1. 3 1 Project Success Factors u Project management important for success of system development project u 2000 Standish Group Study l Only 28% of system development projects successful l 72% of projects canceled, completed late, completed over budget, and/or limited in functionality u Thus, project requires careful planning, control, and execution

2. 3 2 Reasons for Project Failure u Incomplete or changing requirements u Limited user involvement u Lack of executive support u Lack of technical support u Poor project planning u Unclear objectives u Lack of required resources

3. 3 3 Reasons for Project Success u Clear system requirement definitions u Substantial user involvement u Support from upper management u Thorough and detailed project plans u Realistic work schedules and milestones

4. 3 4 Role of the Project Manager u Project management – organizing and directing people to achieve a planned result within budget and on schedule u Success or failure of project depends on skills of the project manager l Beginning of project – plan and organize l During project – monitor and control u Responsibilities are both internal and external

5. 3 5 Internal Responsibilities u Identify project tasks and build a work breakdown structure u Develop the project schedule u Recruit and train team members u Assign team members to tasks u Coordinate activities of team members and subteams u Assess project risks u Monitor and control project deliverables and milestones u Verify the quality of project deliverables

6. 3 6 External Responsibilities u Report the project’s status and progress u Establish good working relationships with those who identify the needed system requirements l The people who will use the system u Work directly with the client (the project’s sponsor) and other stakeholders u Identify resource needs and obtain resources

7. 3 7 Project Management Body of Knowledge (PMBOK) u Scope management l Control functions included in system l Control scope of work done by team u Time management l Build detailed schedule of all project tasks l Monitor progress of project against milestones u Cost management l Calculate initial cost/benefit analysis l Monitor expenses

8. 3 8 Project Management Body of Knowledge ( continued ) u Quality management l Establish quality plan and control activities for each project phase u Human resource management l Recruit and hire project team members l Train, motivate, team build u Communications management l Identify stakeholders and their communications l Establish team communications

9. 3 9 Project Management Body of Knowledge ( continued ) u Risk management l Identify and review risks for failure l Develop plans to reduce these risks u Procurement management l Develop requests for proposals (RFPs) l Evaluate bids, write contracts, monitor performance u Integration management

10. 3 10 Project Initiation and the Project Planning Phase u Driving forces to start project l Respond to opportunity l Resolve problem l Conform to directive u Project initiation comes from l Long-term IS strategic plan (top-down) prioritized by weighted scoring l Department managers or process managers (bottom-up) l Response to outside forces (HIPAA)

11. 3 11 Activities of the Project Planning Phase and Their Key Questions

12. 3 12 Defining the Problem u Review business needs l Use strategic plan documents l Consult key users l Develop list of expected business benefits u Identify expected system capabilities l Define scope in terms of requirements u Create system scope document u Build proof of concept prototype (we will not do this in MIS 160) u Create context diagram (we will not do this in MIS 160)

13. 3 13 Producing the Project Schedule u Develop work breakdown structure (WBS) l List of tasks and duration required for project l Similar to outline for research paper l WBS is foundation for project schedule u Build a PERT/CPM chart l Assists in assigning tasks l Critical path method l Gantt chart and tracking GANTT chart

14. 3 14 Partial PERT/CPM Chart

15. 3 15 Gantt Chart for Entire Project (with overlapping phases)

16. 3 16 Confirming Project Feasibility u Risk management u Economic feasibility l Cost/benefit analysis l Sources of funds (cash flow, long-term capital) u Organizational and cultural feasibility u Technological feasibility u Schedule feasibility u Resource feasibility

17. 3 17 Risk Management

18. 3 18 Economic Feasibility u Cost/benefit analysis l Estimate project development costs l Estimate operational costs after project l Estimate financial benefits based on annual savings and increased revenues l Calculate using table of costs and benefits u Uses net present value (NPV), payback period, return on investment (ROI) techniques

19. 3 19 Net Present Value PV n = present value of Y dollars n years from now based on a discount rate of i. NPV = sum of PVs across years. Calculates time value of money.

20. 3 20 Supporting Detail for Salaries and Wages for RMO (Figure 3-16)

21. 3 21 Summary of Development Costs for RMO (Figure 3-17)

22. 3 22 Summary of Annual Operating Costs for RMO (Figure 3-18)

23. 3 23 Sample Benefits for RMO (Figure 3-19)

24. 3 24 RMO Cost Benefit Analysis (Figure 3-20)

25. 3 25 Intangibles in Economic Feasibility u Intangible benefits cannot be measured in dollars l Increased levels of service l Customer satisfaction l Survival l Need to develop in-house expertise u Intangible costs cannot be measured in dollars l Reduced employee morale l Lost productivity l Lost customers or sales

26. 3 26 Organizational and Cultural Feasibility u Each company has own culture l New system must fit into culture u Evaluate related issues for potential risks l Low level of computer competency l Computer phobia l Perceived loss of control l Shift in power l Fear of job change or employment loss l Reversal of established work procedures

27. 3 27 Technological Feasibility u Does system stretch state-of-the-art technology? u Does in-house expertise presently exist for development? u Does an outside vendor need to be involved? u Solutions include l Training or hiring more experienced employees l Hiring consultants l Changing scope and project approach

28. 3 28 Schedule Feasibility u Estimates needed without complete information u Management deadlines may not be realistic u Project managers l Drive realistic assumptions and estimates l Recommend completion date flexibility l Assign interim milestones to periodically reassess completion dates l Involve experienced personnel l Manage proper allocation of resources

29. 3 29 Resource Feasibility u Team member availability u Team skill levels u Computers, equipment, and supplies u Support staff time and availability u Physical facilities

30. 3 30 Staffing and Launching the Project u Develop resource plan for the project u Identify and request specific technical staff u Identify and request specific user staff u Organize the project team into workgroups u Conduct preliminary training and team building exercises u Key staffing question: “Are the resources available, trained, and ready to start?”

31. 3 31 Launching Project u Scope defined, risks identified, project is feasible, schedule developed, team members identified and ready u Oversight committee finalized, meet to give go- ahead, and release funds u Formal announcement made to all involved parties within organization u Key launch question: “Are we ready to start?”

32. 3 32 Summary u Project management tasks l Start at SDLC project planning phase l Continue throughout each SDLC phase u Organizing and directing other people l Achieve planned result l Use predetermined schedule and budget u Knowledge areas needed l Scope, time, cost, quality, human resources, communications, risk, procurement u Project initiation l Information system needs are identified and prioritized in strategic plans u Project planning phase l Define problem (investigation and scope) l Produce project schedule (WBS) l Confirm project feasibility (evaluate risks) l Staff project (know people’s skills) l Launch project (executive formal approval)