Unmasking Hidden Budget Busters

"Our goal is to ensure that the GIS solutions implemented by our clients are cost efficient and effective."

Most Common GIS Implementation Mistakes

By Nirav Shah

You have probably heard the horror stories about organizations whose GIS development costs ran so far over budget that  there was no money left to complete the GIS, much less use it. These budget disasters, I am sorry to say, happen more often than we know. Even worse, many of these failed projects involved GIS consultants who did not adequately assess their client’s specific needs at the outset.

Ninety percent of budget problems that occur during a GIS project result from poor planning. By considering your current and future GIS application requirements before you begin GIS implementation work, you can develop a GIS that your organization can afford to use, maintain and upgrade one year from now and 10 years into the future.

The following is a list of common GIS budget busters that you can avoid by carefully planning your GIS implementation:

Lack of big-picture planning

Too many GIS databases are designed with only one application in mind. With few exceptions, once one department develops a GIS another wants to use it for another purpose. You must determine in advance what applications your GIS will be performing. Ask everyone in your entire organization what they will want from the GIS in five to 10 years. This is critical because your software, hardware, and database design are chosen based on application needs.

Inflexible conversion schedules

Experienced conversion vendors can probably create data files faster than you can handle them. Beware, if you ask the vendor to cease production for a few months while you catch up, you may be hit with a $50,000 “re-mobilization” fee. Make sure your contract allows for work suspension with reasonable notice.

No change order control

Even with excellent planning, you will alter your GIS implementation. Spell out in your contract exactly how much extra the vendor will be paid for additional services.

Choosing software that requires major customization

Nearly every GIS software package will require some minor customization, but many packages now have integrated application capabilities. Consider your intended GIS applications and shop for software with those capabilities built in. A package with integrated applications will probably cost more, but weigh that against a customization project that easily can run $100,000.

Using the wrong data source

Too many organizations create databases only to find the maps they used lack the scale or accuracy necessary for accomplishing their objectives.  Before the start of database population, ask other GIS managers in your industry what data fulfills application needs similar to yours.  If your application is really unique, conduct a GIS pilot project to make sure the data gives you the answers you want.

Lack of internal cooperation

Many organizations have been unpleasantly surprised to find the digital base map they just paid $500,000 to create already resides in another department. Especially in government sectors, ask around and see if the data you want already exists. Cooperation may not come easily. Don’t be afraid to seek political pressure from your local government officials to mandate formation of a GIS Task Force or similar committee. Avoiding duplication of data saves taxpayer money.

Wrong software vendor selection

Software developers sometimes go out of business, leaving clients with little or no support. When choosing software, take into account the company’s market share and financial stability to ensure that they will be around a decade from now. Ask for their financial statement, if the company is in good financial shape they will send it to you.

Sticking with existing equipment

Weigh the cost of purchasing new hardware versus the productivity of your existing equipment. You may find that a new $5,000 plotter takes less staff time to operate than your existing one.

Scroll to Top