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Commentary

Late IT Projects Tied to Low Profit, Poor Results

A just-released survey of 1,125 IT professionals worldwide reveals a link between slow delivery of IT projects and low business profitability. The study, conducted by The Economist Intelligence Unit on behalf of HP, revealed that among nearly half of companies surveyed, 25 percent or more of IT projects are delivered late. IT project hiccups can delay product launches and reduce anticipated revenues and cost savings, cutting overall company profitability.
A just-released survey of 1,125 IT professionals worldwide reveals a link between slow delivery of IT projects and low business profitability. The study, conducted by The Economist Intelligence Unit on behalf of HP, revealed that among nearly half of companies surveyed, 25 percent or more of IT projects are delivered late. IT project hiccups can delay product launches and reduce anticipated revenues and cost savings, cutting overall company profitability."In business, speed is increasingly of the essence," stated Denis McCauley, a research director at The Economist Intelligence Unit. "Companies that succeed in accelerating IT project and service delivery have a significant advantage, while those that do not may suffer at the hand of the competition."

Among those surveyed reporting that at least 75 percent of recent IT initiatives had a positive business outcome, the speed of service delivery improved considerably faster than at the average firm. Top-performing firms -- those reporting a rise in profit of 25 percent over the last three years -- also out-accelerated average firms on speed-of-service delivery.

When project overruns do occur, the culprits are usually midstream changes to business priorities and poor coordination between IT and business managers. Better definition of business requirements, investment in IT process automation and better collaboration across IT functions are the primary solutions for accelerating time to delivery, according to the survey.A just-released survey of 1,125 IT professionals worldwide reveals a link between slow delivery of IT projects and low business profitability. The study, conducted by The Economist Intelligence Unit on behalf of HP, revealed that among nearly half of companies surveyed, 25 percent or more of IT projects are delivered late. IT project hiccups can delay product launches and reduce anticipated revenues and cost savings, cutting overall company profitability.