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Chapter 10, Case #2 IT Project Management Requirements Companies: PacifiCorp, Reynolds, and Zurich NA

Chapter 10, Case #2 IT Project Management Requirements Companies: PacifiCorp, Reynolds, and Zurich NA. Group #1 Keith Vines Jeremy Boling Siva Bhattiprolu Georg Wieninger Falk Scherzer Ansel Young. Trends in IT Project Management.

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Chapter 10, Case #2 IT Project Management Requirements Companies: PacifiCorp, Reynolds, and Zurich NA

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  1. Chapter 10, Case #2IT Project Management RequirementsCompanies: PacifiCorp, Reynolds, and Zurich NA Group #1Keith VinesJeremy BolingSiva BhattiproluGeorg WieningerFalk ScherzerAnsel Young

  2. Trends in IT Project Management • During the 1990s, market shareand time to the market were the most critical points in developing IT solutions. • As a result of that, IT project funding often became a “bottom-less pit”; the vast majority of projects was not profitable.

  3. Trends in IT Project Management • Today, a refocusing takes place in IT project management. Due to economic pressures, the main focus is now on finishing project on time and on budget. • Managers emphasize more on strict budgeting, daily progress reports and continual user feedback.

  4. PacifiCorp - CEO President/CEO (since 2001) Judi Johansen Lewis & Clark College Juris Doctor Colorado State University Bachelors Degree in Political Science

  5. PacifiCorp - Company History • The company was founded as Pacific Power and Light Company (PP&L) in 1910. • PP&L started from several small electric companies and served just 7,000 customers in Astoria and Pendleton in Oregon, and Yakima and Walla Walla in Washington.

  6. PacifiCorp - Company History • PacifiCorp was formed in 1984, when its coal mining and telephone businesses grew into full-fledged enterprises. • In 1989, it merged with Utah Power and Light, and continued doing business as Pacific Power and Utah Power. In 1999, PacifiCorp merged with United Kingdom-based Scottish Power. • Today, the company is one of the West’s largest and lowest-cost electric utilities.

  7. PacifiCorp • PacifiCorp planned to implement a new Web-based billing system; a $10 million, 18-month project. • One goal was to be able to handle 80% of the call center enquiries in less than 20 seconds. Therefore, the majority of the call center activities should become automated.

  8. PacifiCorp • The problem was, that some employees tried to create script responses for even the rarest customer issues. • As project manager Jann Davis said: “Knowing when you’re done is critical to keeping the project on time and on budget”. • In order to do that, businesspeople and developers met constantly and had to agree on and stick to requirements.

  9. Reynolds & Reynolds - CEO • CEO, Chairman and President Lloyd G.  Waterhouse

  10. Reynolds & Reynolds – Comp. Facts • Reynolds & Reynolds (R&R) was founded in 1866. • The company has developed from a small business forms manufacturer into one of the world's leading information management companies serving automotive retailing.

  11. Reynolds & Reynolds– Comp. Facts • R&R’s headquarter is in Dayton, Ohio. The company has approximately 4,500 associates serving every major city throughout North America and more than 20 countries around the globe. • Today, Reynolds is the undisputed retail management systems market leader, with a larger market share than its two nearest competitors combined.

  12. Reynolds & Reynolds • R&R implemented new software system for car dealerships; a 15 month, $55 million project. • The company had serious difficulties with the implementation process; they were off schedule and over budget.

  13. Reynolds & Reynolds • To tackle this problem, they instituted weekly meetings. During these meetings, which lasted up to four hours, each trouble spot was discussed in detail. • The main focus was on risk and on the business effect of an issue. This way, the team was able to concentrate first on those tasks that could set the project back.

  14. President/CEO John Amore

  15. The roots of the Zurich Financial Services Group go back to the 19th century which was founded in 1872. Within eight years the company was already servicing a large clientele beyond Switzerland. • This growth continued, with business reaching nearly all continents by the end of the 1970s

  16. With the acquisition of a majority interest in Scudder, Stevens & Clark in 1997, the asset management business became a major part of the company's strategy. • To stabilize the organization, in 2002 Zurich announced a plan to restore the Group's profitability. The plan included focusing on the core businesses of insurance and a concentration on three key markets: North America, the United Kingdom and Continental Europe.

  17. Zurich NA uses 3 different techniques to keep its project on schedule and on budget: • Zurich NA managers can check every project and its status using the company’s intranet. • The members of the IT project team receive 10 to 20 percent of their compensation based on whether they deliver a project as promised.

  18. Zurich’s managers always get a project’s budget and funding arrangements in writing. This agreement has to include project plans, risk analysis, costs and benefits. This is important since the company won’t start a project without having a customer who is willing to pay for it.

  19. Question #1 • Why has there been a change of the focus in IT project management?Is this change necessary? Why or why not?

  20. Change of Focus in IT ProjectManagement • the recession • NASDAQ going bust in the boom of the market • world disaster that happen in New York City of September 11, 2001 • flood of eligible candidates demand for IT jobs flooded the market causing a need to change from less experienced managers to more experienced manager

  21. Change Necessary • requirement to be added to IT projects like profit must be made on all projects • executive management must be on board with the project very early • Visible • Active role • implementing all IT projects from the start to finish

  22. Yes, Change is Necessary • IT projects required some preset rules or requirements because if you don’t have to worry about it paying off later than you already know if do analysis and have senior management approval and support means it is more likely to succeed in the end.

  23. Question #2 • What are the reasons for the difference in the project management focus of the meetings held by PacifiCorp and Reynolds?

  24. Answer - Question #2 • Reasons for Differences in project management focus. • Two different types of projects, problems, and project managers. • PacifiCorp had a defined set of goals and guidelines, but were having a hard time defining them to their employees. • PacifiCorp also did not have a defined “end” to their project. • Reynolds & Reynolds had goals and guidelines but no defined process for implementation.

  25. Question #3 • What are the benefits to IT project management of project status transparency and the project agreement as practiced by Zurich NA?

  26. Answer - Question #3 The advantages of project status transparency are: • Better understanding of the decision making process • Ensures clear understanding of project requirements • Project status is fact based • Everyone knows who is doing what (worker competency) • Improves project quality

  27. Answer - Question #3 • Advantages of project agreement are: • Details project plans • Analyses the risks involved • Cost – Benefit analysis

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