What Makes Information Systems Projects Successful?

What Makes Information
Systems Projects Successful?

An essay by
Shane Hastie
Chief Knowledge Engineer
Software Education Associates Ltd
Email: [email protected]
May 2006
What Makes Information Systems Projects Successful?

Page 1
Shane Hastie Software Education Associates Ltd www.softed.com
Abstract
This paper attempts to provide answers to the vexing question faced by organisations
today how to predict and measure success for investments made in Information
Systems (IS). A significant portion of organisation capital and operating expenditure is
consumed in IS today, and ensuring the delivery of return on the investment of this
expenditure is crucial.
Unfortunately, many businesses today have no effective technique for predicting and
ensuring the success of IS projects.
This paper provides a review of the literature examining the criteria for IS success,
looking at two dimensions Project Success and Product Success. A number of studies
are examined and some recommendations provided which will enable business and IT
management to tailor the project ecosystem to deliver successful resolution of the
business problem addressed by the new Information System.
This essay was first presented as a paper towards a Masters Degree at Victoria University
of Wellington.

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Table of Contents
Abstract .....................................................................................................................................2
Table of Contents .....................................................................................................................3
Introduction...............................................................................................................................4
The Current State IS Projects Measured..............................................................................5
Dimensions of Success A Literature Review ......................................................................6
Project Success .....................................................................................................................6
Product Success....................................................................................................................8
The Delone & McLean Model ............................................................................................8
Other Viewpoints .............................................................................................................. 11
Recommendations ................................................................................................................. 13
Project Success Factors..................................................................................................... 13
Product Success Factors.................................................................................................... 14
Conclusion ............................................................................................................................. 16
Bibliography .......................................................................................................................... 17

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Introduction
Worldwide Information Systems investment is projected to account for in excess of 2600
Billion US Dollars in 2006 (Gartner 2003). For the vast majority of organisations, IS
expenditure is one of the largest investment items, however the history of IS projects
indicates significant challenges in successfully attaining a return on many of the IS
investment projects (Standish Group 2001).
This paper examines success in IS projects from an academic and practitioner

perspective, reviewing the literature to present a picture of the current state as found in
the Standish Group Chaos surveys conducted from 1994 to 2003, then examining various
frameworks for measuring and predicting Information System PROJECT and PRODUCT
success with an initial focus on the Delone & McLean Model of Success (Delone &
McLean 2003), supplemented by the work of a number of other authors.
A set of recommendations is presented which could assist management in identifying

projects that are likely to achieve success, and provide guidelines on changes to make in
the project ecosystem (Highsmith, 2004) to make success more likely.

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The Current State IS Projects Measured

According to the Chaos Surveys, conducted every two years by the Standish Group (see
www.standishgroup.com), IS projects have a dismal history with less than 30% of
projects actually delivering on the original promise.
1: IS Project Success 1994-2000
The chart above (sourced from Standish Group 2001) is a view of project success over
eight years and in excess of 30000 projects. A failed project is one that is cancelled
before any return is received on the investment, and a challenged project delivers only
some of the anticipated benefits.
Based on the Standish Group figures, success in IS projects is statistically unlikely.
Compounding the problem is the fact that many businesses today are totally dependant on
Information Systems to enable them to conduct business, so IS projects must be
successful if the organisation is to survive and prosper.
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This results in a tension and pressure on IS implementations to deliver success in the face
of unfavourable odds.
Faced with these pressures, it is important that IS stakeholders and implementers

understand just what is meant by success.
Dimensions of Success A Literature Review

What constitutes success? A variety of authors have defined success for IT projects using
a myriad of metrics and definitions.
Careful examination of these measures result in a common set of success factors, which
can be grouped into two broad areas, PROJECT Success and PRODUCT Success. These
two groupings are defined below.
Project Success
Project Success is a measure of the effectiveness of the organisations processes for
implementing new IS projects, up to the point of deployment of the new system to the
end user community. This incorporates all the project related activities to ensure
Project delivery on-time
Project delivery on budget
Project delivery of required features & functions
Project delivery to the requisite quality standard
Rob Thomsett (2002) provides a framework for establishing and running an IS project,
examining seven dimensions which need to be considered and balanced when
implementing and running a project:

