CHAPTER 14Managing Projects

Importance of Project Management Avoid system failure

Fail to capture business requirements Fail to provide organizational benefits Poorly organized and complicated user

interface Inaccurate or inconsistent data

Avoid runaway projects (exceed schedule and budget and do not perform as scheduled)

Project Management

Project – planned series of related activities; achieve a business objective

Project Management – knowledge, skills, tools and techniques; within specified budget and time constraint Scope Time Cost Quality Risk

MANAGEMENT CONTROL OF SYSTEMS PROJECTS

Selecting Projects

Information systems plan (see page 533) Identify system projects that will deliver most business

value; development must match business plan Plan includes: Purpose of plan; Strategic business plan rationale; Current

systems/situation; New developments to consider; Management strategy; Implementation plan; Budget

Critical success factors Small number of operational goals; used to determine

information requirements

Project Charter

Selecting Projects (cont)

Portfolio analysis Used to evaluate alternative system projects Inventories information systems projects and assets Seek to have a balance between types of systems and

level of risk (similar to financial portfolio)

Selecting projects (cont)

Scoring models – used to evaluate alternative system projects Assign weights to various features of

system and calculates weighted totals

CRITERIA WEIGHT SYSTEM A % SYSTEM A SCORE

SYSTEM B % SYSTEM B SCORE

Online order entry 4 67 268 73 292

Customer credit check

3 66 198 59 177

Inventory check 4 72 288 81 324

Warehouse receiving 2 71 142 75 150

ETC

GRAND TOTALS 3128 3300

Business Value of Info Systems Direct System costs Tangible and Intangible benefits

(see page 537) Capital budgeting (measures value of

investing in long-term capital investment projects)

Real Options Pricing Models (Can be used when future revenue streams of IT projects are uncertain and up-front costs are high; gives managers flexibility)

Managing Project Risk

Dimensions of project risk Level of project risk influenced by:

Project size Indicated by cost, time, number of organizational

units affectedProject structure

Structured, defined requirements run lower riskExperience with technology

Managing Project Risk (cont) Change management

Required for successful system building New information systems have powerful behavioral and organizational impact

Implementation All organizational activities working toward adoption, management, and

routinization of an innovation

Related Information Change agent: One role of systems analyst Role of end users User-designer communication gap Management support and commitment

Controlling Risk Factors

Identify nature and level of project risk Manage project with tools and risk-

management approaches Manage technical complexity Increase user involvement and overcome

user resistance Use formal planning and control tools

Management Information Systems

GANTT CHART

The Gantt Chart in this figure shows the task, person-days, and initials of each responsible person, as well as the start and finish dates for each task. The resource summary provides a good manager with the total person-days for each month and for each person working on the project to manage the project successfully. The project described here is a data administration project.

FIGURE 14-5

Management Information Systems

PERT CHART

This is a simplified PERT Chart for creating a small Web site. It shows the ordering of project tasks and the relationship of a task with preceding and succeeding tasks.

FIGURE 14-6

Controlling Risk (cont) Organizational Factors to consider

Ergonomics and Sociotechnical design; health and safety; standards

Organizational impact analysis Project management software tools