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A Look at Risks in IT Projects: A Case Study
during the Merger Period in the
Telecommunications Industry
Irapuan Glória Jú...
2
 Risk management is one of the main factors attributed to the success of projects
(Boehm, 1991; Wallace, Keil & Rai, 20...
3
1. Identify the risks associated with IT projects on the merger of
two telecoms and
2. Propose risk mitigation actions f...
4
 Exploratory study adopts a predominantly interpretive
epistemology (Eisenhardt, 1989)
 Qualitative (Yin, 2014) and in...
5
 Unit of analysis is IT projects in Company-A in the merger
period from 2007 with Company-B.
 Data collection was thro...
6
 The flow of processes carried out in this study is as follows:
 Listing the risks in IT projects in literature
 Cate...
7
 The propositions of this study that provide guidance for the study are
as follows:
 Proposition 1: There is preparati...
8
 The Study Objects
 The two companies analyzed have specific characteristics from
the point of view of their organizat...
9
 The operation carried out was characterized from the legal point of
view by the incorporation of company-B by company-...
10
 Categorization of the risks
 Project Management
 which includes the risks related to PM;
 Team
 Concerning the in...
11
 Risks in the literature
 Examples:
 Lack of control in estimates
 Insufficient staff
 Turn-over
 Lack of systems...
12
 Risks Identified in the Interviews
 For Exemples:
 Lack of manager information
 Loss of know-how
 Need to create ...
13
 Analysis of the Propositions
 Proposition 1: There is preparation for the moment of mergers
between telecom companie...
14
 Proposition 3: People in other functions, in addition to the
project manager, can perform risk management.
 Due to C...
15
 Proposition 5: There are mitigating actions for identified risks.
 It was possible to group together the actions car...
16
 Exclusive Risks in the Merger Period
Results and Analysis
Category Risks
Project Management
- Lack of manager informa...
17
 Recommendations for Mitigating Risks
Results and Analysis
Mitigation Actions
Scrum
- Flexibility in Roles
- Fast Deli...
18
 This research contributes to theory by means of an investigation
of the origins and consequences of identified risks;...
19
 Master dissertation available at
http://repositorio.uninove.br/xmlui/handle/123456789/725
 Research Group
Managing W...
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A Look at Risks in IT Projects: A Case Study during the Merger Period in the Telecommunications Industry

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Aims:
Identify the risks associated with IT projects on the merger of two telecoms;
2. Propose risk mitigation actions for future mergers of telecoms.

Published in: Technology
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A Look at Risks in IT Projects: A Case Study during the Merger Period in the Telecommunications Industry

