Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management Harvard Case Solution & Analysis

This case describes the implementation and following failure of an advanced system installed in the taverns of Alvalade XXI, the recently built football stadium in Lisbon, Portugal. The firm running the bars, Casa XXI, had entrusted the project to an IT provider who had limited experience with large systems. The fiasco determine not only a financial loss, but also a setback to the reputation of the firm. The management attributed the failure on the supplier. The supplier, however, claimed that the difficulty wasn't technical but organizational, that's, poor planning of businesses. Subsequent tests were inconclusive and failed to restore trust. At the end of the case, the CEO is contemplating the possibility to change to an alternative supplier.

He also wonders what they could have done to manage the related risks and the job more effectively. Threat and project management issues are highlighted by the case in large systems implementations. Important dimensions include: business operations, job scope, degree of innovation, technology used, system architecture, supplier selection, and job organization. Moreover, the case raises governance questions: Who's accountable for the project? Even if the job is outsourced, how should the functions and responsibilities be apportioned between the business and the IT provider(s)? What mechanisms should be used control their risks, and to plan and implement IT projects?

PUBLICATION DATE: December 01, 2007 PRODUCT #: JIT019-HCB-ENG

This is just an excerpt. This case is about TECHNOLOGY & OPERATIONS

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