1. The Nature of Information Technology Projects
Chapter 1
The Nature of Information Technology Projects

2. IT and Modern Day Project Management
1940s
1950s
1960s
1970s
1980s
1990s
2000s
2010s
First
Electronic
Computer
EDP
Era PC
Era
Network
Era
Globalization

3. Introduction
Information Technology (IT) projects are organizational investments that require
Time
Money
Other resources such as People, Technology, Facilities, etc.
Organizations expect some type of value in return for this investment (ROI)
IT Project Management is a relatively new discipline that attempts to make IT projects more successful and combines traditional Project Management with Software Engineering/Management Information Systems

4. An ITPM (IT Project Management) Approach
Organizational resources are limited, so organizations must choose among competing interests to fund specific projects
This decision should be based on the value a competing project will provide to an organization

5. Modern Project Management
Often credited to the U.S. Navy as an outgrowth of the Polaris Missile Project in the 1950s
Focuses on reducing costs & product cycle time.
Provides an important link between an organization’s strategy and the deployment of that strategy.
Can have a direct impact on an organization’s bottom line and competitiveness.

6. Which Situation is Worse?
Successfully building and implementing a system that provides little or no value to the organization?
Or…
Failing to implement an information system that could have provided value to the organization, but was underdeveloped or poorly managed?

7. Why Many Projects Fail: Project Failure can be grouped into four categories (examples)
People – The stakeholders of a project with varied roles and interests in the project’s success or failure.
Processes – This includes having a set of project management and product management processes.
Technology – Only 3% of IT project failures can be attributed to technical challenges but this percentage can be increased if obsolete, unproven, or incompatible technologies are used.
Organization – Organizational issues can lead to project failure. A lack of clear direction, improper strategy, rapidly changing business environment and/or customer needs can create a moving target for the product’s product or service.

8. Why Many Projects Fail: Project Failure can be grouped into four categories (examples)

9. The Software Crisis
The CHAOS Study published in 1995 by The Standish Group found that although the U.S spent over $250 billion on IT projects … approximately:
31% were cancelled before completion
53% were completed but overbudget, over schedule, & did not meet original specifications
For mid-size companies, average cost overruns were 182%, while average schedule overruns were 202%!

10. Has the Current State of IT Projects Changed Since 1994?
The Standish Group has continued to study IT projects over the years.
IT Projects are showing higher success rates due to:
Better project management tools & processes
Smaller projects
Improved communication among stakeholders
More skillful IT project managers
But there is still ample opportunity for improvement!

11. Table 1.1 Summary of CHAOS Study Factor Rankings for Successful Projects
1994
2001
2006
2008 1
User Involvement
Executive Support 2
Executive Management Support 3
Clear Statement of Requirements
Experienced Project Manager
Clear Business Objectives
Clear Business Objectives 4
Proper Planning
Optimizing Scope
Emotional Maturity 5
Realistic Expectations
Minimized Scope
Agile Process 6
Smaller Project Milestones
Standard Software Infrastructure
Project Management Expertise 7
Competent Staff
Firm Basic Requirements
Financial Management 8
Ownership
Formal Methodology
Skilled Resources 9
Clear Vision & Objectives
Reliable Estimates
Execution 10
Hard-working, focused team
Other
Standard Tools and Infrastructure
Tools & Infrastructure
Sources: Adapted from the Standish Group. CHAOS ; (West Yarmouth, MA: 1995, 2010) &

12. Table 1.2: IT Project Success Criteria
Response
Schedule
61.3% said it is more important to deliver a system when it is ready to be shipped than to deliver it on time.
Scope
87.3% said that meeting the actual needs of stakeholders is more important than building the system to specification.
Money
79.6% said that providing the best return on investment (ROI) is more important than delivering a system under budget.
Quality
87.3% said that delivering high quality is more important than delivering on time and on budget.
Staff
75.8% said that having a mentally and physically healthy workplace is more important than delivering on time and on budget.
Source:

13. Factors for Challenged Projects Factors for Failed (Impaired) Projects
Table 1.3: Summary of Factor Rankings for Challenged and Failed (Impaired) Projects
Rank
Factors for Challenged Projects
Factors for Failed (Impaired) Projects 1
Lack of user input
Incomplete requirements 2
Lack of user involvement 3
Changing requirements & specifications
Lack of resources 4
Lack of executive support
Unrealistic expectations 5
Technology incompetence 6 7
Lack of planning 8
Unclear objectives
Didn’t need it any longer 9
Unrealistic time frames
Lack of IT management 10
New technology
Technology illiteracy
Source: Adapted from the Standish Group. CHAOS (West Yarmouth, MA: 1995)

14. Figure 1.2 When IT projects have gone wrong, what has been the reaction from the business managers & the Board of Directors?

15. Improving the Likelihood of Success
A Value-Driven Approach
Plain & Simple: IT Projects must provide value to the organization
Socio-technical Approach
It’s not just about the technology or building a better mouse trap
Project Management Approach
processes and infrastructure (Methodology)
resources
expectations
competition
efficiency and effectiveness
Knowledge Management Approach
lessons learned, best practices & shared knowledge

16. The Context of Project Management – Project Attributes
Time Frame
Purpose (to provide value!)
Ownership
Resources (the triple constraint)
Roles
Project Manager
Project Sponsor
SME (Subject Matter Expert - domain & technical)
Risk & Assumptions
Interdependent Tasks
Progressive elaboration – steps & increments
Planned Organizational Change
Operate in Environments Larger than the Project Itself

17. The Triple Constraint
Figure 1.3

18. Extreme Project Management (XPM)
A new approach & philosophy to project management that is becoming increasingly popular
Characterizes many of today’s projects that exemplify speed, uncertainty, changing requirements, and high risks
Traditional project management often takes an orderly approach while, XPM embraces the fact that projects are often chaotic and unpredictable
XPM focuses on flexibility, adaptability, and innovation
Traditional and new approaches together can provide us with a better understanding of how to improve the likelihood of project success

19. The Project Management Body of Knowledge (PMBOK®)
The Guide to the Project Management Body of Knowledge (PMBOK® Guide) documents 9 project management knowledge areas
The PMBOK® Guide is published and maintained by the Project Management Institute (PMI)
PMI provides a certification in project management called the Project Management Professional (PMP) that many people today believe will be as relevant as a CPA certification
PMP certification requires that you pass a PMP certification exam to demonstrate understanding about project management, as well as satisfy education & experience requirements and agree to a professional code of conduct

20. Project Management Body of Knowledge Areas
Figure 1.8

21. The PMBOK® Guide’s Definitions for …
A project is a temporary endeavor undertaken to create a unique product, service, or result.
A project manager is the person assigned by the performing organization to achieve the project objectives.

22. What is Project Management?
Project Management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements.
Project Portfolio – a collection of diverse projects managed collectively to align with the organization’s strategy and overall plan to achieve competitive advantage.
Program – a collection of projects within a project portfolio whose activities are coordinated so that the benefits of the program are great than the sum of the benefits of the individual projects.