Between the idea, And the reality, Between the motion, And the act, Falls the Shadow"
Having started this column by quoting no less a dark luminary than T.S. Eliot, I'd like to quote . . . myself. If you read February's "Shop Talk," you may recall the following statement: "Figuring out the cost of a major software acquisition is complicated. Figuring out the benefits is even harder." And let me add, sticking to those costs and realizing those benefits are harder still.
As has been noted in previous "Shop Talk" columns, transformational change, such as replacing core insurance legacy applications, is a risky business. Hard numbers are difficult to come by, but it generally is agreed at least half of all such projects fail, as in they don't result in an implemented system or result in only a partially implemented system. This is a rough measure based on a binary criterion. Does this then mean the other 50 percent succeed? In order to answer the question we need to define the meaning of the term success. Let's consider four key criteria that might be appropriate to measure the success of a core legacy system replacement:
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