Bibliographic Details
| Title: |
Information technology project failures: Applying the bandit problem to evaluate managerial decision making. |
| Authors: |
Chulkov, Dmitriy V.1, Desai, Mayur S.2 |
| Source: |
Information Management & Computer Security. 2005, Vol. 13 Issue 2, p135-143. 9p. |
| Subjects: |
Project management, Information technology, Write-offs, Executives, Business enterprises, Industrial management |
| Abstract: |
The article seeks to apply results from the study of bandit processes to cases of information technology (IT) project failures. It is reported that a large number of IT projects fail and are never brought to completion. According to a comprehensive report by the Standish Group (1999) that presents data on 23,000 IT projects from 1994 to 1998, 31 percent of IT projects failed in 1994, 40 percent were unsuccessful in 1996, and 28 percent were cancelled in 1998. The authors attempt to examine cases of IT project failures through the light of the bandit problem results. The bandit problem is concerned with a single decision maker making a choice between several alternative projects. One of the primary explanations for the extent of project failures and the size of ultimate write-offs is the presence of agency problems and especially escalation of commitment on the part of the managers. In the presence of escalation, a runaway IT project is continued for a longer time period than is necessary, leading to higher losses for the firm. |
| Database: |
Engineering Source |
