Learning Diary (Lecture 1)

Making IT Projects successful

The learning during the first session are
What is an Information System?
The authors Definition:
An Information system is composed of software, hardware, communication
systems, and people. It is a critical investment for organizational survival. It
increases the efficiency and effectiveness of daily business by integration
organizational processes and structures
Information System (IS)

Serves to coordinate the work of different organizational functions and is

the core of any business.
Aims to increase efficiency and effectiveness of business practices.
Implementation of an IS involves the design, delivery, and use of the
software systems in the organization.
Information Technology (IT) is the enabling tool that powers the IS. IT is
used by IS.

IS is needed because

Technology has become embedded in

o the way we define and execute strategy,
o the way we organizes and lead businesses, and
o the way we define a unique value proposition.
IT is no longer a tool for back office activities but a strategic part of most
businesses.
Distance and time have become much less significant determinants of
market and organization structures and processes.

Changing Role of IS

IT should follow a Maturation Path

The role of IT services are changing

Analysis of CSF for IS success

Most

occurring qualities of Successful systems:

On time, under budget.
Project Delivers its functionality.
Clear Vision & Objectives
Executive Management Support

an IS system is some combination of hardware, communication technology

and software designed to handle information related to one or more business
processes
the failure of an IS occurs when the system as a whole does not operate as
expected and its overall performance is sub-optimal
(Flowers, 1996)
Understanding IS Project Failure

70% of large-scale IS investment fail.

Project must meet a number of objectives and goals.
Important parameters to meet will be:

o
o
o
o

Return on Investment
Profitability
Competition
Market Ability

an IS can be termed if, on implementation it does not perform as originally

intended or if it is so user-hostile is rejected by users & is underutilised!
(Flowers, 1996)

If cost of IS development exceeds any benefits system may bring

throughout its use
Failure if project abandoned before Completion

Defining Project Failure

Category of Failure
1. Correspondence Failure
2. Process Failure
3. Interaction Failure
4. Expectation Failure

Description of Failure
The IS fails to meet its designated
objectives.
The IS overruns its budget or time
constraints
The users maintain low or noninteraction with the IS
The IS does not meet stakeholders
expectations.

Different degree of failures

Total Failure system not operational

Partial Failure Type 1 Goal Failure (main stated goals not attained)
Partial Failure Type 2 Sustainability Failure (succeeds initially but then
fails after a year or so)
Partial Failure Type 3 Zero-Sum Failure (succeeds for one stakeholder
group but fails for another)
Richard Heeks, IDPM, University of Manchester

Levels of Failure

Level one is considered minor. Final IS project does still meet its
objectives and is completed.
Level two failure is major. IS project does not meet all requirements and
will not be achieved within budget and one time.
Level three is critical failure. IS project odes not meet any of its
requirements and objectives. Most likely to be scrapped after running
over time and budget.

LEVEL ONE
(MINOR)
- Profitability
- Poor Estimates
- Unproven Technology
- Lack of Resources
- Lack of Features
- Lack of Usability
- Lack of Project
organization
- Transparency in IS
Project
- Progress Meetings

LEVEL OF FAILURE
LEVEL TWO
(MAJOR)
- Goals not all achieved
- Complex Solutions
- Lack of Planning
- Lack of User Involvement
- Lack of Resources
- Lack of Commitment
- Unrealistic Expectations
- Lack of Executive Support
- Changing requirements and
specifications
- Schedule overrun
- Budget overrun
- Poor leadership and
management
- Debugging incomplete
- Lack of ownership
- Too many vested interests

LEVEL THREE
(CRITICAL)
- Scrapped Before
Completion
- Vendors Inability to
meet
requirements
- Client consultation
during
development stage.

Critical Factors for IS Project Success

Baker et. al.
(1983)
- Clear Statement
of Requirements
- Proper Planning
- Competent Staff
- Clear Vision and
Objectives
- Hard Working
Staff
- Leadership
- Resources and

Morris and Hough

(1987)
- Clear Statement
of
Requirements
- Proper Planning
- Competent Staff
- Resources and
Funding
- Low start-up
Difficulties
- No Politics

Pinto and Slevin

(1989)
- User Involvement
- Executive mgt.
Support
- Competent Staff
- Hard Working
Staff
- On time, under
budget
- Satisfies owners
needs

