The Blind Leading the Blind: Why the information technology investment appraisal process is too often ineffective in the UK today

Abstract

One of the most profitable areas of investment for any commercial or public sector organisation ought to be the area of information technology. Unfortunately, this is by no means always the case. In practice, there has for some time been a serious concern, and even considerable anecdotal evidence, that a substantial proportion of IT projects in the UK are poorly-planned and executed, and that the investment on these projects is therefore wholly or partially wasted. With little or no significant return, the investments are often profitless and even disastrous. They are frequently undertaken by ‘organisationally blind’ individuals leading their business without due regard for IT investment. Typically, even the most senior managers do not know how and why the organisation in question should invest in IT. In short, there has been a fear that much IT investment in the UK is, unfortunately, a question of ‘the blind leading the blind’. Cranfield School of Management set out to investigate the quality of the IT investment decision process inside organisations. This report contains the findings of the investigation.