| Most software projects fail completely or partial | | | | Inappropriate estimation methodology |
| failures because a small number of projects meet all | | | | Another reason would be the use of an inappropriate |
| their requirements. These requirements can be the | | | | cost estimation methodology. Not a single |
| cost, schedule, quality, or requirements objectives. | | | | methodology is better than other. Every |
| According to many studies, failure rate of software | | | | methodology has its own strong and weak points |
| projects is between 50% - 80%. This essay is a | | | | which should be considered. Dr. Barry Boehm's book |
| compilation of failure causes of software | | | | Software Engineering Economics lists seven |
| development projects; this essay summarises several | | | | estimation methodologies. One or more of these |
| areas that play a vital role in software project failure. | | | | methodologies can be used to estimate the cost of a |
| So, what really is the reason for software project | | | | project |
| failure? The sad fact is that software projects fail | | | | "Good suggestion is that more than one software |
| because we do not recognize that good engineering | | | | cost estimation methodologyshould be used for |
| principles should be applied to software projects just | | | | accurate estimation". |
| as they are to building office buildings. We try to | | | | Cost estimation tools |
| defend ourselves by saying that software | | | | There are many drawbacks in manual cost estimation. |
| construction is "different". | | | | This technique is almost obsolete now. These days |
| One of the most serious complaints against software | | | | successful cost estimation includes the use of |
| failure is the inabilityto estimate with acceptable | | | | appropriate commercial software cost estimating tool. |
| accuracy the cost, resources, and schedule | | | | Good software estimating tools do not always |
| necessaryfor a software project. Conventional | | | | guarantee reliable softwareestimates. Wrong input of |
| assessment methods have always producedpositive | | | | the software size will result in wrong estimate. |
| results which contribute to the too well-known cost | | | | Estimation software also needs to be customised for |
| infested andschedule slippage. | | | | the specific need oforganization. These |
| Over the last 20 years many cost and schedule | | | | customisations require the data from the past |
| estimation techniques have beenused with mixed | | | | projects asinput for the tool to estimate. |
| sensation due to restrictions of the assessment | | | | There are number of reasons these tools can return |
| models. A majorpart of the estimations failure can be | | | | the wrong estimate. |
| due to a lack of understanding of thesoftware | | | | Choosing the right estimation tool |
| development process and the effect of that method | | | | Choice of a right estimation tool is necessary for the |
| used in the projectplan, schedule and cost estimates. | | | | right estimation. The tool is not capable of handling |
| Failure Case Studies | | | | the input and thus it can come up with the wrong |
| Below are few of the case studies considered which | | | | estimate and hence cause the software project to |
| will be analysed to fetchthe main reasons of failure | | | | fail. |
| of the software system. | | | | Ease of customisation |
| Northumbria University developed accounting | | | | As mentioned above the selected tool must be |
| software to manage its day to daybusiness. The | | | | customisable according to the organisation needs, so |
| project could not come up with the desired results | | | | that the organization can customise it according to |
| and failed tomeet the deadlines. Te investigations | | | | the needs and past project data. |
| showed that the basic project | | | | Easy to use and learn |
| managementprocedures were not followed. This case | | | | The cost estimation tool should be easy to use and |
| study is referenced in this essay atdifferent points | | | | learn. It must include help and examples, simple and |
| where necessary. [1] | | | | straight forward user interface. It must require less |
| Thai subsidiary (SMTL) of a Hong Kong-based | | | | training to learn the system and inputs should be well |
| multinational company (SMHK)engaged in the | | | | defined. |
| manufacturing of electronic equipment. They | | | | Accurate Estimation |
| implemented anintegrated software package; which | | | | The estimation tool must have the capability to |
| was a failure at the several factors. Thesefactors | | | | analyse all the parameters and come up with the |
| were mostly management related. Such as a poor fit | | | | accurate estimation for the cost. |
| between the businessprocess assumptions inscribed | | | | Risk Management |
