System Integrations and Project Failure

In May 2007, the Massachusetts Division of Unemployment Assistance (DUA) signed a contract with Bearing Point, Inc. to modernize the State’s unemployment processing system. The project was called the DUA Quality Unemployment System Transformation (QUEST) Project. Bearing Point filed for bankruptcy in February 2009 and Deloitte announced they would buy Bearing Point for $350MM in March of the same year.

In order to comply with the Affordable Care Act, the State of Oregon made the decision to build its own Health Insurance Exchange (ORHIX). An online portal to allow applicants was supposed to go live October 1, 2013. As of March 30, 2014 the site was not functional and all ORHIX applications must be processed from paper applications.

As mentioned last week, alignment is of the utmost importance. Achieving alignment, at first glance, is easier when the supplier works for the same company as the customer, say an IT organization delivering a new application to a business unit. However, from my experience there is little difference. In fact, exploring a vendor's world, where access to the customer is inhibited, sheds significant light on techniques to improve the customer-supplier relationship. Classically, vendors must wait for a request (RFP or RFQ) before they can get access to the customer. Exploring ways of "fishing up stream," as an eloquent account manager friend of mine says, is critical in improving project success. To understand this we need to review a couple of case studies on vendor success and failure.

The system integrator is the magical troupe that works with the customer and the software vendor to deliver a project's desired functionality. They cut through the vendor's promises while controlling the customer's expectations to create a successful deployment. Mike Krigsman refers to this triad as the Devil's Triangle; all three parties are culpable in the failure and share in the success. However, the system integrator is responsible for holding the three together to achieve successful delivery. The cornerstone to this relationship is a thoughtfully built contract.