chapter 14.pptx
TRANSCRIPT
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Copyright2013DorlingKinders
ley(India)Pvt.Ltd.
Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
Managing Projects
Chapter 14
VIDEO CASESCase 1 Mastering the Hype Cycle: How to Adopt the Right Innovation at the
Right TimeCase 2: NASA: ro!ect Management ChallengesInstr"ctional #ideo 1: So$tware ro!ect Management in 1% Min"tes
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Copyright2013DorlingKinders
ley(India)Pvt.Ltd.
Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
What are the objectives of project management and why is it soessential in developing information systems?
What methods can be used for selecting and evaluatinginformation systems projects and aligning them with the rms
business goals? How can rms assess the business value of information systems
projects?
What are the principal risk factors in information systemsprojects?
What strategies are useful for managing project risk and systemimplementation?
Learning Objectives
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Copyright2013DorlingKindersley(India)Pvt.Ltd.
Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
Problem: oke !ottlings e"isting project management softwareunable to deliver needed reports# projects running over budget#past schedule
$olutions: %icrosoft &'ce (nterprise Project %anagement )(P%*
$olution# integrated with e"isting network and software# to allowonline# centrali+ed project management
,emonstrates use of information systems and accurate data tomanage projects e-ectively
.llustrates need for organi+ational and management change to
ensure success of new technology
Opening Happiness !ith a "e! ProjectManage#ent S$ste#
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Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
/unaway projects and system failure
/unaway projects: 012 3 412 .5 projects
("ceed schedule# budget
6ail to perform as specied
5ypes of system failure
6ail to capture essential business re7uirements
6ail to provide organi+ational benets
omplicated# poorly organi+ed user interface
.naccurate or inconsistent data
%he I#portance o& Project Manage#ent
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Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
%he I#portance o& Project Manage#ent
CO"SE'(E"CES O) POO* P*O+EC% MA"A,EME"%
Without proper management# a systems development project takes longer tocomplete and most often e"ceeds the allocated budget8 5he resultinginformation system most likely is technically inferior and may not be able todemonstrate any benets to the organi+ation8
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Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
Project management
9ctivities include planning work# assessing risk# estimatingresources re7uired# organi+ing the work# assigning tasks#controlling project e"ecution# reporting progress# analy+ing
results6ive major variables
$cope
5ime
ost
uality /isk
%he I#portance o& Project Manage#ent
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Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
%anagement structure for information systems projects
Hierarchy in large rms
orporate strategic planning group
/esponsible for rms strategic plan
.nformation systems steering committee /eviews and approves plans for systems in all divisions
Project management group
/esponsible for overseeing specic projects
Project team
/esponsible for individual systems project
Se.ecting Projects
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Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
%he I#portance o& Project Manage#ent
MA"A,EME"% CO"%*OL O) S/S%EMS
P*O+EC%S
(ach level ofmanagement in thehierarchy is responsiblefor specic aspects ofsystems projects# andthis structure helpsgive priority to themost importantsystems projects forthe organi+ation8
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Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
.nformation systems plan:
.denties systems projects that will deliver most businessvalue# links development to business plan
/oad map indicating direction of systems development#
includes: Purpose of plan
$trategic business plan rationale
urrent systems;situation
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Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
.n order to plan e-ectively# rms need to inventory anddocument e"isting software# hardware# systems
5o develop e-ective information systems plan# organi+ationmust have clear understanding of both long3term and short3term information re7uirements
$trategic analysis or critical success factors )$6* approach
$ees information re7uirements as determined by a smallnumber of critical success factors
9uto industry $6s might include styling# 7uality# cost
Se.ecting Projects
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sley(India)Pvt.Ltd.
Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
ritical success factors
Principal method:
.nterviews with 034 top managers to identify goals andresulting $6s
Personal $6s aggregated into small number of rm $6s $ystems built to deliver information on $6s
$uitable for top management# building ,$$ and ($$
,isadvantages:
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Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
Se.ecting Projects
(SI", CS)s %O DEVELOP S/S%EMS
5he $6 approach relies oninterviews with keymanagers to identify their$6s8 .ndividual $6s are
aggregated to develop$6s for the entire rm8$ystems can then be builtto deliver information on
these $6s8
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Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
Portfolio analysis
=sed to evaluate alternative system projects
.nventories all of the organi+ations information systemsprojects and assets
(ach system has prole of risk and benet High3benet# low risk
High3benet# high risk
>ow3benet# low risk
>ow3benet# high risk
5o improve return on portfolio# balance risk and return fromsystems investments
Se.ecting Projects
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Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
Se.ecting Projects
A S/S%EM PO*%)OLIO
ompanies shoulde"amine their portfolioof projects in terms of
potential benets andlikely risks8 ertainkinds of projects shouldbe avoided altogetherand others developedrapidly8 5here is noideal mi"8 ompaniesin di-erent industries
have di-erent proles8
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Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
$coring models
=sed to evaluate alternative system projects# especially whenmany criteria e"ist
9ssigns weights to various features of system and calculatesweighted totals
Se.ecting Projects
CRITERIA WEIGHT SYSTEM A % SYSTEM ASCORE
SYSTEM B % SYSTEM BSCORE
Online order entry 4 67 268 73 292
Customer credit check 3 66 198 59 177
Inentory check 4 72 288 81 324
W!rehouse receiin" 2 71 142 75 150
ETC
GRA#$ TOTAS 3128 3300
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Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
.nformation system costs and benets
5angible benets:
an be 7uantied and assigned monetary value
$ystems that displace labor and save space:
5ransaction and clerical systems.ntangible benets:
annot be immediately 7uantied but may lead to7uantiable gains in the long run
(8g8# more e'cient customer service# enhanced
decision making $ystems that inuence decision making:
($$# ,$$# collaborative work systems
Estab.ishing the 23siness Va.3e o&In&or#ation S$ste#s
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Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
apital budgeting for information systems
apital budgeting models:
%easure value of investing in long3term capital investmentprojects
/ely on measures the rms ash outows
("penditures for hardware# software# labor
ash inows
.ncreased sales
/educed costs
5here are various capital budgeting models used for .5projects: Payback method# accounting rate of return oninvestment# net present value# internal rate of return ).//*
Estab.ishing the 23siness Va.3e o&In&or#ation S$ste#s
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Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
/eal options pricing models )/&P%*
an be used when future revenue streams of .5 projects areuncertain and up3front costs are high
=se concept of options valuation borrowed from nancial
industry@ives managers e"ibility to stage .5 investment or test thewaters with small pilot projects or prototypes to gain moreknowledge about risks before investing in entireimplementation
>imitations of nancial models
,o not take into account social and organi+ational dimensionsthat may a-ect costs and benets
Estab.ishing the 23siness Va.3e o&In&or#ation S$ste#s
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Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
,imensions of project risk
>evel of project risk inuenced by:
Project si+e
.ndicated by cost# time# number of organi+ational units
a-ected &rgani+ational comple"ity also an issue
Project structure
$tructured# dened re7uirements run lower risk
("perience with technology
Managing Project *is
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Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
hange management
/e7uired for successful system building
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Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
.mplementation
9ll organi+ational activities working toward adoption#management# and routini+ation of an innovation
hange agent: &ne role of systems analyst
/edenes the congurations# interactions# job activities# andpower relationships of organi+ational groups
atalyst for entire change process
/esponsible for ensuring that all parties involved acceptchanges created by new system
Managing Project *is
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Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
/ole of end users
With high levels of user involvement
$ystem more likely to conform to re7uirements
=sers more likely to accept system
=ser3designer communication gap:
=sers and information systems specialists
,i-erent backgrounds# interests# and priorities ,i-erent loyalties# priorities# vocabularies
,i-erent concerns regarding a new system
Managing Project *is
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%anagement support and commitment
Positive perception by both users and technical sta-
(nsures su'cient funding and resources
(nforcement of re7uired organi+ational changes
Managing Project *is
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Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
Aery high failure rate among enterprise application and !P/projects )up to B12 for !P/*
Poor implementation and change management practices
