Information technology project management

Cloud computing and SaaSMBA 501WEEK 6

What is project management?

• Project management – a definition“Project management is the process by which projects are defined, planned, monitored, controlled and delivered such that the agreed benefits are realised.”– Association for Project Management

• Project management is both a discipline and a set of tools and practices

Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

PM as a profession: Project Management Institute (PMI)

The Project Management Institute is the major project management organization / professional society defines and standardize the body of knowledge (PMBOK) has an important credentialising function –

Project Management certification

Founded in 1969

Very significant growth from 7,500 members in 1990 to over 260,000 in 2007

The Project Management Journal and PM Network are the leading project management journals

Meredith & Mantel (2009) Project management: a managerial approach. 7th

ed. Wiley.

Why such growth in the profession of PM?

• Recent Changes in Managing Organizations – – The replacement of traditional hierarchical

management with more consensual forms.– The increasing adoption of the “systems

engineering” approach to problem solving.– The establishment of projects as the preferred

way to accomplish the organizations goals.

Meredith & Mantel (2009) Project management: a managerial approach. 7th

ed. Wiley.

Project management

• “Managing projects has always been one of the most important, and toughest, jobs in the IS organization” McNurlin & Sprague

• What is a project?– “collection of related tasks and activities

undertaken to achieve a specific goal”• Must be a clearly stated goal• Must have a clearly stated beginning and end

McNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall

Definition of a project “A temporary endeavour undertaken to create a unique product or

service”▪ Project Management Institute (2004)

How do we distinguish a project from other kinds of work?

Major characteristics of a project Importance – in the eyes of the organization (not necessarily size) Performance – well defined set of goals Life cycle with a finite due date Interdependencies – interaction between project activities, and with other

activities in the organization Uniqueness – even routine project produce a unique result Resources – budgets, personnel etc…..are always limited Conflict – over cost, schedule, resources, requirements. Between stakeholders,

between team members. There is always conflict in PM.Meredith & Mantel (2009) Project

management: a managerial approach. 7th ed. Wiley.

What is not a project?

• Non-projects: Routine tasks that are performed again and again (projects are one-time events)

• Quasi-projects (Bill, would you look into this?)are those that do not have a specific task identified, no specific budget, and no specific deadline defined. Although there are some uncertainties, project management skills can still be used to manage them.

Meredith & Mantel (2009) Project management: a managerial approach. 7th

ed. Wiley.

Why Project Management?

The main purpose for initiating a project is to accomplish some goal

Project management increases the likelihood of accomplishing that goal

Project management gives us someone (the project manager) to spearhead the project and to hold accountable for its completion Better results Better control Better customer relations Better ROI

Meredith & Mantel (2009) Project management: a managerial approach. 7th

ed. Wiley.

Projects Tend to be Large

• Projects tend to be large– The Channel Tunnel– Three Gorges Dam, China– IT megaprojects (Wikipedia)

• Projects are getting larger over time– Flying: balloons planes jets rockets reusable

rockets

• The more we can do, the more we try to do

Meredith & Mantel (2009) Project management: a managerial approach. 7th

ed. Wiley.

Project Management Also Getting Smaller

1. More people are seeing the advantages of project management techniques

2. The tools are become cheaper

3. The techniques are becoming more widely taught and written about

– Wedding and other event planning– A new kitchen– A website redesign– Etc etc – some examples that come to mind?Meredith & Mantel (2009) Project

management: a managerial approach. 7th ed. Wiley.

Project management

• Techniques for managing the three elements of any project (the project triangle)

• Time• Cost• Performance objectives (scope)

• Project management is hard – it is all about managing risks!

McNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall

The job of a project manager

• Setting up the project (selecting the team etc)• Managing the schedule – WBS and assigning

activities/tasks• Managing the finances (estimating and managing

costs)• Managing the benefits (and managing expectations)• Managing the risks, opportunities, and issues/threats• Soliciting independent reviews

McNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall

The Project Life Cycle

Figure 1-3Meredith & Mantel (2009) Project

management: a managerial approach. 7th ed. Wiley.

Time Distribution of Project Effort

Figure 1-4Meredith & Mantel (2009) Project

management: a managerial approach. 7th ed. Wiley.

Uncertainty and Risk at the Start of the Life Cycle – very difficult to predict with accuracy

Figure 1-6Meredith & Mantel (2009) Project

management: a managerial approach. 7th ed. Wiley.

Estimate of project cost made at the start

Risk During the Life Cycle – uncertainty decreases as the project nears completion

Figure 1-7Meredith & Mantel (2009) Project

management: a managerial approach. 7th ed. Wiley.

