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Why Data Platform Projects Fail (And How Australian Businesses Are Recovering)

Data warehouse and lakehouse projects fail at an alarming rate. If your organisation is sitting on a stalled or abandoned platform investment, here's what went wrong and how to move forward.

Travis Sansome
8 min read
Why Data Platform Projects Fail (And How Australian Businesses Are Recovering)

Your data platform project was supposed to transform decision-making. Instead, it's become an expensive reminder of what didn't work.

You're not alone. Industry research consistently shows that 60-85% of data platform initiatives fail to deliver expected value. Australian businesses have spent millions on data warehouses, lakehouses, and analytics platforms that now sit underutilised or abandoned.

If your organisation is sitting on a failed or struggling data platform investment, this guide explains what typically goes wrong—and how to recover.

Why Data Platform Projects Fail

After working with Australian businesses recovering from failed data initiatives, we see the same patterns repeatedly.

Technology before strategy

The most common failure: starting with technology selection before understanding business requirements.

Symptoms:

  • "We chose Snowflake/Databricks/Synapse because it's industry-leading"
  • Technical architecture designed before use cases were defined
  • Platform capabilities that don't match actual analytical needs
  • Data engineers building infrastructure nobody asked for

The platform might be technically excellent. It just doesn't solve the problems your business actually has.

Scope explosion

Data platform projects are notorious for expanding beyond original intent:

  • "While we're at it, let's include [additional data source]"
  • "We should also build dashboards for [other department]"
  • "Let's make it real-time instead of batch"
  • "We need to support machine learning workloads too"

Each addition seems reasonable. Collectively, they transform a focused project into an endless initiative that never delivers value.

Underestimating data complexity

Raw data from business systems is messy. Platform projects routinely underestimate:

  • Data quality issues: Duplicates, missing values, inconsistent formats
  • Historical complexity: Codes that changed meaning, reorganisations, acquisitions
  • Business logic: Rules that exist only in people's heads
  • Integration challenges: Systems that don't expose data cleanly

The real cost of bad data compounds when you're trying to build a platform on a foundation of inconsistent information.

Wrong team structure

Failed projects often have team problems:

  • All external, no internal: Consultants build something, then leave. Nobody maintains it.
  • All technical, no business: Engineers build what they think is needed, not what's actually useful.
  • Too junior: Complex data engineering requires experience. Junior teams make expensive mistakes.
  • Part-time attention: Data platform as a side project never gets the focus required.

No governance model

Platforms built without governance become new silos:

  • No agreed definitions for key metrics
  • Multiple versions of "truth" across datasets
  • No process for adding new data sources
  • Security and access as afterthoughts
  • No ownership when things break

The platform exists, but nobody trusts it—so they keep using spreadsheets.

Vendor oversell

Technology vendors and implementation partners sometimes oversell:

  • "The platform handles that automatically" (it doesn't)
  • "Integration is straightforward" (it wasn't)
  • "You'll see value in 3 months" (you didn't)
  • "Our accelerators reduce implementation time" (they didn't apply to your situation)

When reality diverges from sales promises, projects stall.

Signs Your Platform Is Failing

Sometimes failure is obvious—the project was cancelled. Often it's more subtle:

Low adoption

The platform exists but people don't use it:

  • Analysts still query source systems directly
  • Reports still come from spreadsheets
  • Leadership asks "why don't we have this data?" when it's technically available
  • Training happened once; nobody remembers how to access things

Constant firefighting

The platform runs but requires continuous intervention:

  • Pipelines break regularly
  • Data quality issues surface weekly
  • Performance degrades as data grows
  • Every new request requires significant development

This isn't a platform—it's a liability consuming resources without delivering value.

Stale or incomplete data

The platform was supposed to integrate everything. Instead:

  • Key data sources never got connected
  • Updates happen sporadically, not reliably
  • Historical data has gaps or inconsistencies
  • "We don't trust those numbers"

Incomplete platforms don't get used. They become shelfware.

No business impact

The ultimate failure indicator: nothing changed.

If the business operates the same as before the platform, the investment failed.