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OFF
ON
have a satisfied client group/s
OFF
ON
meet the project's objectives/requirements
OFF
ON
meet an agreed budget - resources, capital, equipment
OFF
ON
deliver the product on time
OFF
ON
add value for the organisation
OFF
ON
meet quality requirements
OFF
ON
have a sense of professional satisfaction for the team
Off - Success Factor is not relevant. It is measured however. On - Success Factor is relevant. Degree of relevance is indicated by position of slider.
2 Thomsett Sliders
Project stakeholders need to assess these seven elements and decide which must be
placed where relative to the others. The primary rule is that only one slider can be fully
on this will be the dimension that drives decisions, traded-offs and actions on the
project.
Take, for example a Compliance type project, implemented to comply with a new piece
of government legislation. The project profile will have either the Time (if there is a
legislated date when the product must be deployed) or the Objectives/Requirements
(legally defined set of requirements per the legislation which may not be deviated from)
slider fully On. The other sliders will be set at lower values based on the other project
drivers, but the legislative need will be the strongest factor in all decisions. (See
Software Education Associates Ltd 2006 and Krutchen 2006 for a comprehensive
discussion of the implications of these trade-offs on running projects).
Project success is only one element of overall Information System success. Provided the
project does deliver a working product, the delivery of value to the organisation is
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dependant on the successful integration of the new product into the organisations
business processes. For the purposes of this paper, this is referred to as Product Success
and has been the focus of much of the academic literature.
Product Success
Product Success is the measure of the value the delivered system returns to the
organisation, after completion of the project and when it is deployed to the eventual users
to become part of the characteristic way business is conducted in the organisation
(Software Education Associates Ltd 2006).
The most cited and widely used academic model for Information Systems success was
presented by Delone & McLean in 1992 and updated by the original authors in 2002.
The Delone & McLean Model

The Delone & McLean model of Information System Success has been widely accepted
in the academic literature as a powerful and effective representation of the factors which
combine to create success in Information Systems (Delone & McLean 2002). By 2002,
over 285 papers had referenced and cited the model in refereed journals and proceedings.
The original model proposed a number of causative relationships that together result in
Organisational Impact being delivered from the implementation of an Information
System. In the revised paper (Delone & McLean 2002) the original authors examine a
number of studies which have attempted to validate the causative nature of the model and
identify if the various factors do in fact follow in the sequence as proposed.

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3 The Original Delone & McLean Success Model
The key dimensions defined in the original model that were shown to be causatively
linked in the 2002 study are:
System Quality Individual Impact
System Use Individual Impact
Information Quality Individual Impact
Other links were found to be statistically validated and the authors conclude Taken as a
whole, these empirical studies give strong support for the proposed associations among
the IS success dimensions and help to confirm the causal structure in the model. (P15).
In their 2002 article, Delone & McLean extensively examined the research conducted
over the preceding 10 years and identified significant enhancements to the original
model, combining Individual and Organisational Impacts into a single Net Benefits
category and adding a new factor of Service Quality, the revised model is shown in figure
4, below.

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4 The Updated Delone & McLean Success Model
Delone & McLean (2002) further refine the definitions of the various factors when
addressing the implication of the model with regard to E-Commerce systems:
System quality, in the Internet environment, measures the desired characteristics of an ecommerce system. Usability, availability, reliability, adaptability, and response time (e.g.,
download time) are examples of qualities that are valued by users of an e-commerce system.
Information quality captures the e-commerce content issue. Web content should be
personalized, complete, relevant, easy to understand, and secure if we expect prospective
buyers or suppliers to initiate transactions via the Internet and return to our site on a regular
basis.
Service quality, the overall support delivered by the service provider, applies regardless of
whether this support is delivered by the IS department, a new organizational unit, or
outsourced to an Internet service provider (ISP). Its importance is most likely greater than
previously since the users are now our customers and poor user support will translate into
lost customers and lost sales.
Usage measures everything from a visit to a Web site, to navigation within the site, to
information retrieval, to execution of a transaction.
User satisfaction remains an important means of measuring our customers opinions of our
e-commerce system and should cover the entire customer experience cycle from information
retrieval through purchase, payment, receipt, and service.
Net benefits are the most important success measures as they capture the balance of
positive and negative impacts of the e-commerce on our customers, suppliers, employees,
organizations, markets, industries, economies, and even our societies.
(pp24-25)

