MANAGEMENT OF INFORMATION SYSTEM PROJECT AND IMPLEMENTATION W e e k 7 MANAGEMENT OF INFORMATION SYSTEM PROJECT AND IMPLEMENTATION Muhamad Abduh Institut Teknologi Bandung

Institut Teknologi Bandung CAPITAL BUDGET: PAYBACK METHOD: How long will it take to pay back the investment? RETURN ON INVESTMENT: Does return during useful life of an item exceed the cost to borrow money? COST-BENEFIT RATIO: Does the ratio of benefit versus cost exceed 1? * Muhamad Abduh Institut Teknologi Bandung

Institut Teknologi Bandung CAPITAL BUDGET: PROFITABILITY INDEX: What is the ratio of present value of cash inflow to initial investment? NET PRESENT VALUE: Accounting for cost, earnings & time value of money what is the investment worth? INTERNAL RATE OF RETURN: Accounting for the time value of money, what is the return rate of an investment? * Muhamad Abduh Institut Teknologi Bandung

Institut Teknologi Bandung COSTS & BENEFITS: COSTS: HARDWARE SOFTWARE SERVICES PERSONNEL * Muhamad Abduh Institut Teknologi Bandung

Institut Teknologi Bandung COSTS & BENEFITS: TANGIBLE BENEFIT: INCREASED PRODUCTIVITY LOW OPERATING COSTS REDUCED WORK FORCE LOWER COMPUTER EXPENSES LOWER VENDOR COSTS LOWER CLERICAL/PROFESSIONAL COSTS REDUCED GROWTH OF EXPENSES REDUCED FACILITY COSTS * Muhamad Abduh Institut Teknologi Bandung

Institut Teknologi Bandung COSTS & BENEFITS: INTANGIBLE BENEFIT: IMPROVED ASSET USE; RESOURCE CONTROL; PLANNING INCREASED FLEXIBILITY MORE TIMELY INFORMATION INCREASED LEARNING ATTAIN LEGAL REQUIREMENTS ENHANCED EMPLOYEE GOODWILL, JOB SATISFACTION, DECISION MAKING, OPERATIONS HIGHER CLIENT SATISFACTION BETTER CORPORATE IMAGE * Muhamad Abduh Institut Teknologi Bandung

CAPITAL BUDGETING MODELS LIMITATIONS: Assume all relevant alternatives have been examined; cost & benefits can be expressed as $$ Ignore intangible benefits * Muhamad Abduh Institut Teknologi Bandung

Institut Teknologi Bandung PORTFOLIO ANALYSIS: ANALYSIS OF POTENTIAL APPLICATIONS TO DETERMINE RISKS & BENEFITS DETERMINE DESIRABLE FEATURES, ACCEPTABLE RISKS OF REQUIRED SYSTEM GENERATE PORTFOLIO OF CHARACTERISTICS, RISKS FOR EACH ALTERNATIVE SCORING MODEL * Muhamad Abduh Institut Teknologi Bandung

Institut Teknologi Bandung SCORING MODEL: IDENTIFY DESIRABLE FEATURES PROVIDE WEIGHTS FOR EACH (ADD TO 1.00) LOOK AT EACH ALTERNATIVE: WHICH FEATURES ARE PRESENT? TO WHAT EXTENT (as an amount)? SCORE THE ALTERNATIVE RANK-ORDER THE ALTERNATIVES SELECT HIGHEST RANKED OPTION * Muhamad Abduh Institut Teknologi Bandung

REAL OPTIONS PRICING MODELS USEFUL UNDER UNCERTAIN CONDITIONS INCLUDE ESTIMATES FOR MANAGEMENT LEARNING, VALUE OF DELAYING DECISION, VOLATILITY OF COSTS & REVENUES Muhamad Abduh Institut Teknologi Bandung

Institut Teknologi Bandung CHANGE MANAGEMENT WHAT PROCESSES ARE BEST TO CHANGE: DESIGN DATA COST OPERATIONS * Muhamad Abduh Institut Teknologi Bandung

