The Nature of Information Technology Projects

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Presentation transcript:

The Nature of Information Technology Projects Chapter 1 Copyright 2015 John Wiley & Sons, Inc.

Class Outline

Introduction The world as a whole spends nearly $10 trillion of its $40.7 trillion gross product on projects of all kinds More than 16 million people regard project management as their profession The overall information and communications technology market grew by 6 percent to almost $3 trillion in 2010

What Is a Project? http://www.esi-intl.co.uk/blogs/pmoperspectives/index.php/projects-different/

Project Attributes A project

The Triple Constraint of Project Management

Project and Program Managers Project managers work with project sponsors, project team, and other people involved in a project to meet project goals Program: group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually (PMBOK® Guide, Fifth Edition, 2012) Program manager provides leadership and direction for the project managers heading the projects within the program

Project Management Offices A Project Management Office (PMO) is an organizational group responsible for coordinating the project management function throughout an organization http://www.pmsolutions.com/reports/State_of_the_PMO_2014_Research_Report_FINAL.pdf

Who are the stakeholders in a project? Project Stakeholders Who are the stakeholders in a project?

An IT PM Approach “If technology does not accelerate a business objective, it should be at the bottom of the list.” CIO Panel, AMCIS 2014 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

Motivation for Studying Information Technology (IT) Project Management IT Projects have a terrible track record, as described in the “What Went Wrong?”

Advantages of Using Formal Project Management Better control of financial, physical, and human resources Improved customer relations Shorter development times Lower costs Higher quality and increased reliability Higher profit margins Improved productivity Better internal coordination Higher worker morale

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? https://www.forbes.com/sites/bernardmarr/2016/09/13/are-these-the-real-reasons-why-tech-projects-fail/#5443ee697320

Why Do IT Projects Fail? Larger projects have the lowest success rate and appear to be more risky than medium and smaller projects The CHAOS studies also provides some insight as to the factors that influence project success

Why Many Projects Fail: Project Failure can be grouped into four categories – People – The stakeholders of a project with varied roles and interests in the project’s success or failure. Processes – This includes having a set of project management and product management processes. Technology – Only three percent of IT project failures can be attributed to technical challenges but this percentage can be increased if obsolete, unproven, or incompatible technologies are used. Organization – Organizational issues can lead to project failure. A lack of clear direction, improper strategy, rapidly changing business environment and/or customer needs can create a moving target for the product’s product or service. Copyright 2015 John Wiley & Sons, Inc.

Why Many Projects Fail: Project Failure can be grouped into four categories – Examples Copyright 2015 John Wiley & Sons, Inc.

The State of IT Project Management The Standish Group (the CHAOS studies) and others have studied IT project success and failure. In general, a successful project is defined as one that is completed on time, within budget, and including all of the features or requirements envisioned. The bottom line is that, on a percentage basis, failed or challenged projects greatly exceed successful projects. Copyright 2015 John Wiley & Sons, Inc.

Has it gotten better? The Software Crisis The CHAOS study published 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 it gotten better? Copyright 2012 John Wiley & Sons, Inc.

http://inteloom.com/wp-content/uploads/2016/10/Why-Projects-Fail-White-Paper.pdf

http://inteloom.com/wp-content/uploads/2016/10/Why-Projects-Fail-White-Paper.pdf

Project Success There are several ways to define project success:

What Helps Projects Succeed?* Clearly Define Success Executive Support Have Clear Objectives and Requirements Involve End Users Hired Skilled Developers Use Effective Project Mgmt Methodologies Know What You Want Break Your Project Up Review Finished (& Failed) Projects https://www.codementor.io/blog/software-projects-failure-rate-success-factors-1nqch57orj

Improving the likelihood of success A Value-Driven Approach Socio-technical Approach Project Management Approach Knowledge Management Approach

Project Management Institute The Project Management Institute (PMI) is an international professional society for project managers with 450,000 members worldwide Project Management Professional (PMP) has documented sufficient project experience, agreed to follow a code of ethics, and passed the PMP exam Certified Associate in PM (CAPM) is achievable with less experience CompTIA offers another certification option CompTIA Project+ has less requirements but is not as well recognized as PMP

Project Management Knowledge Areas Knowledge areas describe the key competencies that project managers must develop Core Functions Facilitating Functions Integration Function

What is Project Management? “the application of knowledge, skills, tools and techniques to project activities to meet project requirements” (PMBOK® Guide, Fourth Edition, 2012) Stakeholder Management Core Functions Facilitating Functions Information Technology Project Management, Seventh Edition

Project Management Body of Knowledge Areas

The Project Management Profession The profession of project management is growing at a very rapid pace It is helpful to understand the history of the field, the role of professional societies like the Project Management Institute, and the growth in project management software

Project Management Software There are hundreds of different products to assist in performing project management Three main categories of tools: Low-end tools Midrange tools High-end tools Various software includes: BaseCamp Clarizen Collabtive (open source) dotProject (open source) OneDesk Genius Inside PlanBox

Summary Introduction to Project Management Definition of a Project IT PM Success/Failures PMI and Knowledge Areas PM Software Next Class: Read Chapter 2