© 2008 Prentice Hall5-1 Introduction to Project Management Chapter 5 Managing Project Scope Information Systems Project Management: A Process and Team Approach, 1e Fuller/Valacich/George

© 2008 Prentice Hall5-2 Five Process Phases of Project Management Initiate Plan Execute Monitor and Control Close

© 2008 Prentice Hall5-3 Project Initiation The process of authorizing a new or continuing an existing project Four initiation activities: 1.Identifying information systems development projects 2.Classifying and ranking information systems development projects 3.Selecting information systems development projects 4.Establishing the project charter

© 2008 Prentice Hall Identifying Information Systems Development Projects Identification can be made by: –Top management or chief executive officer Strategic focus –Steering committee Cross-functional focus –User department(s) Tactical focus –IT development group or IT management System integration focus

© 2008 Prentice Hall5-5 Two Basic Project Planning Approaches Isolated – attempts to solve individual organizational problems –What procedure (application program) is required to solve this particular problem as it exists today? –Dependent on current IT infrastructure

© 2008 Prentice Hall5-6 Two Basic Project Planning Approaches (cont.) Planned – systematic identification of project that will provide solutions today and into the future –What information (or data) requirements will satisfy the decision-making needs or business processes of the enterprise today and well into the future? –Independent of current IT infrastructure constraints

© 2008 Prentice Hall5-7 Corporate Strategic Planning An ongoing process that defines the mission, objectives, and strategies of an organization Required if project selection is going to be successful Three-step process –The current organization must be reviewed and understood –Management decides on future direction –Strategic plan is developed for transition from current to future state

© 2008 Prentice Hall5-8 Strategic Planning Requirements: Mission Statement –Statement that makes it clear what business the company is in Objective statements –Series of statements that express an organization’s qualitative and quantitative goals for reaching a desired future position –Sometimes call Critical Success Factors or Corporate Values Competitive Strategy –Method by which an organization attempts to achieve its mission and objectives

© 2008 Prentice Hall5-9 Generic Competitive Strategy StrategyDescription Low-Cost ProducerThis strategy reflects competing in an industry on the basis of product or service cost to the consumer. For example, in the automobile industry, the South Korea-produced Kia is a product line that competes on the basis of low cost. Product DifferentiationThis strategy reflects capitalizing on a key product criterion requested by the market (e.g., high quality, style, performance, roominess). In the automobile industry, many manufactures are trying to differentiate their products on the basis of quality (e.g., “At Ford, quality is job one.”). Product Focus or NicheThis strategy is similar to both the low-cost and differentiation strategies, but with a much narrower market focus. For example, a niche market in the automobile industry is the convertible sports car market. Within this market, some manufactures may employ a low-cost strategy while others may employ a differentiation strategy based on performance or style.

© 2008 Prentice Hall5-10 Information Systems Planning An orderly means of assessing the information needs of an organization and defining the systems, databases, and technologies that will best satisfy those needs

© 2008 Prentice Hall5-11 Information Systems Planning Three-Step Process

© 2008 Prentice Hall5-12 System Service Request

© 2008 Prentice Hall5-13 Parallel Activities

© 2008 Prentice Hall5-14 Planning Methods Top-Down –Generic information systems planning methodology that attempts to gain a broad understanding of the information system needs of the entire organization Bottom-Up –Generic information systems planning methodology that identifies and defines information systems development projects based upon solving operational business problems or taking advantage of some business opportunities

© 2008 Prentice Hall5-15 Information Systems Plan Outline

© 2008 Prentice Hall Classifying And Ranking Information Systems Development Projects Completed by top management, steering committee, business units, or information systems development groups Criteria varies among organizations

© 2008 Prentice Hall5-17 Possible Evaluation Criteria When Classifying And Ranking Projects Evaluation CriteriaDescription Value Chain AnalysisExtent to which activities add value and costs when developing products and/or services Strategic AlignmentExtent to which the project is viewed as helping the organization achieve its strategic objectives and long-term goals Potential BenefitsExtent to which the project is viewed as improving profits, customer service, and so forth and the duration of these benefits Resource AvailabilityAmount and type of resources the project requires and their availability Project Size / DurationNumber of individuals and the length of time needed to complete the project Technical Difficulty / Risks Level of technical difficulty to successfully complete the project within given time and resource constraints

© 2008 Prentice Hall5-18 Business Case Justification that presents the economic, technical, operational, schedule, legal and contractual, and political factors influencing a proposed information systems project

© 2008 Prentice Hall5-19 Selected Feasibility Factors Economic Technical Operational Schedule Legal and contractual Political

© 2008 Prentice Hall5-20 Economic Feasibility Identify the financial benefits and costs associated with a development project –Benefits Tangible or intangible –Costs Tangible or intangible

© 2008 Prentice Hall5-21 Benefits Tangible – benefit derived from the creation of an information system that can be measured in dollars and with certainty –Cost reduction and avoidance; error reduction; increased flexibility; increased speed of activity; improvement of management planning and control; opening new markets and increasing sales opportunities Intangible – benefit derived from the creation of an information system that cannot be easily measured in dollars or with certainty – Competitive necessity; increased organizational flexibility; increased employee morale; promotion of organizational learning and understanding; more timely information

