A Detailed Look to Initiation Phase of Scope Management (Part 8)

1. A Detailed Look to Initiation Phase of Scope Management (Part 8) Dr.Çağatay ÜNDEĞER Instructor Bilkent University, Computer Engineering Middle East Technical University, Game Technologies & General Manager SimBT Inc. e-mail : undeger@simbt.com.tr Bilgisayar Mühendisliği Bölümü – Bilkent Üniversitesi – Fall 2009

2. Scope Management • Project Management Components (knowledge areas) • Project Integration Management • Project Scope Management • Project Time Management • Project Cost Management • Project Human Resource Management • Project Communication Management • Project Quality Management • Project Risk Management • Project Procurement Management

3. Scope Management Phases • Initiation • Scope Planning • Scope Definition • Scope Verification • Scope Change Control

4. A Detailed Look to: Initiation • The process of identifying and authorizing; • A new project, or • Continuation of an existing project.

5. A Detailed Look to: Initiation • Requires the following activities: • Identifying projects • Classifying and ranking projects • Selecting projects • Establishing project charter

6. Identifying projects • No single method to use • Some organizations use; • Very careful planning process; • Some use; • More ad hoc methods.

7. Identifying projects • Who is responsible? • A key member of top management (e.g. a CEO, a senior executive) • A steering commitee composed of managers • User departments; • Head of a requesting unit • A commitee of requesting unit • A senior IS manager

8. Identifying projects • Although carefully identifying new projects has advantages, • Many organizations do not use a systematic planning process. • Projects are resulted from attempts to solve isolated organizational problems. • Procedures are likely to change, • In time, It will be necessary to modify existing systems.

9. Identifying projects • Use planning based-approachs. • Planning based-approachs ask the following question to identify new potential projects: • What information requirements will satisfy; • Decision making needs or • Business process of enterprice today and well in the future?

10. Identifying projects • Advantage of planning-based approach is that; • An organization’s informational needs are less likely to change than its bussiness process. • To understand planning-based approach, need to understand; • Corporate Strategic Planning, and • Information Systems Planning.

11. Identifying projects(Corporate Strategic Planning) • To make effective decisions, you need to gain a clear idea of; • Where an organization is, • Where it wants to be in the future (vision of organization), and • How to make transitions to that desired future state. • Planners develop a strategic plan to guide the transition.

12. Identifying projects(Sample Vision Statement) • Vision statement of SimBT Inc: • To provide national and international science and technology based original solutions in the area of modeling, simulation and simulators. • To realize company revolution on the concept of • “Behaving flexible and simple as a small company, • But meanwhile having the power of a big scale organization".

13. Identifying projects(Corporate Strategic Planning) • All successful organizations hava a mission. • Mission statement of a company states what business the company is in.

14. Identifying projects(Sample Mission Statement) • Mission statement of Microsoft: • To enable people and businesses throughout the world to realize their full potential. • Mission statement of SimBT Inc: • To develop the best M&S prototypes and turnkey products for Turkish and abroad customers.

15. Identifying projects(Corporate Strategic Planning) • Closely linked to their mission, • Organizations also define several objective statements that refer to broad and timeless goals for the organization • In order to reach a desired future state.

16. Identifying projects(Sample Objective Statement) • Objective statements of Microsoft: • Broad customer connection: Connecting with customers, understanding their needs and how they use technology, and providing value through information and support to help them realize their potential. • A global, inclusive approach: Thinking and acting globally, enabling a diverse workforce that... • ...

17. Identifying projects(Sample Objective Statement) • Objective statements of SimBT Inc: • To bridge the gap among: • “Science, technology, turn-key systems“, • “University, research centers” and • “Industry, acquisition agencies" in the area of modelling, simulation and simulators. • To put ourselves in the position of our customers in order to understand their requirements. • To make our customers realize their requirements and utilize the state-of-the-art technology.

18. Identifying projects(Corporate Strategic Planning) • A competitive strategy: • The method by which an organization attempts, to achieve its mission and objective. • An organization’s game plan for playing in the competitive business world.

19. Identifying projects(Corporate Strategic Planning) • A competitive strategy: • Generic strategies: • Low-cost producer • Product differentiation • Product Focus

20. Identifying projects(Corporate Strategic Planning) • Low-cost producer: • Competing in an industry on the basis of product or service cost to the customer (e.g. very cheap products).

21. Identifying projects(Corporate Strategic Planning) • Product differentiation: • Capitalizing on a key criterion requested by the market (e.g. high quality, high performance, original style).

22. Identifying projects(Corporate Strategic Planning) • Product Focus: • Similar to both low-cost and differentiation strategies. • But employs a much narrow market focus (focus on some specific products).

23. Identifying projects • Planning-based approaches: • Corporate strategic planning, and • Information Systems planning.

24. Identifying projects(Information Systems Planning) • A second planning approach that can help identifying projects is information systems planning (ISP). • An orderly means of; • Assessing information needs of an organization, and • Defining systems, databases, and technologies that will best satisfy those needs.

25. Identifying projects(Information Systems Planning) • Model current and future organizational information needs. • Develop strategies and project plans • To migrate current information systems and technologies to their desired future state.

