What common reason for process failure is highlighted by the ineffectiveness of a new IT system due to regulatory changes?

The highlighted reason for process failure relates to constraints imposed by out-of-date business rules. When an organization implements a new IT system, it must align its processes with the current regulatory landscape and business rules that govern its operations. If these rules are outdated or do not accommodate the changes brought by new regulations, the system may become ineffective.

For instance, a newly adopted IT system might not be able to process data in compliance with the latest regulations, leading to inefficiencies or even legal ramifications. Therefore, the mismatch between the system capabilities and the current regulatory environment can significantly hinder the successful operation of business processes.

This emphasizes the importance of keeping business rules up to date and ensuring that they reflect current regulations to enable effective processes and systems that can adapt to changes in the external environment.