(mployees concerns about change
/esistance by key managers hanging job functions# career paths# recruitment practices
%ergers and ac7uisitions
$imilarly high failure rate of integration projects
%erging of systems of two companies re7uires:
onsiderable organi+ational change
omple" systems projects
Managing Project *is
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Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
ontrolling risk factors
6irst step in managing project risk involves identifying natureand level of risk of project
(ach project can then be managed with tools and risk3management approaches geared to level of risk
%anaging technical comple"ity
.nternal integration tools
Project leaders with technical and administrativee"perience
Highly e"perienced team members
6re7uent team meetings
$ecuring of technical e"perience outside rm ifnecessary
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Managing Project *is
A ,A"%% CHA*%
5he @antt hart in this gure shows the task# person3days# and initials of eachresponsible person# as well as the start and nish dates for each task8 5heresource summary provides a good manager with the total person3days for eachmonth and for each person working on the project to manage the projectsuccessfully8 5he project described here is a data administration project8
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i j i
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Managing Project *is
A ,A"%% CHA*% 6cont78
5he @antt chart in this gure shows the task# person3days# and initials of eachresponsible person# as well as the start and nish dates for each task8 5heresource summary provides a good manager with the total person3days for eachmonth and for each person working on the project to manage the projectsuccessfully8 5he project described here is a data administration project8
)I,(*E 14-5
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Managing Project *is
A ,A"%% CHA*% 6cont78
Managing Project *is
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g g j
A PE*% CHA*%
5his is a simplied P(/5 hart for creating a small Web site8 .t shows theordering of project tasks and the relationship of a task with preceding andsucceeding tasks8)I,(*E 14-
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M i P j t *i
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Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
.ncreasing user involvement and overcoming user resistance
("ternal integration tools consist of ways to link work ofimplementation team to users at all organi+ational levels
9ctive involvement of users
.mplementation teams responsiveness to users=ser resistance to organi+ational change
=sers may believe change is detrimental to their interests
ounter implementation: ,eliberate strategy to thwartimplementation of an information system or an innovation inan organi+ation
(8g8# increased error rates# disruptions# turnover#sabotage
Managing Project *is
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Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
$trategies to overcome user resistance
=ser participation
=ser education and training
%anagement edicts and policies
.ncentives for cooperation
.mprovement of end3user interface
/esolution of organi+ational problems prior to introduction ofnew system
Managing Project *is
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Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
,esigning for the organi+ation
.nformation system projects must address ways in whichorgani+ation changes with new system
Procedural changes
Cob functions
&rgani+ational structure
Power relationships
Work structure
(rgonomics: .nteraction of people and machines in workenvironment
,esign of jobs
Health issues
(nd3user interfaces
Managing Project *is
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Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
Read the Interactive Session and disc"ss the $ollowing &"estions
What were some of the problems with ,$5 $ystems oldsoftware development environment?
How did $crum development help solve some of thoseproblems?
What other adjustments did ,$5 make to be able to use $crummore e-ectively in its software projects?
What management# organi+ation# and technology issues had tobe addressed?
Managing Project *is
DS% S/S%EMS SCO*ES :I%H SC*(M A"D APPLICA%IO" LI)E C/CLEMA"A,EME"%
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Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
&rgani+ational impact analysis
How system will a-ect organi+ational structure# attitudes#decision making# operations
$ociotechnical design
9ddresses human and organi+ational issues $eparate sets of technical and social design solutions
6inal design is solution that best meets both technical andsocial objectives
Managing Project *is
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Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
Project management software
an automate many aspects of project management
apabilities for
,ening# ordering# editing tasks
9ssigning resources to tasks 5racking progress
%icrosoft Project D1E1
%ost widely used project management software
P(/5# @antt harts# critical path analysis
.ncrease in $aa$# open3source project management software
Managing Project *is
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Manageent In!oration "ystes# Managing the Digital $ir% 12e &'thors# Kenneth C. La'don and (ane P. La'don
Read the Interactive Session and disc"ss the $ollowing &"estions
What are some of the challenges %otorola faces as a business?Why is project management so critical at this company?
What features of HP PP% were most useful to %otorola?
What management# organi+ation# and technology factors had tobe addressed before %otorola could implement and successfullyuse HP PP%?
(valuate the business impact of adopting HP PP% at %otorola8
Managing Project *is
MO%O*OLA %(*"S %O P*O+EC% PO*%)OLIO MA"A,EME"%