This in turn, may result in seepage, where the system specification is changed during the development process. This problem itself will result in raising costs and delaying the system's development. .
The need to have the old and new systems running concurrently could be another problem since this will result in parallel running costs in the early stages. Both systems will be required to run in tandem, to ensure that the new system is running effectively and efficiently, therefore not causing any unnecessary delays.
There may be problems encountered as well in the transition from the current to the new system. Staff may be reluctant to move over to a new information system as they are used to the current way of working. On the other hand Staff will require training which could be both expensive and time -consuming, adding to the initial development costs. Additional technical support staff and expertise may be required to be put in place in order to support the new system, adding to the cost of the new system.
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The issue of no one person taking responsibility for overseeing the analysis and design process could result in training needs not being met and the smooth transition to the new system being unsuccessful.
Systems will never be guaranteed to be error-free; therefore problems may emerge as the users operate the new systems in the course of their day to day working life. .
Readers in the UK will be familiar with such disaster as the London Ambulance Service's computerised despatch system which after a week of intermittent use slowed down and then locked up altogether. Attempts to reboot the system failed to cut-in; the control room staff had no alternative but revert to a fully manual paper-based system (Wiley,1996:74).
According to a report from KPMG (2002), which included 134 listed companies around the world, reported that 56% of firms have had to write off at least one IT project in the last year as a failure.