project management

1. INFORMATION SYSTEM
MANAGEMENT
MANAGING PROJECTS – BUSINESS
VALUE OF INFORMATION SYSYTEMS
AND MANAGING PROJECT RISK

2. PROJECT MANAGEMENT
• MEANING
Project Management is the practice
of initiating, planning, executing,
controlling and closing the work of
a team to achieve specific goal and
meet specific success criteria at the
specified time.

3. • The objectives of project management and there importance
in developing information systems.
• The methods which can be used for selecting and evaluating
information systems projects and aligning them with the
firm’s business goals.
• The way firms assesses the business value of information
systems.
• The principal risk factors in information systems projects,
and how they can be managed.
LEARNING OBJECTIVES

4. • Problem:Manual HRprocesses;systemwas
inefficient and time-consuming
• Solution:Implement a centralizedHRsystemusing
SAPERPHumanCapitalManagement
• Needfor organizational andproject management
to ensuresuccessof newtechnology

5. • Clear focus and objectives
• Realistic project planning
• Maximum resource utilization
• Risk Management
• Quality Control
THE IMPORTANCE OF PROJECT
MANAGEMENT

6.  Fail to capture essential business
requirements
 Fail to provide organizational
benefits
 Complicated, poorly organized
user interface
 Inaccurate or inconsistent data
TYPES OF SYSTEM FAILURE

7. Without proper management, a systems development project takes longer
to complete and most often exceeds the allocated budget. The resulting
information system most likely is technically inferior and may not be
able to demonstrate any benefits to the organization.
CONSEQUENCES OF POOR PROJECT
MANAGEMENT

8. Activities include
planning work, assessing
risk, estimating
resources required,
organizing the work,
assigning tasks,
controlling project
execution, reporting
progress, analyzing
results
PROJECTMANAGEMENTVARIABLES

9. MANAGEMENT STRUCTURE FOR INFORMATION
SYSTEMS PROJECTS
Hierarchyinlargefirms
• Corporate strategic planninggroup
– Responsiblefor firm’s strategicplan
• Information systemssteeringcommittee
– Reviewsand approves plans for systemsin alldivisions
• Project managementgroup
– Responsiblefor overseeing specificprojects
• Project team
– Responsiblefor individual systemsproject
SELECTING PROJECTS

10. Each level of management
in the hierarchy is
responsible for specific
aspects of systems projects,
and this structure helps give
priority to the most
important systems projects
for the organization.
MANAGEMENTCONTROLOFSYSTEMS
PROJECTS

11. INFORMATION SYSTEMS PLAN
Identifies systems projects that will deliver most business value,
links development to business plan.

12.  Used to evaluate alternative system projects
 Inventories all of the organization’s information systems
projects and assets
 Each system has profile of risk and benefit
 High benefit, low risk
 High benefit, high risk
 Low benefit, low risk
 Low benefit, high risk
 To improve return on portfolio, balance risk and return
from systems investments
PORTFOLIO ANALYSIS

13. Companies should examine their portfolio of projects in terms of
potential benefits and likely risks. Certain kinds of projects should
be avoided altogether and others developed rapidly. There is no
ideal mix. Companies in different industries have different profiles.
A SYSTEM PORTFOLIO

14. SCORING MODELS
• Used to evaluate alternative system projects, especially when
many criteria exist
• Assigns 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
ETC
GRAND TOTALS
2 71 142
3128
75 150
3300

15. ASSESSINGTHE BUSINESSVALUE OF
INFORMATION SYSTEMS
INFORMATION SYSTEM COSTS AND BENEFITS
 Tangible benefits:
 Can be quantified and assigned monetary value
 Systems that displace labor and save space:
 Transaction and clerical systems
 Intangible benefits:
 Cannot be immediately quantified but may lead
to quantifiable gains in the long run
 For example, more efficient customer service,
enhanced decision making
 Systems that influence decision making:
 ESS, DSS, collaborative work systems

16. CAPITAL BUDGETING MODELS
 Measure value of investing in long-term capital investment
projects
 Rely on measures the firm’s
 Cash outflows
» Expenditures for hardware, software, labor
 Cash inflows
» Increased sales
» Reduced costs
 There are various capital budgeting models used for IT
projects: Payback method, accounting rate of return on
investment, net present value, internal rate of return (IRR)
CAPITAL BUDGETING FOR INFORMATION
SYSTEMS

