Presentation on theme: "Information technology project management Cloud computing and SaaS"— Presentation transcript:
1 Information technology project management Cloud computing and SaaS MBA 501WEEK 6
2 What is project management? Project management – a definition “Project management is the process by which projects are defined, planned, monitored, controlled and delivered such that the agreed benefits are realised.”Association for Project ManagementProject management is both a discipline and a set of tools and practicesMeredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
3 PM as a profession: Project Management Institute (PMI) The Project Management Institute is the major project management organization / professional societydefines and standardize the body of knowledge (PMBOK)has an important credentialising function – Project Management certificationFounded in 1969Very significant growth from 7,500 members in 1990 to over 260,000 in 2007The Project Management Journal and PM Network are the leading project management journalsMeredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
4 Why such growth in the profession of PM? Recent Changes in Managing Organizations –The replacement of traditional hierarchical management with more consensual forms.The increasing adoption of the “systems engineering” approach to problem solving.The establishment of projects as the preferred way to accomplish the organizations goals.Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
5 Project management“Managing projects has always been one of the most important, and toughest, jobs in the IS organization” McNurlin & SpragueWhat is a project?“collection of related tasks and activities undertaken to achieve a specific goal”Must be a clearly stated goalMust have a clearly stated beginning and endMcNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall
6 Definition of a project “A temporary endeavour undertaken to create a unique product or service”Project Management Institute (2004)How do we distinguish a project from other kinds of work?Major characteristics of a projectImportance – in the eyes of the organization (not necessarily size)Performance – well defined set of goalsLife cycle with a finite due dateInterdependencies – interaction between project activities, and with other activities in the organizationUniqueness – even routine project produce a unique resultResources – budgets, personnel etc…..are always limitedConflict – over cost, schedule, resources, requirements. Between stakeholders, between team members. There is always conflict in PM.Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
7 What is not a project?Non-projects: Routine tasks that are performed again and again (projects are one-time events)Quasi-projects (Bill, would you look into this?)are those that do not have a specific task identified, no specific budget, and no specific deadline defined. Although there are some uncertainties, project management skills can still be used to manage them.Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
8 Why Project Management? The main purpose for initiating a project is to accomplish some goalProject management increases the likelihood of accomplishing that goalProject management gives us someone (the project manager) to spearhead the project and to hold accountable for its completionBetter resultsBetter controlBetter customer relationsBetter ROIMeredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
9 Projects Tend to be Large The Channel TunnelThree Gorges Dam, ChinaIT megaprojects (Wikipedia)Projects are getting larger over timeFlying: balloons planes jets rockets reusable rocketsThe more we can do, the more we try to doMeredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
10 Project Management Also Getting Smaller More people are seeing the advantages of project management techniquesThe tools are become cheaperThe techniques are becoming more widely taught and written aboutWedding and other event planningA new kitchenA website redesignEtc etc – some examples that come to mind?Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
11 Project managementTechniques for managing the three elements of any project (the project triangle)TimeCostPerformance objectives (scope)Project management is hard – it is all about managing risks!McNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall
12 The job of a project manager Setting up the project (selecting the team etc)Managing the schedule – WBS and assigning activities/tasksManaging the finances (estimating and managing costs)Managing the benefits (and managing expectations)Managing the risks, opportunities, and issues/threatsSoliciting independent reviewsMcNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall
13 The Project Life Cycle Figure 1-3 Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.Figure 1-3
