Successful IT Projects By Darren Dalcher

1
Successful IT ProjectsBy Darren Dalcher
Lindsey Brodie
Chapter 2
www.thomsonlearning.co.uk/fasttrack
2
Lecture 2

• Project Selection

3
Learning outcomes

• Understand how a project must fit (align) with
  organisational objectives
• Describe the concepts of programme management and
  portfolio management
• Explain the project management perspective on
  objectives, scope, stakeholders and stakeholder
  value
• State the main contents of a feasibility study

4
Reasons for IT investment

• Survival
• Improved efficiency and/or effectiveness
• Competitive advantage
• External factors
• (for example, legislation)
• Changing organisational structure
• (for example, mergers)

5
Management of IT investment

• Programme management
• Project portfolio management

6
Allocation of IT budget

• Existing IS for ongoing operations and
  maintenance
• Existing projects for ongoing agreed work
• Existing IS for system improvements
• Existing projects bidding for further new
  development
• Project proposals

7
Setting up a project

• Selecting a project proposal
• Establishing a business case
• Business case
• Commencing the project
• Project charter or contract
• Scope statement
• Initial project plan

8
Project Management Lifecycle
Adapted from Marchewka 2003
Deliverables
Deliverable
9
Project proposal selection

• Establishing a projects contribution to the
  organisations objectives
• SWOT analysis
• Balanced Scorecard

10
SWOT analysis
Strengths
Weaknesses
Threats
Opportunities
11
The Balanced Scorecard
Kaplan and Norton 1996
12
Feasibility study

• Perceived need for change
• Alignment with organisational strategy/objectives
• Aim of proposed project
• Objectives for the proposed project
• Benchmark levels (existing levels)
• Target levels
• Analysis of the external environment
• Product/system scope
• Functionality
• Levels of objectives
• Deployment within organisation
• Current business process(es) and proposed changes

• Product/system interfaces
• List of stakeholders
• Potential benefits and estimated costs
• Proposed solution(s)
• Technology considerations
• Staff availability
• Dependencies, issues, assumptions and risks
• Outline project plan
• Summary of financial information
• Recommendations

13
Identifying the project aim

• A project should have one major aim and several
  objectives supporting the aim.
• For example
• To improve our customers experience of ordering
  our products.

14
Identifying the stakeholders

• Any person or group that will be affected by the
  system directly or indirectly.
• For example
• End-users
• Managers
• Systems administration
• Maintenance
• Testing
• Suppliers

15
Establishing stakeholder value

• What are the potential benefits?
• What could be done to achieve greater benefit?
• Which stakeholders could potentially benefit?
• Are any other projects impacting the benefits?
• Are the benefits greater than the costs?
• Are there any mandatory changes (for example,
  legislation)?
• How will the benefits be measured?

16
Determining project scope

• Determine what is included in the project and
  what is not.
• Scope can be defined as the work the project has
  to do.
• Establishing the scope includes consideration of
• Functionality
• Levels of objectives
• Extent of the deployment within an organisation
• Benefits, costs and timescales are linked to the
  project scope.

17
Project Triangle
Financial Budget
Schedule
Scope
The financial budget and the time schedule
together with the project scope form the project
triangle. Tradeoffs can be made amongst the three.
18
System interfaces
Identify all the interfaces with other
systems Establish the key data being passed
across the interfaces Look for natural
boundaries Consider if there is any benefit in
altering existing interfaces Determine if any
other projects are within the interfaces
19
Identifying the project objectives

• Project objectives specify the success criteria
  for a project
• Project benefits and costs are dependent on the
  levels set for the objectives

20
Objective Hierarchy supporting an Aim
Aim
Objective B
Objective C
Objective A
Objective A.2
Objective A.1
Objective C.1
Objective C.2
Objective C.1.2
Objective C.1.1
21
Example of an Objective Hierarchy
- Quality Requirements only
Aim Improved Web Interface for Customers
Customer Satisfaction
Usability
Availability
Customer Feedback
Product Information
Maintainability
Reliability
Information Updating
Problem Resolution
22
SMART objectives

• Doran 1981
• Specific
• Measurable
• Assignable
• Realistic
• Time-related

23
Objectives as success criteria

• SMART objectives provide
• A target to aim at
• The responsibility for ensuring and monitoring
  that the targets will be achieved
• A point of reference
• Proof of agreement that can be used as proof of
  achievement at the point of delivery

24
Example of a SMART objective

• The average time for a customer order of a
  single order item to be input by an existing
  customer will be reduced from 2 minutes down to 1
  minute by the end of November 2007
• Rather than The time taken for customers to
  place orders will be significantly improved.
• - How would you decide if the project was
  successful with such an ambiguous objective?

25
Communicating with senior management
Ensure you discuss the feasibility study with
senior management Identify who is providing the
budget for the project Check the project is
aligned with the organisations
strategy Determine if proposed functionality and
deployment within the organisation is
correct Obtain agreement to the projects
objectives Discuss the stakeholder value and
project costs
26
Summary

• Reasons for IT investment
• IT investment management
• Proposal selection
• Contents of a feasibility study