Chapter 14 Managing Projects

Importance of Project Management Avoid system failure Fail to capture business requirements Fail to provide organizational benefits Poorly organized and complicated user interface Inaccurate or inconsistent data Avoid runaway projects (exceed schedule and budget and do not perform as scheduled) Chapter 14 Notes

Project Management Project – planned series of related activities; achieve a business objective Project Management – knowledge, skills, tools and techniques; within specified budget and time constraint Scope Time Cost Quality Risk

MANAGEMENT CONTROL OF SYSTEMS PROJECTS

Selecting Projects Information systems plan (see page 533) Identify system projects that will deliver most business value; development must match business plan Plan includes: Purpose of plan; Strategic business plan rationale; Current systems/situation; New developments to consider; Management strategy; Implementation plan; Budget Critical success factors Small number of operational goals; used to determine information requirements Project Charter

Selecting Projects (cont) Portfolio analysis Used to evaluate alternative system projects Inventories information systems projects and assets Seek to have a balance between types of systems and level of risk (similar to financial portfolio)

Selecting projects (cont) Scoring models – used to evaluate alternative system projects Assign weights to various features of system and calculates weighted totals CRITERIA WEIGHT SYSTEM A % SYSTEM A SCORE SYSTEM B % SYSTEM B SCORE Online order entry 4 67 268 73 292 Customer credit check 3 66 198 59 177 Inventory check 72 288 81 324 Warehouse receiving 2 71 142 75 150 ETC GRAND TOTALS 3128 3300

Business Value of Info Systems Direct System costs Tangible and Intangible benefits (see page 537) Capital budgeting (measures value of investing in long-term capital investment projects) Real Options Pricing Models (Can be used when future revenue streams of IT projects are uncertain and up-front costs are high; gives managers flexibility)

Managing Project Risk Dimensions of project risk Level of project risk influenced by: Project size Indicated by cost, time, number of organizational units affected Project structure Structured, defined requirements run lower risk Experience with technology

Managing Project Risk (cont) Change management Required for successful system building New information systems have powerful behavioral and organizational impact Implementation All organizational activities working toward adoption, management, and routinization of an innovation Related Information Change agent: One role of systems analyst Role of end users User-designer communication gap Management support and commitment

Controlling Risk Factors Identify nature and level of project risk Manage project with tools and risk-management approaches Manage technical complexity Increase user involvement and overcome user resistance Use formal planning and control tools

GANTT CHART Chapter 14 Notes FIGURE 14-5 The Gantt Chart in this figure shows the task, person-days, and initials of each responsible person, as well as the start and finish dates for each task. The resource summary provides a good manager with the total person-days for each month and for each person working on the project to manage the project successfully. The project described here is a data administration project. Chapter 14 Notes

PERT CHART FIGURE 14-6 This is a simplified PERT Chart for creating a small Web site. It shows the ordering of project tasks and the relationship of a task with preceding and succeeding tasks. Chapter 14 Notes

Controlling Risk (cont) Organizational Factors to consider Ergonomics and Sociotechnical design; health and safety; standards Organizational impact analysis Project management software tools