Why collaborate on Software Procurement?

A.K.A. What’s the problem?

IT Project success and failure

52%

19% 29%Challenged: Major cost/time/functionality issuesCanceled before com-pletionSuccess

Source: The Chaos Report 2015

Success vs Failure: 5 Characteristics

Size Complexity Methodology (eg Agile vs Waterfall)

Cost Estimation

Team culture

Results by project size

Small Moderate Medium Large Grand0%

10%20%30%40%50%60%70%80%90%

100%

62%

21%9% 6% 2%

FailureSuccess

Source: The Chaos Report 2015

How often is price estimation right?

Never Sometimes Usually Always0%

10%

20%

30%

40%

50%

60%

70%

SmallLarge

Source: IITP Software and Procurement Survey (2014)

Never Sometimes Usually Always0%

10%

20%

30%

40%

50%

60%

70%

Large

Source: IITP Software and Procurement Survey (2014)

How often is price estimation right?

Vendor reaction to price overrun

Do Nothing Renegotiate Cut corners Inflate costs Withdraw0%

10%20%30%40%50%60%70%80%90%

SmallLarge

Source: IITP Software and Procurement Survey (2014)

Fact:We generally can’t predict the cost of [complex] software up front.

Yet we still use cost as a criteria?

Source: The Chaos Manfesto 2012

Agile and NZ Procurement Compatibility

Not compatible Reasonably Very0%

10%20%30%40%50%60%70%80%

Source: Those with Agile experience from IITP Software and Procurement Survey (2014)

Fact:Agile works better for software.Agile succeeds 3x as often, but isn’t [perceived to be] very compatible with how we procure software.

So what’s the challenge?

Bringing good software processes and good procurement together.

Thanks!