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The Nature of Information Technology Projects
Chapter 1
Learning Objectives Describe the dominant eras of information systems called the
electronic data processing (EDP) era, the micro era, the network era, and the globalization era, and understand how managing IT projects has evolved during these eras.
Understand the current state of IT project management and how successfully managing IT projects remains a challenge for most organizations.
Explain the value-driven, socio-technical, project management, and knowledge management approaches that support ITPM.
Define what a project is and describe its attributes. Define the discipline called project management. Describe the role and impact IT projects have on an organization. Identify the different roles and interests of project stakeholders. Describe some common approaches to structured systems
development and iterative systems development. Describe the project life cycle (PLC), the systems development life
cycle (SDLC), and their relationship. Describe extreme project management. Identify the Project Management Body of Knowledge (PMBOK®)
core knowledge areas.
1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s
First ElectronicComputer
EDPEra
PCEra
NetworkEra
Globalization
IT and Modern Day Project Management
Introduction Information Technology (IT) projects are
organizational investments that require Time Money And other resources such as people, technology,
facilities, etc. Organizations expect some type of value in return
for this investment IT Project Management is a relatively new
discipline that attempts to make IT projects more successful andcombines traditional Project Management with Software Engineering/Management Information Systems
An ITPM Approach Organizational resources are limited, so
organizations must choose among competing interests to fund specific projects
This decision should be based on the value a competing project will provide to an organization
Which Situation is Worse? Successfully building and implementing a
system that provides little or no value to the organization?
Or… Failing to implement an information system
that could have provided value to the organization, but was underdeveloped or poorly managed?
Why Do IT Projects Fail? Larger projects have the lowest success rate
and appear to be more risky than medium and smaller projects Technology, business models, and markets change
too rapidly so projects that take more than a year can be obsolete before they are completed
The CHAOS studies also provides some insight as to the factors that influence project success
The Software Crisis
The CHAOS study published in 1995 by The Standish Group found that although the U.S spent over $250 billion on IT projects, approximately… 31% were cancelled before completion 53% were completed but over budget, over
schedule, & did not meet original specifications For mid-size companies, average cost overruns were
182%, while average schedule overruns were 202%!
Has the Current State of IT Projects Changed Since 1994? The Standish Group has continued to study IT
projects over the years. In general, IT Projects are showing higher
success rates due to Better project management tools & processes Smaller projects Improved communication among stakeholders More skillful IT project managers
But there is still ample opportunity for improvement!
Figure 1.1 - Summary of the Chaos Studies from 1994 to 2006
Rank 1994 2001 2006
1 User Involvement Executive Support User Involvement
2 Executive Management Support User Involvement Executive Management
Support
3 Clear Statement of Requirements Experienced Project Manager Clear Business Objectives
4 Proper Planning Clear Business Objectives Optimizing Scope
5 Realistic Expectations Minimized Scope Agile Process
6 Smaller Project Milestones Standard Software Infrastructure Project Management Expertise
7 Competent Staff Firm Basic Requirements Financial Management
8 Ownership Formal Methodology Skilled Resources
9 Clear Vision & Objectives Reliable Estimates Formal Methodology
10 Hard-working, focused team Other Standard Tools and Infrastructure
Table 1.1 Summary of CHAOS Study Factor Rankings for Successful ProjectsSources: Adapted from the Standish Group. CHAOS (West Yarmouth, MA: 1995) & http://www.infoq.com/articles/Interview-Johnson-Standish-CHAOS
IT Project Performance
Over the Past 3 Years
MuchWorse Worse Same Better
MuchBetter
Ability to meet project
schedules0.0% 12.3% 40.4% 41.2% 6.1%
Ability to meet project
budgets1.8% 10.5% 44.7% 37.7% 5.3%
Ability to complete
project scope or system
requirements
2.6% 7.0% 41.2% 41.2% 7.9%
Customer satisfaction
over the past 3 years
(Customers can be
internal – e.g., HR
department or external –
e.g., a particular
client)
Overall satisfaction
of the customer
1.8% 13.2% 34.2% 39.5% 11.4%
Perceived value of the
delivered product to
the customer0.0% 9.6% 39.5% 38.6% 12.3%
Potential for future work
with the customer
0.9% 3.5% 42.1% 38.6% 14.9%
Table 1.2: Project Performance and Internal/External Customer Satisfaction. Source: Marchewka, J.T. (2008). n = 114.
