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Introduction to Project ManagementChapter 5 Managing Project Scope (range)

Information Systems Project Management: A Process and Team Approach, 1e Fuller/Valacich/George

Five Process Phases of Project Management

Initiate
Plan
Execute
Monitor and Control
Close

Project Initiation

The process of authorizing a new or continuing an existing project
Four initiation activities:

Identifying information systems development projects
Classifying and ranking information systems development projects
Selecting information systems development projects
Establishing the project charter (contract)

1. Identifying Information Systems Development Projects

Identification can be made by:

Top management or chief executive officer

Strategic focus

Steering committee

Cross-functional focus

User department(s)

Tactical focus

IT development group or IT management

System integration focus

Two Basic Project Planning Approaches

Isolated – attempts to solve individual organizational problems

What procedure (application program) is required to solve this particular problem as it exists today?
Dependent on current IT infrastructure

Two Basic Project Planning Approaches(cont.)

Planned – systematic identification of project that will provide solutions today and into the future

What information (or data) requirements will satisfy the decision-making needs or business processes of the enterprise today and well into the future?
Independent of current IT infrastructure constraints

Corporate Strategic Planning

An ongoing process that defines the mission, objectives, and strategies of an organization.
Required if project selection is going to be successful.
Three-step process

The current organization must be reviewed and understood
Management decides on future direction
Strategic plan is developed for transition from current to future state

Strategic Planning

Requirements:

Mission Statement

Statement that makes it clear what business the company is in

Objective statements

Series of statements that express an organization’s qualitative and quantitative goals for reaching a desired future position.
Sometimes call Critical Success Factors or Corporate Values.

Competitive Strategy

Method by which an organization attempts to achieve its mission and objectives.

GenericCompetitive Strategy

Information Systems Planning

An orderly (arranged) means of assessing the information needs of an organization and defining the systems, databases, and technologies that will best satisfy those needs.

Information Systems PlanningThree-Step Process

System Service Request

Parallel Activities

Planning Methods

Top-Down

Generic information systems planning methodology that attempts to gain a broad understanding of the information system needs of the entire organization

Bottom-Up

Generic information systems planning methodology that identifies and defines information systems development projects based upon solving operational business problems or taking advantage of some business opportunities

Information Systems Plan Outline

2. Classifying And Ranking Information Systems Development Projects

Completed by top management, steering committee, business units, or information systems development groups
Criteria varies among organizations

Possible Evaluation Criteria When Classifying And Ranking Projects

Business Case

Justification that presents the economic, technical, operational, schedule, legal and contractual, and political factors influencing a proposed information systems project.

Selected Feasibility Factors

Economic
Technical
Operational
Schedule
Legal and contractual
Political

Economic Feasibility

Identify the financial benefits and costs associated with a development project

Benefits

Tangible or intangible

Costs

Tangible or intangible

Benefits

Tangible – benefit derived from the creation of an information system that can be measured in dollars and with certainty.

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

Intangible – benefit derived from the creation of an information system that cannot be easily measured in dollars or with certainty.

Competitive necessity; increased organizational flexibility; increased employee morale; promotion of organizational learning and understanding; more timely information.

Cost Types

Tangible cost

Cost associated with an information system that can be measured in dollars and with certainty.

Intangible cost

Cost associated with an information system that cannot be easily measured in terms of dollars or with certainty.

Recurring cost

Cost resulting from the ongoing evolution and use of a system.

One-Time cost

Cost associated with project start-up and development or system start-up

Cost-Benefit Analysis

The use of a variety of analysis techniques for determining the financial feasibility of a project

Present Value
Discount Rate
Net Present Value
Break-even Analysis

Technical Feasibility

Process of assessing the development organization's ability to construct a proposed system.

Technical Project Risk Assessment Factors

Project Size
Project Structure
Development Group
User Group

Risk Assessment Matrix

Potential Technical Risks

Failure to attain expected benefits from the project
Inaccurate project cost estimates
Inaccurate project duration estimates
Failure to achieve adequate system performance levels
Failure to adequately integrate the new system with existing hardware, software, or organizational procedures

Operational Feasibility

Process of assessing the degree to which a proposed system will solve business problems or takes advantage of business opportunities

What impact will the proposed system have on the organization’s structures and procedures?

Schedule Feasibility

Process of assessing the degree to which the potential time frame and completion dates for all major activities within a project meet organizational deadlines and constraints for affecting change.

Legal and Contractual Feasibility

Process of assessing potential legal and contractual ramifications تشعب due to the construction of a system.

Political Feasibility

Process of evaluating how key stakeholders within the organization view the proposed system

3. Information Systems Development Selection

Popular Selection Methods

Value Chain Analysis

The process of analyzing an organization's activities to determine where value is added to products and/or services and the costs incurred for doing so

Multi-Criteria Analysis

A project selection method that uses weighted scoring for a variety of criteria to contrast alternative projects or system features.

Value Chain Analysis

4. Establish a Project Charter

A short document prepared for the customer during project initiation that describes what the project will deliver and outlines generally at a high level all work required to complete the project.
Typically contains:

Project title and date of authorization (approval)
Project manager name and contact information
Customer name and contact information
Projected (anticipated) start and completion dates
Key stakeholders, project roles, and responsibilities
Project objectives and description
Key assumptions or approach
Signature section for key stakeholders

Project Scope Planning

Process of progressively elaborating and documenting the project work plan in order to effectively manage a project.
Occurs once a project has been formally selected for development.

Project Scope Planning Activities

Project workbook created
Project scope statement written
Baseline project plan is developed

Project Workbook

Serves as the central repository for all project-related documents and information
Contains

all project correspondence (mail), inputs, outputs, procedures, and standards established by the project team

Workbook can be paper or electronic

Project Scope Statement

Document prepared for the customer that describes what the project will deliver and outlines generally at a high level all work required to complete the project
Addresses:

What problem or opportunity does the project address?
What are the quantifiable results to be achieved?
What needs to be done?
How will success be measured?
How will the end of the project be identified?

Baseline Project Plan

Documents the best estimate of a project's scope, benefits, costs, risks, and resource requirements
Four sections:

Introduction
System Description
Feasibility Assessment
Management Issues

Baseline Project Plan Introduction

Provides a brief overview of the entire document and outlines a recommended course of action for the project

Baseline Project Plan System Description

Documents possible alternative solutions in addition to the one deemed (considered) most appropriate for the given situation

Baseline Project PlanFeasibility Assessment

Project costs and benefits, technical difficulties, and other such concerns are outlined
Gantt charts and network diagrams illustrate high-level project schedules

Baseline Project PlanManagement Issues

Documents management concerns related to the project
Typical issues include:

Team configuration and management
Communication plan
Project standards and procedures
Other project-specific topics

Project Scope Definition

Process of subdividing the major project deliverables – as identified in the project scope statement – into smaller, more manageable activities in order to make more accurate cost, task duration, and resource estimates