Case Studies

Case Study 5 – IT Systems Development

Industry: Oil and Gas Downstream including refining and distribution. (Indian Ocean).

Client: Medium sized regional company, privately owned.

Objective: To confirm a stop /go decision on an in house development of a key logistics, storage and finance and accounting package

Results:
The client was extremely concerned about the on going IT systems development which was both overdue and over budget. We were asked to investigate reasons for the delays and to bring the project back on track, as well as provide advice on other options.

Definition of blueprints and user specifications. From our review we found a number of good practices had not been followed, including the proper definition and sign off on blueprints for the application development. The user representatives had not signed off on the specifications and these were changed on a regular basis without any change management control. A number of invoices had been issued to the client by the service provider for changes made, which were in dispute.

Project management. Several project managers had been appointed and changed in a short space of time. There was no consistency in approach and some of the Project Managers were not competent in this domain.

Language and cultural issues. The IT Development team was unable to communicate effectively with the local management and user representatives because they were not fluent in the local business languages. This had a major adverse impact on the accuracy of blue prints and user specifications and contributed in no small measure to them not being agreed upon or signed off.

During several tense meetings between the shareholders and the IT Consulting firm executives we advised the client to stop the project and cut their losses. An alternative was subsequently proposed.

Lessons learnt:
Proper project management and adherence to Systems Development Life Cycle principles are essential to ensure IT developments are completed on time and within budget.

Technical know how and expertise are no substitute for effective communication.

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