Institut Teknologi Bandung CHANGE AGENT DURING IMPLEMENTATION, INDIVIDUAL ACTS AS CATALYST DURING CHANGE PROCESS TO ENSURE SUCCESS * Muhamad Abduh Institut Teknologi Bandung

Institut Teknologi Bandung IMPLEMENTATION ALL ACTIVITIES LEADING TO ADOPTION, MANAGEMENT, ROUTINIZATION OF INNOVATION APPROACHES ADOPTION MANAGEMENT ROUTINIZATION ACTORS' ROLE XXXX STRATEGY ORGANIZATIONAL FACTORS IMPLEMENTATION STAGES Muhamad Abduh Institut Teknologi Bandung

Institut Teknologi Bandung INNOVATION PROCESS ACTOR CHARACTERISTICS & DEMOGRAPHICS SOCIAL STATUS EDUCATION SOPHISTICATION ACTOR ROLES PRODUCT CHAMPION BUREAUCRATIC ENTREPRENEUR GATEKEEPER INNOVATIVE BEHAVIOR Muhamad Abduh Institut Teknologi Bandung

ACTIONS & INDICATORS FOR SUCCESSFUL SYSTEM IMPLEMENTATION SUPPORT BY LOCAL FUNDS NEW ORGANIZATIONAL ARRANGEMENTS STABLE SUPPLY & MAINTENANCE NEW PERSONNEL CLASSIFICATIONS CHANGES IN ORGANIZATIONAL AUTHORITY * Muhamad Abduh Institut Teknologi Bandung

ACTIONS & INDICATORS FOR SUCCESSFUL SYSTEM IMPLEMENTATION INTERNALIZATION OF TRAINING PROGRAM CONTINUAL UPDATING OF THE SYSTEM PROMOTION OF KEY PERSONNEL SURVIVAL OF SYSTEM AFTER TURNOVER ATTAINMENT OF WIDESPREAD USE * Muhamad Abduh Institut Teknologi Bandung

FACTORS IN IMPLEMENTATION OUTCOME CAUSES OF SUCCESS OR FAILURE: USER INVOLVEMENT & INFLUENCE MANAGEMENT SUPPORT LEVEL OF COMPLEXITY / RISK MANAGEMENT OF IMPLEMENTATION PROCESS * Muhamad Abduh Institut Teknologi Bandung

USER-DESIGNER COMMUNICATIONS GAP DIFFERENCES IN BACKGROUNDS, INTERESTS, PRIORITIES IMPEDE COMMUNICATION AND PROBLEM SOLVING AMONG END USERS AND INFORMATION SYSTEMS SPECIALISTS * Muhamad Abduh Institut Teknologi Bandung

Institut Teknologi Bandung USER CONCERNS: WILL SYSTEM DELIVER INFORMATION I NEED? HOW QUICKLY CAN I ACCESS DATA? HOW EASILY CAN I RECEIVE DATA? HOW MUCH CLERICAL SUPPORT WILL I NEED FOR DATA ENTRY? HOW WILL SYSTEM OPERATION FIT INTO MY DAILY BUSINESS SCHEDULE? * Muhamad Abduh Institut Teknologi Bandung

Institut Teknologi Bandung DESIGNER CONCERNS: HOW MUCH DISK SPACE WILL MASTER FILE CONSUME? HOW MANY LINES OF PROGRAM CODE WILL THIS FUNCTION TAKE? HOW CAN WE REDUCE CPU TIME? WHAT IS THE MOST EFFICIENT WAY OF STORING THIS DATA? WHAT DATABASE MANAGEMENT SYSTEM SHOULD WE USE? * Muhamad Abduh Institut Teknologi Bandung

LEVEL OF COMPLEXITY & RISK PROJECT SIZE PROJECT STRUCTURE EXPERTISE WITH TECHNOLOGY * Muhamad Abduh Institut Teknologi Bandung

CONTROLLING PROJECT RISK LOW HIGH SMALL LARGE VERY HIGH VERY LOW MEDIUM-LOW MEDIUM STRUCTURE TECHNOLOGY LEVEL SIZE RISK Muhamad Abduh Institut Teknologi Bandung

