university of toronto at scarborough © kersti wain-bantin cscc40 it projects 1 why information...

University of Toronto at Scarborough © Kersti Wain-Bantin CSCC40 IT projects 1

systemsrequests

moreinformation

improvedservice

reduced cost

strongercontrols

betterperformance

why information systems?

solve a problem- high costs of operation- lack of data integrity- inability to handle volumes- slow response/turnaround- etc.

realize an opportunity- new product or service- new tools available- etc.


purpose

stakeholders

businessresults

other corporateresources

informationtechnology

businessoperations

objectives

goals

missionstatement

values

vision

strategic planningprocess


parallel activities: corporate strategic planning and information systems

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topmanagementexecutives

existingsystems

ITdepartment

userrequests

government

competitorsthe

economy

technology

software andhardwarevendors

suppliers

customers

factorsaffecting IT projects


formal• terminology• policies• standards and procedures• standards of practice• formal organization structure• job descriptions

informal • influence and inclinations of key personnel• who the experts are in different subject areas• critical incidents in the organization’s history• information organization structure• coalition membership and power structures

external• government regulations• competitors: domestic and international• products services and markets• role of technology in the business

strategic • short and long-term strategy and plans• values and mission

factors affecting computer systems


1. identify potential projects2. classify and rank the projects3. select projects for development

how do we identify and select projects?

who is involved and why? top management steering committee user departments development group

considerations?• size of project• strategic impact• cost/benefit ratio• organizational impact• urgency• value chain impact• resource availability• technological challenge• competitive edge

selecting the next project


phase 1systemsplanning

preliminaryinvestigation

report

phase 3systemsdesign

systemdesign

specification

phase 4system

implementation

completefunctioning

system

phase 5systems

operation andsupport

operationalinformation

system

phase 2systemsanalysis

systemsrequirements

document

replaceinformation

system

stop

stop

stop

systemrequest

1. understand the problem or opportunity2. define the project scope and constraints3. perform fact finding4. estimate the project’s benefits5. estimate project development time and cost6. present results and recommendations to management

system planning


project selection decisions

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servicerequest

ITarchitecture

long-rangeplans

problemsand

opportunities

system priority board

approvedproject

budget

users and management IT department

approving a project


baseline project plan report

AKA proposal

introduction:project overviewrecommendations

system description:alternativessystem description

feasibility assessment:economictechnicaloperationallegal/contractualpoliticalschedule

management issues:the teamcommunicationstandards and proceduresother project-specific topics

deliverablesproject plan

statement of work


• economic• technical• operational• schedule• legal/contractual• political

• large team• lengthy project• several departments involved• new application system• corporate reorganization is involved• users don’t think it’s a good idea• users can't agree on what's needed• management worried about funding it• user contribution will be large• leading-edge hardware• new methodology will be used• upgrade to latest development platform

“What could possibly go wrong? We have a great team in IT! We love a challenge.”

feasibility


project

phase task consultants hrs. client hrs.

start-up first meeting SE, TRW JFK, LBJproposal SE

analysis interviews SE, HR 20 JFK, accountant(s) 20general functional requirements HR 10 accountants 5high-level diagrams HR, BJ 30 JFK, LBJ 5

ETC.total hours 60 30

labour cost ave. $60/hr $3,600materials 2 replacement work stations $6,000

additional cabling $400ETC.

total cost $10,000

staffing

example of resource planning

include a legend for any abbreviations


project planning

http://www.visitask.com/img/sample-gantt-chart.jpg


ces.asu.edu/.../management/gantt_chart.gif


tangible system costsone-time project costs:

- labour- materials

recurring costs:- labour- materials

intangible system costs- disruption of production or service- inconvenience to customers- etc.


costs per phase for a small system(<5K lines of code)

0

5

10

15

20

25

30

spec

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codin

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software costs for a large system(>10K lines of code)

0

10

20

30

40

50

60

70

analysis design programming integration maintenance


cumulative costs VS cumulative benefits

0

100

200

300

400

500

600

1 2 3 4 5 6 7 8 9 10 11 12 13 14

years

$000 cum cost

cum ben


Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 TOTALSNet Economic Benefit $0 $30,000 $30,000 $30,000 $30,000 $30,000Discount Rate 1 0.8928571 0.7971939 0.7117802 0.6355181 0.5674269PV of Benefits $0 $26,786 $23,916 $21,353 $19,066 $17,023

NPV of Benefits $0 $26,786 $50,702 $72,055 $91,120 $108,143 $108,143

One-time Costs -$100,000

Recurring Costs $0 -$2,000 -$2,000 -$2,000 -$2,000 -$2,000Discount Rate 1 0.8928571 0.7971939 0.7117802 0.6355181 0.5674269PV of Recurring Costs $0 -$1,786 -$1,594 -$1,424 -$1,271 -$1,135

NPV of all COSTS -$100,000 -$101,786 -$103,380 -$104,804 -$106,075 -$107,210 -$107,210

discount rate 12% $934

0.01

Overall NPV

Overall ROI (= NPV/NPV of all costs)

return on investment


typical IT department organization


• leadership• management• customer relations• technical problem solving• conflict management• team management• risk and change management

the art of project management

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describe project scope, alternatives, feasibility divide project into manageable tasks estimate resources and create a resource plan develop an preliminary schedule develop a communication plan determine project standards and procedures identify and assess risk create a preliminary budget develop a statement of work set a baseline project plan

execute the baseline project plan monitor project against baseline plan manage changes to the baseline plan maintain project workbook communicate project status

establish project initiation team establish relationship with customers establish project initiation plan establish management procedures establish project management environment and project workbook

close customer contract close down the project conduct post-project reviews

project managementmethodology


Su

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People-Related Mistakes1. Undermined motivation2. Weak personnel3. Uncontrolled problem employees4. Heroics5. Adding people to a late project 6. Noisy, crowded offices7. Friction between developers and customers 8. Unrealistic expectations 9. Lack of effective project sponsorship 10. Lack of stakeholder buy-in 11. Lack of user input 12. Politics placed over substance 13. Wishful thinking

This material is Copyright © 1996 by Steven C. McConnell. All Rights Reserved.


Process-Related Mistakes 14. Overly optimistic schedules 16. Insufficient risk management 17. Contractor failure Insufficient planning 18. Abandonment of planning under pressure 19. Wasted time during the fuzzy front end 20. Shortchanged upstream activities 21. Inadequate design 22. Shortchanged quality assurance 23. Insufficient management controls 24. Premature or too frequent convergence 25. Omitting necessary tasks from estimates 26. Planning to catch up later27. Code-like-hell programming S

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Product-Related Mistakes 28. Requirements gold-plating 29. Feature creep 30. Developer gold-plating 31. Push me, pull me negotiation32. Research-oriented development

Technology-Related Mistakes 33. Silver-bullet syndrome 34. Overestimated savings from new tools or methods 35. Switching tools in the middle of a project 36. Lack of automated source-code controlS

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