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CSF Method - IT Project Management

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CSF analysis is a method developed to guide businesses in creating and measuring success. It is widely used for technology and architectural planning in enterprise IT. Critical success factors are those factors which the management of organizations must focus and manage effectively. 

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CSF Method - IT Project Management

  1. 1. Welingkar’s Distance Learning Division I.T. for Management CHAPTER-12 Aligning Information System Using CSF Method We Learn – A Continuous Learning Forum
  2. 2. Welingkar’s Distance Learning Division Aligning Information System Using CSF method The Success of every organization depends upon a handful of factors which may be called as CSF Consider following example We Learn – A Continuous Learning Forum Business CSF 5 Star hotel Room occupancy Customer service Operating expenses A car rental service Utilization of vehicle Availability Quality of vehicles
  3. 3. Welingkar’s Distance Learning Division Aligning Information System Using CSF method CSFs are broadly of 4 types • Inherent to business • Specific sector • Company specific related to strategy of company • Socio economic & social environment We Learn – A Continuous Learning Forum
  4. 4. Welingkar’s Distance Learning Division Aligning Information System Using CSF method • Identifying the CSF’s of a company needs to know much about an organization, sector or industry • Having defined CSF’s ,the analyst should with help of business managers identify measures of control for each of these CSF’s • For e.g availability of car in case of Car rental Business may be measured as number of days when the car was available as percentage of 365 days. This gives overall metric which can be broken down which contributes for non availability We Learn – A Continuous Learning Forum
  5. 5. Welingkar’s Distance Learning Division Aligning Information System Using CSF method • One CSF may be measured by one or more KPI • The Next step is to identify which underlying system would provide information against these KPI’s For instance if account receivables is a CSF for an organization the KPI could be number of days of receivables or the outstanding as a percentage of sales Accounts systems can provide necessary data on the receivables metrics If answer is positive, accounting system is aligned to We Learn – A Continuous Learning Forum
  6. 6. Welingkar’s Distance Learning Division Aligning Information System Using CSF method The analyst should go through the entire list Of CSF/KPI’s & check which system should provide information to control these CSF/KPI The analyst can present his finding in this manner 0,9 9,9 0,0 Technical Adequacy of the System 9,0 We Learn – A Continuous Learning Forum
  7. 7. Welingkar’s Distance Learning Division Aligning Information System Using CSF method Functional Adequacy If a system is functionally complete in terms of there basic features as well as technically sound The system would rate in the quadrant 9,9 This is ideal place for all systems The CSF/KPI is a very simple, Intuitive but effective method for aligning systems We Learn – A Continuous Learning Forum
  8. 8. Welingkar’s Distance Learning Division Aligning Information System Using CSF method End of Chapter 12 We Learn – A Continuous Learning Forum

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