a risk management incorporation 255766 information technology for logistics a simulation of...
TRANSCRIPT
A Risk Management Incorporation
255766 Information Technology for LogisticsA Simulation of Information System DevelopmentFaculty of Engineering, Chiang Mai University
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.
New Information System
Module B
Module C
Module A
Project Organization Chart
Your Organizat
ion
Team 1
Team 2
Team 3
IT Vendor
Team 1
Team 2
Team 3
Information System Development
RequirementsSystem Requirement
SpecificationDesignModule A DesignModule B DesignModule C Design
ImplementationModule A CodeModule B CodeModule C Code
VerificationModule & Integration Test Report
Acceptance Test Report MaintenanceOperation Manual
Standard Risk Management
Identification
Analysis
Planning
Monitoring
Resolution
Learning
Your Task
•Ensure that your project is completed successfully within allocated budget.
•Plan for risk mitigation.
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.
Game Demonstration
Risk Management Stage I:
Risk IdentificationLack of executive
involvementTechnology constraints
Scope creeps
Lack of required development skills
Unexpected defects
User resistance
A list of risks, estimated impacts
& mitigations will be provided
Risk Management Stage II:
Risk Analysis
Impact
Pro
bab
ilit
y
5 5 10 15 20 25
4 4 8 12 16 20
3 3 6 9 12 15
2 2 4 6 8 10
1 1 2 3 4 5
1 2 3 4 5
Lack of executive involvement
Lack of executive involvement
Technology constraints
Technology constraints
Scope creepsScope creeps
Lack of required dev. skills
Lack of required dev. skills
DefectsDefects
User resistance
User resistance
Do not totally believe
in the experts
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!
Risk Expected
Impact
Method A
(100% prevention
)
Method B(50%
prevention)
Method C(20%
prevention)
Lack of executive involvements
50,000,000
10,000,000
2,000,000
1,000,000
Technology constraints
10,000,000
5,000,000
2,000,000
1,000,000
Scope creeps 10,000,000
5,000,000
3,000,000
1,000,000
Simulation Phase I:
Requirements
Lack of executive involvements
C
Scope creeps
C
Plan for all development
phases but submit only for the
forthcoming phase
Risk Management Stage IV.I: Simulation -
Requirements
Risks Encountered!!Lack of
executive
involveme
nt
Lack of
executive
involveme
nt
Lack of user involvement
Lack of user involvement
Unable to finish within
deadline
Unable to finish within
deadline
Pay for resolution
if you did not plan
Risk Management Stage IV.II-IV.VI:
Simulation - Design-Maintenance
RiskRiskRiskRisk
RiskRisk
RiskRisk
RiskRisk
RiskRisk
RiskRiskRiskRisk RiskRisk
RiskRisk
RiskRisk
RiskRisk
RiskRisk RiskRiskRiskRisk RiskRisk
RiskRisk
SimulationPhase I:
Requirements10 Minutes
SimulationPhase II: Design
10 Minutes
SimulationPhase III:
Implementation10 Minutes
SimulationPhase IV:
Verification10 Minutes
SimulationPhase V:
Maintenance10 Minutes
Summary