14 Time Distribution of Project Effort Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.Figure 1-4
15 Uncertainty and Risk at the Start of the Life Cycle – very difficult to predict with accuracy Estimate of project cost made at the startMeredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.Figure 1-6
16 Risk During the Life Cycle – uncertainty decreases as the project nears completion Estimates of project cost made at time t0, t1 and t2Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.Figure 1-7
17 Project Management Institute – core competencies for PMs Management of:Integration / co-ordinationScopeTimeCostQualityHuman resourcesCommunicationRiskProcurementMcNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall
18 Software for project management MS ProjectWrikeBasecamp
19 Example of PMs work: Activity Planning Activity planning includesSelecting a systems analysis teamEstimating time required to complete each taskScheduling the projectTwo tools for project planning and control are Gantt charts and network diagramsMcNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall
20 Work Breakdown Structure (WBS) Project is broken down into phasesFurther broken down into tasks / activities and sub-tasksIdentify task dependenciesEstimate the time each task will takemay use “most likely”, “pessimistic”, and “optimistic” estimates for timeMcNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall
21 Gantt Charts Easy to construct and use Shows activities over a period of time and illustrates how activities and tasks are interrelated.Good at illustrating tasks that run parallel to one anotherExample of Gantt chartMcNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall
23 Network DiagramNetwork diagrams show precedence, activities that must be completed before the next activities may be startedShow multiple paths to project completionUsed to calculate the critical path, ie. the longest path through the activitiesThe critical path will cause the project to fall behind if any delay is encountered on it
25 Project failure Chaos Report 2011 (The Standish Group) More than half of projects conducted between 2002 and 2010 either described as challenged or complete failures.37% Successful: delivered on time, on budget, with required features and functions42 % Challenged: late, over budget, and/or with less than the required features and functions21% Failed: cancelled prior to completion or delivered and never used
26 Why do projects fail?Any non-trivial project is almost certain to have problems – project management is hardProblems with peoplePoor communicationLack of buy-in from key stakeholdersResistance from employees / usersTasks not completed as agreedInsufficient trainingProblems with estimating time and budgets – overly optimistic or over-promisingScope creepMcNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall
27 Poor risk managementOne of the main reasons that IT projects fail is poor risk managementTechnical risks: eg. scope creep causing complexity, vendor package doesn’t scaleBusiness risks: the business doesn’t change properly to use the new system (in a way necessary to reap the benefits)Selecting the right project management approach can help mitigate risk entailed with business changesThe business case for an IT project should include the business-change risksMcNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall
28 Risk management - steps Step 1: Assess the risksleadership of the business changeemployees’ perspective on the changethe scope and urgency of the change.Step 2: Mitigate the risksRisk avoidance – remove source of the risk (eg remove certain functions to avoid hacking)Risk limitation by implementing controls (eg. System monitoring to avoid disaster)Risk transfer by letting others assume the risk (eg. by outsourcing)Step 3: Adjust the project management approachMcNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall
29 The role of the Project Management Office (PMO) Large organizations often centralize their PM functions into a Project Management OfficeAssist CIO in achieving objectives:Instill project management discipline and knowledgeStandardize project management best practicesFacilitate IT project portfolio management (for better control)Keep closer watch on project expenses and progressMegan Santosus. Why you need a PMO. CIO Magazine, July 1, 2003.
30 The PMO PMO Models Payback from the PMO? Consulting model – provides PMs in business units with training, guidance and best practiceCentralized model – PMs loaned out to business units to work on specific projectsPayback from the PMO?Help deliver strategic IT projectsEnable better resource managementFewer project failuresOnly projects that offer the biggest payback are supportedMegan Santosus. Why you need a PMO. CIO Magazine, July 1, 2003.
