It’s All About Numbers – the Price of business analysis mistakes (Part 2)

Regardless of occasional economic turmoil all over the world, companies keep increasing their investments into software products. At the same time, the costs of the business analysis mistakes in the software development process are impressive. According to CIO Magazine, 71% of software projects that fail do so because of poor requirements management.

In addition, The Standish Group reports that in year 2015 about 70% of projects were impaired (finished not on budget/not on time/without required features and functions) or unsuccessful at all. If you have not learnt about relative expenses for fixing the issues introduced/detected on different project stages yet – have a look on Part 1 of the article.

Worldwide annual losses (during software development and implementation) in amount of 250 billion dollars are connected to poor requirements.

Only in the US each year 194,4 billion dollars are spent on software development (according to U.S. Bureau of Economic Analysis, 2008), 46 billion of which are spent on correcting mistakes caused by poor requirements. 

Obviously, improving business analysis processes will have a great influence on the results . Nevertheless, what are the companies actually do? Some of them keep doing what they have been doing before (and therefore keep getting the same unsatisfactory results). Instead, they should pay close attention to the main causes of the problems: poor requirements, doubtful strategic decisions made in an attempt to compensate the mistakes accrued during BA stage, and uncaring attitude towards business needs (in other words toward everything that is associated with business analysis).

Do you have your own experience related to business analysis mistakes to share? I will be glad to read your story in the comments!

Author: Veronika Baeva, see original resource in Russian.

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