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The Nature of Information

Technology ProjectsChapter 1

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L earning Objectives` Describe the dominant eras of information systems called the electronic dataprocessing (EDP) era, the micro era, the network era, and the globalization era, and

understand how managing IT projects has evolved during these eras.` Understand the current state of IT project management and how successfully

managing IT projects remains a challenge for most organizations.` Explain the value-driven, socio-technical, project management, and knowledge

management approaches that support ITPM.` Define what a project is and describe its attributes.` Define the discipline called project management.` Describe the role and impact IT projects have on an organization.` Identify the different roles and interests of project stakeholders.` Describe some common approaches to structured systems development and

iterative systems development.` Describe the project life cycle (PLC), the systems development life cycle (SDLC),

and their relationship.` Describe extreme project management.` Identify the Project Management Body of Knowledge (PMBOK ) core knowledge

areas.

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1940 s 1950 s 1960 s 1970 s 1980 s 1990 s 2000 s 2010 s

FirstElectronic

Computer

EDPEra

PCEra

Network Era

Globalization

IT and Modern Day Project Management

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Introduction` Information Technology (IT) projects are organizational

investments that require` Time` Money`

And other resources such as people, technology, facilities,etc.` Organizations expect some type of value in return for this

investment` IT Project Management is a relatively new discipline that

attempts to make IT projects more successful andcombinestraditional Project Management with SoftwareEngineering/Management Information Systems

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A n ITPM A pproach` Organizational resources are limited, so organizations

must choose among competing interests to fund specificprojects

` This decision should be based on the value a competingproject will provide to an organization

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W hich Situation is W orse?` Successfully building and implementing a system that

provides little or no value to the organization?Or` Failing to implement an information system that could

have provided value to the organization, but wasunderdeveloped or poorly managed?

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W hy Do IT Projects Fail?` Larger projects have the lowest success rate and appear

to be more risky than medium and smaller projects` Technology, business models, and markets change too rapidly

so projects that take more than a year can be obsolete beforethey are completed

` The CHAOS studies also provides some insight as to thefactors that influence project success

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H as the Current State of IT ProjectsChanged Since 1994?` The Standish Group has continued to study IT projects

over the years.` In general, IT Projects are showing higher success rates

due to`

Better project management tools & processes` Smaller projects` Improved communication among stakeholders` More skillful IT project managers

` But there is still ample opportunity for improvement !

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Figure 1.1 - Summary of the Chaos Studies from 1994 to 2006

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Rank 1994 2001 2006

1 User Involvement Executive Support User Involvement

2 Executive ManagementSupport User InvolvementExecutive Management

Support

3 Clear Statement of Requirements Experienced Project Manager Clear Business Objectives

4 Proper Planning Clear Business Objectives Optimizing Scope

5 Realistic Expectations Minimized Scope Agile Process

6 Smaller Project Milestones Standard SoftwareInfrastructure Project Management Expertise

7 Competent Staff Firm Basic Requirements Financial Management

8 Ownership Formal Methodology Skilled Resources

9 Clear Vision & Objectives Reliable Estimates Formal Methodology

10 Hard-working, focused team Other Standard Tools andInfrastructure

Table 1.1 Summary of CHAOS Study Factor Rankings for Successful ProjectsSources: Adapted from the Standish Group. CHAOS (West Yarmouth, MA: 1995) & http://www.infoq.com/articles/Interview-Johnson-Standish-CHAOS

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IT ProjectPerformance

Over thePast 3 Years

MuchWorse Worse Same Better

MuchBetter

Ability tomeet projectschedules

0.0% 12.3% 40.4% 41.2% 6.1%

Ability tomeet project

budgets1.8% 10.5% 44.7% 37.7% 5.3%

Ability tocomplete

project scopeor systemrequirement

s2.6% 7.0% 41.2% 41.2% 7.9%

Customersatisfaction

over the past3 years(Customerscan be

internal e.g., HR

departmentor external

e.g., aparticular

client)

Overallsatisfaction

of thecustomer

1.8% 13.2% 34.2% 39.5% 11.4%

Perceivedvalue of the

deliveredproduct to

the customer

0.0% 9.6% 39.5% 38.6% 12.3%

Potential forfuture work

with thecustomer

0.9% 3.5% 42.1% 38.6% 14.9%

Table 1.2: Project Performance and Internal/External Customer Satisfaction.Source: Marchewka, J.T. (2008). n = 114.