17. REALOPTIONSPRICINGMODELS (ROPM)
 Can be used when future revenue streams of IT projects are
uncertain and up-front costs are high
 Use concept of options valuation borrowed from
financial industry
 Gives managers flexibility to stage IT investment or test the
waters with small pilot projects or prototypes to gain more
knowledge about risks before investing in entire
implementation
LIMITATIONSOFFINANCIALMODELS
 Do not take into account social and organizational
dimensions that may affect costs and benefits

18. Management Information System
ManagingProject Risk
• Dimensionsof project risk
– Levelof project riskinfluenced by:
• Project size
– Indicated by cost, time, number oforganizational
units affected
– Organizational complexity also anissue
• Project structure
– Structured, defined requirements run lowerrisk
• Experience with technology

19. • Changemanagement
– Required for successfulsystem building
– New information systemshavepowerful
behavioral andorganizational impact
• Changesin how information is used oftenlead
tonew distributions of authority and power
• Internal organizational changebreeds
resistance and opposition
Management InformationSystems
ManagingProject Risk

20. Management Information Systems
ManagingProject Risk
• Implementation
– All organizational activities working towardadoption,
management, and routinization of aninnovation
• Changeagent:
– Onerole of systemsanalyst
– Redefines the configurations, interactions, job
activities, and power relationships oforganizational
groups
– Catalyst for entire changeprocess
– Responsible for ensuring that all partiesinvolved
accept changescreated by new system

21. Management Information Systems
ManagingProject Risk
• Roleof end users
– With highlevelsof user involvement:
• Systemmore likely to conform torequirements
• Usersmore likely to acceptsystem
• User–designercommunication gap:
– Usersandinformation systems specialists
• Different backgrounds, interests, andpriorities
• Different loyalties, priorities, vocabularies
• Different concerns regarding anew system

22. • Management supportand commitment
• Thebacking and commitment of
management at various levels:
–Effects positive perception by bothusers
and technical staff
–Ensuressufficient funding andresources
–Helps enforce required organizational
changes
Management InformationSystems
ManagingProject Risk

23. Management Information Systems
ManagingProject Risk
• Controllingrisk factors
– Firststepin managingproject riskinvolves
identifying nature andlevel of riskof project.
– Eachproject canthen bemanagedwith toolsand
risk-management approachesgearedto level of risk.
– Managingtechnical complexity:
• Internal integration tools
– Project leaders with technical and administrativeexperience
– Highly experienced team members
– Frequent team meetings
– Securingof technical experience outside firm ifnecessary

24. Management Information Systems
ManagingProject Risk
• Formalplanningandcontrol tools
– Usedfor documentingandmonitoringproject plans
– Helpidentify bottlenecksandimpact of problems
– Gantt charts
• Visual representation of timing and duration of tasks
• Human resource requirements of tasks
– PERT(programevaluation andreview technique)
charts
• Graphically depicts tasks and interrelationships
• Indicate sequence of tasksnecessary

25. Management Information Systems
ManagingProject Risk
• Formalplanningandcontrol tools
– Usedfor documentingandmonitoringproject plans
– Helpidentify bottlenecksandimpact of problems
– Gantt charts
• Visual representation of timing and duration of tasks
• Human resource requirements of tasks
– PERT(programevaluation andreview technique)
charts
• Graphically depicts tasks and interrelationships
• Indicate sequence of tasksnecessary

26. A GANTT CHART

27. AGANTTCHART

28. AGANTTCHART

29. 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.
Management InformationSystems
APERTCHART
FIGURE 14-5

30. Management Information Systems
ManagingProject Risk
• Projectmanagement software
– Canautomate manyaspectsof projectmanagement
– Capabilities for:
• Defining, ordering tasks
• Assigning resources to tasks
• Tracking progress
– Microsoft Project2010
• Most widely used project managementsoftware
• PERT,Gantt charts, critical pathanalysis
– Increasein SaaS,open-sourcesoftware
– Projectportfolio management software

31. THANK YOU!