26. Identifying projects(Information Systems Planning) • A top-down process that takes into account; • Outside forces (industry), • Economy, • Relative size, • Geographic region, etc. • Key activities are: • Describing current situation • Describing target situation, trends, and constraints • Developing a transition strategy and plan

27. Identifying projects(Information Systems Planning) • Describing current situation: • Define the current organizational situation using top-down planning. • Top-down planning attempts; • To gain a broad understanding of informational needs of entire organization.

28. Identifying projects(Information Systems Planning) • Describing current situation: • Top-down planning; • Begins with analysis of organization’s mission, objectives, and strategy; • Continues with determination of information requirements needed to meet each objective. • Requires involvement of top-level management.

29. Identifying projects(Information Systems Planning) • Describing target situation, trends, and constraints: • Define target situation that reflects desired future state of organization. • Vision consists of desired state of; • Locations, • Units, • Functions, • Processes, • Data, • Information systems.

30. Identifying projects(Information Systems Planning) • Developing a transition strategy and plan: • When creation of current and target situation is completed, • A detailed transition strategy and plan are developed.

31. Identifying projects(Information Systems Planning) • Developing a transition strategy and plan: • Plan should be: • Very comprehensive, • Reflecting broad and long-range issues, and • Providing sufficient detail to guide all levels of management concerning; • What needs to be done, • How and when it needs to be done, • Who in organization will be doing.

32. Identifying projects(Information Systems Planning) • Developing a transition strategy and plan: • Outline of an information systems plan: • Organizational mission, objectives & strategy • Information inventory • Mission and objectives of IS • Constraints on IS development • Overall systems needs and long-range IS strategies • The short-term plan • Conclusions

33. Identifying projects(Information Systems Planning) • Developing a transition strategy and plan: • Organizational mission, objectives & strategy: • Briefly describes mission, objectives and strategy of the organization. • Presents current and future views of the organization briefly.

34. Identifying projects(Information Systems Planning) • Developing a transition strategy and plan: • Information inventory: • Provides a summary of various bussiness process, functions, data entities, and information needs of enterprise. • Will contain both current and future views.

35. Identifying projects(Information Systems Planning) • Developing a transition strategy and plan: • Mission and objectives of IS: • Describes primary role of IS in transformation from current to future state. • For example, role may be; • A necessary cost, • an investment, or • a strategic advantage.

36. Identifying projects(Information Systems Planning) • Developing a transition strategy and plan: • Constraints on IS development: • Briefly describes limitations imposed by; • State of the art technology, • Current level of resources within the organization (financial, technological, personnel).

37. Identifying projects(Information Systems Planning) • Developing a transition strategy and plan: • Overall systems needs and long-range IS strategies: • Presents a summary of; • Overall systems needs within the organization, • A set of long-range (2-5 years) strategies chosen by IS department to meet the needs.

38. Identifying projects(Information Systems Planning) • Developing a transition strategy and plan: • The short-term plan: • Shows; • A detailed inventory of present projects and systems, • A detailed plan of projects to be developed or advanced during current year.

39. Identifying projects(Information Systems Planning) • Developing a transition strategy and plan: • Conclusions: • Contains; • Likely, but not certain events that may effect the plan, • An inventory of business change elements as presently known, • A description of their estimated impact on plan.

40. A Detailed Look to: Initiation • Requires the following activities: • Identifying projects • Classifying and ranking projects • Selecting projects • Establishing project charter

41. Classifying and Ranking Projects • Focuses on assessing relative merit of potential projects. • All projects are feasible given unlimited resources and time, • But most projects must be developed within tight budgendary and time constraints. • Therefore, assessing feasibility and value of projects is essential.

42. Classifying and Ranking Projects • Factors: • Economical • Technical • Operational • Schedule • Legal and contractual • Political

43. Classifying and Ranking Projects • Economical Feasibility: • A comparison of financial benefits and costs associated with a development project. • Often reffered as Cost-Benefit Analysis. • Impossible to preciesly define costs and benefits, • But an estimation is required in order to compare rival projects.

44. Classifying and Ranking Projects • Economical Feasibility: • Determine project benefits: • Tangible benefits • Intangible benefits • Determine project costs: • Tangible costs • Intangible costs

45. Classifying and Ranking Projects • Economical Feasibility: • Tangible benefits; • Can be measured in money and with certainty.

46. Classifying and Ranking Projects • Economical Feasibility: • Categories of tangible benefits: • Cost reduction and avoidance, • Error reduction, • Increased flexibility, • Increased speed of activity, • Improvement of management, planning and control, • Opening new markets and increasing sales opportunities, • Others.

47. Classifying and Ranking Projects • Economical Feasibility: • Intangible benefits; • Cannot be easily measured in money. • Some tangible benefits may be intangible in early stages of a project.

48. Classifying and Ranking Projects • Economical Feasibility: • Categories of intangible benefits: • Increased competiveness with other companies, • Increased organizational flexibility, • Increased employee morale, • Increased organizational learning and understanding, • More timely information collection, • Others.

49. Classifying and Ranking Projects • Economical Feasibility: • Tangible costs; • Can be measured in money and with certainty.

50. Classifying and Ranking Projects • Economical Feasibility: • Categories of tangible costs: • Hardware costs, • Software costs, • Labor costs, • Operational costs (employee training, building renovations, etc.) • Others