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After spending in excess of 98 million pounds in an effort to form a more close-knit and electronic working environment for its employees, the BBC has put an end to its Digital Media Initiative (DMI)
The production system was set up in 2008 but stopped last autumn despite having never become fully operational, BBC News reports.
Director general Tony Hall said: "The DMI project has wasted a huge amount of licence fee payers' money and I saw no reason to allow that to continue which is why I have closed it.
"I have serious concerns about how we managed this project and the review that has been set up is designed to find out what went wrong and what lessons can be learned."
He added: "Ambitious technology projects like this always carry a risk of failure, it does not mean we should not attempt them, but we have a responsibility to keep them under much greater control than we did here."
The goal of the initiative was to shift the development, use and sharing of video and audio at the corporation and was originally contracted to Siemens, but was relaunched in-house in 2010.
An internal review was set up last October after the BBC Trust expressed concerns about the project.
The BBC's chief technology officer John Linwood has been suspended.
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