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Information Technology Project Management – Fourth Edition
By Jack T. MarchewkaNorthern Illinois University
Power Point Slides by Gerald DeHondtGrand Valley State University
Copyright 2012 John Wiley & Sons, Inc.
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An Overview of IT Project Management
Chapter 1
Copyright 2012 John Wiley & Sons, Inc.
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Learning Objectives Describe the dominant eras of information systems called
the electronic data processing (EDP) era, the micro era, the network era, and the globalization era, and understand how managing IT projects has evolved during these eras.
Understand the current state of IT project management and how successfully managing IT projects remains a challenge for most organizations.
Explain the value-driven, socio-technical, project management, and knowledge management approaches that support ITPM.
Define what a project is and describe its attributes. Define the discipline called project management. Describe the role and impact IT projects have on an
organization. Identify the different roles and interests of project
stakeholders. Describe Extreme project management. Identify the Project Management Body of Knowledge
(PMBOK®) core knowledge areas.Copyright 2012 John Wiley & Sons,
Inc.1-3
1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s
First ElectronicComputer
EDPEra
PCEra
NetworkEra
Globalization
IT and Modern Day Project Management
Copyright 2012 John Wiley & Sons, Inc.
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Introduction Information Technology (IT) projects are
organizational investments that require Time Money And other resources such as people, technology,
facilities, etc. Organizations expect some type of value in return
for this investment IT Project Management is a relatively new
discipline that attempts to make IT projects more successful andcombines traditional Project Management with Software Engineering/Management Information Systems
Copyright 2012 John Wiley & Sons, Inc.
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An ITPM 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
Copyright 2012 John Wiley & Sons, Inc.
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Modern Project Management Often credited to the U.S. Navy as an
outgrowth of the Polaris Missile Project in the 1950’s.
Focuses on reducing costs and product cycle time.
Provides an important link between an organization’s strategy and the deployment of that strategy. Can have a direct impact on an organization’s
bottom line and competitiveness.
Copyright 2012 John Wiley & Sons, Inc.
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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?
Copyright 2012 John Wiley & Sons, Inc.
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Why Do IT Projects Fail? Larger projects have the lowest success rate
and appear to be more risky than medium and smaller projects Technology, business models, and markets change
too rapidly so projects that take more than a year can be obsolete before they are completed
The CHAOS studies also provides some insight as to the factors that influence project success
Copyright 2012 John Wiley & Sons, Inc.
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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 over budget, over
schedule, & did not meet original specifications For mid-size companies, average cost overruns were
182%, while average schedule overruns were 202%!
Copyright 2012 John Wiley & Sons, Inc.
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Has the Current State of IT Projects Changed Since 1994? The Standish Group has continued to study IT
projects over the years. In general, 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!
Copyright 2012 John Wiley & Sons, Inc.
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Figure 1.1 - Summary of the Chaos Studies from 1994 to 2008
1994
1996
1998
2000
2002
2004
2006
2008
16%
27%
26%
28%
34%
29%
35%
32%
53%
33%
46%
49%
51%
53%
46%
44%
31%
40%
28%
23%
15%
18%
19%
24%
Sucessful Challenged Failed
Copyright 2012 John Wiley & Sons, Inc.
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Rank 1994 2001 2006 2008
1 User Involvement Executive Support User Involvement User Involvement
2 Executive Management Support User Involvement Executive Management
Support Executive Support
3 Clear Statement of Requirements
Experienced Project Manager
Clear Business Objectives
Clear Business Objectives
4 Proper Planning Clear Business Objectives Optimizing Scope Emotional Maturity
5 Realistic Expectations Minimized Scope Agile Process Optimizing Scope
6 Smaller Project Milestones
Standard Software Infrastructure
Project Management Expertise Agile Process
7 Competent Staff Firm Basic Requirements Financial Management Project Management
Expertise
8 Ownership Formal Methodology Skilled Resources Skilled Resources
9 Clear Vision & Objectives Reliable Estimates Formal Methodology Execution
10 Hard-working, focused team Other Standard Tools and
Infrastructure Tools & Infrastructure
Table 1.1 Summary of CHAOS Study Factor Rankings for Successful ProjectsSources: Adapted from the Standish Group. CHAOS (West Yarmouth, MA: 1995, 2010) & http://www.infoq.com/articles/Interview-Johnson-Standish-CHAOS
Copyright 2012 John Wiley & Sons, Inc.
