Business Driven Technology Unit 5 Transforming Organizations Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

19-2 Unit Five O Chapter Seventeen – Developing Software to Streamline Operations O Chapter Eighteen – Methodologies for Supporting Agile Organizations O Chapter Nineteen - Managing Organizational Projects O Chapter Twenty – Developing a 21st Century Organization

Chapter 19 Managing Organizational Projects 19-3

19-4 LEARNING OUTCOMES 1. Explain project management and identify the primary reasons projects fail 2. Identify the primary project planning diagrams 3. Identify the three different types of outsourcing along with their benefits and challenges

19-5 Using Project Management to Deliver Successful Projects O Tangible benefits – Easy to quantify and typically measured to determine the success or failure of a project O Intangible benefits – Difficult to quantify or measure

19-6 Using Project Management to Deliver Successful Projects O Types of Feasibility Studies O Economic feasibility O Operational feasibility O Schedule feasibility O Technical feasibility O Political feasibility O Legal feasibility

19-7 The Triple Constraint Project Management Interdependent Variables

19-8 The Triple Constraint O Benjamin Franklin’s timeless advice - by failing to prepare, you prepare to fail - applies to software development projects O The Hackett Group analyzed 2,000 companies and discovered O Three in 10 major IT projects fail O 21 percent of the companies state that they cannot adjust rapidly to market changes O One in four validates a business case for IT projects after completion

19-9 The Triple Constraint O Project stakeholder - Individuals and organizations actively involved in the project or whose interests might be affected as a result of project execution or project completion O Executive sponsor - The person or group who provides the financial resources for the project

19-10 The Triple Constraint O Project deliverable – Any measurable, tangible, verifiable outcome, result, or item that is produced to complete a project or part of a project O Project milestone – Represents key dates when a certain group of activities must be performed O Project management office (PMO) – An internal department that oversees all organizational projects

19-11 SMART OBJECTIVES O SMART criteria are useful reminders on how to ensure that the project has created understandable and measurable objectives

19-12 UNDERSTANDING PROJECT PLANNING O Project plan – A formal, approved document that manages and controls project execution O A well-defined project plan should be O Easy to understand and read O Communicated to all key participants O Appropriate to the project’s size, complexity, and criticality O Prepared by the team, rather than by the individual project manager

19-13 UNDERSTANDING PROJECT PLANNING O Two primary diagrams used in project planning include PERT and Gantt charts O PERT chart O Dependency O Critical path O Gantt chart

19-14 UNDERSTANDING PROJECT PLANNING PERT Chart EXPERT – PERT Chart Example

19-15 UNDERSTANDING PROJECT PLANNING MS Project – Gantt Chart Example

19-16 MANAGING PROJECTS O Managing a project includes O Identifying requirements O Establishing clear and achievable objectives. O Balancing the competing demands of quality, scope, time, and cost O Adapting the specifications, plans, and approach to the different concerns and expectations of the various stakeholders

19-17 OUTSOURCING PROJECTS O In-sourcing (in-house-development) – Uses the professional expertise within an organization to develop and maintain its information technology systems O Outsourcing – An arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house

19-18 OUTSOURCING PROJECTS O Factors driving outsourcing growth include O Core competencies O Financial savings O Rapid growth O The Internet and globalization

19-19 OUTSOURCING PROJECTS O Onshore outsourcing O Nearshore outsourcing O Offshore outsourcing

19-20 OUTSOURCING PROJECTS O Big selling point for offshore outsourcing “inexpensive good work”

19-21 OUTSOURCING PROJECTS O Most organizations outsource their noncore business functions, such as payroll and IT

19-22 Outsourcing Benefits O Outsourcing benefits include O Increased quality and efficiency of business processes O Reduced operating expenses for head count and exposure to risk for large capital investments O Access to outsourcing service provider’s expertise, economies of scale, best practices, and advanced technologies O Increased flexibility for faster response to market changes and less time to market for new products or services

19-23 Outsourcing Challenges O Outsourcing challenges include O Length of contract 1. Difficulties in getting out of a contract 2. Problems in foreseeing future needs 3. Problems in reforming an internal IT department after the contract is finished O Threat to competitive advantage O Loss of confidentiality

19-24 LEARNING OUTCOME REVIEW O Now that you have finished the chapter please review the learning outcomes in your text