The pace of technology innovation today is happening at unprecedented speed growing by leaps and bounds. IT has become a crucial component for building sustainable enterprise success. More and more organisations are investing in large IT enabled business changes (IT Projects) to replace their legacy systems, change business models and take advantage of the huge business benefits from new technology solutions. World-wide investments in IT enabled business change initiatives are running into billions of dollars – over 60% of total organisational expenses in most cases.
The risks involved in implementing these projects are huge. They range from failures to meet business requirements (performance expectations), scope creep inevitably leading to budget and time creeps, litigation, reputational loss and high staff turnovers due to delivery pressures. According to recent researches 50% of IT projects run 45% over budget, and 7% over time while delivering less than 56% less value than initially predicted too often threatening the very existence of the company. Despite these glaring risks senior Line of Business executives are not proactively involved in the Governance and Management of the IT initiatives and the Board is rarely updated with vital insights on such projects.