1. MANAGEMENT OF INFORMATION SYSTEM PROJECT AND IMPLEMENTATION
W e e k 7
MANAGEMENT OF INFORMATION SYSTEM PROJECT AND IMPLEMENTATION
Muhamad Abduh
Institut Teknologi Bandung

2. Institut Teknologi Bandung
CAPITAL BUDGET:
PAYBACK METHOD: How long will it take to pay back the investment?
RETURN ON INVESTMENT: Does return during useful life of an item exceed the cost to borrow money?
COST-BENEFIT RATIO: Does the ratio of benefit versus cost exceed 1? *
Muhamad Abduh
Institut Teknologi Bandung

3. Institut Teknologi Bandung
CAPITAL BUDGET:
PROFITABILITY INDEX: What is the ratio of present value of cash inflow to initial investment?
NET PRESENT VALUE: Accounting for cost, earnings & time value of money what is the investment worth?
INTERNAL RATE OF RETURN: Accounting for the time value of money, what is the return rate of an investment? *
Muhamad Abduh
Institut Teknologi Bandung

4. Institut Teknologi Bandung
COSTS & BENEFITS:
COSTS:
HARDWARE
SOFTWARE
SERVICES
PERSONNEL *
Muhamad Abduh
Institut Teknologi Bandung

5. Institut Teknologi Bandung
COSTS & BENEFITS:
TANGIBLE BENEFIT:
INCREASED PRODUCTIVITY
LOW OPERATING COSTS
REDUCED WORK FORCE
LOWER COMPUTER EXPENSES
LOWER VENDOR COSTS
LOWER CLERICAL/PROFESSIONAL COSTS
REDUCED GROWTH OF EXPENSES
REDUCED FACILITY COSTS *
Muhamad Abduh
Institut Teknologi Bandung

6. Institut Teknologi Bandung
COSTS & BENEFITS:
INTANGIBLE BENEFIT:
IMPROVED ASSET USE; RESOURCE CONTROL; PLANNING
INCREASED FLEXIBILITY
MORE TIMELY INFORMATION
INCREASED LEARNING
ATTAIN LEGAL REQUIREMENTS
ENHANCED EMPLOYEE GOODWILL, JOB SATISFACTION, DECISION MAKING, OPERATIONS
HIGHER CLIENT SATISFACTION
BETTER CORPORATE IMAGE *
Muhamad Abduh
Institut Teknologi Bandung

7. CAPITAL BUDGETING MODELS
LIMITATIONS:
Assume all relevant alternatives have been examined; cost & benefits can be expressed as $$
Ignore intangible benefits *
Muhamad Abduh
Institut Teknologi Bandung

8. Institut Teknologi Bandung
PORTFOLIO ANALYSIS:
ANALYSIS OF POTENTIAL APPLICATIONS TO DETERMINE RISKS & BENEFITS
DETERMINE DESIRABLE FEATURES, ACCEPTABLE RISKS OF REQUIRED SYSTEM
GENERATE PORTFOLIO OF CHARACTERISTICS, RISKS FOR EACH ALTERNATIVE
SCORING MODEL *
Muhamad Abduh
Institut Teknologi Bandung

9. Institut Teknologi Bandung
SCORING MODEL:
IDENTIFY DESIRABLE FEATURES
PROVIDE WEIGHTS FOR EACH (ADD TO 1.00)
LOOK AT EACH ALTERNATIVE:
WHICH FEATURES ARE PRESENT?
TO WHAT EXTENT (as an amount)?
SCORE THE ALTERNATIVE
RANK-ORDER THE ALTERNATIVES
SELECT HIGHEST RANKED OPTION *
Muhamad Abduh
Institut Teknologi Bandung

10. REAL OPTIONS PRICING MODELS
USEFUL UNDER UNCERTAIN CONDITIONS
INCLUDE ESTIMATES FOR MANAGEMENT LEARNING, VALUE OF DELAYING DECISION, VOLATILITY OF COSTS & REVENUES
Muhamad Abduh
Institut Teknologi Bandung

11. Institut Teknologi Bandung
CHANGE MANAGEMENT
WHAT PROCESSES ARE BEST TO CHANGE:
DESIGN
DATA
COST
OPERATIONS *
Muhamad Abduh
Institut Teknologi Bandung