| in the software and the business processes in | | | | Risk management is an important factor towards |
| SMTL,poor leadership at different levels, cultural | | | | software project failure if it's not managed timely |
| differences, organizationalenvironment, and poor | | | | and effectively. As nothing can be predicted that |
| human resource management. | | | | what will happen in future so we have to take the |
| St John's Hospital is a District General Hospital | | | | necessary steps in the present to take any uncertain |
| provides medical andnursing services, which includes | | | | situation in the future. Risk management means |
| both general surgery and medicine.All theseservices | | | | dealing with a concern before it becomes a crisis. |
| are supported by diagnostic imaging, laboratory, | | | | Risk Identification |
| ambulance, pharmacyand therapy services, which are | | | | According to the Universal risk Project there are two |
| all on site. As the major hospital in a touristarea, it | | | | types of conditions which can be a symbol of as risk. |
| deals with many visitors in the holiday season, | | | | - IF-THEN Statements |
| generating a largeamount of non-booked admissions | | | | - "IF technology is not available, THEN we will not |
| work. | | | | meet the requirement" |
| Software Management & Leadership | | | | - "IF we cannot hire sufficient qualified software |
| It has been shown repeatedly, that effective | | | | engineers, THEN we cannot meet the planned |
| leadership is essential for successful IT | | | | development schedule |
| implementation (Klenke, 1994). A leader must also | | | | CONDITION-CONSEQUENCE Statements |
| have cultural sensitivity, communication skills, | | | | - Given the "condition", there is a likelihood that the |
| creativity, ability to delegate, and the ability to | | | | "consequence" will occur |
| develop and retain human resources (Luthans, 1994). | | | | - "Given that this specific test fails (the CONDITION), |
| The software manager at (SMHK) was a western, | | | | the CONSEQUENCE is that the planned schedule will |
| where as the lower managers were Eastern. So | | | | slip" |
| there was a cultural clash going on always. Jack | | | | Project managers have to identify the areas where |
| (Manager) always try to introduce creative thoughts. | | | | the risk can be and how itcan affect the |
| And most of the time the lower management could | | | | development of the project. Risk can be of technical |
| not do them. Hence there was a clash going on all | | | | nature ornon technical. Project managers needs to be |
| the time. | | | | aware of both the risks. Most of theprojects |
| Employees also felt that management hardly ever | | | | managers are not good in either of the side. A good |
| "listened" to their concernsor attempted to address | | | | manager withprogramming skills can be good in |
| them. Consequently, many employees were eager to | | | | identifying the technical risk but not in nontechnical |
| leavethe company, and did so as soon as they found | | | | risk. |
| alternate opportunities in othercompanies. | | | | Risk Analysis |
| Project Planning & Scheduling | | | | After the risk is identified there is a need to make |
| Project planning means creating work breakdown, | | | | the categories of that risk. Risk analysis is the |
| and then allocate responsibilities to the developers | | | | process of examining the project results and |
| over time. Project planning consists of construction of | | | | deliverables after the risk analysis and applying the |
| various tasks, timelines and essential pathways | | | | technique to lower the risk. After risk analysis is |
| including Gantt charts and PERT charts and different | | | | complete, the proper risk analysis plan needs to be |
| written plans for various situations. | | | | made to cope with any uncertain situation. First |
| It is quite usual in software development process to | | | | identified risks are categorized and make the |
| work backward from theproject end date which | | | | hierarchy of those risks. At this point the risk is |
| results in complete software project failure. It | | | | classified as the positive or negative risks. |
| isimpossible that a project can be completed | | | | Risk Prioritization |
| efficiently from the planning stageto the | | | | After the risk is analyzed, the next step is to |
| implementation stage. | | | | priorities the risk. At first focus on the most sever |
| Allocation of roles and responsibilities has to be clearly | | | | risk first; and les sever later. These risk factors can |
| defined, and itbecomes crucial while hiring the stall | | | | worked from time to time so that the final project |
| from outside. University's highermanagement failed to | | | | out come is free of risk. So most of the time project |
| apply the basic project management rules which laid | | | | management team fails to identify the sever risk and |
