Chapter 1

The Nature of Information

Technology Projects

1-1

IT and Modern Day Project

Management

1940s
First
Electronic
Computer

1950s

1960s

EDP
Era

1970s 1980s
PC
Era

1990s

2000s

Network
Era

2010s

Globalization

1-2

Introduction
Information Technology (IT) projects are
organizational investments that require
Time
Money
Other resources such as People, Technology,
Facilities, etc.
Organizations expect some type of value in return
for this investment (ROI)
IT Project Management is a relatively new
discipline that attempts to make IT projects more
successful and combines traditional Project
Management with Software
Engineering/Management Information Systems

1-3

An ITPM
(IT Project Management) 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
1-4

Modern Project Management

Often

credited to the U.S. Navy as an

outgrowth of the Polaris Missile
Project in the 1950s
Focuses on reducing costs & product
cycle time.
Provides an important link between
an organizations strategy and the
deployment of that strategy.
Can have a direct impact on an

organizations bottom line and

1-5

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?
1-6

Why Many Projects Fail: Project

Failure can be grouped into four
categories (examples)
People The stakeholders of a project with varied
roles and interests in the projects success or failure.
Processes This includes having a set of project
management and product management processes.
Technology Only 3% of IT project failures can be
attributed to technical challenges but this percentage
can be increased if obsolete, unproven, or incompatible
technologies are used.
Organization Organizational issues can lead to
project failure. A lack of clear direction, improper
strategy, rapidly changing business environment and/or
customer needs can create a moving target for the
products product or service.
1-7

Why Many Projects Fail: Project

Failure can be grouped into four
categories (examples)

1-8

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 overbudget, over

schedule, & did not meet original

specifications

For mid-size companies, average cost overruns

were 182%, while average schedule overruns
were 202%!
1-9

Has the Current State of IT

Projects Changed Since 1994?
The

Standish Group has continued to

study IT projects over the years.
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!
1-10

Table 1.1 Summary of CHAOS

Study Factor Rankings for
Successful
Projects
Ran
k

1994

2001

2006

2008

User Involvement

Executive Support

User Involvement

User Involvement

2
3

Executive
Management
Support
Clear Statement
of Requirements

User Involvement
Experienced Project
Manager
Clear Business
Objectives

Proper Planning

Realistic
Expectations

Minimized Scope

Smaller Project
Milestones

Standard Software
Infrastructure

Competent Staf

Ownership

9
10
Sources:

Clear Vision &

Objectives
Hard-working,
focused team
Adapted

from

the

Executive
Management
Support
Clear Business
Objectives

Firm Basic
Requirements
Formal
Methodology
Reliable Estimates
Other
Standish

Group.

Executive Support
Clear Business
Objectives

Optimizing Scope

Emotional Maturity

Agile Process

Optimizing Scope

Project
Management
Expertise
Financial
Management

Project Management
Expertise

Skilled Resources

Skilled Resources

Agile Process

Formal
Execution
Methodology
Standard Tools and
Tools & Infrastructure
Infrastructure

CHAOS

(West

Yarmouth,

MA:

1995,

1-11

2010)

&

Table 1.2: IT Project Success

Criteria

Criteria

Response

61.3% said it is more important to deliver a system

Schedul
when it is ready to be shipped than to deliver it on
e
time.
Scope

87.3% said that meeting the actual needs of

stakeholders is more important than building the
system to specification.

Money

79.6% said that providing the best return on

investment (ROI) is more important than delivering a
system under budget.

Quality

87.3% said that delivering high quality is more

important than delivering on time and on budget.

Staf

75.8% said that having a mentally and physically

healthy workplace is more important than delivering
on time and on budget.

Source: http://www.drdobbs.com/architecture-and-design/202800777.

1-12

Table 1.3: Summary of Factor

Rankings for Challenged and
Failed
(Impaired)
Projects
Factors for
Challenged
Factors
for Failed (Impaired)
Rank
Projects

Projects

Lack of user input

Incomplete requirements

Incomplete requirements

Lack of user involvement

Changing requirements &

specifications

Lack of resources

Lack of executive support

Unrealistic expectations

Technology incompetence

Lack of executive support

Lack of resources

Changing requirements &

specifications

Unrealistic expectations

Lack of planning

Unclear objectives

Didnt need it any longer

Unrealistic time frames

Lack of IT management

10
New technology
Technology illiteracy
Source: Adapted from the Standish Group. CHAOS (West Yarmouth, MA:

1-13

Figure 1.2 When IT projects have gone

wrong, what has been the reaction from
the business managers & the Board of
Directors?
Don't know

None
Looked for a scapegoat among IT staf
Sought compensation from IT vendors
Reluctant to fund new IT projects
Reduced IT budgets
Tend to accept problems as the norm (i.e., a necessary evil)

1%

2%

9%

13%

19%

21%

43%

Continued to provide support to improve IT

69%

1-14

Improving the Likelihood of Success

A Value-Driven Approach
Plain & Simple: IT Projects must provide value to the
organization
Socio-technical Approach
Its not just about the technology or building a
better mouse trap
Project Management Approach
processes and infrastructure (Methodology)
resources
expectations
competition
efficiency and efectiveness
Knowledge Management Approach
1-15

The PMBOK Guides 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.
A project manager is the person
assigned by the performing
organization to achieve the project
1-16

The Context of Project Management

Project Attributes
Time Frame
Purpose (to provide value!)
Ownership
Resources (the triple constraint)
Roles
Project Manager
Project Sponsor
SME (Subject Matter Expert - domain &
technical)
Risk & Assumptions
Interdependent Tasks
Progressive elaboration steps & increments
Planned Organizational Change
1-17
Operate in Environments Larger than the

The Triple Constraint

Figure 1.3

1-18

Extreme Project Management

(XPM)

A new approach & philosophy to project

management that is becoming increasingly
popular

Characterizes many of todays 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

1-19

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) http://www.pmi.org

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
understanding about project management, as

1-20

Project Management Body of

Knowledge Areas

Figure 1.8
1-21

The PMBOK Guides Definitions for

A project is a temporary endeavor

undertaken to create a unique product,
service, or result.

A project manager is the person

assigned by the performing organization
to achieve the project objectives.

1-22

What is Project Management?

Project

Management is the application of

knowledge, skills, tools and techniques to project

activities to meet project requirements.
Project

Portfolio a collection of diverse

projects managed collectively to align with the

organizations strategy and overall plan to
achieve competitive advantage.
Program a collection of projects within a

project portfolio whose activities are coordinated

so that the benefits of the program are great than
the sum of the benefits of the individual projects.
23