Turner, J.R.
(1993)
- User Involvement
- Executive mgt.
support
- Competent Staff
- On time, under
budget
- Satisfies owners
needs
- Teamwork
- No Politics

funding
- Low start-up
difficulties
- No Politics
CHOAS REPORT
(1994)
- User Involvement
- Executive mgt.
support
- Clear
Requirements
- Proper Planning
- Realistic
Expectations
- Smaller
Milestones
- Competent Staff
- Ownership
- Clear Vis. & Obj.
- Hard Working
Staff

- Leadership
- Teamwork
- No Politics

Wateridge, J.
(1995)
- Project achieved
purpose
- Satisfactory
benefit to
owner
- Satisfied needs to
owner
- Meets pre-stated
objectives
- On time, under
budget
- Satisfied project
team
needs

Whitaker, B.
(1999)
- Good Project
Planning
- Strong Bus. Case
- Tom mgt.
Support
- Schedule time
keeping
- Within Budget
- Good Estimates
- Strong
requirements
- Ability to meet
req.

Boehm, B.
(2002)
- Complete
requirements
- User Involvement
- Resources
- Realistic
Expectations
- Executive
Support
- No scope
extension

What contributes to IS failure?

Technical decisions made by the wrong people

o Management needs to ask IT to investigate the new technology

Solution
o Take time to educate upper management
o Evaluate technology and report findings

What contributes to IS failure?

Lack of Upper management Commitment

o IT projects are expensive and time consuming
o Upper management needs to understands the expected benefits of
the project and is committed to it

Solution

o Seek upper management support

What contributes to IS failure?

Lack of Input from End Users

o Users unwilling to use the a new system if they do not understand
it, or fail to meet their needs
Creating the system with inadequate or no input from the end
users

Solution
o Involve a good mix of the intended end users in every phase of the
project

What contributes to IS failure?

Poor definition of Project Scope

o Commencing the project before the project scope has been decided
Fundamental design and architectural decisions are made,
hardware acquired, programming commences

Solution
o Create a detailed project specification, sign off it before starting the
work

What contributes to IS failure?

Delays in completion
o Changes to feature set
o Changes to underlying architecture of the system
o Poor estimation at the start of the project
o Key employees assigned to new projects, new employees fill the
gap and extra time getting up to the speed on the project

Solution
o Good Project management
o Carefully monitor the progress

o Missing an interim deadline immediately find out what is going

wrong and take appropriate steps to correct the problem
What contributes to IS failure?

Cost
o
o
o
o

overruns
Delays in completion
IT personnel demanding large salary and more extensive perks
Talented employees changing jobs more often
Increased cost for training, recruitment

Solution
o Good design and strong project management
o Reusing standard components
o Reducing the staff turnover
Excellent leadership and management practices
Competitive compensation packages
Career advancement opportunities

What contributes to IS failure?

Insufficient testing
o Expensive to create a proper test plan
o Expensive and time consuming to conduct the testing
o Pressure to deliver the project
Pressure from deadline and budget

Solution
o Thorough testing built into project budget
o Never make up for delays by reducing the amount of Testing

---------------------------------------------------------------------------------

Learning Diary (Lecture 2)

Making IT Projects successful
Project:
A project is a temporary endeavor undertaken to accomplish a unique
product or service (PMBOK Guide 2000, p. 4)
In contemporary business and science a project is a collaborative enterprise,
involving research or design, that is carefully planned to achieve a particular
aim.
A project is an endeavor to accomplish a specific objective through a unique
set of interrelated tasks and the effective utilization of resources.
Attributes of projects

unique purpose

temporary

require resources, often from various areas

should have a primary sponsor and/or customer

involve uncertainty

Project Management:
Project management is the application of knowledge, skills, tools, and
techniques to project activities in order to meet project requirements
(PMI*, Project Management Body of Knowledge (PMBOK Guide), 2000, p.
6)
Project management is the discipline of initiating, planning, executing,
controlling, and closing the work of a team to achieve specific goals and
meet specific success criteria.
In addition to meeting project requirements, its also important to satisfy
key stakeholders and make sure the results of the project benefit the
organization.
PM Triple Constraints

 Time
Cost
Scope

These constraints are very important. All these three constraints needs to be
properly managed while executing a project. These constraints define the
right direction of the project. Milestone in a project should be properly
monitored, along with the cost incurred and whether the scope is being
fulfilled.
Project Management Framework:
A project management framework is the use of tools and processes to
transition a project from start to finish. A generic process includes: initiate,
plan, execute, control, monitor, and terminate. There are three main parts
to a project management framework, which are lifecycle, control cycle, and
tools and templates.
A project management framework is a combination of processes, tasks, and
tools used by individuals working on a project to transition a project from
start to finish. An overview of a generic process used by this framework is:

Initiate is when the project starts

Plan is when all of the key decisions are made
Execute is when project work actually takes place
Control is when adjustments are made to the plan
Monitor is when project progress is checked

Terminate is when the project comes to an end

Each stage of this process involves the completion of many tasks by project
team members using various tools.

