Process and product success in information systems development

Several guidelines and methods for ensuring success of development projects have been introduced in the information systems (IS) literature. In this paper, their contribution to explaining variation in different success criteria are empirically investigated with the data gathered from recent IS development projects in major Finnish companies. Competent system analysts and users, appropriate development methods and management support were found important for the success of the development process. These factors did not, however, explain the success of an IS as a product in terms of its quality and its impact on the organization. Instead, product success was heavily dependent on the characteristics of the investment, especially the novelty of the system and the specificity of the design. Advanced IS organization was positively related with both process and product success, but two widely promoted mechanisms for initiating development projects-steering committee and strategic IS planning-were not positively associated with any of the success criteria. The results of this study imply that managers should emphasize different factors in IS development depending on the type of investment and relevant success criteria in each situation and that there is a clear need for research on finding and justifying new IS investments providing an appropriate balance between expected payoff and risk.