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Understanding the Software Development Life Cycle — IT Certificate

TOPIC 4: PROJECT FAILURES AND SUCCESSES

Overview

Development risks can cause additional short-term costs to the project. However, long-term costs
can occur if the system does not function correctly and requires additional manual rework.
Management must decide if they will provide additional capital to correct the system. This decision
will often be based on the organization’s ability to correct the issue and past experiences with the
original development efforts.

With controls in place, system development that occurs in a systematic, consistent, and coordinated
manner will have a successful outcome.

Project Risks

Several potential risks of failed IT projects can impact business.
• Projects are rarely categorized as only an IT activity. They require business ownership and
involvement, a lack of which will lead to project failure. Many of the risks that can cause an IT
project to fail can also have catastrophic impacts on the business.

Disruption of Service

Disruption of service can occur from:

• Lack of system integration and UAT where the entire functionality was not tested prior to the
launch period.
• Lack of documentation for key business and technical requirements.
• Lack of business participation.

Risk of Loss

Loss of competitive advantage, revenue, and market share can occur for a variety of reasons.

Loss of competitive advantage can occur as a result of:
• Project delays due to marketing, allowing a competitor’s product to make it to the market first.
• Competitors’ products more accurately meeting consumer needs and expectations. This could
be due to user experience or differences in functionality.

Loss of revenue and market share can occur as a result of:
• Project delays due to marketing, allowing a competitor’s product to make it to the market first.
• Customer satisfaction with the product is outweighed by that of the competing product, such
that the competitor gains market share and revenue.
• Development costs are higher than expected such that project profits are lower.

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