Featured Research

from universities, journals, and other organizations

New models allow proper assessment of IT risks

Date:
January 14, 2010
Source:
NWO (Netherlands Organization for Scientific Research)
Summary:
IT projects often go off the rails unnecessarily. Budgets are exceeded or projects come thundering to a halt. A Dutch researcher argues that the risks for projects can be calculated much more accurately, and that businesses must intervene much faster at the point when a project goes off the rails.

IT projects often go off the rails unnecessarily. Budgets are exceeded or projects come thundering to a halt. Dutch researcher Erald Kulk feels that the risks for projects can be calculated much more accurately, and that businesses must intervene much faster at the point when a project goes off the rails.

Besides labour, capital and nature, software is an important factor in production. One result of this is that IT projects make the front pages with increasing regularity; sadly this is usually whenever the costs get out of hand and the projects actually seem to have become unmanageable. Erald Kulk has developed a method for avoiding this scenario in future. Business people can use his models to take calculated risks instead of random decisions based on gut instincts.

New requirements

One of the major problems when implementing large-scale IT projects is the continually changing context. New requirements are constantly imposed on the software that is being developed, whether through progressive insights or legislative changes. Using IT project data from a range of industries, Kulk has analysed the causes underlying cost overruns. He has developed a model for working out the point at which a project can no longer accept any further adjustments. He has precisely calculated the 'danger zone', where more work is coming in than is being completed, so that it becomes impossible to finalise a project. One of the factors he took into account for this calculation was the size of the project -- a large project can reach this danger zone quite rapidly, with relatively little in the way of further growth.

Contrary to expectations, the businesses whose IT projects ended up 'in the soup' were not the 'immature' ones. Only when the entire organisation was working at a more advanced level were the costs more accurately estimated, so that there was a greater chance of success. It was the smaller organisations that succeeded in making a more realistic assessment of a project's costs and risks. Large organisations often had to deal with too many people, each with separate lines of communication.

EQUITY

Erald Kulk's research forms part of the NWO project 'Exploring Quantifiable Information Technology Yields' (EQUITY), which in turn is part of NWO's JACQUARD research programme. JACQUARD focuses on software engineering and 'software as a service' -- otherwise known as 'cloud computing' -- and places a strong emphasis on collaboration between science and industry. For instance, the EQUITY project is a collaboration between VU University Amsterdam and ABN AMRO. Kulk's research was largely undertaken at ABN AMRO.

The use of practical data means that the models delivered by the research can be applied immediately, and there are a range of available benchmarks, even for businesses that have collected little data themselves. Using Erald Kulk's models, it should be possible to get any projects likely to derail back on the right track in good time.


Story Source:

The above story is based on materials provided by NWO (Netherlands Organization for Scientific Research). Note: Materials may be edited for content and length.


Cite This Page:

NWO (Netherlands Organization for Scientific Research). "New models allow proper assessment of IT risks." ScienceDaily. ScienceDaily, 14 January 2010. <www.sciencedaily.com/releases/2010/01/100104114832.htm>.
NWO (Netherlands Organization for Scientific Research). (2010, January 14). New models allow proper assessment of IT risks. ScienceDaily. Retrieved September 30, 2014 from www.sciencedaily.com/releases/2010/01/100104114832.htm
NWO (Netherlands Organization for Scientific Research). "New models allow proper assessment of IT risks." ScienceDaily. www.sciencedaily.com/releases/2010/01/100104114832.htm (accessed September 30, 2014).

Share This



More Computers & Math News

Tuesday, September 30, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Apple Releases 'Shellshock' Fix Despite Few Affected Users

Apple Releases 'Shellshock' Fix Despite Few Affected Users

Newsy (Sep. 29, 2014) Apple released a security fix for the "Shellshock" vulnerability Monday, though it says only "advanced UNIX users" of OS X need it. Video provided by Newsy
Powered by NewsLook.com
Do Video Games Trump Brain Training For Cognitive Boosts?

Do Video Games Trump Brain Training For Cognitive Boosts?

Newsy (Sep. 29, 2014) More and more studies are showing positive benefits to playing video games, but the jury is still out on brain training programs. Video provided by Newsy
Powered by NewsLook.com
New Facebook Ad Platform Goes Where You Go On The Web

New Facebook Ad Platform Goes Where You Go On The Web

Newsy (Sep. 29, 2014) Called Atlas, the platform allows advertisers to place ads based on Facebook info on sites outside of Facebook. Video provided by Newsy
Powered by NewsLook.com
Google Tightens Requirements For Android Manufacturers

Google Tightens Requirements For Android Manufacturers

Newsy (Sep. 27, 2014) Phonemakers who want to use Google’s software in their devices will have to stick to more stringent requirements. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:

Strange & Offbeat Stories


Space & Time

Matter & Energy

Computers & Math

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins