1. © McGraw-Hill/Irwin 2004 Information Systems Project Management—David Olson 1-1 Session 1: Introduction to Project Management

2. © McGraw-Hill/Irwin 2004 Information Systems Project Management—David Olson 1-2 Learning Outcomes Students be able to identify the importance of project management in Information System Students be able to define the importance aspects in managing project

3. © McGraw-Hill/Irwin 2004 Information Systems Project Management—David Olson 1-3 Discussion Topics Definition & characteristics of Project management Challenges of modern environments Project management features

4. © McGraw-Hill/Irwin 2004 Information Systems Project Management—David Olson 1-4 References Information Systems Project Management, David Olson, Olson, David L., 2003, Introduction to Information Systems Project Management, 2nd Ed., McGrawHill, ISBN: 0-07-282402-6. Schwalbe, Kathy, 2003, Information Technology Project Management, 3rd Ed., Course Technology, Inc., ISBN: 0619159847.

5. © McGraw-Hill/Irwin 2004 Information Systems Project Management—David Olson 1-5 Project Management Case

6. © McGraw-Hill/Irwin 2004 Information Systems Project Management—David Olson 1-6 Denver International Airport Bozman [1994]; Zetlin [1996]; Montealegre & Keil [2000] Designed as largest US airport Cost –Estimate $1.7 billion (to be done Oct 1993) –Pre-construction budget $2.08 billion –Aug 1994 spent $3.2 billion –Final 16 months late, $2 billion over budget

7. © McGraw-Hill/Irwin 2004 Information Systems Project Management—David Olson 1-7 Denver International AP Functionality –Malfunctioning computerized baggage system Cost $193 million 55 networked computers, 56 barcode scanners Sometimes bags on wrong flights Major effort –Many problems –Functioning airport –Typical project

8. © McGraw-Hill/Irwin 2004 Information Systems Project Management—David Olson 1-8 What is a project? –definable purpose –cut across organizational lines –unique –ad hoc

9. © McGraw-Hill/Irwin 2004 Information Systems Project Management—David Olson 1-9 What is a project? everything done the first time is a project can be constructing something –road, dam, building can be organizing something –a meeting, an election campaign, a symphony, a movie GETTING A NEW, COMPLEX ACTIVITY DONE

10. © McGraw-Hill/Irwin 2004 Information Systems Project Management—David Olson 1-10 What is a Project? (Cont’d) A Project has a unique purpose A Project is temporary A Project requires resources, often from various areas A Project should have a primary sponsor or customer A Project involves uncertainty

11. © McGraw-Hill/Irwin 2004 Information Systems Project Management—David Olson 1-11 Project Characteristics Because projects are new (not at the repetitive operations stage), they typically involve –high levels of uncertainty and risk –difficult to estimate resources required –difficult to estimate time required Temporary activities by ad hoc organizations

12. © McGraw-Hill/Irwin 2004 Information Systems Project Management—David Olson 1-12 Project Constaints Scope: What is the project trying to accomplish? What unique product or service does the customer or sponsor expect from the project? Time: How long should it take to complete the project? What is the project’s schedule? Cost: What should it cost to complete the project?

13. © McGraw-Hill/Irwin 2004 Information Systems Project Management—David Olson 1-13 Dimensions of Complexity magnitude of effort number of groups and organizations to be coordinated diversity in skills or expertise needed usually the MORE COMPLEX, the more time and resources required

14. © McGraw-Hill/Irwin 2004 Information Systems Project Management—David Olson 1-14 Group Size Dimension individualterm paper groupwedding system implementation organizationauditing plant construction multiorganizationspace shuttle wars

15. © McGraw-Hill/Irwin 2004 Information Systems Project Management—David Olson 1-15 Challenges of Modern Environments high levels of risk and uncertainty from many interacting forces and variables rapidly changing technology rising costs increased competition frequent resource shortages many opposing interest groups

16. © McGraw-Hill/Irwin 2004 Information Systems Project Management—David Olson 1-16 What is Project Management? Project Management is the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project. Stakeholders are the people involved in or affected by project activities and include the project sponsor, project team, support staff, customers, users, suppliers, and even opponents to the project Knowledge areas: key competencies that project managers must develop

17. © McGraw-Hill/Irwin 2004 Information Systems Project Management—David Olson 1-17 Project Management Framework Project Scope management involves defining and managing all the work required to successfully complete the project Project Time management includes estimating how long it will take to complete the work Project Cost management consists of preparing and managing the budget for the project Project Quality management ensures that project will satisfy the stated or implied needs for which it was undertaken

18. © McGraw-Hill/Irwin 2004 Information Systems Project Management—David Olson 1-18 Facilitating Knowledge Areas of Project Management Project Human Resource Management is concerned with making effective use of the people involved with the project Project Communications management involves generating, collecting, disseminating, and storing project information Project Risk management includes identifying, analyzing, and responding to risks related to the project Project Procurement management involves acquiring or procuring goods and services that are needed for a project from outside the performing organization

19. © McGraw-Hill/Irwin 2004 Information Systems Project Management—David Olson 1-19 Project Management Features differs from repetitive operations –market and technology much less predictable –greater uncertainty of outcomes –more parties or organizations involved –DYNAMIC environment

20. © McGraw-Hill/Irwin 2004 Information Systems Project Management—David Olson 1-20 IS Project Features technological explosion –286; 386; 486; Pentium; ? –CASE tools; C++; GUI; highly volatile & expanding market –CAD/CAM; EDI; laptops; Internet uncertainty –is what requester wants feasible? –how long will it take to program? –will there be any bugs? many people involved –user group; systems designers; programmers; end users;

21. © McGraw-Hill/Irwin 2004 Information Systems Project Management—David Olson 1-21 the Systems Approach recognize that organizations are made up of interrelated units need coordinated goals integration benefits global objective attainment –all pull towards same goal PROJECTS are system of interrelated tasks and work units PROJECT MANAGEMENT unifies planning and work efforts to accomplish multiple goals

22. © McGraw-Hill/Irwin 2004 Information Systems Project Management—David Olson 1-22 Project Goal Dimensions INTERRELATED DIMENSIONS Cost –stay within budget Time –stay within time schedule specified Performance –end product performs to specifications Maintain focus on all 3, control trade-offs

23. © McGraw-Hill/Irwin 2004 Information Systems Project Management—David Olson 1-23 Adages Brooks’s Law Adding manpower to a late software project makes it later. Throwing money at a project doesn’t solve the problem Taking resources away from a project doesn’t always make it easier either

24. © McGraw-Hill/Irwin 2004 Information Systems Project Management—David Olson 1-24 Project Entities Project Manager –coordinates efforts across functional areas; – integrates planning & controls costs; –schedules, assigns tasks Project Team –group of people doing what needs to be done –often from different functions, organizations Project Management System –organizational structure, information processing, procedures permitting integration of tasks and those who accomplish them

25. © McGraw-Hill/Irwin 2004 Information Systems Project Management—David Olson 1-25 IS Project Environment Risky –Standish Group reports: >30% cancelled About 40% lack designed functionality Only 13% rated successful by sponsors –Examples Bank of America project American Airlines subsidiary travel reservation

26. © McGraw-Hill/Irwin 2004 Information Systems Project Management—David Olson 1-26 Summary All projects are complex –IS projects even more so –Get diverse people to work together Time Cost Functionality Project management framework: scope, time, cost, quality Facilitating knowledge areas of project management: HR, communications, risks management, procurement