When systems fail
SAN JOSE, Calif. — New software at Hewlett-Packard Co. was supposed to get orders in and out the door faster at the computer giant. Instead, a botched deployment cut into earnings in a big way in August and executives got fired.
Last month, a system that controls communications between commercial jets and air traffic controllers in southern California shut off because some maintenance had not been performed. A backup also failed, triggering potential peril.
Computer code foul-ups also recently held Tacoma’s budget hostage, delayed financial aid to university students in Indiana and caused retailer Ross Stores Inc.’s profits to plummet 40 percent after a merchandise-tracking system failed.
Such disasters are often blamed on bad software, but the cause is rarely bad programming. As systems grow more complicated, failures instead have far less technical explanations: bad management, communication or training.
“In 90 percent of the cases, it’s because the implementer did a bad job, training was bad, the whole project was poorly done,” said Joshua Greenbaum, principal analyst at Enterprise Applications Consulting in Berkeley. “At which point, you have a real garbage in, garbage out problem.”
As governments, businesses and other organizations become more reliant on technology, the consequences of software failures are rarely trivial. Entire businesses — and even lives — are at stake.
Many experts believe the situation will only worsen as software automates new tasks and more systems interconnect with and rely on other computers. Technical challenges may be surmounted, but managing people never gets easier.
“The limit we’re hitting is the human limit, not the limit of software,” Greenbaum said. “Technology has gotten ahead of our organizational and command capabilities in many cases. It’s amazing when you go into companies and see the kinds of battles that go on.”
Big software projects — whether to manage supply chains, handle payroll, track inventory, prepare finances — tend to begin with high expectations and the best intentions. They’re all about efficiency, reliability, cost-savings, competitiveness.
Companies might develop their own programs internally, outsource the job or buy from a company such as SAP AG, Oracle Corp. or PeopleSoft Inc. Regardless of the route, it’s usually a major undertaking to get things right.
Often, however, the first step toward total disaster is taken before the first line of code is drawn up. Organizations must map out exactly how they do business, refining procedures along the way. All this must be clearly explained to a project’s technical team.
“The risk associated with these projects is not around software but is around the actual business process redesign that takes place,” said Bill Wohl, an SAP spokesman.
A 2002 study commissioned by the National Institute of Standards and Technology found software bugs cost the U.S. economy about $59.5 billion annually. The same study found that more than a third of that cost — about $22.2 billion — could be eliminated by improving testing.
A lack of strong leadership appears to have been a factor in HP’s problem, which led to the dismissal of three top executives in its server and storage business hours after the company announced disappointing earnings on Aug. 12.