Chapter 14.pptx

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Copyright2013DorlingKinders

ley(India)Pvt.Ltd.

Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don

Managing Projects

Chapter 14

VIDEO CASESCase 1 Mastering the Hype Cycle: How to Adopt the Right Innovation at the

Right TimeCase 2: NASA: ro!ect Management ChallengesInstr"ctional #ideo 1: So$tware ro!ect Management in 1% Min"tes


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What are the objectives of project management and why is it soessential in developing information systems?

What methods can be used for selecting and evaluatinginformation systems projects and aligning them with the rms

business goals? How can rms assess the business value of information systems

projects?

What are the principal risk factors in information systemsprojects?

What strategies are useful for managing project risk and systemimplementation?

Learning Objectives


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Problem: oke !ottlings e"isting project management softwareunable to deliver needed reports# projects running over budget#past schedule

$olutions: %icrosoft &'ce (nterprise Project %anagement )(P%*

$olution# integrated with e"isting network and software# to allowonline# centrali+ed project management

,emonstrates use of information systems and accurate data tomanage projects e-ectively

.llustrates need for organi+ational and management change to

ensure success of new technology

Opening Happiness !ith a "e! ProjectManage#ent S$ste#


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/unaway projects and system failure

/unaway projects: 012 3 412 .5 projects

("ceed schedule# budget

6ail to perform as specied

5ypes of system failure

6ail to capture essential business re7uirements

6ail to provide organi+ational benets

omplicated# poorly organi+ed user interface

.naccurate or inconsistent data

%he I#portance o& Project Manage#ent


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CO"SE'(E"CES O) POO* P*O+EC% MA"A,EME"%

Without proper management# a systems development project takes longer tocomplete and most often e"ceeds the allocated budget8 5he resultinginformation system most likely is technically inferior and may not be able todemonstrate any benets to the organi+ation8

)I,(*E 14-1


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Project management

9ctivities include planning work# assessing risk# estimatingresources re7uired# organi+ing the work# assigning tasks#controlling project e"ecution# reporting progress# analy+ing

results6ive major variables

$cope

5ime

ost

uality /isk



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%anagement structure for information systems projects

Hierarchy in large rms

orporate strategic planning group

/esponsible for rms strategic plan

.nformation systems steering committee /eviews and approves plans for systems in all divisions

Project management group

/esponsible for overseeing specic projects

Project team

/esponsible for individual systems project

Se.ecting Projects


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MA"A,EME"% CO"%*OL O) S/S%EMS

P*O+EC%S

(ach level ofmanagement in thehierarchy is responsiblefor specic aspects ofsystems projects# andthis structure helpsgive priority to themost importantsystems projects forthe organi+ation8

)I,(*E 14-0


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.nformation systems plan:

.denties systems projects that will deliver most businessvalue# links development to business plan

/oad map indicating direction of systems development#

includes: Purpose of plan

$trategic business plan rationale

urrent systems;situation


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.n order to plan e-ectively# rms need to inventory anddocument e"isting software# hardware# systems

5o develop e-ective information systems plan# organi+ationmust have clear understanding of both long3term and short3term information re7uirements

$trategic analysis or critical success factors )$6* approach

$ees information re7uirements as determined by a smallnumber of critical success factors

9uto industry $6s might include styling# 7uality# cost

Se.ecting Projects


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ritical success factors

Principal method:

.nterviews with 034 top managers to identify goals andresulting $6s

Personal $6s aggregated into small number of rm $6s $ystems built to deliver information on $6s

$uitable for top management# building ,$$ and ($$

,isadvantages:


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sley(India)Pvt.Ltd.