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Table 1.2: IT Project Success Criteria Source: Source: http://www.drdobbs.com/architecture-and-design/202800777.
Criteria Response
Schedule
61.3% said it is more important to deliver a system when it is ready to be shipped than to deliver it on time.
Scope87.3% said that meeting the actual needs of stakeholders is more important than building the system to specification.
Money79.6% said that providing the best return on investment (ROI) is more important than delivering a system under budget.
Quality87.3% said that delivering high quality is more important than delivering on time and on budget.
Staff75.8% said that having a mentally and physically healthy workplace is more important than delivering on time and on budget.
Copyright 2012 John Wiley & Sons, Inc.
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Rank Factors for Challenged Projects Factors for Failed (Impaired) Projects
1 Lack of user input Incomplete requirements
2 Incomplete requirements Lack of user involvement
3 Changing requirements & specifications Lack of resources
4 Lack of executive support Unrealistic expectations
5 Technology incompetence Lack of executive support
6 Lack of resources Changing requirements & specifications
7 Unrealistic expectations Lack of planning
8 Unclear objectives Didn’t need it any longer
9 Unrealistic time frames Lack of IT management
10 New technology Technology illiteracy
Table 1.3: Summary of Factor Rankings for Challenged and Failed (Impaired) ProjectsSource: Adapted from the Standish Group. CHAOS (West Yarmouth, MA: 1995)
Copyright 2012 John Wiley & Sons, Inc.
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Tata Consultancy Services 2007 Report Included 800 senior IT managers from
the UK, US, France, Germany, India, Japan, & Singapore: 62% of the IT projects failed to meet
their schedules 49% experienced budget overruns 47% experienced higher-than expected
maintenance costs 41% failed to deliver the expected
business value and ROI
Copyright 2012 John Wiley & Sons, Inc.
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Copyright 2012 John Wiley & Sons, Inc.
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Improving the likelihood of success A Value-Driven Approach
Plain & Simple: IT Projects must provide value to the organization
Socio-technical Approach It’s not just about the technology or building a better
mouse trap Project Management Approach
processes and infrastructure (Methodology) resources expectations competition efficiency and effectiveness
Knowledge Management Approach lessons learned, best practices & shared knowledge Copyright 2012 John Wiley & Sons,
Inc.1-18
The PMBOK® Guide’s 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 objectives.
Copyright 2012 John Wiley & Sons, Inc.
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The Context of Project Management – Project Attributes
Time Frame Purpose (to provide value!) Ownership Resources (the triple constraint) Roles
Project Manager Project Sponsor SME (domain & technical)
Risk & Assumptions Interdependent Tasks
progressive elaboration – steps & increments Planned Organizational Change Operate in Environments Larger than the Project Itself
Copyright 2012 John Wiley & Sons, Inc.
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The Triple Constraint
Figure 1.3 Copyright 2012 John Wiley & Sons, Inc.
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Extreme Project Management (XPM) A new approach & philosophy to project management
that is becoming increasingly popular Characterizes many of today’s 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 Traditional and new approaches together can provide us
with a better understanding of how to improve the likelihood of project success
Copyright 2012 John Wiley & Sons, Inc.
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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 a level of understanding about project management, as well as satisfy education & experience requirements and agree to a professional code of conduct
Copyright 2012 John Wiley & Sons, Inc.
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Project Management Body of Knowledge Areas
Figure 1.8Copyright 2012 John Wiley & Sons,
Inc.1-24
Copyright 2012 John Wiley & Sons, Inc.All rights reserved. Reproduction or translation of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without
express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John
Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no
responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information herein.
Copyright 2012 John Wiley & Sons, Inc.
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