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Muhamad AbduhInstitut Teknologi Bandung7.1 W e e k 7 7 MANAGEMENT OF INFORMATION SYSTEM PROJECT AND IMPLEMENTATION.

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Presentation on theme: "Muhamad AbduhInstitut Teknologi Bandung7.1 W e e k 7 7 MANAGEMENT OF INFORMATION SYSTEM PROJECT AND IMPLEMENTATION."— Presentation transcript:

1 Muhamad AbduhInstitut Teknologi Bandung7.1 W e e k 7 7 MANAGEMENT OF INFORMATION SYSTEM PROJECT AND IMPLEMENTATION

2 Muhamad AbduhInstitut Teknologi Bandung7.2 CAPITAL BUDGET: PAYBACK METHOD: How long will it take to pay back the investment? RETURN ON INVESTMENT: Does return during useful life of an item exceed the cost to borrow money? COST-BENEFIT RATIO: Does the ratio of benefit versus cost exceed 1? *

3 Muhamad AbduhInstitut Teknologi Bandung7.3 CAPITAL BUDGET: PROFITABILITY INDEX: What is the ratio of present value of cash inflow to initial investment? NET PRESENT VALUE: Accounting for cost, earnings & time value of money what is the investment worth? INTERNAL RATE OF RETURN: Accounting for the time value of money, what is the return rate of an investment? *

4 Muhamad AbduhInstitut Teknologi Bandung7.4 COSTS: HARDWARE SOFTWARE SERVICES PERSONNEL * COSTS & BENEFITS:

5 Muhamad AbduhInstitut Teknologi Bandung7.5 TANGIBLE BENEFIT: INCREASED PRODUCTIVITY LOW OPERATING COSTS REDUCED WORK FORCE LOWER COMPUTER EXPENSES LOWER VENDOR COSTS LOWER CLERICAL/PROFESSIONAL COSTS REDUCED GROWTH OF EXPENSES REDUCED FACILITY COSTS * COSTS & BENEFITS:

6 Muhamad AbduhInstitut Teknologi Bandung7.6 INTANGIBLE BENEFIT: IMPROVED ASSET USE; RESOURCE CONTROL; PLANNING INCREASED FLEXIBILITY MORE TIMELY INFORMATION INCREASED LEARNING ATTAIN LEGAL REQUIREMENTS ENHANCED EMPLOYEE GOODWILL, JOB SATISFACTION, DECISION MAKING, OPERATIONS HIGHER CLIENT SATISFACTION BETTER CORPORATE IMAGE * COSTS & BENEFITS:

7 Muhamad AbduhInstitut Teknologi Bandung7.7 LIMITATIONS: Assume all relevant alternatives have been examined; cost & benefits can be expressed as $$ Ignore intangible benefits * CAPITAL BUDGETING MODELS

8 Muhamad AbduhInstitut Teknologi Bandung7.8 PORTFOLIO ANALYSIS: ANALYSIS OF POTENTIAL APPLICATIONS TO DETERMINE RISKS & BENEFITS DETERMINE DESIRABLE FEATURES, ACCEPTABLE RISKS OF REQUIRED SYSTEM GENERATE PORTFOLIO OF CHARACTERISTICS, RISKS FOR EACH ALTERNATIVE SCORING MODEL *

9 Muhamad AbduhInstitut Teknologi Bandung7.9 IDENTIFY DESIRABLE FEATURES PROVIDE WEIGHTS FOR EACH (ADD TO 1.00) LOOK AT EACH ALTERNATIVE: –WHICH FEATURES ARE PRESENT? –TO WHAT EXTENT (as an amount)? –SCORE THE ALTERNATIVE RANK-ORDER THE ALTERNATIVES SELECT HIGHEST RANKED OPTION * SCORING MODEL:

10 Muhamad AbduhInstitut Teknologi Bandung7.10 REAL OPTIONS PRICING MODELS USEFUL UNDER UNCERTAIN CONDITIONS INCLUDE ESTIMATES FOR MANAGEMENT LEARNING, VALUE OF DELAYING DECISION, VOLATILITY OF COSTS & REVENUES

11 Muhamad AbduhInstitut Teknologi Bandung7.11 CHANGE MANAGEMENT WHAT PROCESSES ARE BEST TO CHANGE: DESIGN DATA COST OPERATIONS *