© 2008 Prentice Hall5-22 Cost Types Tangible cost –Cost associated with an information system that can be measured in dollars and with certainty Intangible cost –Cost associated with an information system that cannot be easily measured in terms of dollars or with certainty Recurring cost –Cost resulting from the ongoing evolution and use of a system One-Time cost –Cost associated with project start-up and development or system start-up

© 2008 Prentice Hall5-23 Cost-Benefit Analysis The use of a variety of analysis techniques for determining the financial feasibility of a project –Present Value –Discount Rate –Net Present Value –Break-even Analysis

© 2008 Prentice Hall5-24 Technical Feasibility Process of assessing the development organization's ability to construct a proposed system

© 2008 Prentice Hall5-25 Technical Project Risk Assessment Factors Project Size Project Structure Development Group User Group

© 2008 Prentice Hall5-26 Risk Assessment Matrix

© 2008 Prentice Hall5-27 Potential Technical Risks Failure to attain expected benefits from the project Inaccurate project cost estimates Inaccurate project duration estimates Failure to achieve adequate system performance levels Failure to adequately integrate the new system with existing hardware, software, or organizational procedures

© 2008 Prentice Hall5-28 Operational Feasibility Process of assessing the degree to which a proposed system will solve business problems or takes advantage of business opportunities –What impact will the proposed system have on the organization’s structures and procedures?

© 2008 Prentice Hall5-29 Schedule Feasibility Process of assessing the degree to which the potential time frame and completion dates for all major activities within a project meet organizational deadlines and constraints for affecting change

© 2008 Prentice Hall5-30 Legal and Contractual Feasibility Process of assessing potential legal and contractual ramifications due to the construction of a system

© 2008 Prentice Hall5-31 Political Feasibility Process of evaluating how key stakeholders within the organization view the proposed system

© 2008 Prentice Hall Information Systems Development Selection

© 2008 Prentice Hall5-33 Popular Selection Methods Value Chain Analysis –The process of analyzing an organization's activities to determine where value is added to products and/or services and the costs incurred for doing so Multi-Criteria Analysis –A project selection method that uses weighted scoring for a variety of criteria to contrast alternative projects or system features

© 2008 Prentice Hall5-34 Value Chain Analysis

© 2008 Prentice Hall5-35 Multi-Criteria Analysis

© 2008 Prentice Hall Establish a Project Charter A short document prepared for the customer during project initiation that describes what the project will deliver and outlines generally at a high level all work required to complete the project Typically contains: –Project title and date of authorization –Project manager name and contact information –Customer name and contact information –Projected start and completion dates –Key stakeholders, project roles, and responsibilities –Project objectives and description –Key assumptions or approach –Signature section for key stakeholders

© 2008 Prentice Hall5-37 Project Scope Planning Process of progressively elaborating and documenting the project work plan in order to effectively manage a project Occurs once a project has been formally selected for development

© 2008 Prentice Hall5-38 Project Scope Planning Activities 1.Project workbook created 2.Project scope statement written 3.Baseline project plan is developed

© 2008 Prentice Hall5-39 Project Workbook Serves as the central repository for all project- related documents and information Contains –all project correspondence, inputs, outputs, deliverables, procedures, and standards established by the project team Workbook can be paper or electronic

© 2008 Prentice Hall5-40 Project Scope Statement Document prepared for the customer that describes what the project will deliver and outlines generally at a high level all work required to complete the project Addresses: –What problem or opportunity does the project address? –What are the quantifiable results to be achieved? –What needs to be done? –How will success be measured? –How will the end of the project be identified?

© 2008 Prentice Hall5-41 Baseline Project Plan Documents the best estimate of a project's scope, benefits, costs, risks, and resource requirements Four sections: –Introduction –System Description –Feasibility Assessment –Management Issues

© 2008 Prentice Hall5-42 Baseline Project Plan Introduction Provides a brief overview of the entire document and outlines a recommended course of action for the project

© 2008 Prentice Hall5-43 Baseline Project Plan System Description Documents possible alternative solutions in addition to the one deemed most appropriate for the given situation

© 2008 Prentice Hall5-44 Baseline Project Plan Feasibility Assessment Project costs and benefits, technical difficulties, and other such concerns are outlined Gantt charts and network diagrams illustrate high-level project schedules

© 2008 Prentice Hall5-45 Baseline Project Plan Management Issues Documents management concerns related to the project Typical issues include: –Team configuration and management –Communication plan –Project standards and procedures –Other project-specific topics

© 2008 Prentice Hall5-46 Project Scope Definition Process of subdividing the major project deliverables – as identified in the project scope statement – into smaller, more manageable activities in order to make more accurate cost, task duration, and resource estimates

© 2008 Prentice Hall5-47 Project Scope Verification Process of obtaining formal acceptance of a project’s scope from the project stakeholders

© 2008 Prentice Hall5-48 Project Scope Change Control Formal process for assuring that only agreed- upon changes are made to the project’s scope Submitted change request should address: –Project specifications –Project schedules –Budgets –Resources

© 2008 Prentice Hall5-49 Scope Creep Progressive, uncontrolled increase in project scope

© 2008 Prentice Hall5-50 Questions?