Cloud Computing & Its Impact on Project Management


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How Cloud Computing would impact Project Management in Infrastructure Projects

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Cloud Computing & Its Impact on Project Management

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