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An Overview of IT Project Management

Pert 01-02

Matakuliah : M0134 - Project ManagementTahun : 2010

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Information Technology ProjectManagement Third Edition

By Jack T. MarchewkaNorthern Illinois University

Copyright 2009 John Wiley & Sons, Inc. all rights reserved. Reproduction or translation of this work beyond that permitted in Section 117of the 1976 United States Copyright Act without the express permission of the copyright owner is unlawful. Request for furtherinformation should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies forhis/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omiss ions, or damages causedby the use of these programs or from the use of the information contained herein.

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An Overview of Information Technology Project Management

Chapter 1

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1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s

FirstElectronic

Computer

EDPEra

PCEra

NetworkEra

Globalization

IT and Modern Day Project Management

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IntroductionInformation Technology (IT) projects are organizationalinvestments that require

TimeMoney

And other resources such as people, technology,facilities, etc.

Organizations expect some type of value in return for thisinvestmentIT Project Management is a relatively new discipline that

attempts to make IT projects more successfulandcombines traditional Project Management withSoftware Engineering/Management Information Systems

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Which Situation is Worse?

Successfully building and implementing a systemthat provides little or no value to the organization?Or

Failing to implement an information system that

could have provided value to the organization, butwas underdeveloped or poorly managed?

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Why Do IT Projects Fail?

Larger projects have the lowest success rate andappear to be more risky than medium and smallerprojects

Technology, business models, and markets change toorapidly so projects that take more than a year can be

obsolete before they are completedThe CHAOS studies also provides some insight asto the factors that influence project success

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The Software Crisis

The CHAOS study published in 1995 by TheStandish Group found that although the U.S spentover $250 billion on IT projects, approximately

31% were cancelled before completion53% 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%!

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Figure 1.1 - Summary of the Chaos Studies from 1994 to 2006

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Rank 1994 2001 2006

1 User Involvement Executive Support User Involvement

2 Executive ManagementSupport User InvolvementExecutive Management

Support

3 Clear Statement ofRequirements Experienced Project Manager Clear Business Objectives

4 Proper Planning Clear Business Objectives Optimizing Scope

5 Realistic Expectations Minimized Scope Agile Process

6 Smaller Project Milestones Standard SoftwareInfrastructure Project Management Expertise

7 Competent Staff Firm Basic Requirements Financial Management

8 Ownership Formal Methodology Skilled Resources

9 Clear Vision & Objectives Reliable Estimates Formal Methodology

10 Hard-working, focused team Other Standard Tools andInfrastructure

Table 1.1 Summary of CHAOS Study Factor Rankings for Successful Projects Sources: Adapted from the Standish Group. CHAOS (West Yarmouth, MA: 1995) & http://www.infoq.com/articles/Interview-Johnson-Standish-CHAOS

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IT Project

PerformanceOver the

Past 3 Years

Much Worse Worse Same Better

Much Better

Ability tomeet project

schedules0.0% 12.3% 40.4% 41.2% 6.1%

Ability tomeet project

budgets1.8% 10.5% 44.7% 37.7% 5.3%

Ability tocomplete

project scopeor systemrequirement

s

2.6% 7.0% 41.2% 41.2% 7.9%

Customersatisfaction

over the past

3 years(Customerscan be

internal e.g., HR

departmentor external

e.g., aparticular

client)

Overallsatisfaction

of thecustomer

1.8% 13.2% 34.2% 39.5% 11.4%

Perceivedvalue of the

deliveredproduct to

the customer

0.0% 9.6% 39.5% 38.6% 12.3%

Potential forfuture work

with thecustomer

0.9% 3.5% 42.1% 38.6% 14.9%

Table 1.2: Project Performance and Internal/External Customer Satisfaction. Source: Marchewka, J.T. (2008). n = 114.

