Incident: BBC's Digital Media Initiative (DMI) Failure: Costly and Chaotic Tapeless Project

Published Date: 2013-05-24

Postmortem Analysis
Timeline 1. The software failure incident related to the Digital Media Initiative (DMI) at the BBC occurred over a period of several years, starting in 2007 when the project was conceived [Article 18796]. 2. The DMI project was eventually scrapped in May 2013 [Article 18796]. 3. The failure of the DMI project was identified as early as July 2011, almost two years before it was shut down in May 2013 [Article 23620].
System 1. Digital Media Initiative (DMI) [Article 18796, Article 23620]
Responsible Organization 1. The BBC executive board, led by then director general Mark Thompson, and the BBC Trust, chaired by Lord Patten, were responsible for causing the software failure incident related to the Digital Media Initiative (DMI) [18796, 23620].
Impacted Organization 1. The BBC organization was impacted by the software failure incident [18796, 23620].
Software Causes 1. Lack of proper project management, control, and governance [18796, 23620] 2. Over-optimism about the project's completion ability after taking it in-house from the contractor [23620] 3. Insufficient scrutiny and oversight by the BBC executive board and BBC Trust [23620] 4. No single manager made responsible for the entire venture [23620] 5. Failure to identify that the project would fail early on [23620] 6. Inadequate reporting arrangements and governance structure [23620] 7. Delayed reporting of risks and issues to the executive board and BBC Trust [23620] 8. Confusion about the content of technology releases and problems with getting the system to work [23620]
Non-software Causes 1. Lack of proper governance and reporting for the project, leading to insufficient scrutiny and oversight [23620]. 2. Over-optimism about the project's completion and benefits, with reporting arrangements not fit for purpose [23620]. 3. No single manager made responsible for the entire venture, contributing to a lack of accountability [23620]. 4. Insufficient assessment of value for money and risks when taking over the project in-house from the contractor [23620]. 5. Delay in identifying and addressing critical issues, such as technical difficulties and project delays [23620].
Impacts 1. The software failure incident of the Digital Media Initiative (DMI) at the BBC led to significant financial losses, with the project costing £98.4m and failing to bring the intended benefits of £95.4m to the organization [Article 18796]. 2. The failure of the DMI project resulted in chaos and inefficiencies within the BBC, as video editors were unable to access archive footage for news reports, leading to the need to physically transport tapes from one location to another [Article 18796]. 3. The software failure incident impacted the reputation of the BBC, with the project being described as "the axis of awful" and a disaster for both the BBC and the license fee payers [Article 18796]. 4. The handling of the software failure incident was criticized by the National Audit Office, which highlighted errors in governance, reporting arrangements, and insufficient scrutiny by the BBC executive board and the BBC Trust [Article 23620]. 5. The failure of the DMI project led to the departure of key executives, including the chief technology officer John Linwood, who left the BBC when his contract was terminated without a payoff [Article 23620]. 6. The software failure incident resulted in the BBC scrapping the DMI project in May 2013, just a month into director general Tony Hall's tenure, with the BBC Trust acknowledging that continuing the project would be "throwing good money after bad" [Article 23620].
Preventions 1. Better governance and reporting structures: Implementing stronger governance and reporting mechanisms could have helped identify the difficulties in the project earlier on, allowing for timely intervention and corrective actions [23620]. 2. Independent assessment of the system: Conducting a thorough independent assessment of the entire system to evaluate its technical soundness could have highlighted potential issues and risks, enabling proactive measures to be taken [23620]. 3. Appointing a senior responsible owner: Designating a senior responsible owner to act as a single point of accountability and align all elements of the project could have improved coordination and oversight, potentially preventing the project from spiraling out of control [23620]. 4. Assessing value for money and risks: Conducting a comprehensive assessment of the value for money and risks associated with taking over the project in-house could have provided insights into the feasibility and potential challenges, aiding in better decision-making [23620]. 5. Addressing gaps in reporting and challenge: Ensuring that there are no gaps in reporting and challenge within the organization, particularly during critical periods of the project, could have facilitated early detection of issues and proactive resolution [23620].
Fixes 1. Implementing better governance and reporting structures for major projects to ensure sufficient scrutiny and oversight [23620]. 2. Appointing a senior responsible owner to act as a single point of accountability and align all elements of the project [23620]. 3. Conducting thorough independent assessments of the entire system to ensure its technical soundness [23620]. 4. Assessing value for money and risks before deciding to take over a project from a contractor [23620]. 5. Addressing gaps in reporting and challenging project delays promptly [23620]. 6. Learning from the losses incurred in the failed project and applying those lessons to future technology projects [23620].
References 1. National Audit Office report [23620] 2. BBC Trust [23620] 3. PricewaterhouseCoopers report [23620] 4. BBC executive board [23620] 5. BBC director general Tony Hall [18796] 6. BBC chief technology officer John Linwood [18796, 23620] 7. BBC Trust member Anthony Fry [18796] 8. Public Accounts Select Committee [18796] 9. Siemens [18796] 10. Members of Parliament [23620]

