1. A Risk Management Incorporation 255766 Information Technology for Logistics A Simulation of Information System Development Faculty of Engineering, Chiang Mai University

2. Scenario Your company is developing a new ERP system. The complete development of this system can offer you a strong competitive edge. Your team is assigned to manage/consult/monitor the development of one core module. This system involves a number of stakeholders and bleeding edge technology. The boss allocates a risk management budget of 500,000,000 Kaak to your team.

3. New Information System Module B Module C Module A Project Organization Chart Your Organizatio n Team 1 Team 2 Team 3 IT Vendor Team 1 Team 2 Team 3

4. Information System Development Requirements System Requirement Specification Design Module A Design Module B Design Module C Design Implementation Module A Code Module B Code Module C Code Verification Module & Integration Test Report Acceptance Test Report Maintenance Operation Manual

5. Standard Risk Management Identific ation Analysis Planning Monitori ng Resoluti on Learning

6. Your Task Ensure that your project is completed successfully within allocated budget. Plan for risk mitigation.

7. Instruction You can adopt or adapt risk management processes as you see fit. The simulation includes 5 development phases. At least one risk is expected in each phase.

8. Game Demonstration

9. Risk Management Stage I: Risk Identification Lack of executive involvement Technology constraints Scope creeps Lack of required development skills Unexpected defects User resistance A list of risks, estimated impacts & mitigations will be provided

10. Risk Management Stage II: Risk Analysis Impact Probability 5510152025 448121620 33691215 2246810 112345 12345 Lack of executi ve involve ment Technol ogy constra ints Scope creeps Lack of require d dev. skills Defects User resista nce Do not totally believe in the experts

11. Risk Management Stage III: Risk Planning Select risk mitigation from available solutions. Submit your risk plan & payment to the moderator, phase by phase. Make your wishes! RiskExpected Impact Method A (100% prevention) Method B (50% prevention) Method C (20% prevention) Lack of executive involvements50,000,00010,000,0002,000,0001,000,000 Technology constraints10,000,0005,000,0002,000,0001,000,000 Scope creeps10,000,0005,000,0003,000,0001,000,000 Simulation Phase I: Requirements Lack of executive involvements C Scope creeps C Plan for all development phases but submit only for the forthcoming phase

12. Risk Management Stage IV.I: Simulation - Requirements Risks Encountered!! Lack of executive involvemen t Lack of user involvemen t Unable to finish within deadline Pay for resolution if you did not plan

13. Risk Management Stage IV.II-IV.VI: Simulation - Design- Maintenance Risk

14. Simulation Phase I: Requirements 10 Minutes

15. Simulation Phase II: Design 10 Minutes

16. Simulation Phase III: Implementation 10 Minutes

17. Simulation Phase IV: Verification 10 Minutes

18. Simulation Phase V: Maintenance 10 Minutes

19. Summary