Recovery Options

A failed data platform isn't necessarily a write-off. Recovery paths exist.

Option 1: Focused rescue

Sometimes platforms can be salvaged with focused intervention:

When this works:

  • Core infrastructure is sound
  • Specific areas (data quality, governance, adoption) need attention
  • Team capability exists or can be added
  • Business stakeholders are still engaged

What it involves:

  • Honest assessment of what's working and what isn't
  • Ruthless prioritisation of highest-value use cases
  • Fixing critical gaps without expanding scope
  • Building internal capability to sustain progress

A focused rescue might cost $40,000-80,000 and take 2-3 months to show improvement.

Option 2: Strategic restart

Sometimes starting fresh is more efficient than rescuing:

When this works:

  • Fundamental architecture choices were wrong
  • Technical debt is too deep to remediate economically
  • Business requirements have changed significantly
  • Team has learned lessons that would change everything

What it involves:

  • Preserving learnings (what worked, what didn't, why)
  • Smaller initial scope with clear success criteria
  • Different approach to team structure and governance
  • Phased delivery with value at each stage

A restart doesn't mean repeating the same investment. Building a modern data platform with lessons learned can cost $60,000-150,000 for a focused initial phase.

Option 3: Managed sunset

Sometimes the right answer is acknowledging failure and moving on:

When this works:

  • Business priorities have shifted
  • The original use cases no longer justify investment
  • Organisation isn't ready for a data platform
  • Resources are better deployed elsewhere

What it involves:

  • Migrating any valuable assets (curated datasets, documentation)
  • Decommissioning infrastructure to stop ongoing costs
  • Communicating clearly about what happened and why
  • Preserving lessons for future attempts

A managed sunset prevents throwing good money after bad while extracting residual value.

Lessons from Recovered Projects

Australian businesses that have successfully recovered from failed data platforms share common approaches:

Start smaller

Failed projects often tried to do too much. Successful recoveries focus narrowly:

  • One department or business unit
  • One critical use case
  • One integrated data domain
  • Prove value, then expand

Business ownership

Technical teams can build platforms. Only business teams can ensure they're useful. Successful recoveries have:

  • Business sponsor with authority and attention
  • Clear business metrics for success
  • Business users involved throughout
  • Accountability for adoption, not just delivery

Internal capability

External expertise accelerates; internal capability sustains. Recoveries invest in:

  • At least one internal data engineer who owns the platform
  • Training for analysts who'll use it
  • Documentation that survives personnel changes
  • Handover that actually transfers knowledge

Governance from day one

Recovered platforms build governance in, not on:

  • Agreed metric definitions before building dashboards
  • Data quality rules before loading sources
  • Access policies before sharing data
  • Ownership model before launching

Realistic expectations

Successful recoveries set achievable goals:

  • Specific, measurable outcomes
  • Defined timeline with checkpoints
  • Honest assessment of constraints
  • Recognition that platforms evolve over years, not months

Getting Unstuck

If you're an Australian business with a stalled or struggling data platform:

Assess honestly

Before deciding on recovery approach:

  • What specifically isn't working?
  • What would need to change for the platform to deliver value?
  • Do you have the team to make those changes?
  • Is the business still committed to the original objectives?

Consider external perspective

Internal teams often struggle to assess their own projects objectively. An external review can:

  • Identify root causes without organisational politics
  • Benchmark against successful implementations
  • Recommend realistic recovery options
  • Provide honest assessment of what's salvageable

Decide, don't drift

The worst outcome is neither fixing nor sunsetting—just letting a failed platform consume resources indefinitely. Make a decision:

  • Rescue with specific plan and timeline
  • Restart with clear scope and different approach
  • Sunset with managed transition

Indecision is expensive.


Sitting on a failed or struggling data platform? Book a call with our team. We help Australian businesses assess what went wrong, evaluate recovery options, and chart a realistic path forward. Honest advice—even if that means recommending you don't spend more money.

Travis Sansome

Founder of Artigence. Helping businesses build better technology and unlock value from their data.

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