  1. 1. A Look at Risks in IT Projects: A Case Study during the Merger Period in the Telecommunications Industry Irapuan Glória Júnior Marcirio Silveira Chaves
  2. 2. 2  Risk management is one of the main factors attributed to the success of projects (Boehm, 1991; Wallace, Keil & Rai, 2004; PMI, 2012; Zwikael, Pathak, Singh, & Ahmed, 2014)  Therefore, to long-term success in organizations. (Hartono, Sulistyo, Praftiwi & Hasmoro, 2014)  Mergers and acquisitions often have a significant number of risks involved, especially the integration between companies (Baker & Niederman, 2014) The merger period in a company may cause great uncertainty and impacts on projects.  In addition, the number of risks is greater in IT projects, as they have a high degree of technological dependence (Sauser, Reilly & Shenhar, 2009). Context
  3. 3. 3 1. Identify the risks associated with IT projects on the merger of two telecoms and 2. Propose risk mitigation actions for future mergers of telecoms. Aims
  4. 4. 4  Exploratory study adopts a predominantly interpretive epistemology (Eisenhardt, 1989)  Qualitative (Yin, 2014) and inductive approach (Smyth & Morris, 2007)  The case study is an empirical investigation of a phenomenon in depth and context, especially when both are not clearly evident, in which the context must be considered (Yin, 2014). Methodology
  5. 5. 5  Unit of analysis is IT projects in Company-A in the merger period from 2007 with Company-B.  Data collection was through  Semi-structured interviews with employees who worked during the merger and had a project management (PM) function or similar;  Collection of documentary information; and  Information provided by (the) written or digital media.  Data analysis was carried out by data triangulation Methodology
  6. 6. 6  The flow of processes carried out in this study is as follows:  Listing the risks in IT projects in literature  Categorizing risks found in literature  Interviews with IT project managers in Company-A  Listing the risks in IT projects from interviews  Classifying Risks in IT Projects  Identifying exclusive risks  Proposing mitigation actions for the risks identified Methodology
  7. 7. 7  The propositions of this study that provide guidance for the study are as follows:  Proposition 1: There is preparation for the moment of merger between telecoms.  Proposition 2: Company A’s own risk management in IT projects.  Proposition 3: Other functions, in addition to that of project manager, can carry out risk management.  Proposition 4: Risks are easily identified in IT projects.  Proposition 5: There are mitigating actions for the risks found. Methodology
  8. 8. 8  The Study Objects  The two companies analyzed have specific characteristics from the point of view of their organizational structure, market and maturity in PM.  The Company-A  Is a multinational installed in Brazil for nearly two decades and initially had landline services in a few states  The Company-B  Is a multinational installed in Brazil for over a decade and always had a mobile-phone focus. Methodology
  9. 9. 9  The operation carried out was characterized from the legal point of view by the incorporation of company-B by company-A (ANATEL, 2014; RF, 2014)  Despite the hostile setting characterized by an environment of distrust, fear of dismissals and many organizational changes in both companies  We conducted eleven interviews with employees involved in the merger period Methodology
  10. 10. 10  Categorization of the risks  Project Management  which includes the risks related to PM;  Team  Concerning the integration of the members, relationships with others and the level of technical knowledge;  Development  The type of development of IT project risk, with coverage from systems analysis to the use of components;  Infrastructure  Risks attributed to the type of IT infrastructure project, with coverage from deploying a server to communication between systems Methodology
  11. 11. 11  Risks in the literature  Examples:  Lack of control in estimates  Insufficient staff  Turn-over  Lack of systems documentation Results and Analysis Category Risks Project Management 16 Team 9 Development 10 Infrastructure 6
  12. 12. 12  Risks Identified in the Interviews  For Exemples:  Lack of manager information  Loss of know-how  Need to create parallel control systems  Failure to integrate systems Results and Analysis Category Risks Project Management 2 Team 10 Development 5 Infrastructure 2
  13. 13. 13  Analysis of the Propositions  Proposition 1: There is preparation for the moment of mergers between telecom companies  We can observe that the preparation did not happen in the same way at all levels  Proposition 2: Company A’s own risk management in IT projects.  According to the data collected in the interviews, risk management is carried out almost casually.  Respondents with a project manager function managed to list the risks in the interviews, but there was no formal document on the subject. Results and Analysis
  14. 14. 14  Proposition 3: People in other functions, in addition to the project manager, can perform risk management.  Due to Company-A not having a PM culture, the risks were created informally, based on the experience of those involved.  Proposition 4: Risks are easily identified in IT projects.  Respondents related risks in the projects directly associated with their department.  Only two respondents, who work close to top management, commented on the concern of the company's image in the market Results and Analysis
  15. 15. 15  Proposition 5: There are mitigating actions for identified risks.  It was possible to group together the actions carried out in the period to mitigate the risks, according to the data collected in the interviews.  The first action relates to the impact of layoffs on the team with the change of periods of work for the remaining employees to stay longer  Other actions were related to remaining suppliers who helped in the understanding of the services  Creation of documentary procedures Results and Analysis
  16. 16. 16  Exclusive Risks in the Merger Period Results and Analysis Category Risks Project Management - Lack of manager information - Shared management Team - Insecurity and anxiety - Reduction in staff - Fragmentation of the teams Loss of know-how - Voluntary layoff - Early resignation of executives - Creating competition among employees - Possible conflicts in synergy between different teams - Insufficient staff Development - Need to create parallel control systems - Restrictions to information systems and processes Infrastructure unmarked
  17. 17. 17  Recommendations for Mitigating Risks Results and Analysis Mitigation Actions Scrum - Flexibility in Roles - Fast Delivery - Scrum Master - Volatile Environment System Documentation - Generation of project documentation - Regarding the systems having specific records protocols such as diagrams of use cases, class diagrams and the description of other computing devices Use of a PM Framework - The application of PMBoK - Assist in mitigation for the application of requirements elicitation techniques, such as a brainstorm and mind map - Cost management
  18. 18. 18  This research contributes to theory by means of an investigation of the origins and consequences of identified risks;  The risks identified in this study allow project managers to rethink their strategies to develop risk management in IT projects in telecom companies in the merger period;  Identifying of the 13 new risks identified;  Risk Mitigations actions  Use of Scrum, documentation systems and PM frameworks Theoretical and Practical Implications
  19. 19. 19  Master dissertation available at http://repositorio.uninove.br/xmlui/handle/123456789/725  Research Group Managing Web 2.0 Technologies in Projects - TiP 2.0 Additional Info http://tip20.wikidot.com

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