Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Software Losses Run into the Millions

Software Losses Run into the Millions

Wellington, April 26 2005

New Zealand businesses potentially waste between $200 and $300 million a year on software development projects which, more often that not, don’t meet business objectives or never see the light of day.

“The latest New Zealand figures tell us that, conservatively, New Zealand business spends between $300 and $500 million a year on software development.

International research shows that more than two-thirds of software development projects are challenged, (late, over budget, and/or with less than the required features and functions), or fail completely.” says Borland’s New Zealand and Australian Sales Director, Chris Gray.

“These are staggering figures, particularly given that, when you ask companies undertaking software development how important they feel it is for their company, the answer is – critically important.”

Gray says the complexities of integrating technology into business have almost exponentially increased as competitors within an industry fight for that special advantage.

“And that advantage is often driven by the development of unique software applications which aim to give companies an edge in their market space,” says Gray.

But although the skills of the New Zealand software development practitioner remain extremely high, Gray says there is often a lack of communication between those creating the business case for the software project, those designing it, and those writing, testing and implementing it.

“The result is a significant failure rate and commensurate losses to the bottom line,” says Gray.

Gray depicts the traditional software development process as a series of steps, each staffed by highly-skilled artisans doing great work in their own right, but who do not necessarily have visibility of the business reasons behind the project they are working on.

He endorses the view of the Gartner Group, that much of the engineering behind today’s business software is similar to mechanical and electrical design in the 1940’s and 1950’s, and highlights the opportunity for radical improvements by leveraging automation throughout the software development process.


© Scoop Media

Business Headlines | Sci-Tech Headlines


I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>


Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news