Cloud Computing & Its Impact on Project Management

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How Cloud Computing would impact Project Management in Infrastructure Projects

How Cloud Computing would impact Project Management in Infrastructure Projects

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  • 1. CLOUD COMPUTING & PROJECT MANAGEMENT
    IT Solutions in Project Management
    The power of Information Technology
    -VSR
    05-May-2011
    The views mentioned in this document are solely by the presenter and does not reflect the organization views
  • 2. Infrastructure Investments in India
    All the numbers are in Billion Dollars
    Housing
    Education
    Security
    Healthcare
    150
    160
    300
    120
    40
    120
    100
    30
    Sanitation
    Power
    Roads
    Water
    Source: From the Report, prepared by Booz & Company in association with Cisco Systems for CII
    $ 1 Trillion Investments in 10 years (2020)
  • 3. The Dream of a Project Manager
    Extra Cost
    Extra Time
    Extra Scope
    Balancing the competing demands for quality, scope, time and cost
    Time
    Cost
    With NO claims & litigations
    Scope & Quality
  • 4. Project Management Ecosystem is very complex - failure rate is significant!
    Organization
    Requirements
    External Influences
    • Organization PM Maturity
    • 5. Conflicting expectations of Stakeholders
    • 6. Technology Maturity
    • 7. Politics
    • 8. Complex/Different Processes
    • 9. Unknown requirements
    • 10. Ambiguous requirements
    • 11. Project design
    • 12. Political
    • 13. Social
    • 14. Environmental
    Workforce
    Dependencies
    Location/
    Logistics
    • Distributed Workforce
    • 15. Workforce capability
    • 16. Cultural sensitivities & Unified team
    • 17. Integrated & Dependent Projects
    • 18. Distributed Global Partners
    • 19. Project Location
    • 20. Travel
    • 21. Amenities
  • Few reasons of why projects fail?
    • Inadequate design and planning
    • 22. Scope creep
    • 23. Material cost escalations
    • 24. Weak procurement planning
    • 25. Delays in land acquisition / site handover
    • 26. Delays in regulatory approvals
    • 27. Litigations, and disputes
    Cost overruns, delays, dissatisfied customers/citizens
    • Inability to work with different cultures, genders & Individuals
    • 28. Lack of governance & accountability of team
    • 29. Ineffective field communication
    Communication and collaboration failure
    • High volume documents, records and their misplacement
    • 30. Cash flow issues
    • 31. No visibility on contractor Performance
    • 32. ineffective claims management/Irregular payments
    Disputes & Impact on credibility
  • 33. Sophisticated Project Management is very key for projects success
    Source: Oracle
  • 34. INFORMATION is the KING and INFORMATION is the ASSET to take timely decisions, corrective/preventive actions for success of projects
    Transactional Data, Documents &Text capture
    Data
    INFORMATION
    Insight & Foresight
    Decision Making, Corrective actions & preventive actions
  • 35. There are different elements of Information in Projects … Illustrative
    REAL TIME & ACCURATE INFORMATION IS THE KEY
    Information on
    Information on
    Information on
    Information on
    How do we get this information on different elements?