12. Institut Teknologi Bandung
CHANGE AGENT
DURING IMPLEMENTATION, INDIVIDUAL ACTS AS CATALYST DURING CHANGE PROCESS TO ENSURE SUCCESS *
Muhamad Abduh
Institut Teknologi Bandung

13. Institut Teknologi Bandung
IMPLEMENTATION
ALL ACTIVITIES LEADING TO ADOPTION, MANAGEMENT, ROUTINIZATION OF INNOVATION
APPROACHES
ADOPTION
MANAGEMENT
ROUTINIZATION
ACTORS' ROLE
XXXX
STRATEGY
ORGANIZATIONAL
FACTORS
IMPLEMENTATION STAGES
Muhamad Abduh
Institut Teknologi Bandung

14. Institut Teknologi Bandung
INNOVATION PROCESS
ACTOR CHARACTERISTICS & DEMOGRAPHICS
SOCIAL STATUS
EDUCATION
SOPHISTICATION
ACTOR ROLES
PRODUCT CHAMPION
BUREAUCRATIC ENTREPRENEUR
GATEKEEPER
INNOVATIVE
BEHAVIOR
Muhamad Abduh
Institut Teknologi Bandung

15. ACTIONS & INDICATORS FOR SUCCESSFUL SYSTEM IMPLEMENTATION
SUPPORT BY LOCAL FUNDS
NEW ORGANIZATIONAL ARRANGEMENTS
STABLE SUPPLY & MAINTENANCE
NEW PERSONNEL CLASSIFICATIONS
CHANGES IN ORGANIZATIONAL AUTHORITY *
Muhamad Abduh
Institut Teknologi Bandung

16. ACTIONS & INDICATORS FOR SUCCESSFUL SYSTEM IMPLEMENTATION
INTERNALIZATION OF TRAINING PROGRAM
CONTINUAL UPDATING OF THE SYSTEM
PROMOTION OF KEY PERSONNEL
SURVIVAL OF SYSTEM AFTER TURNOVER
ATTAINMENT OF WIDESPREAD USE *
Muhamad Abduh
Institut Teknologi Bandung

17. FACTORS IN IMPLEMENTATION OUTCOME CAUSES OF SUCCESS OR FAILURE:
USER INVOLVEMENT & INFLUENCE
MANAGEMENT SUPPORT
LEVEL OF COMPLEXITY / RISK
MANAGEMENT OF IMPLEMENTATION PROCESS *
Muhamad Abduh
Institut Teknologi Bandung

18. USER-DESIGNER COMMUNICATIONS GAP
DIFFERENCES IN BACKGROUNDS, INTERESTS, PRIORITIES
IMPEDE COMMUNICATION AND PROBLEM SOLVING
AMONG END USERS AND INFORMATION SYSTEMS SPECIALISTS *
Muhamad Abduh
Institut Teknologi Bandung

19. Institut Teknologi Bandung
USER CONCERNS:
WILL SYSTEM DELIVER INFORMATION I NEED?
HOW QUICKLY CAN I ACCESS DATA?
HOW EASILY CAN I RECEIVE DATA?
HOW MUCH CLERICAL SUPPORT WILL I NEED FOR DATA ENTRY?
HOW WILL SYSTEM OPERATION FIT INTO MY DAILY BUSINESS SCHEDULE? *
Muhamad Abduh
Institut Teknologi Bandung

20. Institut Teknologi Bandung
DESIGNER CONCERNS:
HOW MUCH DISK SPACE WILL MASTER FILE CONSUME?
HOW MANY LINES OF PROGRAM CODE WILL THIS FUNCTION TAKE?
HOW CAN WE REDUCE CPU TIME?
WHAT IS THE MOST EFFICIENT WAY OF STORING THIS DATA?
WHAT DATABASE MANAGEMENT SYSTEM SHOULD WE USE? *
Muhamad Abduh
Institut Teknologi Bandung

21. LEVEL OF COMPLEXITY & RISK
PROJECT SIZE
PROJECT STRUCTURE
EXPERTISE WITH TECHNOLOGY *
Muhamad Abduh
Institut Teknologi Bandung

22. CONTROLLING PROJECT RISK
LOW
HIGH
SMALL
LARGE
VERY HIGH
VERY LOW
MEDIUM-LOW
MEDIUM
STRUCTURE
TECHNOLOGY LEVEL
SIZE
RISK
Muhamad Abduh
Institut Teknologi Bandung

