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Digital transformation

Why most IT projects fail

Modern business management systems are a promising investment. When done right, they can boost your productivity, help your team collaborate better, and make scaling easier.

Despite the strong potential of these projects, achieving positive results isn’t easy. According to a recent study, 41% of IT projects fail to deliver the expected business value and ROI. So, why do these projects fail?

The following are the top reasons behind the failure of most IT projects.

1. Not having clear objectives

In many cases, business owners don’t have a clear idea about what they want from their new IT systems. Without setting clear goals for such a project, there is a good chance that the end results won’t be satisfactory.

If you don’t take your time to define clear objectives, this will impact the overall development process. When you have clear goals for your new system, the development team can translate your requirements into features. They will work more efficiently as they have a full understanding of what they’re trying to achieve.

When you’re working with a company with relevant industry experience, they can point you to the best solutions once they understand your specific business goals.

2. Not training your staff properly

How good is a business system if your staff doesn’t know how to use it?

One of the common mistakes that cause IT projects to fail is thinking that a project is over when it’s delivered. No matter how good a system is, it will not have an impact on your bottom line unless your staff knows how to use it properly and make the most out of it.

And that’s why you should work with implementation partners who are capable of providing adequate training and user adoption support for your staff after delivering a project. Before hiring a company to develop your new business system, make sure they provide adequate staff training and support to help reach the intended ROI. 

3. Lack of mobile compatibility

If your business has any staff members working on the field, you must get a system that’s mobile-friendly. If you don’t do that, your team won’t be as productive as you want them to be, which will affect employee satisfaction and ultimately the project ROI.

Nowadays, mobile compatibility is not a luxury option. It’s something that needs to be accounted for from the start. The company you choose to work with must take the time to understand how your staff uses your existing systems, and make the new system better and more efficient.

Choosing a business management system without full mobile capabilities means buying something that is already obsolete.

4. Resisting change

A new business system isn’t a “tool”. It’s something that affects how your entire business works. If you or your team is not willing to adopt change and work in a new and more efficient, your new business system won’t be as impactful as you want it to be.

Before you get a new business management system, you should have a change management plan. Make sure to take the time to talk to your staff and discuss how the new system will make things easier for them. Many employees – especially senior staff- might be resistant to changing the way they work. In the case of large enterprises, it’s better to have a dedicated change management team. 

This will greatly increase the user adoption and will ensure a smooth transition from your legacy system to your new business system. 

5. Hiring the wrong company

Choosing the right system/software for your business is important. That’s something that most business owners know and take into consideration when upgrading their legacy systems. What’s often overlooked though is the fact that choosing the right software company to implement the chosen solution is just as important.

Picking a vendor that’s familiar with your industry increases the chances of success significantly. If you’re manage a port agency, choosing a company that knows your needs and problems and how to solve them can mean the difference between success and failure.

Hiring the wrong company will significantly increase the time and budget of your project and will add a major risk of total failure for the entire project.


The implementation of a new business management system should not be considered an “IT project”, but viewed as a major strategic initiative. As such, it must have support from the highest level of the organization and alignment with the whole team. The companies that get this right are the ones that will successfully manage change and stay competitive.

Despite the fact that many new business system implementation projects fail, the reasons behind these failures are not a mystery. Get in touch with us today to learn how Abraxa can help you successfully navigate every challenge along the way and deliver results. 



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