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The following are a compilation of Application and Business Transformation Statistics from multiple industry sources. For information on Best PLM Implementations click here


Standish Chaos Reports: Standish is probably the most referenced. They define success as projects on budget, of cost, and with expected functionality.

There are several updates to the Standish "Chaos" reports. The 2004 report shows:

Successful Projects: 29%

Canceled projects cost $55 Billion Annually?

Challenged Projects: 53%

http://www.galorath.com/wp/wp-includes/js/tinymce/plugins/wordpress/img/trans.gifFailed Projects: 18%


From Kenn Hartman (DSA) presentation on software failure June 2011

  • Poorly defined applications (miscommunication between business and IT) contribute to a 66% project failure rate, costing U.S. businesses at least $30 billion every year (Forrester Research)
  • 60% - 80% of project failures can be attributed directly to poor requirements gathering, analysis, and management (Meta Group)
  • 50% are rolled back out of production (Gartner)
  • 40% of problems are found by end users (Gartner)
  • 25% - 40% of all spending on projects is wasted as a result of re-work (Carnegie Mellon)
  • Up to 80% of budgets are consumed fixing self-inflicted problems (Dynamic Markets Limited 2007 Study)


Most projects cost more than they return, Mercer Consulting: When the true costs are added up, as many as 80% of technology projects actually cost more than they return.

It is not done intentionally but the costs are always underestimated and the benefits are always overestimated. Dosani, 2001


Oxford University Regarding IT Project Success (Saur & Cuthbertson, 2003)

  • Successful: 16%
  • Challenged: 74%
  • Abandoned: 10%


British Computer Society:The UK public sector spent an estimated 12.4 bn. on software overall spend on IT about 22.6 Billion British Pounds (Jaques, 2004)

Successful: 16%

Failure Costs Tens of Billions of British Pounds in the European Union


National Institute of Standards and Technology (NIST)

  • Software defects cost nearly $60 Billion Annually
  • 80% of development costs involve identifying and correcting defects

Dynamic Markets Limited 2007 Study of of 800 IT managers across eight countries shows that:

  • 62 % of organizations experienced IT projects that failed to meet their schedules
  • 49% budget overruns
  • 47% higher-than-expected maintenance costs
  • 41% failed to deliver expected business value and ROI
  • 25%+ of all software and services projects are canceled before completion
  • Up to 80 percent of budgets are consumed fixing self-inflicted problems