1. The Nature of Information Technology Projects
Chapter 1

2. Learning Objectives
Describe the dominant eras of information systems called the electronic data processing (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.

3. IT and Modern Day Project Management
1940s
1950s
1960s
1970s
1980s
1990s
2000s
2010s
First
Electronic
Computer
EDP
Era PC
Era
Network
Era
Globalization

4. 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 andcombines traditional Project Management with Software Engineering/Management Information Systems

5. An ITPM Approach
Organizational resources are limited, so organizations must choose among competing interests to fund specific projects
This decision should be based on the value a competing project will provide to an organization

6. Which Situation is Worse?
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 was underdeveloped or poorly managed?

7. Why 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 before they are completed
The CHAOS studies also provides some insight as to the factors that influence project success

8. The Software Crisis
The CHAOS study published in 1995 by The Standish Group found that although the U.S spent over $250 billion on IT projects, approximately…
31% were cancelled before completion
53% were completed but over budget, over schedule, & did not meet original specifications
For mid-size companies, average cost overruns were 182%, while average schedule overruns were 202%!

9. Has the Current State of IT Projects Changed 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!

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

11. Table 1.1 Summary of CHAOS Study Factor Rankings for Successful Projects
Sources: Adapted from the Standish Group. CHAOS (West Yarmouth, MA: 1995) &
Rank
1994
2001
2006 1
User Involvement
Executive Support 2
Executive Management Support 3
Clear Statement of Requirements
Experienced Project Manager
Clear Business Objectives 4
Proper Planning
Optimizing Scope 5
Realistic Expectations
Minimized Scope
Agile Process 6
Smaller Project Milestones
Standard Software Infrastructure
Project Management Expertise 7
Competent Staff
Firm Basic Requirements
Financial Management 8
Ownership
Formal Methodology
Skilled Resources 9
Clear Vision & Objectives
Reliable Estimates 10
Hard-working, focused team
Other
Standard Tools and Infrastructure

12. IT Project Performance Over the Past 3 Years
Table 1.2: Project Performance and Internal/External Customer Satisfaction.
Source: Marchewka, J.T. (2008). n = 114.
IT Project Performance Over the Past 3 Years
Much
Worse
Same
Better
Ability to meet project schedules
0.0%
12.3%
40.4%
41.2%
6.1%
Ability to meet project budgets
1.8%
10.5%
44.7%
37.7%
5.3%
Ability to complete project scope or system requirements
2.6%
7.0%
7.9%
Customer satisfaction over the past 3 years (Customers can be internal – e.g., HR department or external – e.g., a particular client)
Overall satisfaction of the customer
13.2%
34.2%
39.5%
11.4%
Perceived value of the delivered product to the customer
9.6%
38.6%
Potential for future work with the customer
0.9%
3.5%
42.1%
14.9%

13. Factors for Challenged Projects Factors for Failed (Impaired) Projects
Table 1.3: Summary of Factor Rankings for Challenged and Failed (Impaired) Projects
Source: Adapted from the Standish Group. CHAOS (West Yarmouth, MA: 1995)
Rank
Factors for Challenged Projects
Factors for Failed (Impaired) Projects 1
Lack of user input
Incomplete requirements 2
Lack of user involvement 3
Changing requirements & specifications
Lack of resources 4
Lack of executive support
Unrealistic expectations 5
Technology incompetence 6 7
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

14. 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

16. Improving the likelihood of success
A Value-Driven Approach
Plain & Simple: IT Projects must provide value to the organization
Socio-technical Approach
It’s 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 knowledge

17. The PMBOK® Guide’s Definitions for Project and Project Management
A project is a temporary endeavor undertaken to create a unique product, service, or result.
Project Management is the application of knowledge, skills, tools and techniques to project activities to meet 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

18. The Context of Project Management – Project Attributes
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

19. The Triple Constraint
Figure 1.3

20. The Project Life Cycle and IT Development
Project Life Cycle (PLC)
A collection of logical stages or phases that maps the life of a project from its beginning to its end in order to define, build, and deliver the product of the project – i.e., the information system
Projects are divided into phases to increase manageability and reduce risk
Phase exits, stage gates, or kill points are decision points at the end of each phase to evaluate performance or to correct problems or cancel the project
Fast tracking is the overlapping of phases to reduce the project’s schedule
Can be risky!

21. Generic Project Life Cycle
Figure 1.4

22. Systems Development Life Cycle (SDLC)
Figure 1.5

23. Waterfall Method
Figure 1.6

24. The Relationship Between the PLC & SDLC
Figure 1.7

25. Putting the SDLC into Practice
Structured Approach to Systems Development
Waterfall Method
Iterative Development
Rapid Applications Development (RAD)
Prototyping
Spiral Development
Extreme Programming

26. Extreme Project Management (XPM)
A new approach & philosophy to project management that is becoming increasingly popular
Characterizes many of today’s 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 and unpredictable
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

27. The Project Management Body of Knowledge (PMBOK®)
The Guide to the Project Management Body of Knowledge (PMBOK® Guide) documents 9 project management knowledge areas
The PMBOK® Guide is published and maintained by the Project Management Institute (PMI)
PMI provides a certification in project management called the Project Management Professional (PMP) that many people today believe will be as relevant as a CPA certification
PMP certification requires that you pass a PMP certification exam to demonstrate a level of understanding about project management, as well as satisfy education & experience requirements and agree to a professional code of conduct

28. Project Management Body of Knowledge Areas
Figure 1.8