32 Outsourcing In the IT world, outsourcing means… turning over a firm’s computer operations, network operations, or other IT function to a provider for a specified time…usually a period of yearsNot at all common until late 1980s, early 1990sNow, CIOs must demonstrate good reasons NOT to outsourceOutsourcing is evidence of a global and mobile trend in the IT labour marketAs is “reverse outsourcing” (eg. Wipro presence in US)McNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall
33 Working outwards: Drivers towards outsourcing Value (cost savings). Forrester research shows that firms save between 12 & 17% of the cost of doing the work in-houseBenefits from economies of scaleFocus on core business due to global competitionWhat business are we in?Where do we add value?McNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall
34 Location of supplier of outsourced services Off-shoring: means outsourcing to a provider outside the country (For the US this means India, Ireland, the Philippines, China etc)Low wage countriesCultural and time zone issues need to be managedPolitical issues at home re the domestic workforceNear-shoring – outsourcing to Canada, MexicoOutsourcing to home countryMcNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall
35 Types of outsourcing Project based (eg. Y2K work) Best-of-breed outsourcing – one supplier might handle desktop support, another data centre operations, another network management. Now managed collaboratively, with one supplier taking the leadBusiness process outsourcing (BPO) – outsourcing all or most of a re-engineered process that has a large IT component (eg. travel agency handing over ticket accounting)eBusiness outsourcing – speed and focus are the big drivers, especially where IT gives no competitive advantageShared services – a type of “in-sourcing” where economies of scale are achieved by centralizing IT, legal, etc servicesUtility and cloud computing – pay as you go – Amazon Web Services (SaaS is another variant)McNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall
36 Two statements for discussion Outsourcing offloads a burdensome technical responsibility and allows management to focus on its core businessOROutsourcing strips a company of an important core competence – IT know-how and creates unnecessary risksMcNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall
38 The idea of cloud computing – the big shift “Computers used to be self-contained devices. If you wanted to do something with your PC, you had to buy a piece of software and install it on your hard drive”.The web changed all that. All you needed was a browser and a network connection “The PC began to turn inside out—what was important wasn’t what was inside its case but what was outside it.”Now, we use FB and Gmail, YouTube, and Netflix – this shift has been largely invisible to the consumer“[Computing today] is turning into a service supplied over a network. It’s becoming a utility.”The implications for corporate users are IT are very significantWhy build data centers?Why bother even having an IT department any longer?Nicholas Carr: The Big Switch.
39 Cloud computing: what is it? “Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction” National Institute of Standards and Technology
40 Three types of cloud computing IaaS – Infrastructure as a Service: computing power, storage, database services eg. Amazon Web ServicesPaaS – Platform as a Service: an entire platform to build applications from scratch eg. Windows Azure and HerokuSaaS – Software as a Service: already built applications (pretty much the same as COTS)eg. Adobe Photoshop Creative Cloud
41 Utility computingCarr (The Big Shift) – in the same way that private production of electricity was replaced by utility companies, private computing is being replaced by utility computingThe “cloud” is actually extremely tangible, and a huge user of energyThe big players includeAmazon, Microsoft, and Google (this is what one looks like) 6mThe three reasons to cloud compute (Christopher Barnatt)
42 SaaS: what is it? Software-as-a-Service (SaaS) Software programs offered through “the cloud” usually via a web browser interfaceAn alternative to packaged application software installed on a local systemExample: Salesforce.comSalesforce.com: What is cloud computing (3m)Why Google Apps for Education (Google) 11m
43 SaaS - pricingShift from upfront license fee and service fees for local installation as revenue for software companiesNow we see new pricing models:Monthly subscription fees: On-demand usageTransaction-basedAdvertising supportedExample of Salesforce.com pricingCusumano (2010) Cloud computing and SaaS as new computing platforms. Comm. ACM Vol 53 No4
44 SaaS advantages Cheaper Available from anywhere via web browser / mobile devicesPay for it on an as-needed basisNo ongoing maintenance feesOne price covers everythingNo need for in-house IT staff to install and maintain – all patches and updates dealt with by the service providerCusumano (2010) Cloud computing and SaaS as new computing platforms. Comm. ACM Vol 53 No4
45 Risks and disadvantages Risks of downtime are managed by making sure that contracts address service levels (SLAs)No competitive advantage – all your competitors can and do access exactly the same softwareSecurityPrivacy concerns – a large and growing issueCusumano (2010) Cloud computing and SaaS as new computing platforms. Comm. ACM Vol 53 No4
46 SaaS as platform / app development ecosystem SaaS providers like Salesforce.com open their platforms via APIs so that other application companies can build products utilizing some features in the Salesforce CRM productSo opening up the cloud infrastructure creates an “app” ecosystem and inter-relationships between developersEg. All the uses of the Google Maps API such as Zillow.comThis creates a network effectCusumano (2010) Cloud computing and SaaS as new computing platforms. Comm. ACM Vol 53 No4