The Nature of Information Technology Projects

Chapter 1
The Nature of Information

Technology Projects
1-1
IT and Modern Day Project

Management
1940s
First
Electronic
Computer
1950s
1960s
EDP
Era
1970s 1980s
PC
Era
1990s
2000s
Network
Era
2010s
Globalization
1-2
Introduction
Information Technology (IT) projects are
organizational investments that require
Time
Money
Other resources such as People, Technology,
Facilities, etc.
Organizations expect some type of value in return
for this investment (ROI)
IT Project Management is a relatively new
discipline that attempts to make IT projects more
successful and combines traditional Project
Management with Software
Engineering/Management Information Systems
1-3
An ITPM
(IT Project Management) Approach
Organizational
resources are limited,

so organizations must choose among
competing interests to fund specific
projects
This
decision should be based on the

value a competing project will
provide to an organization
1-4
Modern Project Management

Often
credited to the U.S. Navy as an

outgrowth of the Polaris Missile
Project in the 1950s
Focuses on reducing costs & product
cycle time.
Provides an important link between
an organizations strategy and the
deployment of that strategy.
Can have a direct impact on an
organizations bottom line and

1-5
Which Situation is
Worse?
Successfully
building and
implementing a system that provides
little or no value to the organization?
Or
Failing
to implement an information
system that could have provided
value to the organization, but was
underdeveloped or poorly managed?
1-6
Why Many Projects Fail: Project

Failure can be grouped into four
categories (examples)
People The stakeholders of a project with varied
roles and interests in the projects success or failure.
Processes This includes having a set of project
management and product management processes.
Technology Only 3% of IT project failures can be
attributed to technical challenges but this percentage
can be increased if obsolete, unproven, or incompatible
technologies are used.
Organization Organizational issues can lead to
project failure. A lack of clear direction, improper
strategy, rapidly changing business environment and/or
customer needs can create a moving target for the
products product or service.
1-7
Why Many Projects Fail: Project

Failure can be grouped into four
categories (examples)
1-8
The Software Crisis

The
CHAOS Study published in 1995 by The

Standish Group found that although the U.S
spent over $250 billion on IT projects
approximately:
31% were cancelled before completion
53% were completed but overbudget, over
schedule, & did not meet original

specifications
For mid-size companies, average cost overruns

were 182%, while average schedule overruns
were 202%!
1-9
Has the Current State of IT

Projects Changed Since 1994?
The
Standish Group has continued to

study IT projects over the years.
IT Projects are showing higher success
rates due to:
Better project management tools & processes
Smaller projects
Improved communication among
stakeholders
More skillful IT project managers
But
there is still ample opportunity for

improvement!
1-10
Table 1.1 Summary of CHAOS

Study Factor Rankings for
Successful
Projects
Ran
k
1994
2001
2006
2008
User Involvement
Executive Support
User Involvement
User Involvement
2
3
Executive
Management
Support
Clear Statement
of Requirements
User Involvement
Experienced Project
Manager
Clear Business
Objectives
Proper Planning
Realistic
Expectations
Minimized Scope
Smaller Project
Milestones
Standard Software
Infrastructure
Competent Staf
Ownership
9
10
Sources:
Clear Vision &

Objectives
Hard-working,
focused team
Adapted
from
the
Executive
Management
Support
Clear Business
Objectives
Firm Basic
Requirements
Formal
Methodology
Reliable Estimates
Other
Standish
Group.
Executive Support
Clear Business
Objectives
Optimizing Scope
Emotional Maturity
Agile Process
Optimizing Scope
Project
Management
Expertise
Financial
Management
Project Management
Expertise
Skilled Resources
Skilled Resources
Agile Process
Formal
Execution
Methodology
Standard Tools and
Tools & Infrastructure
Infrastructure
CHAOS
(West
Yarmouth,
MA:
1995,
1-11
2010)
&
Table 1.2: IT Project Success

Criteria
Criteria
Response
61.3% said it is more important to deliver a system

Schedul
when it is ready to be shipped than to deliver it on
e
time.
Scope
87.3% said that meeting the actual needs of

stakeholders is more important than building the
system to specification.
Money
79.6% said that providing the best return on

investment (ROI) is more important than delivering a
system under budget.
Quality
87.3% said that delivering high quality is more

important than delivering on time and on budget.
Staf
75.8% said that having a mentally and physically

healthy workplace is more important than delivering
on time and on budget.
Source: http://www.drdobbs.com/architecture-and-design/202800777.
1-12
Table 1.3: Summary of Factor

