Transcript Introduction - Myweb.dal.ca

Introduction
Let us feel the need
(1 of 3)
A design problem in Nasdaq's software caused
delays in opening Facebook's stock that
ultimately cost Wall Street firms more than
$500 million.
Many firms stopped trading with Knight,
essentially starving the firm of revenue after
a software bug caused a $440 million trading
loss.
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Let us feel the need
(2 of 3)
After its new automated
supply-chain management
system failed, leaving
merchandise stuck in
company warehouses,
British food retailer
Sainsbury's had to hire 3000
additional clerks to stock its
shelves.
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Let us feel the need
(3 of 3)
 A software glitch likely led to a woman's death when
the system "spontaneously shut itself off.“
Investigations have indicated a problem with the
oxygen system's software
 The department was then using portable oxygen
systems onboard the ambulance, which is being used
only as a last resort.
 In one stellar meltdown, a poorly implemented
resource planning system led FoxMeyer Drug Co., a
$5 billion wholesale drug distribution company in
Carrollton, Texas, to plummet into bankruptcy in
1996.
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Volume of Investment
The average company spends about 4 to 5 and highly
IT dependent--such as financial and
telecommunications companies--more than 10
percent on it.
The computer modernization effort at the U.S.
Department of Veterans Affairs was projected to run
$3.5 billion, while automating the health records of
the UK's National Health Service was likely to cost
more than $14.3 billion for development and another
$50.8 billion for deployment.
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System Failure Rate Issues
In 2004, the U.S. government spent $60 billion on
software (excluding weapons systems); a 5 percent
failure rate means $3 billion was probably wasted.
However, the actual failure rate is 15 to 20 percent for
projects that have budgets of $10 million or more.
Looking at the total investment in new software
projects--both government and corporate—from 2000
to 2005, the project failures have likely cost the U.S.
economy at least $25 billion and maybe as much as
$75 billion.
For that money, you could launch the space shuttle 100
times, build and deploy the entire 24-satellite Global
Positioning System, and develop the Boeing 777 from
scratch--and still have a few billion left over.
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System Wall of Shame
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Among the most common factors
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Unrealistic or unarticulated project goals
Inaccurate estimates of needed resources
Badly defined system requirements
Poor reporting of the project's status
Unmanaged risks
Poor communication among customers, developers,
and users
Use of immature technology
Inability to handle the project's complexity
Sloppy development practices
Poor project management
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95% System Failure Attributed
to Humans
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A case
 Sydney Water Corp., the largest water
provider in Australia, attempted to introduce
an automated customer information and
billing system in 2002. The factors that
doomed the project were inadequate
planning and specifications, which in turn led
to numerous change requests and significant
added costs and delays. Sydney Water
aborted the project midway, after spending
AU $61 million (US $33.2 million).
 All of which leads us to the obvious question:
why do so many errors occur?
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References
 Why Software Fails by Robert N. Charette
URL: http://spectrum.ieee.org/computing/software/why-software-fails/0
 Identification of sources of failures and their propagation in critical
infrastructures from 12 years of public failure reports , Hafiz Abdur
Rahman*, Konstantin Beznosov and José R. Martí
URL:http://lersse-dl.ece.ubc.ca/record/181/files/181.pdf
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