Although IT vendors and customers alike have largely come to accept projects which run overtime or over budget as par for the course in a complex area, indications are there is a change in the wind.
When the managing director of the Commonwealth Bank, David Murray took the stage at the World Congress on IT and issued a scathing criticism against the US computer industry for "single-handedly wrecking" the global economy, the industry was forced to listen.
While the CBA's own outsourcer, EDS, was quick to respond with a flat denial that there were any issues in terms of their implementations, Oracle's director of consulting Ray Whitfield, is calling for a greater focus on project-planning in order to convey more realistic expectations regarding IT rollouts.
-It is surprising the number of projects that are implemented without structured planning," Whitfield said, suggesting an implementation planning study should precede contractual agreements for large IT roll-outs.
While Whitfield concedes IT buyers have traditionally been wary of such studies, believing they added both cost and time to a project, he believes the tide is turning, especially when such studies are coupled with increased certainty regarding project outcomes and risk rewards.
-It is a discovery process on both sides, so you understand exactly the terms of the project, and its requirements in terms of internal staff, change management and so forth," Whitfield said. -It might cost a few hundred thousand, and four to twelve weeks, but that is nothing when we are talking about multi-million dollar projects. In fact, such studies are becoming popular because they are being recognised for the added return on investment."
Oracle is not making such precontractual studies mandatory, however Whitfield says they are customarily part of the company's tender submissions and increasing popular amongst technology-buyers.
-We are trying to make sure both parties have a clear understanding of the business processes which are core to a project, so they know what will be expected of them, as well as what to expect," Whitfield said.
