3 Project Success Factors u Project management important

3 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 1

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

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

3 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 4

3 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 5

3 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 6

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

Project Management Body of Knowledge (continued) u Quality l 3 management 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 8

Project Management Body of Knowledge (continued) u Risk 3 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 9

3 Project Initiation and the Project Planning Phase u u Driving forces to start project l Respond to opportunity l Resolve problem l Conform to directive 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) 10

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

3 Defining the Problem u u Review business needs l Use strategic plan documents l Consult key users l Develop list of expected business benefits 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) 12

3 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 13

3 Partial PERT/CPM Chart 14

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

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

3 Risk Management 17

3 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 18

3 Net Present Value PVn = 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. 19

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

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

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

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

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

3 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 25

3 Organizational and Cultural Feasibility u Each l company has own culture 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 26

3 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 27

3 Schedule Feasibility u Estimates needed without complete information u Management u Project deadlines may not be realistic 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 28

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

3 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? ” 30

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

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