Transcript Lecture 2 - DCU School of Computing

Successful IT
Projects
By Darren Dalcher
& Lindsey Brodie
Chapter 2
www.thomsonlearning.co.uk/fasttrack
Successful IT Projects
slides © 2007 Darren Dalcher & Lindsey Brodie
Lecture 2
Project Selection
Successful IT Projects
slides © 2007 Darren Dalcher & Lindsey Brodie
Learning outcomes
• Understand how a project must fit (align) with
organisational objectives
• Describe the concepts of programme
management and portfolio management
• Explain the project management perspective on
objectives, scope, stakeholders and stakeholder
value
• State the main contents of a feasibility study
Successful IT Projects
slides © 2007 Darren Dalcher & Lindsey Brodie
Reasons for IT investment
• Survival
• Improved efficiency and/or effectiveness
• Competitive advantage
• External factors
(for example, legislation)
• Changing organisational structure
(for example, mergers)
Successful IT Projects
slides © 2007 Darren Dalcher & Lindsey Brodie
Management of IT investment
• Programme management
• Project portfolio management
Successful IT Projects
slides © 2007 Darren Dalcher & Lindsey Brodie
Allocation of IT budget
• Existing IS for ongoing operations and
maintenance
• Existing projects for ongoing agreed work
• Existing IS for system improvements
• Existing projects bidding for further new
development
• Project proposals
Successful IT Projects
slides © 2007 Darren Dalcher & Lindsey Brodie
Setting up a project
• Selecting a project proposal
• Establishing a business case
• Business case
• Commencing the project
• Project charter or contract
• Scope statement
• Initial project plan
Successful IT Projects
slides © 2007 Darren Dalcher & Lindsey Brodie
Project Management Lifecycle
Select
Project
Proposal
Determine
Business
Case
Business Case
Deliverable
Carry out
Feasibility
Study
Feasibility
Study
Deliverable
Commence
Project
Manage
Project
Project Charter
(or Project Contract),
Scope Statement &
Initial Project Plan
Deliverable
Close
Project
Evaluate
Project
Final Project
Report
Project Evaluation
&
Lessons Learnt
Deliverable
Deliverable
Systems
Development
Lifecycle
Information System
Documentation
Deliverables
Successful IT Projects
slides © 2007 Darren Dalcher & Lindsey Brodie
Adapted from
Marchewka 2003
Project proposal selection
Establishing a project’s contribution to the
organisation’s objectives:
• SWOT analysis
• Balanced Scorecard
Successful IT Projects
slides © 2007 Darren Dalcher & Lindsey Brodie
SWOT analysis
Strengths
Weaknesses
Opportunities
Threats
Successful IT Projects
slides © 2007 Darren Dalcher & Lindsey Brodie
The Balanced Scorecard
Kaplan and Norton 1996
Financial
How should we appear to
our shareholders?
Customer
How should we appear to
our customers?
Vision
and
Strategy
Learning & Growth
How will we sustain our
ability to change and
improve?
Successful IT Projects
slides © 2007 Darren Dalcher & Lindsey Brodie
Internal
Business Process
What business processes
must we excel at?
Feasibility study
•
Perceived need for change
•
Product/system interfaces
•
Alignment with organisational
strategy/objectives
•
List of stakeholders
•
Potential benefits and estimated
costs
•
Proposed solution(s)
•
Technology considerations
•
Staff availability
•
Dependencies, issues,
assumptions and risks
•
Outline project plan
•
Summary of financial
information
•
Recommendations
•
Aim of proposed project
•
Objectives for the proposed project
–
–
•
•
Analysis of the external
environment
Product/system scope
–
–
–
•
•
Benchmark levels (existing levels)
Target levels
Functionality
Levels of objectives
Deployment within organisation
Current business process(es) and
proposed changes
Current IS and proposed changes
Successful IT Projects
slides © 2007 Darren Dalcher & Lindsey Brodie
Identifying the project aim
A project should have one major aim and
several objectives supporting the aim.
For example:
To improve our customers’ experience of
ordering our products.