23. CONSEQUENCES OF POOR PROJECT MANAGEMENT
COST OVERRUNS
TIME SLIPPAGE
TECHNICAL SHORTFALLS
FAILURE TO OBTAIN BENEFITS *
Muhamad Abduh
Institut Teknologi Bandung

24. CAUSES OF POOR PROJECT MANAGEMENT
IGNORANCE & OPTIMISM
MYTHICAL MAN-MONTH: Many tasks sequentially linked, require training
FALLING BEHIND: Bad news travels slowly upward *
Muhamad Abduh
Institut Teknologi Bandung

25. CHANGE MANAGEMENT CHALLENGES
ENTERPRISE SYSTEMS: High risk of failure, replacing legacy systems, myriad interconnections
BUSINESS PROCESS REENGINEERING: 70% failure rate, deeply rooted in old processes, employees often unprepared *
Muhamad Abduh
Institut Teknologi Bandung

26. CHANGE MANAGEMENT CHALLENGES
MERGERS & ACQUISITIONS: Decline in shareholder value, difficult to integrate company systems, organizational change, worker morale *
Muhamad Abduh
Institut Teknologi Bandung

27. MANAGING IMPLEMENTATION:
CONTROL RISK FACTORS: Gear tools, methodologies to level of risk
INTERNAL INTEGRATION TOOLS:
FORMAL PLANNING TOOLS
FORMAL CONTROL TOOLS *
Muhamad Abduh
Institut Teknologi Bandung

28. FORMAL PLANNING TOOLS EXAMPLES:
PROGRAM EVALUATION & REVIEW TECHNIQUE: Diagram of project activities, sequential and concurrent, shows interactions of activities
GANTT CHART: Shows activities as bars along a time line, with beginning, end of each task
THESE PROVIDE SCHEDULES *
Muhamad Abduh
Institut Teknologi Bandung

29. Institut Teknologi Bandung
FORMAL CONTROL TOOLS:
BUDGET: Time, money, resources
MONITOR PROGRESS: Completion of tasks, fulfillment of goals
CONTROL RISK FACTORS: Cost/benefits *
Muhamad Abduh
Institut Teknologi Bandung

30. EXTERNAL INTEGRATION TOOLS
LINK ALL USERS THROUGHOUT ORGANIZATION
USE END USERS AS TEAM MEMBERS
SHARE INFORMATION & PROGRESS
INCLUDE TRAINING
AVOID COUNTERIMPLEMENTATION *
Muhamad Abduh
Institut Teknologi Bandung

31. ORGANIZATIONAL FACTORS
JOB DESIGN
STANDARDS & PERFORMANCE MONITORING
ERGONOMICS: Interaction of people & machines; jobs, health, interface *
Muhamad Abduh
Institut Teknologi Bandung

32. ORGANIZATIONAL FACTORS
EMPLOYEE GRIEVANCE RESOLUTION PROCEDURES
HEALTH & SAFETY
GOVERNMENT REGULATORY COMPLIANCE *
Muhamad Abduh
Institut Teknologi Bandung

33. ORGANIZATIONAL FACTORS
MONITOR PROGRESS: Completion of tasks, fulfillment of goals
CONTROL RISK FACTORS: Cost / benefits *
Muhamad Abduh
Institut Teknologi Bandung

34. ORGANIZATIONAL FACTORS
ORGANIZATIONAL IMPACT ANALYSIS: How will system impact structure, attitudes, decision-making, operations
SOCIOTECHNICAL DESIGN: Explore group structures, task allocation, job design for human factor *
Muhamad Abduh
Institut Teknologi Bandung

35. “FOURTH-GENERATION” PROJECT MANAGEMENT
EMERGING TECHNIQUES TO DEAL WITH COMPLEXITY
ENTERPRISE-WIDE FOCUS
DRIVEN BY STRATEGIC VISION & TECHNOLOGY
MAY REQUIRE SEPARATE PROGRAM OFFICE *
Muhamad Abduh
Institut Teknologi Bandung

36. MANAGEMENT OF INFORMATION SYSTEM PROJECT AND IMPLEMENTATION
W e e k 7
MANAGEMENT OF INFORMATION SYSTEM PROJECT AND IMPLEMENTATION
Muhamad Abduh
Institut Teknologi Bandung