12 Muhamad AbduhInstitut Teknologi Bandung7.12 CHANGE AGENT DURING IMPLEMENTATION, INDIVIDUAL ACTS AS CATALYST DURING CHANGE PROCESS TO ENSURE SUCCESS *

13 Muhamad AbduhInstitut Teknologi Bandung7.13 APPROACHESADOPTIONMANAGEMENT ROUTINIZATION ACTORS' ROLEXXXX STRATEGYXXXX ORGANIZATIONALXXXX FACTORS IMPLEMENTATION STAGES ALL ACTIVITIES LEADING TO ADOPTION, MANAGEMENT, ROUTINIZATION OF INNOVATION IMPLEMENTATION

14 Muhamad AbduhInstitut Teknologi Bandung7.14 INNOVATION PROCESS ACTOR CHARACTERISTICS & DEMOGRAPHICS SOCIAL STATUS EDUCATION SOPHISTICATION ACTOR ROLES PRODUCT CHAMPION BUREAUCRATIC ENTREPRENEUR GATEKEEPER INNOVATIVE BEHAVIOR

15 Muhamad AbduhInstitut Teknologi Bandung7.15 ACTIONS & INDICATORS FOR SUCCESSFUL SYSTEM IMPLEMENTATION SUPPORT BY LOCAL FUNDS NEW ORGANIZATIONAL ARRANGEMENTS STABLE SUPPLY & MAINTENANCE NEW PERSONNEL CLASSIFICATIONS CHANGES IN ORGANIZATIONAL AUTHORITY *

16 Muhamad AbduhInstitut Teknologi Bandung7.16 ACTIONS & INDICATORS FOR SUCCESSFUL SYSTEM IMPLEMENTATION INTERNALIZATION OF TRAINING PROGRAM CONTINUAL UPDATING OF THE SYSTEM PROMOTION OF KEY PERSONNEL SURVIVAL OF SYSTEM AFTER TURNOVER ATTAINMENT OF WIDESPREAD USE *

17 Muhamad AbduhInstitut Teknologi Bandung7.17 FACTORS IN IMPLEMENTATION OUTCOME CAUSES OF SUCCESS OR FAILURE: USER INVOLVEMENT & INFLUENCE MANAGEMENT SUPPORT LEVEL OF COMPLEXITY / RISK MANAGEMENT OF IMPLEMENTATION PROCESS *

18 Muhamad AbduhInstitut Teknologi Bandung7.18 USER-DESIGNER COMMUNICATIONS GAP DIFFERENCES IN BACKGROUNDS, INTERESTS, PRIORITIES IMPEDE COMMUNICATION AND PROBLEM SOLVING AMONG END USERS AND INFORMATION SYSTEMS SPECIALISTS *

19 Muhamad AbduhInstitut Teknologi Bandung7.19 USER CONCERNS: WILL SYSTEM DELIVER INFORMATION I NEED? HOW QUICKLY CAN I ACCESS DATA? HOW EASILY CAN I RECEIVE DATA? HOW MUCH CLERICAL SUPPORT WILL I NEED FOR DATA ENTRY? HOW WILL SYSTEM OPERATION FIT INTO MY DAILY BUSINESS SCHEDULE? *

20 Muhamad AbduhInstitut Teknologi Bandung7.20 DESIGNER CONCERNS: HOW MUCH DISK SPACE WILL MASTER FILE CONSUME? HOW MANY LINES OF PROGRAM CODE WILL THIS FUNCTION TAKE? HOW CAN WE REDUCE CPU TIME? WHAT IS THE MOST EFFICIENT WAY OF STORING THIS DATA? WHAT DATABASE MANAGEMENT SYSTEM SHOULD WE USE? *

21 Muhamad AbduhInstitut Teknologi Bandung7.21 LEVEL OF COMPLEXITY & RISK PROJECT SIZE PROJECT STRUCTURE EXPERTISE WITH TECHNOLOGY *

22 Muhamad AbduhInstitut Teknologi Bandung7.22 CONTROLLING PROJECT RISK LOW HIGH SMALLHIGH LOW HIGH LARGEVERY HIGH LOW SMALLVERY LOW LOW LARGELOW HIGH SMALLMEDIUM-LOW HIGH LARGEMEDIUM HIGH LOW SMALLVERY LOW STRUCTURETECHNOLOGY LEVELSIZERISK HIGH LOW LARGELOW