Successful IT Projects
slides © 2007 Darren Dalcher & Lindsey Brodie
Identifying the stakeholders
Any person or group that will be affected by the
system directly or indirectly.
For example:
• End-users
• Managers
• Systems administration
• Maintenance
• Testing
• Suppliers
Successful IT Projects
slides © 2007 Darren Dalcher & Lindsey Brodie
Establishing stakeholder value
•
•
•
•
•
•
What are the potential benefits?
What could be done to achieve greater benefit?
Which stakeholders could potentially benefit?
Are any other projects impacting the benefits?
Are the benefits greater than the costs?
Are there any mandatory changes (for example,
legislation)?
• How will the benefits be measured?
Successful IT Projects
slides © 2007 Darren Dalcher & Lindsey Brodie
Determining project scope
Determine what is included in the project and
what is not.
Scope can be defined as ‘the work the project
has to do’.
Establishing the scope includes consideration of:
• Functionality
• Levels of objectives
• Extent of the deployment within an organisation
Benefits, costs and timescales are linked to the
project scope.
Successful IT Projects
slides © 2007 Darren Dalcher & Lindsey Brodie
Project Triangle
Financial
Budget
Schedule
Scope
The financial budget and the time schedule together with the project scope
form the project triangle. Tradeoffs can be made amongst the three.
Successful IT Projects
slides © 2007 Darren Dalcher & Lindsey Brodie
System interfaces
Identify all the interfaces with other systems
Establish the key data being passed across the interfaces
Look for ‘natural’ boundaries
Consider if there is any benefit in altering existing interfaces
Determine if any other projects are within the interfaces
Successful IT Projects
slides © 2007 Darren Dalcher & Lindsey Brodie
Identifying the project objectives
• Project objectives specify the success
criteria for a project
• Project benefits and costs are
dependent on the levels set for the
objectives
Successful IT Projects
slides © 2007 Darren Dalcher & Lindsey Brodie
Objective Hierarchy supporting an Aim
Aim
Objective A
Objective A.1
Objective B
Objective A.2
Objective C
Objective C.1
Objective C.1.1
Successful IT Projects
slides © 2007 Darren Dalcher & Lindsey Brodie
Objective C.2
Objective C.1.2
Example of an Objective Hierarchy
Aim:
Improved Web
Interface for
Customers
Customer
Satisfaction
Product
Information
- Quality Requirements only
Usability
Customer
Feedback
Availability
Maintainability
Problem
Resolution
Successful IT Projects
slides © 2007 Darren Dalcher & Lindsey Brodie
Reliability
Information
Updating
SMART objectives
Doran 1981
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•
•
•
•
Specific
Measurable
Assignable
Realistic
Time-related
Successful IT Projects
slides © 2007 Darren Dalcher & Lindsey Brodie
Objectives as success criteria
SMART objectives provide:
• A target to aim at
• The responsibility for ensuring and monitoring
that the targets will be achieved
• A point of reference
• Proof of agreement that can be used as proof of
achievement at the point of delivery
Successful IT Projects
slides © 2007 Darren Dalcher & Lindsey Brodie
Example of a SMART objective
“The average time for a customer order of a single
order item to be input by an existing customer
will be reduced from 2 minutes down to 1 minute
by the end of November 2007”
Rather than “The time taken for customers to place orders
will be significantly improved.”
- How would you decide if the project was successful with
such an ambiguous objective?
Successful IT Projects
slides © 2007 Darren Dalcher & Lindsey Brodie
Communicating with senior
management
Ensure you discuss the feasibility study with
senior management
Identify who is providing the budget for the project
Check the project is aligned with the organisation’s strategy
Determine if proposed functionality and deployment
within the organisation is correct
Obtain agreement to the project’s objectives
Discuss the stakeholder value and project costs
Successful IT Projects
slides © 2007 Darren Dalcher & Lindsey Brodie
Summary
• Reasons for IT investment
• IT investment management
• Proposal selection
• Contents of a feasibility study
Successful IT Projects
slides © 2007 Darren Dalcher & Lindsey Brodie