3. Why do more than half of enterprise application projects exceed budgets, deliver less than expected benefits, or experience overruns?

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Arnav Irwin

24 May, 02:09

3. Why do more than half of enterprise application projects exceed budgets, deliver less than expected benefits, or experience overruns?

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Gwendolyn Cross · Answer 1

The correct answer to this open question is the following.

More than half of enterprise application projects exceed budgets, deliver less than expected benefits, or experience overruns due to the following reasons.

These projects many times lack proper planning and preparation, underestimating basic factors such as finances, forecasting, budget, internal and external conditions, political and economic factors. When the budget is not properly developed, the underfinancing of the project is a common result. The project director has to be very aware of the correct cost estimation to calculate the money that is going to be needed during the whole life of the project, from the beginning to the end.

Risk management is another factor that always is unseen by many companies. And when undesirable things happen, the company is not protected to face the contingencies.