Introduction

This chapter sets out to demonstrate:

• • the development of an ICT strategy from the basis of an information management strategy and the differences between the two;

• • the importance of recognising that ICT development is rooted in a social context;

• • that ICT is increasingly necessary but rarely sufficient for meeting organisational objectives;

• • that an ICT strategy should not necessarily be equated with additional expenditure on ICT; and

• • the stages and techniques of ICT systems’ design and delivery, investment and costing, appraisal and review.

The chapter summarises the issues for ongoing management of the organisation’s ICT systems. Finally, some themes are drawn together that collectively highlight some of the key ingredients of failure. But a salutary way to start considering these issues is with some statistics about ICT investment.

ICT investment: a panacea for success?

In March 2003, the trade magazine Computing reported on a leaked UK government report on IT. The Guardian reported the story thus: ‘Government faces £1.5 billion bill for IT failures’ (http://politics.guardian.co.uk). Failed projects included:

• • Pathway: smartcards for benefits payments in 1998/99. Cost: £698 million. Project cancelled.

• • Prison Service 1999. The Home Office drew up plans to overhaul prisons’ IT and then scrapped them – at a cost of £8 million.

• • Immigration and Nationality Directorate 2001. The IT project was cancelled because the system was over-complex. Cost: £77 million.

• • Probation Service 2001. Work on the system was suspended after costs came in 70% above budget. Estimated waste: £118 million.

• • Child Support Agency 2001/02. £50 million overspend due to changes in system.

• • Individual Learning Accounts 2001/02. Flagship training scheme – project cancelled amid accusations of fraud. Estimated waste: £66.9 million.

• • Libra. Plan to link magistrates courts renegotiated, but only after £134 million wasted.

The report was hotly contested by government spokespeople:

Quite apart from the documented failures, ICT expenditure may not produce any positive effects. The Audit Commission put it like this: ”… computers which should have improved public services, may seem only to have changed them” (Audit Commission, 1994, p 3).