Software development serves as the foundation of technology adoption for various businesses. Especially in the last three years, with the pandemic, it has taken a front seat in most industries. However, do all software projects succeed? Of course not. However, there are a number of factors that can directly affect the chances of a project’s success. Failure can be attributed to various factors, including quality and scheduling issues. What else? Let’s dive deeper into it.
Famous examples of software projects that failed
If you are part of the IT industry, you have probably heard about many software project fail cases. Here are some famous unsuccessful projects:
- Apple’s Copland operating system. The tech giant released an unstable system that couldn’t even compete with MS Windows. The failure has become a classic example of feature scope creep. The main reason was derailing the project’s original scope.
- Nest’s software refresh. A few years ago, the Google-powered smart thermostat released an update that forced the device’s batteries to run out. Therefore, Nest couldn’t control temperature and customers were left without heating or hot water in the middle of winter.
- A bug within the Uber application. It resulted in… revealing a man’s affair with another woman to his wife. Because of the bug, multiple notifications were pushed to the man’s device even when they logged out of the account. Several notifications were actually sent to the man’s wife. She received them because her husband once called an Uber from her phone. The bug ended with a $45 million lawsuit.
As you can see, sometimes even a small mistake can lead to catastrophic consequences. Let’s move on to the most common reasons why software development projects fail.
Why software projects fail: #1 poor planning
This is definitely one of the main things that lead to project failure. When requirements are constantly changing, it can turn out that you cannot catch up, which leaves you a lack of room for adjustments when it comes to milestone deliverables.
Many businesses don’t do a proper feasibility study on the real logistics of a software project. This affects expectations and can in turn lead to stress and disappointment which brings you within spitting distance of project failure. Proper planning should help you overcome the above. You should plan your project to the nth degree. This will ensure that capacity is left for the unknown risks. You can involve upper management from the very start so that, whenever the requirements change, there is someone involved who can adjust the plan and control project execution.
Why software projects fail: #2 having no clear understanding of business needs
Understanding the needs of the business is crucial if you want to deliver a successful project. Many times, architects and project managers get business requirements that are not completed. Software teams are asked to deliver products at a faster pace, but they don’t get enough time to clearly understand the requirements.
Don’t forget that defining project specifications is the first step in executing a successful project. Project requirements can be unclear or vague. Therefore, the business should clearly articulate requirements in detail. Are the requirements specific? Can they be achieved realistically? Features and functions of the software should be precisely mapped to make sure end customer and user needs are met. A good piece of advice is to meet your end customers and understand their behavior and environment to see how and where they are going to use the software.
Why software projects fail: #3 miscalculated time and budget frames
Clients might want their software projects rolled out on time at throwaway prices. On the other hand, developers often agree to a rather short or unrealistic time frame for project delivery at meager rates. As a result, the project cannot be delivered on time.
In some cases, when you try to keep the costs within the limited budget set by the client, your efforts may bring the project to failure. In order to avoid a lack of budgeting controls, you should always consider flexibility – in fact, the client usually requests changes midway through software projects. To avoid miscalculated budget frames, you might ask the client to provide as much information as possible at the very beginning. The deeper your developers understand the project, the more likely it will be on budget.
In addition to miscalculated budget frames, there are also misunderstandings with time frames. When deadlines are decided before the project starts, it may be difficult to meet them and complete all the milestones on time. Summing up, if you want to alleviate the effects of overrun time and cost, your team should do whatever it takes to fully understand the client’s needs and clearly set the definition of done. This will help you make sure that you and the client are on the same page.
Why software projects fail: #4 lack of experience managing software projects
Software projects are unique and require proper management. They require a project leader or a person supervising it. If there is no person who knows the roles in the team, stimulates development, and pursues the goals with action, it is more likely that the project will fail sooner than you think.
Lack of experience can make the project come to a halt if you cannot take fast decisions and verify what’s in scope and what’s out. To make the most of your experience, analyze your previous software projects and think about what mistakes were made. It’s helpful to familiarize yourself with the best practices of other managers in similar industries.
Keep your project on track with this selection of 11 software development KPIs you should measure.
Why software projects fail: #5 poor communication
Software development projects require clear and transparent communication between the client and the developer team. The client should be involved every step of the way which makes managing expectations much easier and provides early indicators if the project is going to fail. Also, each project’s team member must be aware of the goals and have clearly defined responsibilities. If this element is managed properly, there will be no misunderstandings or conflicting interests during the project.
How to avoid poor communication? You should get together with all team members regularly. Requirements should be clearly presented so that team members can share their opinions and stay up-to-date with the progress. Clear rules ensure everyone involved knows what to focus on, what the goal is, and what is expected of them. Also, transparent and easy-to-proceed communication channels should be in place from the outset. This should include all product stages from planning, through development, and testing, to final deployment.