23 Muhamad AbduhInstitut Teknologi Bandung7.23 CONSEQUENCES OF POOR PROJECT MANAGEMENT COST OVERRUNS TIME SLIPPAGE TECHNICAL SHORTFALLS FAILURE TO OBTAIN BENEFITS *

24 Muhamad AbduhInstitut Teknologi Bandung7.24 CAUSES OF POOR PROJECT MANAGEMENT IGNORANCE & OPTIMISM MYTHICAL MAN-MONTH: Many tasks sequentially linked, require training FALLING BEHIND: Bad news travels slowly upward *

25 Muhamad AbduhInstitut Teknologi Bandung7.25 CHANGE MANAGEMENT CHALLENGES ENTERPRISE SYSTEMS: High risk of failure, replacing legacy systems, myriad interconnections BUSINESS PROCESS REENGINEERING: 70% failure rate, deeply rooted in old processes, employees often unprepared *

26 Muhamad AbduhInstitut Teknologi Bandung7.26 CHANGE MANAGEMENT CHALLENGES MERGERS & ACQUISITIONS: Decline in shareholder value, difficult to integrate company systems, organizational change, worker morale *

27 Muhamad AbduhInstitut Teknologi Bandung7.27 MANAGING IMPLEMENTATION: CONTROL RISK FACTORS: Gear tools, methodologies to level of risk INTERNAL INTEGRATION TOOLS: FORMAL PLANNING TOOLS FORMAL CONTROL TOOLS *

28 Muhamad AbduhInstitut Teknologi Bandung7.28 FORMAL PLANNING TOOLS EXAMPLES: PROGRAM EVALUATION & REVIEW TECHNIQUE: Diagram of project activities, sequential and concurrent, shows interactions of activities GANTT CHART: Shows activities as bars along a time line, with beginning, end of each task THESE PROVIDE SCHEDULES *

29 Muhamad AbduhInstitut Teknologi Bandung7.29 FORMAL CONTROL TOOLS: BUDGET: Time, money, resources MONITOR PROGRESS: Completion of tasks, fulfillment of goals CONTROL RISK FACTORS: Cost/benefits *

30 Muhamad AbduhInstitut Teknologi Bandung7.30 EXTERNAL INTEGRATION TOOLS LINK ALL USERS THROUGHOUT ORGANIZATION USE END USERS AS TEAM MEMBERS SHARE INFORMATION & PROGRESS INCLUDE TRAINING AVOID COUNTERIMPLEMENTATION *

31 Muhamad AbduhInstitut Teknologi Bandung7.31 ORGANIZATIONAL FACTORS JOB DESIGN STANDARDS & PERFORMANCE MONITORING ERGONOMICS: Interaction of people & machines; jobs, health, interface *

32 Muhamad AbduhInstitut Teknologi Bandung7.32 ORGANIZATIONAL FACTORS EMPLOYEE GRIEVANCE RESOLUTION PROCEDURES HEALTH & SAFETY GOVERNMENT REGULATORY COMPLIANCE *

33 Muhamad AbduhInstitut Teknologi Bandung7.33 ORGANIZATIONAL FACTORS MONITOR PROGRESS: Completion of tasks, fulfillment of goals CONTROL RISK FACTORS: Cost / benefits *

34 Muhamad AbduhInstitut Teknologi Bandung7.34 ORGANIZATIONAL IMPACT ANALYSIS: How will system impact structure, attitudes, decision-making, operations SOCIOTECHNICAL DESIGN: Explore group structures, task allocation, job design for human factor * ORGANIZATIONAL FACTORS

35 Muhamad AbduhInstitut Teknologi Bandung7.35 “FOURTH-GENERATION” PROJECT MANAGEMENT EMERGING TECHNIQUES TO DEAL WITH COMPLEXITY ENTERPRISE-WIDE FOCUS DRIVEN BY STRATEGIC VISION & TECHNOLOGY MAY REQUIRE SEPARATE PROGRAM OFFICE *

36 Muhamad AbduhInstitut Teknologi Bandung7.36 W e e k 7 7 MANAGEMENT OF INFORMATION SYSTEM PROJECT AND IMPLEMENTATION


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