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PROFIT
Could New Software Help?
But creating new software was a nightmarish prospect too. Bob knew, the Standish Group... who’d tracked this data nationwide over 30 years, through 40,000 projects... found 70% of projects fail.
And Bob was aware of recent gigantic failures in his own industry. His current vendor, Cybertek solicited funds from 10 customers to create a new life insurance administration solution. After several years and $30 million wasted... the project was cancelled. xxx
Two other vendors had also failed with similar projects. The “Insurance Machine” from Electronic Data Systems (EDS) wasted $100 million before being cancelled and Tracor Computing wasted another $30 million.
Bob was in an unbelievably painful situation... a white-hot product idea, sure to be wickedly effective in his market, and not even one good alternative to get it supported.
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