Software Taxonomy of Faults

Category Option Rationale
Recurring one_organization (a) The software failure incident having happened again at one_organization: - The BBC faced a software failure incident related to the Digital Media Initiative (DMI) project, which was intended to make the corporation "tapeless" but ended up causing chaos and wasting nearly £100m [Article 18796]. - The DMI project was eventually scrapped in May 2013, with the BBC Trust stating that to continue with the project would be "throwing good money after bad" [Article 23620]. (b) The software failure incident having happened again at multiple_organization: - There is no specific mention in the articles about the same software failure incident happening at other organizations or with their products and services.
Phase (Design/Operation) design, operation (a) The software failure incident related to the design phase was primarily due to flaws in the Digital Media Initiative (DMI) project. The project was intended to create a production system linked to the BBC's broadcasting archive, but it faced significant issues during development. The system was supposed to streamline access to old video footage but instead caused chaos, such as video editors being unable to access archive footage following Margaret Thatcher's death [18796]. The project faced delays, technological difficulties, and changes to business needs, leading to a situation where much of the software and hardware developed could only be used if the project was completed, which was deemed equivalent to "throwing good money after bad" [18796]. (b) The software failure incident related to the operation phase was highlighted by the National Audit Office report, which criticized the BBC's handling of the Digital Media Initiative (DMI) project. The report mentioned that the BBC executive board and the BBC Trust did not provide sufficient scrutiny to the failing IT project over an 18-month period. The reporting arrangements were deemed "not fit for purpose," and no single manager was made responsible for the entire venture. The DMI project was eventually scrapped in May 2013 at a significant cost to license fee payers [23620]. The BBC's executive board was found to have applied insufficient scrutiny to the project during 2011 and the first half of 2012, with no formal checks beyond reports prepared by the project management office. The governance arrangements for the DMI program were deemed inadequate for its scale, complexity, and risk, with reporting arrangements not being fit for purpose [23620].
Boundary (Internal/External) within_system, outside_system (a) The software failure incident related to the Digital Media Initiative (DMI) at the BBC can be attributed to factors both within and outside the system. Within the system: - The DMI project faced significant issues such as flaws in the system, chaos in accessing archive footage, delays in project completion, and technical difficulties [Article 18796]. - The BBC executive board, led by then director general Mark Thompson, and the BBC Trust were criticized for not providing sufficient scrutiny and oversight to the failing IT project [Article 23620]. - The BBC did not have a single manager responsible for the entire venture, and reporting arrangements were deemed inadequate [Article 23620]. - The BBC did not commission a thorough independent assessment of the system's technical soundness and did not have proper governance and reporting structures in place for the DMI project [Article 23620]. Outside the system: - The BBC initially awarded a contract to Siemens without open competition, which later led to the termination of the contract without technology being delivered [Article 18796]. - The NAO report highlighted that the BBC was "too optimistic" about completing the project after taking it in-house from Siemens, indicating external factors contributing to the failure [Article 23620]. - The BBC faced challenges in assessing the value for money and risks of taking over the project from Siemens, suggesting external factors influencing the decision-making process [Article 23620].
Nature (Human/Non-human) non-human_actions, human_actions (a) The software failure incident occurring due to non-human actions: - The Digital Media Initiative (DMI) project at the BBC was intended to create a production system linked to the broadcasting archive but faced flaws in the system that caused chaos, such as video editors being unable to access archive footage following Margaret Thatcher's death [Article 18796]. - The DMI project faced significant problems with delays, technical difficulties, and changes in business needs, leading to a situation where the software and hardware developed could only be used if the project were completed, which was deemed equivalent to "throwing good money after bad" [Article 18796]. - The BBC's handling of the Digital Media Initiative was criticized for being too optimistic about completing the project, with insufficient scrutiny and reporting