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COM 2KA3:
INFORMATION SYSTEMS IN MGMT
Chapter 14- Outline
Project Management, Business Value, &
Managing Change
14.1: The importance of project management
14.2: Selecting projects
14.3: Establishing the business value of
information systems
14.4: Managing project risk
The Importance of Project Management
Scope
Risk Time
Major
variables
in PM
Quality Cost
The Importance of Project Management
Major variables in project management:
Scope
Defines what work is or is not included in a project
Project management should ensure that the scope does not expand beyond
what was originally intended
Time
Project management determines the time required to complete each task
schedule
Each major component of a project is broken down into activities and tasks
Cost
Based on the time to complete a project x cost of human resources
required to complete the project
Cost of human resources, hardware, software and work space budget
The Importance of Project Management
Major variables in project management:
Quality
An indicator of how well the end result satisfies the objectives of
the project
Quality of IS projects is usually measured in relation to improved
organizational performance and decision making.
It also considers the ease of use of the systems and the accuracy
and timeliness of information produced
Risk
Potential problems that would threaten the success of a project
Might prevent a project from achieving its objectives by increasing
time and cost, lowering the quality of outputs, or preventing the
project from being completed altogether
The Importance of Project Management
https://www.youtube.com/watch?v=9LSnINglkQA
Selecting Projects
Management control of systems projects
Selecting Projects
Management control of systems projects
Corporate strategic planning group
develops the firms strategic plan which may require development of new systems
key performance indicators
Information systems steering committee
Reviews and approves plans for systems in all divisions
Involve in selecting specific IS projects
Senior management group department heads from both end-user and information
systems areas
Project management group
Responsible for overseeing specific projects
Comprised by IS managers and end-user managers
Project team
Responsible for individual systems project
Consists systems analysts, specialists from end-user business areas, application
programmers, and sometimes database specialists
Linking systems Projects to the
business plan
Information Systems Plan
Identifies
systems projects that will deliver most
business value
Contains a statement of corporate goals and
specifies how IT will support the attainment
Links development to business plan
Selecting Projects
Information systems plan as a road map indicating
direction of systems development, includes:
1. Purpose of the plan
2. Strategic business plan rationale
3. Current systems
4. New developments
5. Management strategy
6. Implementation plan
7. Budget requirements
Selecting Projects
Key Performance Indicators (KPIs)
To develop effective information systems plan,
organizations must have clear understanding of both long-
term and short-term information requirements
Scoring Models
Establishing Business Value of IS
IS Costs and Benefits
Tangible benefits:
Can be quantified and assigned monetary
value
Systems that relocate labour and save space
Intangible benefits:
Cannot be immediately quantified but may
lead to quantifiable gains in the long run
E.g., more efficient customer service,
enhanced decision making
Establishing Business Value of IS
IS Costs and Benefits
Establishing Business Value of IS
Capital Budgeting
Techniques used to measure the value of investing in long-term capital investment projects
Relies on measures of cash flows into and out of the firm; capital projects generate those cash flows
CF take the form of increased sales of more products or reduced costs in production and operations
Principle models = payback, ROI, NPV, and IRR
Project size
Project
Risk
Experience
Project
with
structure
technology
Managing Project Risk
Change can breed internal resistance and opposition and can lead to the demise of
an otherwise good system
Change Management
Implementation: all organizational activities working toward the adoption,
management, and routinization of an innovation
E.g. new information system
Systems analysts are change agents
Refines the configurations, interactions, job activities, and power relationships
of various organizational groups
Responsible for ensuring that all parties involved accept the changes created
by a new system
Communicates with users, mediates between competing interest groups, and
ensures that the organizational adjustment to such changes is complete
Managing Project Risk
Change Management
experience
Team should be under the leadership of a manager with a
Planning:
Create structures & sequences of tasks; budget,
time, cost, and technical resources
Control:
monitor the progress toward completion of a task
and fulfillment of goals
Controlling Risk Factors
Gantt chart:
Controlling Risk Factors
PERT Chart
Controlling Risk Factors
Increasing User Involvement and overcoming user resistance
Project with relatively little structure and many undefined requirements must involve
users fully at all stages
Users must be able to commit to one design
Address Counterimplementation
A deliberate attempt to thwart implementation of an IS or an innovation in an
organization
Controlling Risk Factors
Strategies to Overcome User Resistance
User participation