The Nature of Information

Technology Projects
Chapter 1
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.
 IT and Modern Day Project Management

1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s

First EDP PC Network Globalization

Electronic Era Era Era
Computer
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
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
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?
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
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%!
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!
Figure 1.1 - Summary of the Chaos Studies from 1994 to 2006
Table 1.1 Summary of CHAOS Study Factor Rankings for Successful Projects
Sources: Adapted from the Standish Group. CHAOS (West Yarmouth, MA: 1995) & http://www.infoq.com/articles/Interview-Johnson-Standish-CHAOS

Rank 1994 2001 2006

1 User Involvement Executive Support User Involvement

2 Executive Management User Involvement Executive Management

Support Support

3 Clear Statement of Experienced Project Manager Clear Business Objectives

Requirements

4 Proper Planning Clear Business Objectives Optimizing Scope

5 Realistic Expectations Minimized Scope Agile Process

6 Smaller Project Milestones Standard Software Project Management Expertise

Infrastructure

7 Competent Staff Firm Basic Requirements Financial Management

8 Ownership Formal Methodology Skilled Resources

9 Clear Vision & Objectives Reliable Estimates Formal Methodology

10 Hard-working, focused team Other Standard Tools and

Infrastructure
Table 1.2: Project Performance and Internal/External Customer Satisfaction.
Source: Marchewka, J.T. (2008). n = 114.

Much Much
Worse Worse Same Better Better
Ability to
meet project 0.0% 12.3% 40.4% 41.2% 6.1%
schedules
Ability to
IT Project meet project 1.8% 10.5% 44.7% 37.7% 5.3%
Performance budgets
Over the
Past 3 Years
Ability to
complete
project scope 2.6% 7.0% 41.2% 41.2% 7.9%
or system
requirement
s

Overall
satisfaction 1.8% 13.2% 34.2% 39.5% 11.4%
Customer of the
satisfaction customer
over the past
3 years
(Customers Perceived
can be value of the
internal – delivered 0.0% 9.6% 39.5% 38.6% 12.3%
e.g., HR product to
department the customer
or external –
e.g., a
particular Potential for
client) future work 0.9% 3.5% 42.1% 38.6% 14.9%
with the
customer
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 Incomplete requirements Lack of user involvement

3 Changing requirements & specifications Lack of resources

4 Lack of executive support Unrealistic expectations

5 Technology incompetence Lack of executive support

6 Lack of resources Changing requirements & specifications

7 Unrealistic expectations 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

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
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
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
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
The Triple Constraint

Figure 1.3
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!
Generic Project Life Cycle

Figure 1.4
 Systems Development Life Cycle
(SDLC)

Figure 1.5
Waterfall Method
Define
Requirements

Design

Build

Test

Implement

Maintenance

Figure 1.6
The Relationship Between the PLC & SDLC

Figure 1.7
Putting the SDLC into Practice
 Structured Approach to Systems Development
 Waterfall Method
 Iterative Development
 Rapid Applications Development (RAD)
 Prototyping
 Spiral Development
 Extreme Programming
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
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 a level of understanding about project management, as well
as satisfy education & experience requirements and agree to a
professional code of conduct
 Project Management Body of Knowledge Areas

Figure 1.8