1. Managing Project Scope

2. Five Process Phases of Project Management
Initiate
Plan
Execute
Monitor and Control
Close

3. Project Initiation
The process of authorizing a new or continuing an existing project
Four initiation activities:
Identifying projects
Classifying and ranking projects
Selecting projects
Establishing the project charter

4. 1. 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

5. Two Basic Project Planning Approaches
Isolated – attempts to solve individual organizational problems
What procedure (application program, technology, process) is required to solve this particular problem as it exists today?
Dependent on current organizational infrastructure

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

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

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

9. Generic Competitive Strategy
Description
Low-Cost Producer
This 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 Differentiation
This 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 Niche
This 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.

10. Planning
An orderly means of assessing the needs of an organization and defining the systems and technologies that will best satisfy those needs

11. Planning Methods Top-Down Bottom-Up
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

12. Classifying And Ranking Projects
Completed by top management, steering committee, business units, or information systems development groups
Criteria varies among organizations

13. Possible Evaluation Criteria When Classifying And Ranking Projects
Description
Value Chain Analysis
Extent to which activities add value and costs when developing products and/or services
Strategic Alignment
Extent to which the project is viewed as helping the organization achieve its strategic objectives and long-term goals
Potential Benefits
Extent to which the project is viewed as improving profits, customer service, and so forth and the duration of these benefits
Resource Availability
Amount and type of resources the project requires and their availability
Project Size / Duration
Number 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

14. Business Case
Justification that presents the economic, technical, operational, schedule, legal and contractual, and political factors influencing a proposed information systems project

15. Selected Feasibility Factors
Economic
Technical
Operational
Schedule
Legal and contractual
Political

16. Economic Feasibility
Identify the financial benefits and costs associated with a development project
Benefits
Tangible or intangible
Costs

17. Benefits
Tangible – benefit derived from the creation of a project 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 a project 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

18. Cost Types Tangible cost Intangible cost Recurring cost One-Time 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

19. 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

20. Technical Feasibility
Process of assessing the development organization's ability to construct a proposed system

21. Technical Project Risk Assessment Factors
Project Size
Project Structure
Development Group
User Group

22. Risk Assessment Matrix

23. 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

24. 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?

25. 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

26. Legal and Contractual Feasibility
Process of assessing potential legal and contractual ramifications due to the construction of a system

27. Political Feasibility
Process of evaluating how key stakeholders within the organization view the proposed system

28. Project Selection

29. 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

30. Value Chain Analysis

31. Multi-Criteria Analysis

32. 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

33. 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

34. Project Scope Planning Activities
Project workbook created
Project scope statement written
Baseline project plan is developed

35. 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

36. 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?

37. 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

38. Baseline Project Plan Introduction
Provides a brief overview of the entire document and outlines a recommended course of action for the project

39. Baseline Project Plan System Description
Documents possible alternative solutions in addition to the one deemed most appropriate for the given situation

40. 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

41. 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

42. 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

43. Project Scope Verification
Process of obtaining formal acceptance of a project’s scope from the project stakeholders

44. 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

45. Scope Creep
Progressive, uncontrolled increase in project scope

46. Questions?