Why IT Projects Succeed:

1. Sound project management processes
2. Project tied to the organizations business goals
3. Senior management commitment
4. Good change management
5. Detailed requirements
6. Realistic schedule
7. Good stakeholder relationships
8. Empowered project manager
9. Skilled and appropriate team members with defined roles and
responsibilities
10.

Availability of funding

With all of the tools, technologies, systems, plans, charts, diagrams and so
on that project managers have at their disposal, its easy to forget that
projects succeed based on the people involved and more specifically,
whether theyre competent or not. For a successful project credit can directly
be given to the skill and ability of the people involved.
Project sponsors & project executives with important job titles are great at
authorizing project managers to do their job but theyre often not so
great at giving them the autonomy they need to succeed.
As a result, many project managers and their teams spend an enormous
amount of time either wrestling for control of their project, or just as often,
desperately trying to protect the integrity of their project from outsiders who
arent adding any value.
Perhaps the simplest way of saying this is that autonomy and success are go
hand-in-hand. Get rid of the former, and the latter is more by luck, and less
by design
Good project management software is a fundamental requirement that
enables success of a project.
Project Management Tools & Techniques
Project management tools and techniques assist project managers and their
teams in various aspects of project management some specific ones include:
1. Scope Management: Business cases, project
statements, and work breakdown structures

charters,

scope

2. Time Management: Gantt charts, network diagrams, critical path

analysis, critical chain scheduling
3. Cost Management: Cost estimates, project portfolio management,
and earned value management
Sample Enterprise PM Tool

Business and Leadership Skills

In addition to using appropriate PM tools and techniques, PMs must use
Business skills:

financial analysis, problem- solving, decision-making

Leadership skills:

negotiation, team- building

Communication skills:

listening, speaking, writing, presenting

Dont overemphasize using PM Software:

You cant use PM software well if you dont understand fundamental PM
concepts. Good project management software is one which is:
Accessible via the cloud
Highly customizable
Transparent and offers real-time, live reporting
Powerful, yet simple to use

 Integrated with other platforms and software solutions

Safe and secure
Affordable and scalable.
Ways to Measure Value
o Agreement on general benefits
o Improved project performance/results
o ROI of project management
o PM maturity levels
o Competitive advantage
General Benefits of Project Management

Better control of financial, physical, and human resources

Improved customer relations

Shorter development times

Lower costs

Higher quality and increased reliability

Improved productivity

Better internal coordination

Higher worker morale (less stress)

Recent research findings show that companies that excel in project

delivery capability:
Build
an
integrated
project
management
standard/advanced PM tools, lots of templates)

toolbox

(use

 Grow competent project leaders, emphasizing business and soft skills

Develop streamlined, consistent project delivery processes
Install a sound but comprehensive set of project performance metrics
Project Management Maturity Models
Several PM firms have their own maturity models, most using levels 1-5
The International Institute for Learning, Inc. calls the five levels
common language, common processes, singular methodology,
benchmarking, and continuous improvement
ESIs five levels are called
comprehensive, and optimizing

ad

hoc,

consistent,

integrated,

PMIs Organizational Project Management Maturity Model (OPM3)

released their model in 2004
Berkeley Project Management Maturity Model

Lecture- 3
Topic: - IT Outsourcing
Date: 11.01.2016
What is Outsourcing?
Outsourcing means that the company divests itself of the resources to fulfil a
particular activity to another company to focus more effectively on its own
competence (NEVI, 2000)
Why Outsource?
Provide services that are scalable, secure, and efficient, while improving
overall service and reducing costs.
Outsourcing as a business concept:
Organizations turn to outsourcing to enhance their competitiveness

Drivers behind outsourcing are:

Changes in the business environment
New management concepts (e.g. BPR)
Organizational restructuring
Benchmarking
Alliance management
Lean management

