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Selecting and managing IS projects

BCIS 4610, Lecture 2 . Selecting and managing IS projects. Review system development methodologies Discuss project management and project planning tools Discuss issues related to selection, identification and management of IS projects. TODAY’S objectives. Review of the SA&D METHODOLOGIES.

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Selecting and managing IS projects

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  1. BCIS 4610, Lecture 2 Selecting and managing IS projects

  2. BCIS 5120, Spring 2007 • Review system development methodologies • Discuss project management and project planning tools • Discuss issues related to selection, identification and management of IS projects TODAY’S objectives

  3. Review of the SA&D METHODOLOGIES BCIS 5120, Spring 2007

  4. Traditional SDLC methodology BCIS 5120, Spring 2007

  5. Agile methodologies • Individuals and interactions over processes and tools • Working SW over comprehensive documentation • Customer collaboration over contract negotiations • Responding to change over following the plan BCIS 5120, Spring 2007

  6. NEXT, FOCUS ON PLANNING AND ANALYSIS BCIS 5120, Spring 2007

  7. The International Institute of Business Analysis (IIBA) is an independent non-profit professional association serving the growing field of Business Analysis. For individuals working in a broad range of roles – business analysis, systems analysis, requirements analysis or management, project management, consulting, process improvement and more – the IIBA can help you do your job better and enhance your professional life. The IIBA was formed in October 2003 with 28 founding members. In April 2006, we became incorporated federally as a non-profit association under the Canada Corporations Act with headquarters in Toronto, Canada. We are active internationally with more than 5000 members and over 100 chapters worldwide. BCIS 5120, Spring 2008

  8. BABOK® v2 Knowledge Areas Source: http://www.theiiba.org Will be on the exam

  9. BCIS 5120, Spring 2007 Strategic and IS Planning Relationships IS planning must be kept in line with corporate strategic planning.

  10. Enterprise analysis or Project ID and selection – from BA Bok

  11. IS Plan Components BCIS 5120, Spring 2007

  12. Project Identification and Selection Tasks • Identifying potential development projects • Ideally, based on strategy • Other sources: consultant recommendations, need to solve immediate problems, initiatives of user groups • Classifying and ranking potential IS projects • Using value chain analysis or other evaluation criteria • Selecting projects • Based on various factors BCIS 5120, Spring 2007

  13. BCIS 5120, Spring 2007 Strategic and IS Planning Relationships IS planning must be kept in line with corporate strategic planning.

  14. BCIS 5120, Spring 2007 Value chain analysis: analyzing an organization's activities to determine where value is added to products/services and the costs incurred for doing so.

  15. ALL IT PROJECTS GO THROUGH FEASIBILITY ANALYSIS • Economic • Technical • Operational • Scheduling • Legal and contractual • Political BCIS 5120, Spring 2007

  16. BCIS 5120, Spring 2007 Feasibility studies – from BA Bok

  17. Some common evaluation criteria and constraints • Economic feasibility is usually assessed based on potential of cost reduction vs. the cost of the system • Total Cost of Ownership – used very often • NPV • IRR • Payback period BCIS 5120, Spring 2007

  18. BCIS 5120, Spring 2007

  19. Justifying IT investments “The average C-level executive doesn’t know how to evaluate if a technology investment is doing what it’s supposed to do,” says Richard Chang, CEO of the consultancy Richard Chang Associates. Thus, these executives focus solely on cost, looking for some easy metric such as tying IT spending to a percentage of revenue or benchmarking your IT spend against your industry. Galen Gruman, “IT Value Metrics: How to Communicate ROI to the Business” CIO Magazine, Oct 8, 2007

  20. BCIS 5120, Spring 2007 Preliminary Budget

  21. BCIS 5120, Spring 2007 Other types of feasibility also need to be assessed… • Can we do it? • Will it work with other systems? • Is the solution scalable? • Do we have necessary top management support? • Will it interfere with other projects?

  22. BCIS 5120, Spring 2007 Multicriteria Analysis Each requirement or constraint: Score = weight X rating Each alternative: sum scores across requirements/constraints Alternative with highest score wins

  23. BCIS 5120, Spring 2007 Factors for Project Selection

  24. NEXT, project management BCIS 5120, Spring 2007

  25. According to The Standish Group, which tracks IT project success rates, only 29 percent of IT projects conducted in 2004 were completed successfully.

