Failure Case Of K Mart 's It Modernization System Project

1256 Words Aug 10th, 2015 6 Pages
In this paper, the author will introduce a failure case of K-Mart 's IT modernization system project. In 2001, K-mart took $1.4 billion dollars into this project with the purpose of competing with its rival Walmart. The dream is beautiful, but the real work is cruel. After 18 months, the project was failed because of lacking of cash. What happened in the detailed for this project? $1.4 billion dollar is huge numbers, why it was still not enough to pay and distribute for this project? How did its project manager do in this project? What are the project problems? How can we learn from the failure of this case? The paper includes the case background introduction, the project development process, the problems in the project, analysis and …show more content…
The scope of the K-Mart IT project includes its sales, marketing analysis, supply chain management, and logistics management system.
RISKS AND CONSTRAINTS OF THE PROJECT
The risks of the IT project are in many factors, such as poor estimation, poor scheduling, ineffective stakeholder management, insufficient risk management, poor quality assurance, insufficient project sponsorship, lacks of user involvements and other risks. In K-Mart IT project, the most risky parts and constraints are lacks of top executives support and highly customization modules.
 Lacking of top executives support is essential to the K-Mart IT project development. The new IT project system design very well but does not use in full potential. Some import features and functions such as forecasting demanding and planning, cannot be used correctly. The top managers always think and trust their own experiences, not the data generated from the computer system. This incoordination made the project implementation even difficult and the results are inaccurate based on the inaccurate judgement for the planning from the top managers.
 Highly customization modules are another high risk for K-Mart IT project development. The system is spread out all work flow in the K-Mart system from the demanding planning, supply chain

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