Successful IT Projects slides © 2007 Darren Dalcher & Lindsey Brodie Successful IT Projects By Darren Dalcher & Lindsey Brodie Chapter 2

Successful IT Projects slides © 2007 Darren Dalcher & Lindsey Brodie Lecture 2 Project Selection

Successful IT Projects slides © 2007 Darren Dalcher & Lindsey Brodie Learning outcomes Understand how a project must fit (align) with organisational objectives Describe the concepts of programme management and portfolio management Explain the project management perspective on objectives, scope, stakeholders and stakeholder value State the main contents of a feasibility study

Successful IT Projects slides © 2007 Darren Dalcher & Lindsey Brodie Reasons for IT investment Survival Improved efficiency and/or effectiveness Competitive advantage External factors (for example, legislation) Changing organisational structure (for example, mergers)

Successful IT Projects slides © 2007 Darren Dalcher & Lindsey Brodie Management of IT investment Programme management Project portfolio management

Successful IT Projects slides © 2007 Darren Dalcher & Lindsey Brodie Allocation of IT budget Existing IS for ongoing operations and maintenance Existing projects for ongoing agreed work Existing IS for system improvements Existing projects bidding for further new development Project proposals

Successful IT Projects slides © 2007 Darren Dalcher & Lindsey Brodie Setting up a project Selecting a project proposal Establishing a business case Business case Commencing the project Project charter or contract Scope statement Initial project plan

Successful IT Projects slides © 2007 Darren Dalcher & Lindsey Brodie Project Management Lifecycle Deliverables Adapted from Marchewka 2003 Deliverable Determine Business Case Close Project Evaluate Project Information System Documentation Systems Development Lifecycle Business Case Project Charter (or Project Contract), Scope Statement & Initial Project Plan Final Project Report Project Evaluation & Lessons Learnt Deliverable Select Project Proposal Manage Project Commence Project Carry out Feasibility Study Feasibility Study

Successful IT Projects slides © 2007 Darren Dalcher & Lindsey Brodie Project proposal selection Establishing a project’s contribution to the organisation’s objectives: SWOT analysis Balanced Scorecard

Successful IT Projects slides © 2007 Darren Dalcher & Lindsey Brodie SWOT analysis StrengthsWeaknesses ThreatsOpportunities

Successful IT Projects slides © 2007 Darren Dalcher & Lindsey Brodie The Balanced Scorecard Vision and Strategy Financial How should we appear to our shareholders? Customer How should we appear to our customers? Internal Business Process What business processes must we excel at? Learning & Growth How will we sustain our ability to change and improve? Kaplan and Norton 1996

Successful IT Projects slides © 2007 Darren Dalcher & Lindsey Brodie Feasibility study Perceived need for change Alignment with organisational strategy/objectives Aim of proposed project Objectives for the proposed project –Benchmark levels (existing levels) –Target levels Analysis of the external environment Product/system scope –Functionality –Levels of objectives –Deployment within organisation Current business process(es) and proposed changes Current IS and proposed changes Product/system interfaces List of stakeholders Potential benefits and estimated costs Proposed solution(s) Technology considerations Staff availability Dependencies, issues, assumptions and risks Outline project plan Summary of financial information Recommendations

Successful IT Projects slides © 2007 Darren Dalcher & Lindsey Brodie Identifying the project aim A project should have one major aim and several objectives supporting the aim. For example: To improve our customers’ experience of ordering our products.

Successful IT Projects slides © 2007 Darren Dalcher & Lindsey Brodie Identifying the stakeholders Any person or group that will be affected by the system directly or indirectly. For example: End-users Managers Systems administration Maintenance Testing Suppliers

Successful IT Projects slides © 2007 Darren Dalcher & Lindsey Brodie Establishing stakeholder value What are the potential benefits? What could be done to achieve greater benefit? Which stakeholders could potentially benefit? Are any other projects impacting the benefits? Are the benefits greater than the costs? Are there any mandatory changes (for example, legislation)? How will the benefits be measured?

Successful IT Projects slides © 2007 Darren Dalcher & Lindsey Brodie Determining project scope Determine what is included in the project and what is not. Scope can be defined as ‘the work the project has to do’. Establishing the scope includes consideration of: Functionality Levels of objectives Extent of the deployment within an organisation Benefits, costs and timescales are linked to the project scope.

Successful IT Projects slides © 2007 Darren Dalcher & Lindsey Brodie Project Triangle Financial Budget Schedule Scope The financial budget and the time schedule together with the project scope form the project triangle. Tradeoffs can be made amongst the three.

Successful IT Projects slides © 2007 Darren Dalcher & Lindsey Brodie System interfaces Identify all the interfaces with other systems Establish the key data being passed across the interfaces Look for ‘natural’ boundaries Consider if there is any benefit in altering existing interfaces Determine if any other projects are within the interfaces

Successful IT Projects slides © 2007 Darren Dalcher & Lindsey Brodie Identifying the project objectives Project objectives specify the success criteria for a project Project benefits and costs are dependent on the levels set for the objectives

Successful IT Projects slides © 2007 Darren Dalcher & Lindsey Brodie Objective Hierarchy supporting an Aim Objective BObjective C Objective A.2Objective A.1Objective C.1Objective C.2 Objective C.1.2Objective C.1.1 Objective A Aim

Successful IT Projects slides © 2007 Darren Dalcher & Lindsey Brodie Example of an Objective Hierarchy Customer Satisfaction UsabilityAvailability Customer Feedback Product Information MaintainabilityReliability Information Updating Problem Resolution Aim: Improved Web Interface for Customers - Quality Requirements only

Successful IT Projects slides © 2007 Darren Dalcher & Lindsey Brodie SMART objectives Doran 1981 Specific Measurable Assignable Realistic Time-related

Successful IT Projects slides © 2007 Darren Dalcher & Lindsey Brodie Objectives as success criteria SMART objectives provide: A target to aim at The responsibility for ensuring and monitoring that the targets will be achieved A point of reference Proof of agreement that can be used as proof of achievement at the point of delivery

Successful IT Projects slides © 2007 Darren Dalcher & Lindsey Brodie Example of a SMART objective “The average time for a customer order of a single order item to be input by an existing customer will be reduced from 2 minutes down to 1 minute by the end of November 2007” Rather than “The time taken for customers to place orders will be significantly improved.” - How would you decide if the project was successful with such an ambiguous objective?

Successful IT Projects slides © 2007 Darren Dalcher & Lindsey Brodie Communicating with senior management Ensure you discuss the feasibility study with senior management Identify who is providing the budget for the project Check the project is aligned with the organisation’s strategy Determine if proposed functionality and deployment within the organisation is correct Obtain agreement to the project’s objectives Discuss the stakeholder value and project costs

Successful IT Projects slides © 2007 Darren Dalcher & Lindsey Brodie Summary Reasons for IT investment IT investment management Proposal selection Contents of a feasibility study