Rankings for Challenged and
Failed
(Impaired)
Projects
Factors for
Challenged
Factors
for Failed (Impaired)
Rank
Projects
Projects
Lack of user input
Incomplete requirements
Incomplete requirements
Lack of user involvement
Changing requirements &

specifications
Lack of resources
Lack of executive support
Unrealistic expectations
Technology incompetence
Lack of executive support
Lack of resources
Changing requirements &

specifications
Unrealistic expectations
Lack of planning
Unclear objectives
Didnt need it any longer
Unrealistic time frames
Lack of IT management
10
New technology
Technology illiteracy
Source: Adapted from the Standish Group. CHAOS (West Yarmouth, MA:
1-13
Figure 1.2 When IT projects have gone

wrong, what has been the reaction from
the business managers & the Board of
Directors?
Don't know
None
Looked for a scapegoat among IT staf
Sought compensation from IT vendors
Reluctant to fund new IT projects
Reduced IT budgets
Tend to accept problems as the norm (i.e., a necessary evil)
1%
2%
9%
13%
19%
21%
43%
Continued to provide support to improve IT
69%
1-14
Improving the Likelihood of Success
A Value-Driven Approach
Plain & Simple: IT Projects must provide value to the
organization
Socio-technical Approach
Its not just about the technology or building a
better mouse trap
Project Management Approach
processes and infrastructure (Methodology)
resources
expectations
competition
efficiency and efectiveness
Knowledge Management Approach
1-15
The PMBOK Guides Definitions for

Project and Project Management
A
project is a temporary endeavor

undertaken to create a unique
product, service, or result.
Project management is the
application of knowledge, skills, tools
and techniques to project activities
to meet project requirements.
A project manager is the person
assigned by the performing
organization to achieve the project
1-16
The Context of Project Management

Project Attributes
Time Frame
Purpose (to provide value!)
Ownership
Resources (the triple constraint)
Roles
Project Manager
Project Sponsor
SME (Subject Matter Expert - domain &
technical)
Risk & Assumptions
Interdependent Tasks
Progressive elaboration steps & increments
Planned Organizational Change
1-17
Operate in Environments Larger than the
The Triple Constraint
Figure 1.3
1-18
Extreme Project Management

(XPM)
A new approach & philosophy to project

management that is becoming increasingly
popular
Characterizes many of todays projects that

exemplify speed, uncertainty, changing
requirements, and high risks
Traditional project management often takes an

orderly approach while, XPM embraces the fact
that projects are often chaotic and
unpredictable
XPM focuses on flexibility, adaptability, and

innovation
1-19
The Project Management Body of

Knowledge (PMBOK)
The Guide to the Project Management Body of

Knowledge (PMBOK Guide) documents 9
project management knowledge areas
The PMBOK Guide is published and

maintained by the Project Management Institute
(PMI) http://www.pmi.org
PMI provides a certification in project

management called the Project Management
Professional (PMP) that many people today
believe will be as relevant as a CPA certification
PMP certification requires that you pass a PMP

certification exam to demonstrate
understanding about project management, as
1-20
Project Management Body of

Knowledge Areas
Figure 1.8
1-21
The PMBOK Guides Definitions for
A project is a temporary endeavor

undertaken to create a unique product,
service, or result.
A project manager is the person

assigned by the performing organization
to achieve the project objectives.
1-22
What is Project Management?

Project
Management is the application of
knowledge, skills, tools and techniques to project

activities to meet project requirements.
Project
Portfolio a collection of diverse
projects managed collectively to align with the

organizations strategy and overall plan to
achieve competitive advantage.
Program a collection of projects within a
project portfolio whose activities are coordinated

so that the benefits of the program are great than
the sum of the benefits of the individual projects.
23

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Chapter 1

The Nature of Information

IT and Modern Day Project

resources are limited,

decision should be based on the

Modern Project Management

credited to the U.S. Navy as an

organizations bottom line and

Why Many Projects Fail: Project

Why Many Projects Fail: Project

The Software Crisis

CHAOS Study published in 1995 by The

schedule, & did not meet original

For mid-size companies, average cost overruns

Has the Current State of IT

Standish Group has continued to

there is still ample opportunity for

Table 1.1 Summary of CHAOS

Clear Vision &

Table 1.2: IT Project Success

61.3% said it is more important to deliver a system

87.3% said that meeting the actual needs of

79.6% said that providing the best return on

87.3% said that delivering high quality is more

75.8% said that having a mentally and physically

Table 1.3: Summary of Factor

Lack of user input

Lack of user involvement

Changing requirements &

Lack of executive support

Lack of executive support

Changing requirements &

Didnt need it any longer

Unrealistic time frames

Figure 1.2 When IT projects have gone

Continued to provide support to improve IT

Improving the Likelihood of Success

The PMBOK Guides Definitions for

project is a temporary endeavor

The Context of Project Management

The Triple Constraint

Extreme Project Management

A new approach & philosophy to project

Characterizes many of todays projects that

Traditional project management often takes an

XPM focuses on flexibility, adaptability, and

The Project Management Body of

The Guide to the Project Management Body of

The PMBOK Guide is published and

PMI provides a certification in project

PMP certification requires that you pass a PMP

Project Management Body of

The PMBOK Guides Definitions for

A project is a temporary endeavor

A project manager is the person

What is Project Management?

Management is the application of

knowledge, skills, tools and techniques to project

Portfolio a collection of diverse