Estimates of project cost made at time t0, t1 and t2

Project Management Institute – core competencies for PMs

• Management of:– Integration / co-ordination– Scope– Time– Cost– Quality– Human resources– Communication– Risk– Procurement

McNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall

Software for project management

• MS Project

• Wrike

• Basecamp

Example of PMs work: Activity Planning

• Activity planning includes– Selecting a systems analysis team– Estimating time required to complete each task– Scheduling the project

• Two tools for project planning and control are Gantt charts and network diagrams

McNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall

Work Breakdown Structure (WBS)

• Project is broken down into phases

• Further broken down into tasks / activities and sub-tasks

• Identify task dependencies

• Estimate the time each task will take– may use “most likely”, “pessimistic”, and

“optimistic” estimates for timeMcNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice

Hall

Gantt Charts

• Easy to construct and use

• Shows activities over a period of time and illustrates how activities and tasks are interrelated.

• Good at illustrating tasks that run parallel to one another– Example of Gantt chart

McNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall

Sample of a simple Gantt chart

Source

Network Diagram

– Network diagrams show precedence, activities that must be completed before the next activities may be started

– Show multiple paths to project completion– Used to calculate the critical path, ie. the longest

path through the activities– The critical path will cause the project to fall

behind if any delay is encountered on it

A N o n e 3C o n d u c t In te rv ie w s

B Q u e s t io n n a i re s A 4

C R e a d R e p o rt s N o n e 4D A n a ly ze D a ta F lo w s B , C 8

E In tr o d u ce P r o to typ e s B , C 5

F O b s e rv e R e a c t io n s E 3

G P e r fo r m C o s t /B e n e fi t D 3

H P r e p a re P r o p o s a l G 2

P r e s e n t P ro p o s a lI H 2

10

20

30 50 60 70 80

40

A, 3 B, 4

C, 4 D, 8 G, 3 H, 2 I, 2

E, 5 F, 3

Activity Predecessor Duration

Critical path = 10 – 20 – 30 – 50 – 60 – 70 – 80 (22 days - the longest path)

Non-critical path = 10 – 30 – 40 – 60 – 70 – 80 (16 days)

F,

Project failure

• Chaos Report 2011 (The Standish Group)• More than half of projects conducted between 2002

and 2010 either described as challenged or complete failures. – 37% Successful: delivered on time, on budget,

with required features and functions– 42 % Challenged: late, over budget, and/or with

less than the required features and functions– 21% Failed: cancelled prior to completion or

delivered and never used

Why do projects fail?• Any non-trivial project is almost certain to have

problems – project management is hard• Problems with people

– Poor communication– Lack of buy-in from key stakeholders– Resistance from employees / users– Tasks not completed as agreed– Insufficient training

• Problems with estimating time and budgets – overly optimistic or over-promising

• Scope creepMcNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall

Poor risk management

• One of the main reasons that IT projects fail is poor risk management– Technical risks: eg. scope creep causing complexity, vendor package

doesn’t scale– Business risks: the business doesn’t change properly to use the new

system (in a way necessary to reap the benefits)

• Selecting the right project management approach can help mitigate risk entailed with business changes

• The business case for an IT project should include the business-change risks

McNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall

Risk management - steps

• Step 1: Assess the risks1. leadership of the business change2. employees’ perspective on the change3. the scope and urgency of the change.

• Step 2: Mitigate the risks– Risk avoidance – remove source of the risk (eg remove certain

functions to avoid hacking)– Risk limitation by implementing controls (eg. System monitoring to

avoid disaster)– Risk transfer by letting others assume the risk (eg. by outsourcing)

• Step 3: Adjust the project management approach

McNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall

The role of the Project Management Office (PMO)

• Large organizations often centralize their PM functions into a Project Management Office

• Assist CIO in achieving objectives:– Instill project management discipline and

knowledge– Standardize project management best practices– Facilitate IT project portfolio management (for

better control)– Keep closer watch on project expenses and

progressMegan Santosus. Why you need a PMO. CIO Magazine, July 1, 2003.

The PMO

• PMO Models– Consulting model – provides PMs in business units with training,

guidance and best practice– Centralized model – PMs loaned out to business units to work

on specific projects

• Payback from the PMO?– Help deliver strategic IT projects– Enable better resource management– Fewer project failures– Only projects that offer the biggest payback are supported

Megan Santosus. Why you need a PMO. CIO Magazine, July 1, 2003.

OUTSOURCING

Outsourcing

• In the IT world, outsourcing means…turning over a firm’s computer operations, network operations, or other IT function to a provider for a specified time…usually a period of years

• Not at all common until late 1980s, early 1990s• Now, CIOs must demonstrate good reasons NOT to outsource• Outsourcing is evidence of a global and mobile trend in the IT

labour market– As is “reverse outsourcing” (eg. Wipro presence in US)

McNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall

Working outwards: Drivers towards outsourcing

• Value (cost savings). Forrester research shows that firms save between 12 & 17% of the cost of doing the work in-house– Benefits from economies of scale

• Focus on core business due to global competition– What business are we in? – Where do we add value?

McNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall

Location of supplier of outsourced services

• Off-shoring: means outsourcing to a provider outside the country (For the US this means India, Ireland, the Philippines, China etc)– Low wage countries– Cultural and time zone issues need to be managed– Political issues at home re the domestic workforce

• Near-shoring – outsourcing to Canada, Mexico • Outsourcing to home country

McNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall

Types of outsourcing• Project based (eg. Y2K work)• Best-of-breed outsourcing – one supplier might handle desktop

support, another data centre operations, another network management. Now managed collaboratively, with one supplier taking the lead

• Business process outsourcing (BPO) – outsourcing all or most of a re-engineered process that has a large IT component (eg. travel agency handing over ticket accounting)

• eBusiness outsourcing – speed and focus are the big drivers, especially where IT gives no competitive advantage

• Shared services – a type of “in-sourcing” where economies of scale are achieved by centralizing IT, legal, etc services

• Utility and cloud computing – pay as you go – Amazon Web Services (SaaS is another variant)

McNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall

Two statements for discussion

• Outsourcing offloads a burdensome technical responsibility and allows management to focus on its core business– OR

• Outsourcing strips a company of an important core competence – IT know-how and creates unnecessary risks

McNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall

CLOUD COMPUTING AND SAAS

The idea of cloud computing – the big shift

• “Computers used to be self-contained devices. If you wanted to do something with your PC, you had to buy a piece of software and install it on your hard drive”.

• The web changed all that. All you needed was a browser and a network connection “The PC began to turn inside out—what was important wasn’t what was inside its case but what was outside it.”

• Now, we use FB and Gmail, YouTube, and Netflix – this shift has been largely invisible to the consumer

• “[Computing today] is turning into a service supplied over a network. It’s becoming a utility.”

• The implications for corporate users are IT are very significant– Why build data centers?– Why bother even having an IT department any longer?

Nicholas Carr: The Big Switch. http://www.nicholasgcarr.com/bigswitch/interview.shtml

Cloud computing: what is it?

• “Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction” National Institute of Standards and Technology

Three types of cloud computing

• IaaS – Infrastructure as a Service: computing power, storage, database services eg. Amazon Web Services

• PaaS – Platform as a Service: an entire platform to build applications from scratch eg. Windows Azure and Heroku

• SaaS – Software as a Service: already built applications (pretty much the same as COTS)

• eg. Adobe Photoshop Creative Cloud

Utility computing• Carr (The Big Shift) – in the same way that

private production of electricity was replaced by utility companies, private computing is being replaced by utility computing

• The “cloud” is actually extremely tangible, and a huge user of energy

• The big players include– Amazon, Microsoft, and Google (

this is what one looks like) 6m• The three reasons to cloud compute

(Christopher Barnatt)

SaaS: what is it?

• Software-as-a-Service (SaaS)– Software programs offered through “the cloud”

usually via a web browser interface– An alternative to packaged application software

installed on a local system• Example: Salesforce.com

• Salesforce.com: What is cloud computing (3m)• Why Google Apps for Education (Google) 11m

SaaS - pricing• Shift from upfront license fee and service fees

for local installation as revenue for software companies

• Now we see new pricing models:– Monthly subscription fees: On-demand usage– Transaction-based– Advertising supported– Example of Salesforce.com pricing

Cusumano (2010) Cloud computing and SaaS as new computing platforms. Comm. ACM Vol 53 No4

SaaS advantages

• Cheaper• Available from anywhere via web browser / mobile

devices• Pay for it on an as-needed basis • No ongoing maintenance fees• One price covers everything• No need for in-house IT staff to install and maintain –

all patches and updates dealt with by the service provider

Cusumano (2010) Cloud computing and SaaS as new computing platforms. Comm. ACM Vol 53 No4

Risks and disadvantages

• Risks of downtime are managed by making sure that contracts address service levels (SLAs)

• No competitive advantage – all your competitors can and do access exactly the same software

• Security • Privacy concerns – a large and growing issue

Cusumano (2010) Cloud computing and SaaS as new computing platforms. Comm. ACM Vol 53 No4

SaaS as platform / app development ecosystem

• SaaS providers like Salesforce.com open their platforms via APIs so that other application companies can build products utilizing some features in the Salesforce CRM product

• So opening up the cloud infrastructure creates an “app” ecosystem and inter-relationships between developers– Eg. All the uses of the Google Maps API such as Zillow.com

• This creates a network effect

Cusumano (2010) Cloud computing and SaaS as new computing platforms. Comm. ACM Vol 53 No4