Abstract

Massive loss incidents have been repeatedly observed at companies, that tried DX (digital transformation of their business) and ordered vendors to develop necessary IT systems; the IT system development projects failed. IT disputes started between the companies and the vendors to compensate for individual loss, and claims by the companies for damages were finally dismissed by the courts. This paper first clarifies the facts of both the phenomena and the causes of IT project failures by analyzing public court records. Based on the analysis, we next derive and clarify business management methods for the prevention of recurrence of the losses and the IT disputes, as lessons learned. We also show actual amounts of the massive losses avoided by practicing business management methods, as rationale of this study. We also discuss how more companies should introduce business management methods globally.

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