    (Manual?? How? Is there any alternative solution)
  • 69. The information explosion .. Illustrative scenario for$500- $600 MUSD size Infrastructure project
    • The project manager receives between 400+mail and document actions a day, and has to respond in a timely manner
    • 70. 50-75 organizations engaged in project? 50% are from outside India
    • 71. Information/documentation communication over FTP systems, hard copies and email. File size restrictions on email accounts meant that drawings were bouncing back and slowing down the review cycle
    • 72. 600,000 documents, 1.5 million mail items, 600users and 50+ companies. It is very difficult to manage this load
  • Few Examples of Information Gaps…
    Improper Change Management
    Lack of Coordination & communication
    Lack of Safety & Green Measures
    Fixed Time Trainings
    Reactive
    Non alignment with Objectives
    Locked Knowledge
  • 73. Technology has been playing a role in providing real time & accurate information
    Agile, Lean & integrated project management processes
    REPEAT THE SUCCESS
    Technology that automates project management processes, captures and mine the projects data, and provides information & intelligence for successful delivery of projects
    Information Technology for ‘All’ at an affordable price
    MINIMIZE TECHNOLOGY DIVIDE AMONG MSML projects
    (Micro, Small, Medium & Large Projects)
    FASTER, BETTER, CHEAPER, STEADIER DELIVERY OF PROJECTS
    INFORMATION, INSIGHT & FORESIGHT
  • 74. The Technology Engine for Project Management (illustrative)
    Project Management & Related Processes
    • Logistics & Transportation
    • 75. Legal Management
    • 76. Document Management
    • 77. Communication Management
    • 78. Decision Management
    • 79. Knowledge Management
    • 80. Contract Management
    • 81. Designs/ Virtual Construction
    • 82. Finance Management
    • 83. Insurance Management
    • 84. Workforce Management
    • 85. Assets Management
    • 86. Compliance Management
    • 87. Risk Assessment & Monitoring
    • 88. Project Portfolio Management
    • 89. Program Management
    • 90. Project Management
    • 91. Procurement Management
    Desktop , Enterprise or Mobile Project Management Applications
    Development & Integration Platform to build/implement project Management Applications
    Middleware Machines
    Middleware Machines
    Middleware Machines
    PLATFORM
    PLATFORM
    PLATFORM
    Database Machines
    Database Machines
    Database Machines
    Infrastructure Platform
    for Computing Power
    Operating System
    Operating System
    Operating System
    Network
    Network
    Network
    INFRASTRUCTURE
    INFRASTRUCTURE
    INFRASTRUCTURE
    Storage
    Storage
    Storage
    Hardware (Servers)
    Hardware (Servers)
    Hardware (Servers)
  • 92. In the Real Time Scenario, we require many Technology Engines
    (DATA CENTER)
    to generate HUGE COMPUTING POWER to support thousands of IT applications
    The challenge is to get reliable COMPUTING POWER at an affordable PRICE
  • 93. Interesting facts on Data Centers
    • Government & Industry have established large data centers (many Technology Engines)
    • 94. Micro & Small enterprises do not have the required money to build their own data centers
    • 95. World wide carbon emissions from Data Centers would quadruple by 2020
    • 96. World wide 44 million servers consume 0.5% of electricity
    • 97. Data Centers consume near 25% of total corporate IT Budgets
    • 98. Electricity consumption by data centers was equivalent to 14 power plants (The total electric bill to $7.2 billion worldwide)
    • 99. Average utilization of hardware (technology engines) is only 5%-15% of the total capacity
    • 100. 25-30% of overall IT Budget is spent on managing Data Centers (this is serious concern)
  • Interesting facts on Data Centers (Contd..)
    Micro & Small enterprises: No money for establishing Data center, still WANT Technology support to drive business
    Occasional usage of IT applications not in regular use – example: Virtual construction and simulation of capital assets 6 times during project duration.. Why to invest on permanent hardware & software?
    Urgency in setting up the project operations due to business demand: In weeks not in months? (e.g.: financials, procurement to comply with regulatory etc.,)
    Technology experimentation zones for developers/team: Set up in days not in months
    Most importantly how to use the hardware (Technology engines) at a capacity of 50%-60% as against 5%- 15% today
  • 101. SMART DATA CENTERS HAVE TO BE ESTABLISHED
    • Low energy consumption
    • 102. Low carbon emissions
    • 103. Effective (near full capacity) utilization of hardware through Elasticity
    • 104. Low cost of maintenance of applications
    Technology Innovation is available today to build smart Data Centers:
    • Virtualization
    • 105. Multi Tenant Applications
    • 106. Access through Internet
  • You have a choice…
    Own vs. Rent
    Smart Data Centers
    Owning Smart Data Centers is called Private Cloud Computing
    Renting Smart Data Centers is called Public Cloud Computing
    When to go for what?