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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 Didnt 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) Projects Source: Adapted from the Standish Group. CHAOS (West Yarmouth, MA: 1995)

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Tata Consultancy Services 2007 Report

Included 800 senior IT managers from theUK, US, France, Germany, India, Japan, &Singapore:

62% of the IT projects failed to meet theirschedules49% experienced budget overruns47% experienced higher-than expected

maintenance costs41% failed to deliver the expected businessvalue and ROI

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Continued to provide support to improveIT

Tend to accept problems as the norm(i.e., a necessary evil)

Reduced IT budgets

Reluctant to fund new IT projects

Sought compensation from IT vendors

Looked for a scapegoat among IT staff

None

Don't know

69%

43%

21%

19%

13%

9%

2%

1%

Figure 1.2 - When IT projects have gone wrong, what has beenthe reaction from the business managers and the Board ofDirectors?

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Improving the likelihood of success A Value-Driven Approach

Plain & Simple: IT Projects must provide value to theorganization

Socio-technical Approach

Its not just about the technology or building a better mousetrap

Project Management Approachprocesses and infrastructure (Methodology)resourcesexpectationscompetitionefficiency and effectiveness

Knowledge Management Approachlessons learned, best practices & shared knowledge

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The PMBOK Guides Definitions for Projectand Project Management

A project is a temporary endeavor undertakento create a unique product, service, or result.Project Management is the application of knowledge,skills, tools and techniques to project activities to meetproject requirements. Managing a project includes:

Identifying requirementsEstablishing clear and achievable objectivesBalancing the competing demands for quality, scope, time, and

cost Adapting the specifications, plans, and approaches to thedifferent concerns and expectations of the various stakeholders

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The Context of Project Management Project Attributes

Time FramePurpose (to provide value!)OwnershipResources (the triple constraint)

RolesProject ManagerProject SponsorSubject Matter Expert (domain & technical)

Risk & Assumptions

Interdependent Tasks progressive elaboration steps & incrementsPlanned Organizational ChangeOperate in Environments Larger than the Project Itself

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The Triple Constraint

Figure 1.3

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The Project Life Cycle and ITDevelopment

Project Life Cycle (PLC) A collection of logical stages or phases that maps the life ofa project from its beginning to its end in order to define,build, and deliver the product of the project i.e., theinformation system

Projects are divided into phases to increasemanageability and reduce risk

Phase exits, stage gates , or kill points are decision points atthe end of each phase to evaluate performance or to correctproblems or cancel the project

Fast tracking is the overlapping of phases to reduce theprojects schedule Can be risky!

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Systems Development Life Cycle(SDLC)

Figure 1.5

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Waterfall MethodDefine

Requirements

Design

Build

Test

Maintenance

Implement

Figure 1.6

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Putting the SDLC into Practice

Structured Approach to Systems DevelopmentWaterfall MethodIterative Development

Rapid Applications Development (RAD)

PrototypingSpiral DevelopmentExtreme Programming

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Extreme Project Management (XPM) A new approach & philosophy to project management that isbecoming increasingly popularCharacterizes many of todays projects that exemplify speed,uncertainty, changing requirements, and high risksTraditional project management often takes an orderly approachwhile, XPM embraces the fact that projects are often chaotic andunpredictableXPM focuses on flexibility, adaptability, and innovationTraditional and new approaches together can provide us with abetter understanding of how to improve the likelihood of projectsuccess

f

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The Project Management Body ofKnowledge (PMBOK)

The Guide to the Project Management Body of Knowledge(PMBOK Guide) documents 9 project management knowledgeareasThe PMBOK Guide is published and maintained by the ProjectManagement Institute (PMI)

http://www.pmi.org PMI provides a certification in project management called theProject Management Professional (PMP) that many people todaybelieve will be as relevant as a CPA certificationPMP certification requires that you pass a PMP certification examto demonstrate a level of understanding about projectmanagement, as well as satisfy education & experiencerequirements and agree to a professional code of conduct

http://www.pmi.org/http://www.pmi.org/

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Project Management Body of Knowledge Areas

Figure 1.8

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PMBOX MATRIX(RELATIONSHIP BETWEEN

PROCESS GROUP KNOWLEDGE AREA)