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Rank Factors for Challenged Projects Factors for Failed ( Impaired) Projects

1 Lack of user input Incomplete requirements

2 Incomplete requirements Lack of user involvement

3 Changing requirements & specifications Lack of resources

4 Lack of executive support Unrealistic expectations

5 Technology incompetence Lack of executive support

6 Lack of resources Changing requirements & specifications

7 Unrealistic expectations Lack of planning

8 Unclear objectives Didn t need it any longer

9 Unrealistic time frames Lack of IT management

10 New technology Technology illiteracy

Table 1.3: Summary of Factor Rankings for Challenged and Failed (Impaired) ProjectsSource: Adapted from the Standish Group. CHAOS (West Yarmouth, MA: 1995)

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Tata Consultancy Services 2007 Report` Included 800 senior IT managers from the UK,

US, France, Germany, India, Japan, & Singapore:` 62% of the IT projects failed to meet their

schedules` 49 % experienced budget overruns` 47 % experienced higher-than expected

maintenance costs` 41 % failed to deliver the expected business value

and ROI

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Continued to provide support to improve IT

Tend to accept problems as the norm (i.e., anecessary evil)

Reduced IT budgets

Reluctant to fund new IT projects

Sought compensation from IT vendors

Looked for a scapegoat among IT staff

None

Don't know

69%

4 3%2

1%

19%

1 3%

9%

2%

1%

Figure 1. 2 - When IT projects have gone wrong, what has beenthe reaction from the business managers and the Board of Directors?

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Improving the likelihood of success

` A Value-Driven Approach` Plain & Simple: IT Projects must provide value to the organization

` Socio-technical Approach` Its not just about the technology or building a better mouse trap

` Project Management Approach` processes and infrastructure (Methodology)` resources` expectations

` competition` efficiency and effectiveness

` Knowledge Management Approach` lessons learned , best practices & shared know ledge

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The PMBOK Guides Definitions for Projectand Project Management

` A project is a temporary endeavor undertaken tocreate a unique product, service, or result.

` P roject Management is the application of knowledge, skills, tools and techniques to project activities tomeet project requirements. Managing a project includes:` Identifying requirements` Establishing clear and achievable objectives` Balancing the competing demands for quality, scope, time, and cost` Adapting the specifications, plans, and approaches to the different

concerns and expectations of the various stakeholders

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The Context of Project Management Project A ttributes

` Time Frame` Purpose (to provide value !)` Ownership` Resources (the triple constraint)` Roles

` Project Manager` Project Sponsor` SME (domain & technical)

` Risk & Assumptions` Interdependent Tasks

` progressive elaboration steps & increments` Planned Organizational Change` Operate in Environments Larger than the Project Itself

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The Triple Constraint

Figure 1 .3

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Generic Project L ife Cycle

Figure 1 .4

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Systems Development L ife Cycle(SD L C)

Figure 1 .5

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W aterfall MethodDefine

Requirements

Design

Build

Test

Maintenance

Implement

Figure 1 .6

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The Relationship Between the P L C & SD L C

Figure 1 .7

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Putting the SD L C into Practice` Structured Approach to Systems Development

` Waterfall Method` Iterative Development

` Rapid Applications Development (RAD)` Prototyping` Spiral Development` Extreme Programming

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E xtreme Project Management (XPM)` A new approach & philosophy to project management that is becomingincreasingly popular` Characterizes many of todays projects that exemplify

speed, uncertainty, changing requirements, and high risks` Traditional project management often takes an orderly approach

while, XPM embraces the fact that projects are often chaotic andunpredictable` XPM focuses on flexibility, adaptability, and innovation` Traditional and new approaches together can provide us with a better

understanding of how to improve the likelihood of project success

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The Project Management Body of Knowledge (PMBOK)

` The Guide to the Project Management Body of Knowledge (PMBOKGuide) documents 9 project management knowledge areas

` The PMBOK Guide is published and maintained by the ProjectManagement Institute (PMI)` http://www.pmi.org

` PMI provides a certification in project management called the ProjectManagement Professional (PMP) that many people today believe will beas relevant as a CPA certification

` PMP certification requires that you pass a PMP certification exam todemonstrate a level of understanding about project management, aswell as satisfy education & experience requirements and agree to aprofessional code of conduct

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Project Management Body of Knowledge A reas

Figure 1 .8