Se.ecting Projects

(SI", CS)s %O DEVELOP S/S%EMS

5he $6 approach relies oninterviews with keymanagers to identify their$6s8 .ndividual $6s are

aggregated to develop$6s for the entire rm8$ystems can then be builtto deliver information on

these $6s8

)I,(*E 14-


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Portfolio analysis

=sed to evaluate alternative system projects

.nventories all of the organi+ations information systemsprojects and assets

(ach system has prole of risk and benet High3benet# low risk

High3benet# high risk

>ow3benet# low risk

>ow3benet# high risk

5o improve return on portfolio# balance risk and return fromsystems investments

Se.ecting Projects


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Se.ecting Projects

A S/S%EM PO*%)OLIO

ompanies shoulde"amine their portfolioof projects in terms of

potential benets andlikely risks8 ertainkinds of projects shouldbe avoided altogetherand others developedrapidly8 5here is noideal mi"8 ompaniesin di-erent industries

have di-erent proles8

)I,(*E 14-4


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$coring models

=sed to evaluate alternative system projects# especially whenmany criteria e"ist

9ssigns weights to various features of system and calculatesweighted totals

Se.ecting Projects

CRITERIA WEIGHT SYSTEM A % SYSTEM ASCORE

SYSTEM B % SYSTEM BSCORE

Online order entry 4 67 268 73 292

Customer credit check 3 66 198 59 177

Inentory check 4 72 288 81 324

W!rehouse receiin" 2 71 142 75 150

ETC

GRA#$ TOTAS 3128 3300


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.nformation system costs and benets

5angible benets:

an be 7uantied and assigned monetary value

$ystems that displace labor and save space:

5ransaction and clerical systems.ntangible benets:

annot be immediately 7uantied but may lead to7uantiable gains in the long run

(8g8# more e'cient customer service# enhanced

decision making $ystems that inuence decision making:

($$# ,$$# collaborative work systems

Estab.ishing the 23siness Va.3e o&In&or#ation S$ste#s


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apital budgeting for information systems

apital budgeting models:

%easure value of investing in long3term capital investmentprojects

/ely on measures the rms ash outows

("penditures for hardware# software# labor

ash inows

.ncreased sales

/educed costs

5here are various capital budgeting models used for .5projects: Payback method# accounting rate of return oninvestment# net present value# internal rate of return ).//*



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/eal options pricing models )/&P%*

an be used when future revenue streams of .5 projects areuncertain and up3front costs are high

=se concept of options valuation borrowed from nancial

industry@ives managers e"ibility to stage .5 investment or test thewaters with small pilot projects or prototypes to gain moreknowledge about risks before investing in entireimplementation

>imitations of nancial models

,o not take into account social and organi+ational dimensionsthat may a-ect costs and benets



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,imensions of project risk

>evel of project risk inuenced by:

Project si+e

.ndicated by cost# time# number of organi+ational units

a-ected &rgani+ational comple"ity also an issue

Project structure

$tructured# dened re7uirements run lower risk

("perience with technology

Managing Project *is


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hange management

/e7uired for successful system building


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.mplementation

9ll organi+ational activities working toward adoption#management# and routini+ation of an innovation

hange agent: &ne role of systems analyst

/edenes the congurations# interactions# job activities# andpower relationships of organi+ational groups

atalyst for entire change process

/esponsible for ensuring that all parties involved acceptchanges created by new system



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/ole of end users

With high levels of user involvement

$ystem more likely to conform to re7uirements

=sers more likely to accept system

=ser3designer communication gap:

=sers and information systems specialists

,i-erent backgrounds# interests# and priorities ,i-erent loyalties# priorities# vocabularies

,i-erent concerns regarding a new system



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%anagement support and commitment

Positive perception by both users and technical sta-

(nsures su'cient funding and resources

(nforcement of re7uired organi+ational changes



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Aery high failure rate among enterprise application and !P/projects )up to B12 for !P/*

Poor implementation and change management practices

(mployees concerns about change

/esistance by key managers hanging job functions# career paths# recruitment practices

