Published on November 2, 2023
IT implementations
Whether it’s Birmingham City Council (pictured) falling into financial distress, or British Airways cancelling over 175 flights in a day, it seems that we’re never too far from the next headline about large-scale IT failures. There are many risks associated with any digital transformation project, which means the cost of getting it wrong can be substantial. When the knock-on effect starts to impact customers, which it invariably will, the reputational damage will no doubt follow too.
But what can we learn from these high-profile mistakes? Here we look at several IT projects that hit the headlines for the wrong reasons and identify some important lessons in best practice that other transformation projects can take with them.
Reverse customisation - the single biggest mistake!
When implementing a new solution into existing infrastructure, it’s tempting to try and reverse customise the new technology to fit old and antiquated processes, this is a big mistake! Instead, following best practices would suggest taking the opportunity to streamline and optimise processes and ways of working by creating new workflows that are fit for purpose, efficient and future-proof. Trying to crowbar old methods into new technology that doesn’t fit the mould will cause bigger problems, not to mention reduce the opportunity for a healthy return on investment in the tech being implemented.
This seems to be what happened at Birmingham City Council when it attempted to customise its new IT system, Oracle, which was the first change to Council IT systems since 1999. A Council report to its cabinet on the proposed spending said that rather than adopting Oracle as it was, officers instead sought to customise the system, bending it to the existing way the Council conducted business.
This goes against all first principles of software implementation, as it assumes the existing processes are already optimised, which is unlikely to be the case. In any IT project like this, it is better to assume the opposite and use the opportunity to leverage the new technology to streamline all processes and replace any repetitive and manual tasks with automation. The power to transform an organisation’s operations, by following a best practice implementation, is what makes solutions like ServiceNow so compelling.
Test and test again
Testing is a crucial stage of any IT project. It’s an opportunity for IT teams to identify and fix any bugs or problems before a new system goes live. In addition, it’s essential to conduct a dummy run of the whole system to ensure processes, data, and software are all working seamlessly before going live.
In the early 2000s, sportswear giant Nike implemented a new supply chain management system to automate certain parts of the supply chain for its footwear division, including inventory and order management. However, when pushing the system live, project leaders broke one of the golden rules of software implementation; they failed to test appropriately with dummy runs of the new system.
Nike’s IT partners suggested using a template they’d created for the apparel sector, but Nike chose not to use it and pursued a custom approach that rushed the migration process instead. As a result, when it launched the system failed to match product inventories with customer demand and quickly encountered problems such as excess inventory, order delays and reduced sales. Failure to adhere to a proper testing regime cost the company over $100 million, and its stock price dropped by 20%.
Effective management is central to success
Big projects are often outsourced to third parties to manage on a time and materials basis, under the label of professional services – the proverbial bottomless pit. Without fixed cost arrangements, the total costs can soon mount up and spiral out of control, particularly when specifications change and delays impact delivery. By working with a trusted partner, with a track record of transparently delivering results without hidden costs, you can fix the price and reduce risk.
The NHS fell afoul of this rule when it attempted to implement a new digital patient record system. Described as “the biggest IT failure ever seen”, the project, led by a third party, was beset with poor management and contractual disputes between suppliers. An investigation led by MPs on the Public Accounts Committee (PAC) found a systemic failure in the government’s ability to draw up and manage large IT contracts.
When the project launched in 2002, the aim was to deliver the Lorenzo computer system to 220 NHS trusts across England. However, it was abandoned in 2011, costing the UK taxpayer £10 billion in the process.
With a managed service approach to solution implementation, there is less time wasted on having to scope everything out in the smallest detail to ensure you don’t miss anything before the actual work starts. Instead, you can move quickly with the confidence that whatever you find along the way will be dealt with within the existing framework of the engagement.
Use industry experts when implementing change
Many of the issues encountered by Birmingham City Council, Nike, the NHS and many others are always avoidable. However, by ignoring best practices they failed to understand that change should be incremental and agile. Operating in silos and not seeing the bigger picture increases complexity and heightens the risk of failure. Projects that combine the right blend of people, process and technology, on the other hand, will result in a fit-for-purpose solution.
Change isn’t easy, but when organisations get it right, it can deliver significant cost savings and improve customer service, while making the business more competitive with a better financial performance. It requires a holistic approach and the buy-in of everyone, from senior leaders to admin staff. For change to have a lasting impact, organisations need a plan that aligns with their strategic business goals.
That’s where POPX comes in. We offer our MSP Platform, powered by ServiceNow, as a fully managed service at a fixed cost. This means our experts are with you from the beginning of the project on day one and will continually enhance and maintain the system after go-live. We deliver a comprehensive package that covers everything the customer needs, so tech service providers can focus on growing their business without distraction. Get in touch to find out more.
The POPX MSP Platform is powered by ServiceNow