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E. Wainright Martin Carol V. Brown Daniel W. DeHayes Jeffrey A. Hoffer William C. Perkins MANAGINGINFORMATIONTECHNOLOGY FIFTH EDITION CHAPTER 12 IT P ROJECT.

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Presentation on theme: "E. Wainright Martin Carol V. Brown Daniel W. DeHayes Jeffrey A. Hoffer William C. Perkins MANAGINGINFORMATIONTECHNOLOGY FIFTH EDITION CHAPTER 12 IT P ROJECT."— Presentation transcript:

1 E. Wainright Martin Carol V. Brown Daniel W. DeHayes Jeffrey A. Hoffer William C. Perkins MANAGINGINFORMATIONTECHNOLOGY FIFTH EDITION CHAPTER 12 IT P ROJECT M ANAGEMENT

2 © 2005 Pearson Prentice-Hall Chapter IT P ROJECT M ANAGEMENT Page 421 IT Project management requires knowledge of system development methodologies: SDLC Prototyping RAD Purchasing life cycle

3 © 2005 Pearson Prentice-Hall Chapter IT P ROJECT M ANAGEMENT Page 421 Project Management Institute (PMI) International society of project workers Certified thousands of professionals since 1984 PM competencies certified by PMI include eight areas: Figure 12.1 Eight Project Management Competencies

4 © 2005 Pearson Prentice-Hall Chapter IT P ROJECT M ANAGEMENT Page 421 Most projects share common characteristics: 1. 1.Risk and uncertainty highest at project start 2. 2.Ability of stakeholders to influence project greatest at project start 3. 3.Cost and staffing levels lower at project start and higher toward end (PMI, 1996)

5 © 2005 Pearson Prentice-Hall Chapter IT P ROJECT M ANAGEMENT Page 422 Project: Temporary endeavor to create unique product or service Typically is a one-time initiative Can be divided into multiple tasks Requires coordination and control Has a definite beginning and end

6 © 2005 Pearson Prentice-Hall Chapter IT P ROJECT M ANAGEMENT Page 422 Project: Temporary endeavor to create unique product or service Typically is a one-time initiative Can be divided into multiple tasks Requires coordination and control Has a definite beginning and end Program – a group of projects managed in a coordinated way to obtain benefits not available from managing them individually (PMI, 1996)

7 © 2005 Pearson Prentice-Hall Chapter IT P ORTFOLIO M ANAGEMENT Page 422 IT Portfolio – set of IT project initiatives currently in progress, as well as requests for IT projects that have not yet been funded

8 © 2005 Pearson Prentice-Hall Chapter IT P ORTFOLIO M ANAGEMENT Page 422 Project categories to help with prioritization: Absolute must A mandate due to security, legal, regulatory, or end-of-life-cycle IT issues Highly Desired/Business-Critical Includes short-term projects with good financial returns Wanted Valuable, but with longer time periods for ROI (more than 12 months) Nice to Have Projects with good returns, but with lower potential business value (Denis, et al., 2004)

9 © 2005 Pearson Prentice-Hall Chapter P ROJECT I NITIATION Page 424 Project charter Scope statement Feasibility analyses Economic Operational Technical

10 © 2005 Pearson Prentice-Hall Chapter P ROJECT I NITIATION Page 424 Economic feasibility Formal cost-benefit analysis usually conducted ROI calculated when benefits can be easily measured Alternatives to ROI: Figure 12.3 Alternatives to ROI for Justifying Investments

11 © 2005 Pearson Prentice-Hall Chapter P ROJECT I NITIATION Page 424 Project Manager Characteristics Project manager can be: IS manager Business manager Both

12 © 2005 Pearson Prentice-Hall Chapter P ROJECT I NITIATION Page 425 Project Manager Characteristics Figure 12.4 Nontechnical Skills for Superior Project Management

13 © 2005 Pearson Prentice-Hall Chapter P ROJECT I NITIATION Page 425 Project Sponsor and Champion Roles Sponsor: P articipates in the development of the initial project proposal and the feasibility studies May personally argue for project approval Is usually the business manager who financially owns the project

14 © 2005 Pearson Prentice-Hall Chapter P ROJECT I NITIATION Page 425 Project Sponsor and Champion Roles Champion – a business manager who: Has high credibility as organizational spokesperson among user community Is successful communicator of vision and benefits throughout the project

15 © 2005 Pearson Prentice-Hall Chapter P ROJECT P LANNING Page 426 Three major components: Schedule Budget Staff (project team)

16 © 2005 Pearson Prentice-Hall Chapter P ROJECT P LANNING Page 426 Scheduling Work breakdown analysis: Identifies phases and task sequence to meet project goals Estimates time of completion for each task Results in a project master schedule that identifies date and deliverable milestones

17 © 2005 Pearson Prentice-Hall Chapter P ROJECT P LANNING Page 426 Scheduling Timeboxing – organizational practice in which a system module is to be delivered to user within a set time limit, such as 6 months Work breakdown – a basic management technique that systematically subdivides blocks of work down to the level of detail at which the project will be controlled

18 © 2005 Pearson Prentice-Hall Chapter P ROJECT P LANNING Page 427 Budgeting Two traditional approaches to estimating costs: Bottom-up Cost elements are estimated for lowest level of work tasks and then aggregated to give total project cost estimate Top-down (parametric cost estimating) Provides cost estimates for major budget categories based on historical experience

19 © 2005 Pearson Prentice-Hall Chapter P ROJECT P LANNING Page 427 Budgeting Inexperienced estimators may: 1. 1.Be too optimistic about what is needed to do the job 2. 2.Tend to leave out components 3. 3.Not use a consistent methodology, and have difficulty recreating their rationales