    Public clouds are playing the key role in providing Commercially viable Computing Power
  • 107. In Public Cloud…Smart Data Centers are available as Service
    Applications are provided as a Service – Project Management Software as a Service (SaaS) – pay per usage (utilities based)
    Middleware Machines
    PLATFORM
    Platform as a service (PaaS) – Pay per usage (utility based)
    Database Machines
    Operating System
    Infrastructure as a service (Iaas)– Pay per usage (utility based)
    Network
    INFRASTRUCTURE
    Storage
    Hardware (Servers)
    Metering for charge back is the key feature of renting… like we do for other utility services (power, water etc)
  • 108. CLOUD COMPUTING IMPACT ON PROJECT MANAGEMENT
  • 109. Public Cloud enables India to get the required Computing Power and project management applications ON DEMAND (rent) without CAPEX
    Minimize IT Divide between Emerging and Developed economies
    Providing Leapfrog opportunities to emerging economies
    Creating new businesses and jobs
    ECONOMY
    ECONOMY
    ECONOMY
    India can build World class infrastructure by leveraging Public Cloud to offer better citizen services and to improve quality of citizen life… Technology would be available at affordable price
  • 110. Public Cloud enables enterprises to get the required Computing Power and project management/engineering applications ON DEMAND (rent) without CAPEX
    Minimize IT Divide between Small and Large enterprises
    See the future of your business through simulation
    Collaborative design with supplier and customers
    BUSINESS
    BUSINESS
    BUSINESS
    Indian organizations get opportunity to compete with global organizations in power, energy, construction etc., sectors – innovation can be tested with cheaper price.. You have an option now
  • 111. Public Cloud enables enterprises to get the required Computing Power and project managementlearning content ON DEMAND (rent) without CAPEX
    Interactive / collaborative learning
    Access to teaching resources from all over the world
    Low cost simulation
    LEARNING
    LEARNING
    LEARNING
    Access to Virtual Learning on Project Management & Engineering from best in class people in the world .. No boundaries, you can purchase the learning content/services for limited period of time
  • 112. Caution: Cloud Computing is not that simple!!
    87.5%
    Security
    83.3%
    Availability
    82.9%
    Performance
    81.0%
    On-demand paym’t model may cost more
    80.2%
    Lack of interoperability standards
    79.8%
    Bringing back in-house may be difficult
    76.8%
    Hard to integrate with in-house IT
    76.0%
    Not enough ability to customize
    0%
    10%
    20%
    30%
    40%
    50%
    60%
    70%
    80%
    90%
    Q: Rate the challenges/issues of the 'cloud'/on-demand model
    Source: IDC Enterprise Panel, 3Q09, n = 263, September 2009
    23
  • 113. Illustrative Project Management & Collaboration Applications available on Cloud (On Demand)
  • 114.
  • 115.
  • 116.
  • 117.
  • 118.
  • 119. Primavera On Demand
  • 120. Why IT fails??
    IT is not a Perpetual Machine
    Ability to embrace Change
    Big Bang Approach
    Output without input
    (No data entry, but expect information)
    Lack of Trust on Technology
    Lack of Executive Sponsorship
    Remote Locations & No Connectivity
  • 121. Summary
    • Think different and see how Cloud Computing is going to impact your Infrastructure, Energy, Power, Transportation projects
    • 122. Now you have a choice of accessing complex applications/technology over internet on rental basis
    • 123. Test your innovation in project management for delivering better results
  • Summary .. Conclusion
    National Institute of Standards & Technology Definition
    “Cloud computing is a model for enabling convenient, on demand network access to a shared pool of configurable computing resources that can be rapidly provisioned and released with minimal management effort or service provider interaction.”
    4 Deployment Models
    5 Essential Characteristics
    3 Service Models
  • Thank You!