Business Challenge
- After the design phase the project team
announced that the costs for the new inventory system will be four
times higher than expected
Approach
- Stop the current project and conduct a
comprehensive As-Is Analysis - Outcome: The real business problem has
been miss-understood. The problem is people’s capabilities
- Review all the business requirements to prepare for the future system
- Conduct cost-benefit analysis
- Reduce business requirements to a reasonable level
- Choose a standard software system instead of fully self-developing a software
Results
- Project could be delivered within original
budget and time frame even though sunk costs appeared during first
phase (75% cost savings)
- Business gets standard software solution with higher flexibility and lower maintenance costs
- Only the functionality has been realized that really benefits the business
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