arrangements not fit for purpose, ultimately leading to the project being scrapped at a cost of £98.4m to license fee payers [Article 23620]. (b) The software failure incident occurring due to human actions: - The National Audit Office report criticized the BBC executive board, led by then director general Mark Thompson, for paying insufficient scrutiny to the failing IT project over an 18-month period, and the BBC Trust, chaired by Lord Patten, for not challenging it enough [Article 23620]. - The NAO report highlighted that the BBC did not have sufficient governance and reporting for the Digital Media Initiative project, with inadequate oversight and a lack of a single manager responsible for the entire venture, contributing to the failure of the project [Article 23620]. - Executives like Mark Thompson and Lord Patten were criticized for their handling of the DMI project, with Thompson giving incorrect information to parliament and Patten being accused of obstruction and secrecy for ordering the corporation not to disclose key documents about the failed project [Article 23620].
Dimension (Hardware/Software) hardware, software (a) The software failure incident related to the Digital Media Initiative (DMI) at the BBC was primarily due to contributing factors that originated in hardware. The DMI project was intended to create a production system linked to the BBC's broadcasting archive, but flaws in the system caused chaos, such as video editors being unable to access archive footage via computers and having to physically transport tapes from one location to another [18796]. The National Audit Office report highlighted that the BBC did not commission a thorough independent assessment of the whole system to see whether it was technically sound, indicating hardware-related issues [23620]. (b) The software failure incident also had contributing factors originating in software. The DMI project faced technical difficulties and changes to business needs that made it challenging to complete the project successfully. The software and hardware developed for the project could only be used if the project were completed, indicating software dependencies and issues [18796]. The NAO report mentioned that confusion about the content of technology releases and protracted problems with getting the system to work contributed to a growing gap between technology development and user expectations, highlighting software-related challenges [23620].
Objective (Malicious/Non-malicious) non-malicious (a) The software failure incident related to the Digital Media Initiative (DMI) at the BBC was non-malicious. The failure was primarily attributed to flaws in the system, mismanagement, over-optimism, inadequate governance, lack of scrutiny, and technical difficulties rather than any malicious intent to harm the system [18796, 23620]. The project faced significant challenges in terms of project management, control, and governance, leading to delays, cost overruns, and ultimately the decision to scrap the initiative. The National Audit Office report highlighted issues such as insufficient scrutiny, lack of independent assessments, inadequate reporting arrangements, and gaps in governance that contributed to the failure of the project. The BBC executives were criticized for not having a sufficient grip on the project and for not recognizing the extent of the problems until a late stage.
Intent (Poor/Accidental Decisions) poor_decisions (a) The intent of the software failure incident was primarily due to poor decisions made throughout the project. The BBC's Digital Media Initiative (DMI) was plagued by poor decisions such as insufficient scrutiny, lack of proper governance, over-optimism about project completion, and inadequate reporting arrangements. The project suffered from mismanagement, lack of accountability, and failure to assess risks and value for money [18796, 23620]. These poor decisions ultimately led to the waste of nearly £100m of license fee payers' money and the eventual scrapping of the project.
Capability (Incompetence/Accidental) development_incompetence, accidental (a) The software failure incident related to development incompetence is evident in the case of the BBC's Digital Media Initiative (DMI). The project was plagued by flaws, delays, and mismanagement, leading to significant financial losses. The project, which was intended to create a tapeless production system linked to the BBC's broadcasting archive, faced issues such as chaos following Margaret Thatcher's death, inability to access archive footage, and significant delays in project delivery [18796, 23620]. (b) The software failure incident also involved accidental factors, such as the BBC being "too optimistic" about completing the project after taking it in-house from the contractor Siemens. The NAO report highlighted that the BBC executive board paid insufficient scrutiny to the failing IT project, and there was no single manager made responsible for the entire venture. Additionally, the BBC did not assess the value for money and risks of taking over the project from Siemens, leading to further complications and eventual failure of the DMI project [23620].