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Delone & McLean are far from the only authors to have examined the success factors in
IS implementation, the following section presents perspectives from other researchers
and authors.
Other Viewpoints
A number of authors have taken the Delone & McLean model, incorporated it into their
own research and expanded on the model with additional factors that are considered
important for successful implementation of new Information Systems. See for example
Adekoya (2005), Bokhari (2005), Bondarouk & Sikkel (2005), Chen & Chen (2004),
Fisher & Howell (2004), Sugumaran & Arogyaswamy (2003). These authors identify two
broad categorisations of success criteria, User Satisfaction and Technology Acceptance,
Wixom & Todd (2005) provide a consolidated viewpoint that links these two streams of
research into a single consolidated viewpoint.
A summary of the common factors from these authors is presented below:
Effective technology that is accessible and understandable to the target

audience
Sustainable system that can be maintained and enhanced as the business needs
evolve
Design elements that are appropriate to the cultural and social makeup of the
target audience
Systems that align with the beliefs of the intended audience regarding
usefulness and utility
Systems that deliver accurate, useful and relevant information to the right
stakeholders in an appropriately timely manner
Realistic expectations of the benefits and characteristics of the new

Information System
Real and tangible benefits from the implementation of the Information

System, including but not limited to:
o Productivity improvement
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o Service delivery improvement

o Service quality improvement
o Increased revenue
o Decreased cost
o Increased profits
Segars (1998) identifies the following additional factors that are considered important for
product success:
Ensuring there is alignment between the organisational strategy and the IS

strategy, and that the product supports this strategy
Effective analysis of the real business needs and identification of requirements

that truly meet those needs
Cooperation among all stakeholders in the implementation of the new product
Ensuring that the new product does truly improve on the organisations
capabilities in measurable and visible ways
Adaptability, the new product must be adaptable to the organisations current

and future needs, it must not be an anchor preventing future change
None of these perspectives is at odds with the Delone & McLean model, and can in fact
be mapped to the different elements of the revised model with ease.
Building on these elements, it is possible to make some recommendations which general

business and IT management should consider when implementing new Information
Systems.

Page 12
Recommendations
Project Success Factors
The Standish Group surveys provide a powerful framework for project success, which is
updated with each survey. (Standish Group 1998, 2001) The latest Chaos 10
framework identifies the following weighted factors for project success:
5 Standish Group Chaos 10 (2000)
IS implementation projects are dependant on a significant number of interrelated factors;

these ten are not intended to be a comprehensive assessment of all the contributory

Page 13
elements of IS implementation, but they do provide a valuable framework for predicting

project success, and preventing the initiation of a death march project (Yourdon, 2004).
Yourdon (2004) provides a comprehensive analysis of a number of failed IS projects. He

makes the very important point that In many death march projects, the most serious
problems were not so much technical as they are political, social, cultural and peopleorientated (p147). This echoes the Standish Group (1998) statement that What has
become clear . . . is that people and process have a far greater effect on project outcome
than technology.
People make projects successful. People are also primarily responsible for Product
success. Managers responsible for initiating projects, and planning to achieve the
resultant business benefits from successful product implementation need to ensure that
the project ecosystem (Highsmith, 2004) is conducive to project success and the project
team members are empowered to actually achieve success. Once the project has been
successful, it is possible to then focus on the institutionalisation of the new product into
the business processes of the organisation, and ultimately achieve the planned for benefits
through product success.
Product Success Factors

One of the most important recommendations that can be made regarding the
incorporation of a new Information System into the business processes of an organisation
is the concept of slack (DeMarco, 2004) time to assimilate the new way of doing
things, and the mental space to adapt to the new reality.
Karl Wiegers (2005) presents a graphical viewpoint of what happens when organisations
implement any process improvement initiative; there is an initial period where overall
productivity decreases as the organisation assimilates the new way of doing things and
adjustments are made to the way business is conducted.

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6 The Productivity Curve
In addition to the breathing room to allow the new IS to become effective, it is important
that all stakeholders approach the product implementation with mutual respect and an
understanding of the realistic benefits the product can deliver.
The Delone & McLean model of IS Success is a framework that has been validated in
numerous research articles, and one that can be effectively applied to the implementation
of a new Information System.
Remember the advice from Robert Glass (2003) that unrealistic expectations, coupled
with poor estimation, is one of the most significant causes of project failure.