CONSEQUENCES OF POOR PROJECT MANAGEMENT COST OVERRUNS TIME SLIPPAGE TECHNICAL SHORTFALLS FAILURE TO OBTAIN BENEFITS * Muhamad Abduh Institut Teknologi Bandung

CAUSES OF POOR PROJECT MANAGEMENT IGNORANCE & OPTIMISM MYTHICAL MAN-MONTH: Many tasks sequentially linked, require training FALLING BEHIND: Bad news travels slowly upward * Muhamad Abduh Institut Teknologi Bandung

CHANGE MANAGEMENT CHALLENGES ENTERPRISE SYSTEMS: High risk of failure, replacing legacy systems, myriad interconnections BUSINESS PROCESS REENGINEERING: 70% failure rate, deeply rooted in old processes, employees often unprepared * Muhamad Abduh Institut Teknologi Bandung

CHANGE MANAGEMENT CHALLENGES MERGERS & ACQUISITIONS: Decline in shareholder value, difficult to integrate company systems, organizational change, worker morale * Muhamad Abduh Institut Teknologi Bandung

MANAGING IMPLEMENTATION: CONTROL RISK FACTORS: Gear tools, methodologies to level of risk INTERNAL INTEGRATION TOOLS: FORMAL PLANNING TOOLS FORMAL CONTROL TOOLS * Muhamad Abduh Institut Teknologi Bandung

FORMAL PLANNING TOOLS EXAMPLES: PROGRAM EVALUATION & REVIEW TECHNIQUE: Diagram of project activities, sequential and concurrent, shows interactions of activities GANTT CHART: Shows activities as bars along a time line, with beginning, end of each task THESE PROVIDE SCHEDULES * Muhamad Abduh Institut Teknologi Bandung

Institut Teknologi Bandung FORMAL CONTROL TOOLS: BUDGET: Time, money, resources MONITOR PROGRESS: Completion of tasks, fulfillment of goals CONTROL RISK FACTORS: Cost/benefits * Muhamad Abduh Institut Teknologi Bandung

EXTERNAL INTEGRATION TOOLS LINK ALL USERS THROUGHOUT ORGANIZATION USE END USERS AS TEAM MEMBERS SHARE INFORMATION & PROGRESS INCLUDE TRAINING AVOID COUNTERIMPLEMENTATION * Muhamad Abduh Institut Teknologi Bandung

ORGANIZATIONAL FACTORS JOB DESIGN STANDARDS & PERFORMANCE MONITORING ERGONOMICS: Interaction of people & machines; jobs, health, interface * Muhamad Abduh Institut Teknologi Bandung

ORGANIZATIONAL FACTORS EMPLOYEE GRIEVANCE RESOLUTION PROCEDURES HEALTH & SAFETY GOVERNMENT REGULATORY COMPLIANCE * Muhamad Abduh Institut Teknologi Bandung

ORGANIZATIONAL FACTORS MONITOR PROGRESS: Completion of tasks, fulfillment of goals CONTROL RISK FACTORS: Cost / benefits * Muhamad Abduh Institut Teknologi Bandung

ORGANIZATIONAL FACTORS ORGANIZATIONAL IMPACT ANALYSIS: How will system impact structure, attitudes, decision-making, operations SOCIOTECHNICAL DESIGN: Explore group structures, task allocation, job design for human factor * Muhamad Abduh Institut Teknologi Bandung

“FOURTH-GENERATION” PROJECT MANAGEMENT EMERGING TECHNIQUES TO DEAL WITH COMPLEXITY ENTERPRISE-WIDE FOCUS DRIVEN BY STRATEGIC VISION & TECHNOLOGY MAY REQUIRE SEPARATE PROGRAM OFFICE * Muhamad Abduh Institut Teknologi Bandung

MANAGEMENT OF INFORMATION SYSTEM PROJECT AND IMPLEMENTATION W e e k 7 MANAGEMENT OF INFORMATION SYSTEM PROJECT AND IMPLEMENTATION Muhamad Abduh Institut Teknologi Bandung