Failure Statistics Project Success - The project is completed on-time and on- budget, with all features and functions as initially specified Project Challenged - The project is completed and operational but over-budget, over the time estimate, and offers fewer features and functions than originally specified. Project Impaired - The project is canceled at some point during the development cycle.

Failure Statistics Project Success - The project is completed on-time and on- budget, with all features and functions as initially specified Project Challenged - The project is completed and operational but over-budget, over the time estimate, and offers fewer features and functions than originally specified. Project Impaired - The project is canceled at some point during the development cycle. 16.2% 52.7% 31.1%

Restarts ?? out of 100 software projects must be restarted from scratch... sometimes MULTIPLE TIMES.

Restarts 94 out of 100 software projects must be restarted from scratch... sometimes MULTIPLE TIMES.

Cost Overruns Cost Overruns % of Responses Under 20% % % % % Over 400% The average across all companies is ???

Cost Overruns Cost Overruns % of Responses Under 20% 15.5% % 31.5% % 29.6% % 10.2% % 8.8% Over 400% 4.4% The average across all companies is 189%.

Time Overruns Time Overruns % of Responses Under 20% 13.9% % 18.3% % 20.0% % 35.5% % 11.2% Over 400% 1.1% For the same combined challenged and impaired projects, over one-third also experienced time overruns of 200 to 300%. The average overrun is 222% of the original time estimate.

Content Deficiencies % of Features/Functions % of Responses Less Than 25% 4.6% % 27.2% % 21.8% % 39.1% 100% 7.3% On average, only 61% of originally specified features and functions were available on these projects.

Costs (circa 1995) $250 billion spent on application development nationwide $81 billion wasted on cancelled projects Lost opportunity costs could be in the trillions

WHY?

Project Success Factors Hard-Working, Focused Staff Executive Management Support Clear Statement of Requirements Realistic Expectations Smaller Project Milestones Ownership Executive’s surveyed... what were key factors for success? Project Success Factors Competent Staff User Involvement Proper Planning Clear Vision & Objectives

Project Success Factors Project Success Factors % of Responses 1. User Involvement 15.9% 2. Executive Management Support 13.9% 3. Clear Statement of Requirements 13.0% 4. Proper Planning 9.6% 5. Realistic Expectations 8.2% 6. Smaller Project Milestones 7.7% 7. Competent Staff 7.2% 8. Ownership 5.3% 9. Clear Vision & Objectives 2.9% 10. Hard-Working, Focused Staff 2.4% Other 13.9% Executive’s surveyed... what were key factors for success?

Project Challenged Factors Executive’s surveyed... what were key factors for challenges? Project Challenged Factors Lack of User Input Incomplete Requirements & Specifications Technology Incompetence Lack of Resources Unclear Objectives Project Challenged Factors New Technology Changing Requirements & Specifications Unrealistic Expectations Unclear Objectives Unrealistic Time Frames Lack of Executive Support

Project Challenged Factors Executive’s surveyed... what were key factors for challenges? Project Challenged Factors % of Responses 1. Lack of User Input 12.8% 2. Incomplete Requirements & Specifications 12.3% 3. Changing Requirements & Specifications 11.8% 4. Lack of Executive Support 7.5% 5. Technology Incompetence 7.0% 6. Lack of Resources 6.4% 7. Unrealistic Expectations 5.9% 8. Unclear Objectives 5.3% 9. Unrealistic Time Frames 4.3% 10. New Technology 3.7% Other 23.0%

Project Impaired Factors Executive’s surveyed... what were key factors for impairment? Project Impaired Factors % of Responses 1. Incomplete Requirements 13.1% 2. Lack of User Involvement 12.4% 3. Lack of Resources 10.6% 4. Unrealistic Expectations 9.9% 5. Lack of Executive Support 9.3% 6. Changing Requirements & Specifications 8.7% 7. Lack of Planning 8.1% 8. Didn't Need It Any Longer 7.5% 9. Lack of IT Management 6.2% 10. Technology Illiteracy 4.3% Other 9.9%