20 © 2005 Pearson Prentice-Hall Chapter P ROJECT P LANNING Page 427 Staffing Project staffing involves: 1. 1.Identifying IT specialist skill mix needed 2. 2.Selecting personnel who collectively have necessary skills and assigning them to work 3. 3.Preparing personnel for specific team member work 4. 4.Providing incentives to achieve project goals

21 © 2005 Pearson Prentice-Hall Chapter P ROJECT P LANNING Page 429 Staffing Figure 12.5 Counterproductive Characteristics of Project Team Environments (Based on productivity study by Hughes Aircraft Company in Roman, 1986) Counterproductive Characteristics

22 © 2005 Pearson Prentice-Hall Chapter P ROJECT P LANNING Page 429 Planning Documents Two typical planning documents: Statement of Work (SOW) For the customer High-level document that describes what project delivers and when Contract between project manager and executive sponsor Project Plan Used by project manager to guide, monitor, and control execution of project Reviewed by managers or committees that oversee project

23 © 2005 Pearson Prentice-Hall Chapter P ROJECT P LANNING Page 429 Planning Documents Two typical planning charts: PERT (or CPM) Gantt

24 © 2005 Pearson Prentice-Hall Chapter P ROJECT P LANNING Page 429 Planning Documents PERT (or CPM) Graphically models sequence of project tasks and interrelationships using a flowchart diagram Depicts a critical path – sequence of activities that will take longest time to complete Helps managers estimate effects of task slippage If used, less likely to have cost and schedule overruns

25 © 2005 Pearson Prentice-Hall Chapter P ROJECT P LANNING Page 430 Planning Documents Figure 12.6 PERT Chart Example (Reprinted from Valacich, George, and Hoffer, Essentials of Systems Analysis & Design, Prentice Hall, 2001)

26 © 2005 Pearson Prentice-Hall Chapter P ROJECT P LANNING Page 429 Planning Documents Gantt Graphically depicts estimated times (and later actual times) for each project task against a horizontal time scale Tasks presented in logical order along with bar graph showing estimated time duration for each task on a calendar Useful for displaying a project schedule and tracking progress of a set of tasks against project plan

27 © 2005 Pearson Prentice-Hall Chapter Page 431 Figure 12.7 Gantt Chart Example (Reprinted from Valacich, George, and Hoffer, Essentials of Systems Analysis & Design, 1 st Edition, Copyright © Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ)

28 © 2005 Pearson Prentice-Hall Chapter P ROJECT E XECUTION AND C ONTROL Page 430 Project plan needs to be refined and reassessed throughout life of project Software project management tools commonly used to help initiate and monitor project tasks Communication among project team members critical for task coordination and integration Communication throughout project to all stakeholders is key to project success

29 © 2005 Pearson Prentice-Hall Chapter P ROJECT E XECUTION AND C ONTROL Page 431 Figure 12.8 Status Reporting (Roman, 1986) Routine Project Status Reporting

30 © 2005 Pearson Prentice-Hall Chapter P ROJECT E XECUTION AND C ONTROL Page 432 Managing Project Risks PM Goal: Manage risk of failing to achieve project objectives Causes of Risk: Human error Project scope changes Unanticipated technology changes Internal politics

31 © 2005 Pearson Prentice-Hall Chapter P ROJECT E XECUTION AND C ONTROL Page 432 Managing Project Risks Figure 12.9 Ten IT-Related Risks and Potential Consequences (Bashein, Markus, and Finley, 1997)

32 © 2005 Pearson Prentice-Hall Chapter Page 434 Figure Risk Controllability and Impact Grid (Adapted from Hamilton, 2000) Managing Project Risks

33 © 2005 Pearson Prentice-Hall Chapter Page 434 Figure Risk Exposure: Risk versus Stake (Adapted from Frame, 1994) Managing Project Risks

34 © 2005 Pearson Prentice-Hall Chapter P ROJECT E XECUTION AND C ONTROL Page 433 Managing Business Change Change management: Ability to successfully introduce change to individuals and organizational units Key to project success Often involves change to power structures that must be recognized Can be facilitated by using change models, such as Lewin/Schein change model

35 © 2005 Pearson Prentice-Hall Chapter P ROJECT E XECUTION AND C ONTROL Page 433 Managing Business Change Figure Three Stages of Lewin/Schein Change Model

36 © 2005 Pearson Prentice-Hall Chapter P ROJECT C LOSING Page 436 IT project deliverables completed Formal user acceptance obtained or failed project terminated Common questions for team members: What went right on this project? What went wrong on this project? What would you do differently on the next project, based on your experience with this project?

37 © 2005 Pearson Prentice-Hall Chapter S PECIAL I SSUE: M ANAGING C OMPLEX IT P ROJECTS Page 437 Three factors critical to success of large, complex IT projects: The business vision an integral part of project A testing approach used at program level (not just individual application level) Used a phased-release approach (rather than single rollout strategy)

38 © 2005 Pearson Prentice-Hall Chapter S PECIAL I SSUE: M ANAGING C OMPLEX IT P ROJECTS Page 437 Figure Complexity Increases with Offsite and Offshore Resources (1 of 2) (Adapted from Poria, 2004)

39 © 2005 Pearson Prentice-Hall Chapter Page 437 Figure Complexity Increases with Offsite and Offshore Resources (2 of 2) (Adapted from Poria, 2004)

40 © 2005 Pearson Prentice-Hall Chapter S PECIAL I SSUE: P OST- M ERGER IT I NTEGRATION P ROJECTS Page 438 What makes for a successful merger? Well-honed IT project management skills, and a program management structure Retaining IT talent needed for post merger IT integration efforts Quickly offering attractive retention contracts to key personnel


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