How IT projects succeed: Opportunities and limits of agile software development

07/11/2024 André Jakubiak Reading time 4 min.

Digital transformation projects still often fail. This also applies to IT projects. How can software development support the success of IT projects and where are its limits?

A lot has changed in the IT world: Companies are increasingly focusing on digital transformation and modernisation, but despite these efforts, many projects still fail. Studies show that 70% of digital transformation projects do not fully achieve their goals. There are many reasons for this: from unclear alignment and a lack of prioritisation to outdated technologies and inadequate risk management. This also applies in particular to the implementation of IT projects.

As think tank, we can look back on many years of experience in the consulting and implementation of IT projects. We have experienced the developments in agile software development at first hand and have successfully implemented them in numerous projects. But agility is not always the best approach. Let us shed light on how agile methods can revolutionise IT projects – and where they reach their limits.

How agile methods can support the success of IT projects

Agile software development offers answers to many of the challenges that often lead to project failure. Agile’s iterative and flexible way of working promotes constant coordination between IT and business teams and creates a dynamic process that reacts quickly to changes.

Better alignment through continuous communication

Many IT projects fail because alignment only exists at C-level. This is different in agile projects: business and IT teams work closely together to ensure that the goals and requirements are clearly communicated throughout all levels of the organisation. Regular meetings such as daily stand-ups or sprint reviews ensure that everyone involved is on the same page.

Clear target definition and rapid measurement of success

Another common mistake in traditional IT projects is the lack of or constantly changing definition of objectives. Agile methods such as Scrum or Kanban work with sprints in which concrete results can be targeted and quickly evaluated. These short cycles allow us as a think tank to obtain feedback in real time and make adjustments immediately if necessary before errors manifest themselves on a larger scale.

Effective risk management and prioritisation

Agility is ideal for identifying risks at an early stage and reacting to them. In traditional projects, we often stick to a rigid plan for a long time, which leaves little room for flexibility. In agile projects, we constantly reprioritise tasks to ensure that resources are deployed where they will bring the greatest benefit.

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Where agile methods reach their limits

Despite all their advantages, agile methods do not always have the desired effect. In certain scenarios, an agile approach is not the optimal solution. Here are a few points from our experience at think tank where agility reaches its limits:

High regulatory requirements

Agility can be problematic in highly regulated sectors such as finance or healthcare. There are often strict legal requirements that demand clear documentation obligations and clearly defined processes. A classic waterfall model has proven to be advantageous here, as it enables precise planning and long-term documentation that fulfils regulatory requirements.

Complex dependencies and legacy systems

If a project is deeply rooted in outdated systems (legacy systems), agile development quickly reaches its limits. Constant adaptation and iteration can become inefficient and costly for systems that are not flexible or expandable. A hybrid approach makes sense here, in which stable elements of the legacy systems are handled within a more traditional framework and agile methods are only used for innovative, dynamic project components.

Lack of experience with agile methods

While many organisations adopt the agile methodology, they are not consistent in their implementation. We have often observed that teams use agile terms but do not fully understand the underlying principles. Without true commitment and an agile culture, results often fall short of expectations.

Our proven approach: The right method for your project

At think tank, we know from experience that there is no “one-size-fits-all” solution for IT projects. Success depends on choosing the right methodology based on the individual project requirements. Our approach is based on three central questions:

How high is the degree of uncertainty or change?
High uncertainty requires agile methods, while more stable projects can benefit from classic models.
What resources and technologies are available?
We rely on agile or hybrid approaches for modern technologies and agile teams, and on more traditional methods for legacy systems.
How high are the requirements for control and documentation?
In highly regulated projects, we favour classic project management, while less regulated projects benefit from agile methods.

Conclusion: Choosing the right method leads to sustainable success

As an experienced consultancy, at think tank we combine agility where flexibility is required with traditional approaches when stability and control are needed. This hybrid approach has proven to be particularly successful in many projects.

Let’s find the best way for your IT project together – and make it a success.

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