  26. Factors Affecting IT Project Management • Tight budgets – some experts expect some loosening of budgets in 2008, yet a possibility of recession makes it a serious concern • Global nature of most IT projects (both development and implementation) • A backlog of projects

  27. PROJECT Management INSTITUTE • With more than 265,000 members in over 170 countries, PMI is the leading membership association for the project management profession. • PMI was founded in 1969 by five forward-thinking individuals who understood the value of networking, sharing process information and discussing common project problems. • Certifications • PMI Risk Management Professional (PMI-RMP)SM • PMI Scheduling Professional (PMI-SP)SMProgram Management Professional (PgMP)SM • Project Management Professional (PMP®) • Certified Associate in Project Management (CAPM®) BCIS 5120, Spring 2008

  28. Managing the Information Systems Project • Project • A planned undertaking of related activities to reach an objective that has a beginning and an end • Project management • A controlled process of initiating, planning, executing, and closing down a project • Project manager • Systems analyst with management and leadership skills responsible for leading project initiation, planning, execution, and closedown BCIS 5120, Spring 2007

  29. Types of projects • External • Won proposals • New product development decisions • Internal and IS project selection • Corporate IS planning • System service request from users • Need for upgrade to cut IT maintenance costs BCIS 5120, Spring 2007

  30. BCIS 5120, Spring 2007 System Service Request (SSR) is a form requesting development or maintenance of an information system. It includes the contact person, a problem statement, a service request statement, and liaison contact information

  31. BCIS 5120, Spring 2007 The Triple Constraint of Project Management

  32. BCIS 5120, Spring 2007 SEVERAL Project Management FrameworkS exist, here is one of them T T

  33. Phases of Project Management Process • Phase 1: Initiation • Phase 2: Planning • Phase 3: Execution – the longest … • Phase 4: Closedown BCIS 5120, Spring 2007

  34. PM Phase 1: Project Initiation • Assess size, scope and complexity, and establish procedures. • Establish: • Initiation team • Relationship with customer • Project initiation plan • Management procedures • Project management environment • Project workbook BCIS 5120, Spring 2007

  35. BCIS 5120, Spring 2007

  36. PM Phase 2: Project Planning • Define clear, discrete activities and the work needed to complete each activity • Tasks • Define project scope, alternatives, feasibility • Divide project into tasks • Estimate resource requirements • Develop preliminary schedule • Develop communication plan • Determine standards and procedures • Risk identification and assessment • Create preliminary budget • Develop a statement of work • Set baseline project plan BCIS 5120, Spring 2007

  37. BCIS 5120, Spring 2007 Planning Detail

  38. Some Components of Project Planning • Statement of Work (SOW) • “Contract” between the IS staff and the customer regarding deliverables and time estimates for a system development project • The Baseline Project Plan (BPP) • Contains estimates of scope, benefits, schedules, costs, risks, and resource requirements • Preliminary Budget • Cost-benefit analysis outlining planned expenses and revenues BCIS 5120, Spring 2007

  39. Some Components of Project Planning (cont.) • Work Breakdown Structure (WBS) • Division of project into manageable and logically ordered tasks and subtasks • Scheduling Diagrams • Gantt chart: horizontal bars represent task durations • Network diagram: boxes and links represent task dependencies

  40. BCIS 5120, Spring 2007 Scheduling DiagramsGantt Chart Special-purpose project management software is available for this.

  41. BCIS 5120, Spring 2007 Scheduling DiagramsNetwork Diagram Special-purpose project management software is available for this.

  42. BCIS 5120, Spring 2007 Preliminary Budget Spreadsheet software is good for this.

  43. PM Phase 3: Project Execution • Plans created in prior phases are put into action. • Actions • Execute baseline project plan • Monitor progress against baseline plan • Manage changes in baseline plan • Maintain project workbook • Communicate project status

  44. BCIS 5120, Spring 2007 Monitoring Progress with a Gantt Chart Red bars indicate critical path, lines through bars indicate percent complete.

  45. “If everything is going exactly to plan, something somewhere is going massively wrong.” A PM joke

  46. PM Phase 4: Project Closedown • Bring the project to an end. • Actions • Close down the project. • Conduct post-project reviews. • Close the customer contract.

  47. Capability maturity models • The goal is improve software development and other similar processes • 5 levels: • Initial – processes are not documented and change based on user or an event • Repeatable – some of the SW development processes are repeatable, some basic PM practices are established • Defined - – standard processes are used to established consistency across the organization • Managed – Process metrics are used to manage SW development processes • Optimized – focus on continuous improvement of processes

  48. Project management tools BCIS 5120, Spring 2007

  49. Representing and Scheduling Project Plans • Gantt Charts • Network Diagrams • PERT Calculations • Critical Path Scheduling • Project Management Software BCIS 5120, Spring 2007

  50. BCIS 5120, Spring 2007 Gantt Charts vs. Network Diagrams (cont.)

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