Software Doesn’t Work, Company Goes Bankrupt
This is just a quick note to all those of you who subscribe to the “software is a commodity, so it doesn’t matter” idea. Sure, IT systems are as commonplace today as running water or electricity. But then again, imagine running your business without running water and electricity.
This seems to be pretty much what happened at American LaFrance, a maker of customized emergency vehicles. When American LaFrance was separated from its previous owner, Freightliner, they suddenly needed their own ERP system. Their decision: we’ll outsource this, let IBM take care of it. The consequence: IBM botched the project and ALF suddenly didn’t know how much inventory they still had, or what exactly it was that the customer did order. And in the end, this seems to have been one of the deciding factors that forced ALF to declare bankruptcy.
This should be a lesson to all those managers who see their IT infrastructure merely as a cost factor. They should learn that IT is a central part of their business and that quality matters, too — not just cost.
February 18, 2008 at 19:56
Magnus von Koeller dunning… changed my point of view about viewing IT only as a cost factor as well as about life in a more general perspective. Thanks pal!