Duration permanent, temporary (a) The software failure incident related to the Digital Media Initiative (DMI) at the BBC was more of a permanent failure. The project was eventually scrapped in May 2013 after significant issues and failures, costing £98.4m to licence fee payers [18796]. The National Audit Office report highlighted that the BBC executive board and the BBC Trust did not provide sufficient scrutiny to the failing IT project over an 18-month period, leading to the eventual failure of the project [23620]. The NAO report also mentioned that the BBC should have identified that the DMI would fail as early as July 2011, almost two years before it was shut down [23620]. (b) The software failure incident was also temporary in nature as it took time for the project to reach a point where it was deemed unfeasible to continue. The project faced delays and technical difficulties, with the BBC not recognizing the extent of the problems until a late stage [23620]. The BBC initially awarded a contract to Siemens in 2008 without open competition, and the project faced challenges even after bringing it in-house in 2009 [18796]. The project was behind schedule, and the forecast benefits slipped, indicating a gradual realization of the project's failure over time [18796].
Behaviour crash, omission, value, other (a) crash: The software failure incident related to the BBC's Digital Media Initiative (DMI) can be categorized as a crash. The DMI project experienced significant flaws that led to chaos, such as video editors being unable to access archive footage, forcing them to physically transport tapes for news reports ([18796]). (b) omission: The software failure incident also involved omission, as the DMI project failed to deliver the intended benefits of making all the corporation's raw and edited video footage available to staff for re-editing and output. The project was ultimately scrapped, resulting in a loss of £98.4m to licence fee payers ([18796], [23620]). (c) timing: The timing of the software failure incident can be considered as a factor in the failure. The BBC should have identified that the DMI project would fail as early as July 2011, almost two years before it was eventually shut down in May 2013. Delays and technical issues contributed to the project's ultimate failure ([23620]). (d) value: The software failure incident also involved a failure in delivering value, as the DMI project cost the BBC a significant amount of money (£98.4m) without generating the expected benefits. The project was deemed a waste of resources and a failure in terms of delivering the intended outcomes ([18796], [23620]). (e) byzantine: The software failure incident did not exhibit characteristics of a byzantine failure, which involves inconsistent responses and interactions. The issues with the DMI project were more related to technical difficulties, delays, and a lack of oversight rather than erratic or inconsistent behavior ([18796], [23620]). (f) other: The other behavior exhibited in this software failure incident could be described as a failure in governance and oversight. The NAO report highlighted that the BBC executive board did not have sufficient grip on the DMI project, there were inadequate reporting arrangements, and a lack of independent assessment of the system's technical soundness. These governance failures contributed significantly to the project's ultimate failure ([23620]).

IoT System Layer

Layer Option Rationale
Perception None None
Communication None None
Application None None

Other Details

Category Option Rationale
Consequence property, delay, unknown (a) unknown (b) unknown (c) unknown (d) The software failure incident related to the Digital Media Initiative (DMI) at the BBC resulted in significant financial consequences. The project cost £98.4m, with an additional £27.5m clawed back from Siemens. The total cost incurred was much higher than the expected benefits, leading to a net loss for the corporation [18796, 23620]. (e) The software failure incident caused delays in the project timeline. The DMI project was 21 months behind schedule after just 24 months, and the deadline for delivery kept slipping, leading to increased costs and inefficiencies [18796]. (f) unknown (g) The software failure incident had real observed consequences, including financial losses and project termination [18796, 23620]. (h) unknown (i) unknown
Domain information, entertainment (a) The failed system was intended to support the entertainment industry, specifically the BBC's production system linked to the broadcasting archive for video editing and news reports [18796, 18796, 23620]. (k) The failed system was related to the entertainment industry, specifically video editing and production within the BBC [18796, 18796, 23620].

Sources

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