%ergers and ac7uisitions

$imilarly high failure rate of integration projects

%erging of systems of two companies re7uires:

onsiderable organi+ational change

omple" systems projects



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ontrolling risk factors

6irst step in managing project risk involves identifying natureand level of risk of project

(ach project can then be managed with tools and risk3management approaches geared to level of risk

%anaging technical comple"ity

.nternal integration tools

Project leaders with technical and administrativee"perience

Highly e"perienced team members

6re7uent team meetings

$ecuring of technical e"perience outside rm ifnecessary



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A ,A"%% CHA*%

5he @antt hart in this gure shows the task# person3days# and initials of eachresponsible person# as well as the start and nish dates for each task8 5heresource summary provides a good manager with the total person3days for eachmonth and for each person working on the project to manage the projectsuccessfully8 5he project described here is a data administration project8

)I,(*E 14-5

i j i


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A ,A"%% CHA*% 6cont78

5he @antt chart in this gure shows the task# person3days# and initials of eachresponsible person# as well as the start and nish dates for each task8 5heresource summary provides a good manager with the total person3days for eachmonth and for each person working on the project to manage the projectsuccessfully8 5he project described here is a data administration project8

)I,(*E 14-5



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A ,A"%% CHA*% 6cont78



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g g j

A PE*% CHA*%

5his is a simplied P(/5 hart for creating a small Web site8 .t shows theordering of project tasks and the relationship of a task with preceding andsucceeding tasks8)I,(*E 14-

9

M i P j t *i


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.ncreasing user involvement and overcoming user resistance

("ternal integration tools consist of ways to link work ofimplementation team to users at all organi+ational levels

9ctive involvement of users

.mplementation teams responsiveness to users=ser resistance to organi+ational change

=sers may believe change is detrimental to their interests

ounter implementation: ,eliberate strategy to thwartimplementation of an information system or an innovation inan organi+ation

(8g8# increased error rates# disruptions# turnover#sabotage


M i P j t *i


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$trategies to overcome user resistance

=ser participation

=ser education and training

%anagement edicts and policies

.ncentives for cooperation

.mprovement of end3user interface

/esolution of organi+ational problems prior to introduction ofnew system




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,esigning for the organi+ation

.nformation system projects must address ways in whichorgani+ation changes with new system

Procedural changes

Cob functions

&rgani+ational structure

Power relationships

Work structure

(rgonomics: .nteraction of people and machines in workenvironment

,esign of jobs

Health issues

(nd3user interfaces




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Read the Interactive Session and disc"ss the $ollowing &"estions

What were some of the problems with ,$5 $ystems oldsoftware development environment?

How did $crum development help solve some of thoseproblems?

What other adjustments did ,$5 make to be able to use $crummore e-ectively in its software projects?

What management# organi+ation# and technology issues had tobe addressed?


DS% S/S%EMS SCO*ES :I%H SC*(M A"D APPLICA%IO" LI)E C/CLEMA"A,EME"%



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&rgani+ational impact analysis

How system will a-ect organi+ational structure# attitudes#decision making# operations

$ociotechnical design

9ddresses human and organi+ational issues $eparate sets of technical and social design solutions

6inal design is solution that best meets both technical andsocial objectives




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Project management software

an automate many aspects of project management

apabilities for

,ening# ordering# editing tasks

9ssigning resources to tasks 5racking progress

%icrosoft Project D1E1

%ost widely used project management software

P(/5# @antt harts# critical path analysis

.ncrease in $aa$# open3source project management software




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Read the Interactive Session and disc"ss the $ollowing &"estions

What are some of the challenges %otorola faces as a business?Why is project management so critical at this company?

What features of HP PP% were most useful to %otorola?

What management# organi+ation# and technology factors had tobe addressed before %otorola could implement and successfullyuse HP PP%?

(valuate the business impact of adopting HP PP% at %otorola8


MO%O*OLA %(*"S %O P*O+EC% PO*%)OLIO MA"A,EME"%

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Chapter 14.pptx

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