Why software projects fail: #6 lack of vision
Can you imagine a situation where someone builds a product without even knowing what problems it will solve? In theory, it doesn’t make any sense. In real life, it happens often, and software project failures are often put at risk because the vision or idea wasn’t properly validated. The idea should drive all following stops so it’s unacceptable that it only works on paper. In such cases, it may turn out that the product isn’t useful for the end users, even if the team has met all deadlines and budget assumptions. It is always better to be safe than sorry so you should check your idea multiple times before and during the software development life cycle.
Before you start working on your project, you should have a defined roadmap and know exactly where you will land after the project is complete. Involve more people (including from outside the project, if possible) to validate your idea. Looking at the vision from different perspectives is the first step to decreasing the chances of developing a product nobody needs. This can be achieved by detailed scope validation - the process of formalizing acceptance of the project deliverables.
Why software projects fail: #7 improper testing
The software testing team should engage early with the development team to ensure that every detail of the requirements and project scope is captured in the test cases. In fact, lack of quality testing or inadequate testing is one of the major reasons for software project failure. Unfortunately, very often the importance given to coding isn’t given to testing. Especially when the pressure to deliver is on, testing suffers.
This may result in a product filled with bugs and in consequence, unhappy end users. The truth is that the later you find a bug, the higher the cost of fixing it. Therefore, it is best to test simultaneously with development whenever possible and fix bugs in real time. Summing up, while building a new software product, make sure you carry out testing throughout the development lifecycle, as the product is developed.
Why software projects fail: #8 forgetting about user feedback
It is impossible to deliver a good user experience if you don’t understand who the actual user is. It is absolutely crucial to understand the end customers and their needs.
The source of many software development project failures stems from situations where developers don’t place a premium on end users’ needs or just forget about them. This makes it impossible to build features and functionalities that users truly want and provide a way to boost business revenue. End users know better than you what will work for them. The decision on involving (or not) your customers early in the development phase can make or break your project.
Why software projects fail: #9 choosing the wrong skills set and technology
Very often, companies underestimate the complexity of the software development process. In fact, when you make wrong decisions on people and tech stack, your project is destined to fail. An advanced software development process requires a high level of specialization, and we see all too often that many teams just don’t fit particular software projects.
Before you start coding or prototyping, consider what skills you need for the development. Decide how many people should be involved. A team that is too big will not be effective. When it’s understaffed, too much work will be on each person’s shoulders. Analyze what skills you will need and define the size of your project and the corresponding number of specialists working on it to finally create a team that fits all conditions. Don’t forget that well-chosen technology is also key. It ensures security, speed, and reliability. If you aren’t sure if you can make good choices on the team and tech stack, consider software development outsourcing to expand your team with specialized software developers or benefit from the flexibility of delegating the entire project to be run externally.
Why software projects fail: #10 resistance to change
Finally, resistance to change may lead to software project failure. Sometimes stakeholders feel uncomfortable with the new software. They may need a lot of work to embrace it. Sure, we all have some level of resistance, and this is perfectly fine; however, you should make sure to inform your clients about the value and significance of using the technologies that would suit the project best. You can make the transition easier by involving all stakeholders as early as possible and managing any difficulties they might have.
Tips to avoid software project failure
On the road to success for your project, forewarned is forearmed. We’ve gathered some software development best practices to help you succeed in building your software development project:
- Clearly define your requirements. Make sure of what you and your clients need and expect. If many people are involved in the process, you should make sure all of them are involved, gather feedback and make sure all decision makers come to an agreement. Remember to keep requirements up to date and announce any changes to all relevant stakeholders.
- Plan ahead. In software development, nothing should be left to last-minute planning. When you have all the requirements set, spend time preparing a detailed software development roadmap and writing down every known aspect of the specification on a timeline. This way you will be able to keep an eye on how much work still needs to be done. Even small things should be carefully considered as they can contribute to the product’s efficiency. Embrace change - you will need to adapt your plan to changing requirements, technical roadblocks and new opportunities.
- Communicate properly. Communication between team members is vital for the success of your project. Everyone involved in the project should have access to all relevant documentation and be up to date with the shared goals. No one should feel left out or undervalued.
- Track progress. Even minute details may have a huge impact on the overall performance. It is a good idea to document everything that you do and keep checking with team members to make sure everyone is on the same page.
Treat the tips above as general good advice. Each project is unique and requires an individual approach. Follow our blog for more nuanced articles on each of these subjects.
Conclusion
In this article, we’ve gathered 10 of the most common reasons why software projects fail. Of course, the critical factors strongly depend on the type of project and industry. It is crucial to supervise daily tasks and try to prevent any obstacles as quickly as possible.
