New Zealand has seen its fair share of technological advancements, but not all have gone according to plan. From ambitious projects that fell flat to online ventures that crashed and burned, the nation has experienced some notable tech disasters. Here’s a look at some of the most embarrassing tech misfires in New Zealand’s history.
Key Takeaways
- Major tech projects often face challenges that lead to failure.
- High-profile collaborations can result in significant financial losses.
- The evolution of technology can render once-promising ventures obsolete.
The Incis Project: A Cautionary Tale
The Integrated National Crime Information System (Incis) was a project commissioned by the New Zealand police in 1994 to replace the aging Whanganui Computer Centre. The project, which aimed to modernize police data management, quickly spiraled out of control.
- Budget Overruns: Initially budgeted at $80 million, the project ballooned to $110 million.
- Timeline Delays: Originally set to launch in 1998, it was abandoned in 2000, two years behind schedule.
- Settlement: IBM paid the Crown $25 million after the project was deemed unfeasible.
An inquiry revealed a lack of oversight and unrealistic expectations from the police, making Incis a blueprint for future tech project failures in the public sector.
Flying Pig: The E-Commerce Dream That Died
Launched in 2000, Flying Pig was touted as New Zealand’s answer to Amazon. Backed by major retail players, it aimed to capture the online shopping market. However, it faced insurmountable challenges:
- Investor Impatience: The initial excitement waned quickly, leading to staff layoffs.
- Market Timing: The Year 2000 tech wreck severely impacted its viability.
Ultimately, Flying Pig was grounded just a year after its launch, marking a significant loss for its investors.
Telecom’s Yahoo!Xtra Bubble: A Digital Disaster
In 2007, Telecom attempted to migrate 800,000 customers to a new email platform, Yahoo!Xtra Bubble. The transition was fraught with issues:
- Service Outages: Many users experienced significant downtime.
- Spam Influx: Customers were inundated with spam emails.
Telecom ultimately paid around $6 million in compensation, but the partnership with Yahoo proved disastrous, leading to a complete severance in 2016.
Yellow Pages: A Launch Gone Wrong
Telecom sold its directories business, including Yellow Pages, in 2007 for $2.2 billion. However, the anticipated website upgrade took three years and was a flop:
- Technical Failures: The new site barely functioned upon launch in 2010.
- Public Backlash: Customers openly criticized the product, leading to a public relations nightmare.
The failure forced Yellow to pivot to a Google AdWords reseller model, as it struggled to regain its footing in a digital world.
Localist: A Short-Lived Venture
In 2011, NZ Post launched Localist, a directory service aimed at competing with Yellow Pages. Despite its modern approach, it faced similar challenges:
- Financial Losses: NZ Post wrote off most of its $26.5 million investment within two years.
- Market Competition: The rise of Google made it difficult for Localist to gain traction.
Ultimately, Localist folded, highlighting the difficulties of competing in a rapidly changing digital landscape.
Conclusion
These tech disasters serve as reminders of the complexities and risks associated with technological innovation. While New Zealand has made significant strides in the tech sector, these missteps illustrate the importance of careful planning, realistic expectations, and adaptability in the face of evolving technology.