| to theproject failure. | | | | work on the less sever risk. This often results in the |
| Proper scheduling is also required before the start of | | | | form of a crisis. |
| the project. Itincludes the time scheduling, teams | | | | Risk Avoidance |
| scheduling. Project managers don't know whatthey | | | | Dealing with the risk is an art. Some times the |
| have to plan and schedule. They just only tell the | | | | management takes the projects with out identifying |
| programmer what to doand the programmers can | | | | the proper risk involved in the project. So an |
| come up with a proper solution. | | | | experienced manager will take the project after |
| The development was moved to a new office and | | | | proper risk analysis and avoid any risk involved in the |
| the office was not fullyequipped with the proper | | | | project. |
| infrastructure. As time is also a big factor in | | | | Risk control |
| successor failure of a project. So it delayed the | | | | Managing the risk to achieve the desired results and |
| development process and contributedtowards the | | | | deliverables is done through controlling the risk at its |
| project failure. Infrastructure was not fully scheduled | | | | best. This is a pure intuitive process and depends on |
| andmanagement team didn't know where and how | | | | the experience of the project management team, or |
| the project development will bestarted. | | | | risk already managed in past projects which were |
| The top secret of a winning software development | | | | done by the same organization. |
| project is to control thequality up and lower the risk. | | | | Conclusion |
| Contingency plan is also the part of planning. Incase | | | | This essay has presented three basic factors which |
| things went wrong then this plan can be followed to | | | | can cause the software development project to fail. |
| lower the affect of thefailure of project. Same was | | | | Planning & Scheduling, cost estimation and risk |
| the case with university's accounting software. | | | | management. All of these factors are to be |
| Themanagement team had no such a contingency | | | | considered at the management level and then |
| plan nor did they evaluate the riskinvolved in the | | | | transferred to the lower management. |
| development of the new system. So it caused more | | | | Planning & Scheduling comes at first, good |
| trouble withoutthe backup system or backup plan. | | | | planning and scheduling makes thestrong foundation |
| The management just try to follow the | | | | for the software project. Project planning consists |
| methodologies like SDLC or RAD, but don't know | | | | ofconstruction of various tasks, timelines and |
| which methodology to use and at which time should | | | | essential pathways including Ganttcharts and PERT |
| apply the right technique. | | | | charts and different written plans for various |
| Cost Estimation | | | | situations. Ifthese factors are not taken into part |
| Cost estimation is mainly involved the cost of effort | | | | then the software may encounter problemsduring |
| to produce the software project. But it's not limited | | | | the development and the final product will be a |
| to the effort only. It also includes the hardware and | | | | failure. |
| software cost, training the employees and customer, | | | | Cost estimation depends on the budget of the |
| travelling to the customer, networking and | | | | project, customer type and thesize and effort to be |
| communication costs. Cost estimation should be done | | | | put in the project. Cost estimations are done many |
| as a part of the software process model. | | | | timesduring the life cycle of a project. It affects the |
| Cost estimation needs to be done well before the | | | | project in many ways, wrongestimation complete |
| start of the projectdevelopment. Failure of the | | | | failure, affect the good-will of the organisation if |
| budgeting for the cost of the project results | | | | thecosts are not covered, stake holders are affected |
| incomplete disaster. As stated above the | | | | and waste of resources. |
| infrastructure cost, development toolscost and | | | | Managing the risk is a practical approach for |
| hardware cost also needs to be estimated first. | | | | decreasing the ambiguity andpossible loss related with |
| Same thing happened to university's accounting | | | | a software development project. Potential |
| system development. Theypurchased the new | | | | measurescan be considered as opportunity-focused |
| system well with out any serious estimation of the | | | | (positive risk) if their consequencesare favourable, or |
| cost andthe income sources. | | | | as threat-focused (negative risk) if their |
| Below are the reasons why wrong cost estimation is | | | | consequences areunfavourable. |
| done. | | | | |