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Conclusion
This paper has presented a brief overview of some of the dimensions that constitute
success in Information Systems projects. The topic has been investigated from the
perspective of both Project Success (all the activities that are undertaken to create a new
Information System) and Product Success the activities and actions undertaken to
incorporate the new Information System into the organisations business as usual
processes. These two perspectives are inextricably linked in that the success of the
product is impossible without first achieving project success, but there are two distinctly
separate groups of stakeholders and participants whose interests and concerns need to be
addressed and protected to enable the delivery of business benefits.
For Project Success, a number of studies have been examined that identify a framework
which can be used, with an emphasis on the people factors in the project teams.
The Delone & McLean model of IS success has been examined as a framework for
success in the implementation of the resultant product, the elements of this model have
been validated as being important to the delivery of business benefits from the new
Information System.

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Bibliography
Adekoya, A A, E Eyob, F M Ikem, E O Omojokun, et al. DYNAMICS OF
INFORMATION TECHNOLOGY (IT) SUCCESSFUL IMPLEMENTATION IN
DEVELOPMENT COUNTRIES: A NIGERIAN CASE STUDY. The Journal of
Computer Information Systems. Stillwater:Spring 2005. Vol. 45, Iss. 3, p. 107112 (6 pp.)
Bokhari, Rahat H. The relationship between system usage and user satisfaction: a metaanalysis. Journal of Enterprise Information Management. Bradford:2005. Vol. 18, Iss.
1/2, p. 211-234 (24 pp.)
Bondarouk, Tatyana, Klaas Sikkel. Explaining IT Implementation Through Group

Learning. Information Resources Management Journal. Hershey:Jan-Mar 2005. Vol.
18, Iss. 1, p. 42-60 (19 pp.)
Chen, Qimei, Hong-Mei Chen. Exploring the success factors of eCRM strategies in
practice. Journal of Database Marketing & Customer Strategy Management. London:Jul
2004. Vol. 11, Iss. 4, p. 333-343 (11 pp.)
DeLone, W. H. & McLean, E. R. (2003). The DeLone and McLean model of information
systems success: a ten-year update. Journal of Management Information Systems 19(4)
pp. 9-30.
DeMarco, Tom. 2001. Slack: Getting Past Burnout, Busywork, and the Myth of Total
Efficiency. Broadway Books, NY, USA.
Fisher, Sandra L., Ann W. Howell. Beyond user acceptance: An examination of

employee reactions to information technology systems. Human Resource Management.
Hoboken:Summer/Fall 2004. Vol. 43, Iss. 2-3, p. 243-258 (16 pp.)
Page 17
Gartner Group. 2003. Worldwide Information Technology Expenditures (in billions):

2001-2006, accessed from
http://www.automotivedigest.com/research/research_results.asp?sigstats_id=650 May 21
2006.
Glass, Robert L. 2003. Facts and Fallacies of Software Engineering. Addison-Wesley.

NY, USA.
Highsmith, Jim. 2004. Agile Project Management : Creating Innovative Products.

Addison-Wesley Professional. New York, USA.
Krutchen, P. 2006. Software Project Management (course material). Self published.

Course delivered in Australia & New Zealand by Software Education Associates Ltd.
Segars, Albert H, Varun Grover. 1998. Strategic information systems planning success:
An investigation of the construct and its measurement. MIS Quarterly. Minneapolis:Jun
Vol. 22, Iss. 2, p. 139-163 (25 pp.)
Software Education Associates Ltd. 2006. Business Systems Analysis course. Wellington
New Zealand. Self Published.
Standish Group, 1998. Chaos: A Recipe for Success. Self published. USA.*
Standish Group, 2001. Extreme Chaos. Self Published. USA.*
* Note: Standish Group survey material obtained as part of the Software

Education Associates Ltd course Software Project Management. See
www.softed.com for details.

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Sugumaran, Vijayan, Bernard Arogyaswamy. MEASURING IT PERFORMANCE:

"CONTINGENCY" VARIABLES AND VALUE MODES. The Journal of Computer
Information Systems. Stillwater:Winter 2003/2004. Vol. 44, Iss. 2, p. 79-86 (8 pp.)
Thomsett, Rob. 2002. Radical Project Management. Prentice Hall, NJ, USA.
Yourdon, Edward. 2004. Death March (Second Edition). Prentice Hall, NJ USA.
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