Major characteristics of outsourcing: 1. Activities that initially were performed in-house are transferred to an
external party
2. Assets and people go over to that external party
3. There will be an extended relationship between the parties involved
over a longer period of time
4. In transferring the activity to the external party the buyer is exposed
to both a cost-and risk profile, both of which are new to the companies
involved

Partial versus turnkey outsourcing: Advantages

Turnkey
outsourcing

1. Buyer
has
responsibility for
processes

Disadvantages
minimal
outsourced

2. Buyer doesnt need to have

experience
with
similar
projects
3. The project generally
smooth for the buyer
Partial
outsourcing

goes

The buyer has more influence on

prices, rates and costs

1. The buyer has limited

influence
on
the
determination of the price
and little insight in cost
structure of provider
2. Buyer has limited influence
on the staff, technology and
materials used and their
quality
3. Large dependence of buyer
on provider resulting in high
commercial, technical and
performance risks
Buyer is required to have
knowledge of the separate parts
of the outsourced function/
activities

The buyer has more influence on The buyer is required to have

the staff, technology and materials the organizational capabilities to
used and their quality
coordinate and integrate the
outsourced function / activities
Specific advantages can result in Communication
and
cost reductions
coordination problems between
parties involved can be a cause
of delay and disappointment

Dimensions of Outsourcing: -

Reasons for outsourcing: 1. Strategic reasons for outsourcing

Improve company focus

Gain access to world class capabilities
Get access to resources that are not available internally
Accelerate reengineering benefits
Improve customer satisfaction
Increase flexibility
Sharing risks

2. Tactical reasons for outsourcing

Reduce control costs and operating costs

Free up internal resources
Receive an important cash infusion
Improve performance
Ability to manage functions that are out of control

Advantages and disadvantages of outsourcing:

Advantages

Disadvantages

Freeing up of cash: investments can be Increased dependence on suppliers

concentrated on core activities
Optimal usage of knowledge, equipment Continuous follow-up and monitoring of
and experience of third party
the supplier relationship necessary
Increased flexibility: fluctuations in the Risks of communication and organizational
workload can more easily be absorbed
problems during the transfer of activities
to a third party
Outsourcing leads to easier and more Risks
of
leakage
of
confidential
focussed primary processes in the information
organization
Input through an independent partys Performance incentives and penalties
point of view which reduces the risks of
introvert
short-sightedness
in
the
organization

Why Outsourcing in IT?

It is necessary because IT systems are complex and mission-critical.

All IT activities cannot be done in-house. Skills, management attention

and risk could be a challenge
A prudent choice between what to do in-house and what to outsource
to partners and vendors is needed
IT may not be core competency hence Keeping a highly skilled and
motivated in-house team in the long-term is difficult.
There are cost advantages due to wage differential in developing
countries.
Enhanced connectivity through telecom infrastructure.
IT specialized services need specialized skills

What to Outsource:
Strategic

Non-Strategic

Competitive

Not
Outsourced

Grey
Area

Non-Competitive

In House
if Possible

Outsource

Outsourcing or doing it In-house:Strategic Approach

The outsourcing process:

1. The Strategic phase

Three main questions in the Strategic phase
1. What is the motive to outsource?
2. What activities are candidates for outsourcing?
3. What qualifications should a supplier require?

2. The Transition phase

Outsourcing transition can be very complex

The transfer should be conducted using project management principles
Outsourcer should provide training and support to provider if necessary

3. The Operational phase

McQuiston (2000) identifies six core values as being critical to a successful
outsourcing relationship
Core values

Supporting factors

Shared goals and objectives

Developing a personal relationship

Mutual dependence
Open lines for communication

Having professional respect

Concern for the others profitability

Mutual commitment
satisfaction
Trust

to

customer

Investment of effort by top management

Commitment to continuous

Why do Companies Outsource?

How to Implement Outsourcing?

Program initiation
Opinions and ideas shared to form draft contract
Program implementation
Transferring staff
Service Level Agreement (SLA)
Establish communications between partners
Actual transfer of the service
Establish management procedures
Contract agreement
Contract fulfilment
Service Level Agreement(SLAs)
1. Minimum level of service to be provided
2. Objective and measurable and have no ambiguity.
On time delivery
Client Satisfaction
Effectiveness: such as lowering cost, improving profits
Volume of Work
Sensitivity: response time to business needs
System Downtime and Availability

Communication in a SO project: