The Standish Group's CHAOS report has been talking of billions of wasted dollars on IT projects for many years. The 34% success rate is actually a improvement over 2001's figure of 28%. ... The chaos report defines success as on-time, on-budget and with most of the expected features. But is this really success? After all Windows 95 was horribly late yet was extremely successful for Microsoft's business. ... I would argue that it's the estimate that failed. So the CHAOS report isn't chronicling software project failure, it's chronicling software estimation failure.
lots of money was spent on several prototype systems, of which nearly all worked. The problem arose when it actually came down to using the systems. The management here has no concept of how it runs its processes, because they're held responsible for money, schedules and people. Therefor they see very little need to "fix what ain't broke." They have also been conditioned not to take a risk. With this kind of corporate culture, AI expert systems just couldn't be implemented. They wouldn't take the risk, change the work, or spend the money to implement the prototypes. Therefore time after time the systems died on the vine. SO that after a while it looked like a lot of money was being wasted on a technology that didn't work. When I looked at the data I found out the technology was working they just weren't using it.
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