Very Large Scale Systems (VLSS) play a powerful role in shaping what anorganization does and can do in a practical sense. VLSS are deeply embedded in theorganizational procedures, business plans, and strategies. These systems evolve over longperiods of time, often not according to some rational plan, and for a limited time theyprovide a significant competitive advantage over other firms. In the long run, however,VLSS become strategic liabilities and must be rebuilt.Many organizations experience great difficulty rebuilding VLSS . Indeed, mostorganizations attempt to avoid rebuilding VLSS until the last possible moment. Often, theorganization is in a state of crisis, a strategic transition. Because of the complexity andsize of VLSS, existing methodologies often are not helpful. To make matters worse, thetypical management incentive structure discourages rebuilding VLSS.In a typical VLSS effort, participants soon discover that they must rebuild theorganization in order to take full advantage of new technologies. A major organizationalengineering effort is often required. Senior management as well as systems managementroutinely underestimate the complexity of the task before them. Consequently, largeerrors are made in estimating costs and time.Drawing on research in both the private and public sector, this paper examines whyVLSS fail, why are VLSS so difficult to rebuild, what are the strategy options, and howcan senior management guide the rebuilding process
