Project Failure: Asset Impairment Charge: IT Strategy Rationalization ...

IT integration projects are a tough business. Failures can be expensive, impact the bottom line, and affect careers. Here's a clear example ...

... "LCH.Clearnet has decided to close down its Generic Clearing System (GCS) project. A review of the GCS programme in 2005 had already concluded that part of the GCS investment would not be brought into economic use and an impairment charge of EUR20.1 million was therefore recognised in the 2005 interim accounts. Further work completed in June 2006 concluded that the further development of GCS was not economically or technically viable, and the Group has therefore decided not to continue to use assets from GCS within its technology strategy. An impairment charge of EUR47.8 million, which substantially relates to those assets, has been recognised and will be reported in the LCH.Clearnet Group Limited 2006 half year results to be published in August." ...

Project Failure: Asset Impairment Charge: IT Strategy Rationalization: Via LCH ClearNet: LCH.Clearnet Rationalises IT Strategy ...