Global research study from IFS has higlighted some interesting trends in its recent survey about the ramifications surrounding project success and failure.
Some 58% of respondents plan to increase digital transformation spending, yet long-term implications of IT project failure ha affected 34% of the surveyed businesses, some of whom took three years to recover from project failure.
The impact of project failure can be long-lasting with damage felt across UK respondents in areas such as reduced headcount (20%), loss of customers (24%), financial loss (25 %) and a market share loss (23%).
Those in the UK that experienced failures also experienced negative impacts including complete shutdowns of critical business departments (18%). The fear of failure impacted subsequent projects too, 26% were deterred from investing in similar projects, and half (46%) had their budgets cut in other areas. In the face of COVID-19 recovery, and with the Centre for Policy Studies ‘After the Virus’ report championing innovation as a recovery response, the repercussions of such failures could be more damaging now than ever.
While reported plans to invest in digital transformation indicate businesses are being proactive in the face of disruption, data suggests that making those investments will pay off. The majority of respondents said past digital transformation projects were successful, using a number of different assessment measures. Demonstrating that the benefits outweigh the negatives, success was achieved in on-time completion (71% globally) and delivering expected results (53% across all six regions).
While many people might assume that respondents concerned with the current economy would pull back on technology spending, the reality is that investment is increasing. The survey data indicates that, during these dynamic times, plans to increase spending on digital transformation tracks closely with concerns about economic conditions disrupting the business. In fact, the survey indicates that people concerned with economic disruption were 20 percent more likely to plan increased spending on digital transformation.
“The study confirms that many companies are wisely using the global downturn to divert resources to technological renewal and innovation,” said IFS Industries Senior Vice President, Antony Bourne. “As the majority of businesses are adapting to the anticipated economic recovery, and not permanently scrapping digital transformation initiatives, there is reason to believe that companies with a progressive mindset toward technology investment will be well equipped to rebound. While enterprise software will doubtlessly play a role in accelerating recovery, it is important to remember its vital role in helping companies here and now. Providing the necessary process transparency and analytics to ensure effective and informed decision-making is critical in these trying times. Nothing less than a considered and resolute attitude toward adopting digital transformation will help companies thrive, now and in the future.”
[Image credit: Scott Graham for Unsplash]