Rank Factors for Challenged Projects Factors for Failed (Impaired) Projects
1 Lack of user input Incomplete requirements
2 Incomplete requirements Lack of user involvement
3 Changing requirements & specifications Lack of resources
4 Lack of executive support Unrealistic expectations
5 Technology incompetence Lack of executive support
6 Lack of resources Changing requirements & specifications
7 Unrealistic expectations Lack of planning
8 Unclear objectives Didn’t need it any longer
9 Unrealistic time frames Lack of IT management
10 New technology Technology illiteracy
Table 1.3: Summary of Factor Rankings for Challenged and Failed (Impaired) ProjectsSource: Adapted from the Standish Group. CHAOS (West Yarmouth, MA: 1995)
Tata Consultancy Services 2007 Report Included 800 senior IT managers from
the UK, US, France, Germany, India, Japan, & Singapore: 62% of the IT projects failed to meet
their schedules 49% experienced budget overruns 47% experienced higher-than expected
maintenance costs 41% failed to deliver the expected
business value and ROI
Improving the likelihood of success A Value-Driven Approach
Plain & Simple: IT Projects must provide value to the organization
Socio-technical Approach It’s not just about the technology or building a better
mouse trap Project Management Approach
processes and infrastructure (Methodology) resources expectations competition efficiency and effectiveness
Knowledge Management Approach lessons learned, best practices & shared knowledge
The PMBOK® Guide’s Definitions for Project and Project Management
A project is a temporary endeavor undertaken to create a unique product, service, or result.
Project Management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements. Managing a project includes: Identifying requirements Establishing clear and achievable objectives Balancing the competing demands for quality,
scope, time, and cost Adapting the specifications, plans, and approaches
to the different concerns and expectations of the various stakeholders
The Context of Project Management – Project Attributes
Time Frame Purpose (to provide value!) Ownership Resources (the triple constraint) Roles
Project Manager Project Sponsor SME (domain & technical)
Risk & Assumptions Interdependent Tasks
progressive elaboration – steps & increments Planned Organizational Change Operate in Environments Larger than the Project Itself
The Triple Constraint
Figure 1.3
The Project Life Cycle and IT Development
Project Life Cycle (PLC) A collection of logical stages or phases that maps the
life of a project from its beginning to its end in order to define, build, and deliver the product of the project – i.e., the information system
Projects are divided into phases to increase manageability and reduce risk Phase exits, stage gates, or kill points are decision
points at the end of each phase to evaluate performance or to correct problems or cancel the project
Fast tracking is the overlapping of phases to reduce the project’s schedule Can be risky!
Generic Project Life Cycle
Figure 1.4
Systems Development Life Cycle (SDLC)
Figure 1.5
Waterfall MethodDefine
Requirements
Design
Build
Test
Maintenance
Implement
Figure 1.6
The Relationship Between the PLC & SDLC
Figure 1.7
Putting the SDLC into Practice Structured Approach to Systems Development
Waterfall Method Iterative Development
Rapid Applications Development (RAD) Prototyping Spiral Development Extreme Programming
Extreme Project Management (XPM) A new approach & philosophy to project management
that is becoming increasingly popular Characterizes many of today’s projects that exemplify
speed, uncertainty, changing requirements, and high risks
Traditional project management often takes an orderly approach while, XPM embraces the fact that projects are often chaotic and unpredictable
XPM focuses on flexibility, adaptability, and innovation Traditional and new approaches together can provide us
with a better understanding of how to improve the likelihood of project success
The Project Management Body of Knowledge (PMBOK®)
The Guide to the Project Management Body of Knowledge (PMBOK® Guide) documents 9 project management knowledge areas
The PMBOK® Guide is published and maintained by the Project Management Institute (PMI) http://www.pmi.org
PMI provides a certification in project management called the Project Management Professional (PMP) that many people today believe will be as relevant as a CPA certification
PMP certification requires that you pass a PMP certification exam to demonstrate a level of understanding about project management, as well as satisfy education & experience requirements and agree to a professional code of conduct
Project Management Body of Knowledge Areas
Figure 1.8