CP2730 - Scoring Model Notes

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• CP2730 - Scoring Model Notes
• Project Comparison Matrix

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Scoring Model

• Like cost-benefit analysis, a scoring model may
  be used in the project selection process.
• A scoring model is used to help determine how
  (potential) projects compare to one another based
  on certain criteria.
• The model will usually include a number of
  different criteria, including economic, and is in
  a matrix format.
• The type of scoring model shown here can be
  referred to as a Project Comparison Matrix (PCM).

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Project Comparison Matrix

• A PCM can compare several potential projects or a
  single matrix can be created for each potential
  project.
• To properly compare projects, the same criteria,
  scoring range, etc. must be used for each.
• The model emphasizes benefits of a new system
  (the potential project) in its list of criteria.
  

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Project Comparison Matrix

• To complete a PCM requires
• Defining specific (relevant) criteria
• Specifying a scoring range
• Determining a weighting factor for each criteria
• Assign a score for each criteria for each
  (potential) project
• Calculate the extended score for each criteria,
  for each (potential) project
• Total up the score for each (potential) project

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Completing a PCM

• When defining specific criteria you must ensure
  all criteria are relevant to all projects being
  compared.
• While criteria may concentrate on benefits, they
  do not have to be limited to that.
• Anything that is relevant to all projects and can
  be measured/valued can potentially be a criteria.
• Enough time and effort must be allocated so a
  good criteria list can be developed.

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Completing a PCM

• Criteria can include
• Return on Investment
• How system meets/fits organizational goals
• Innovation
• Customer Relations
• Risk (associated with the project)
• Specifying a scoring range is a relatively
  straightforward activity it only needs to be a
  broad enough range to reflect the differences in
  each project.
• A range is often either 1 5 or 1 10 (going
  from low to high). The only real concern is
  ensuring the range is correctly/consistently
  used.

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Completing a PCM

• Determining a weighting factor is a very
  important task and must be correctly done, else
  the matrix is invalid.
• The weighting factor values each criteria in
  relation to the others, therefore it has a great
  impact on how each project is valued.
• Usually, it will take a lot of effort to ensure
  the weighting factors are complete and valid
• To assign a score for each criteria for each
  project is another very important task.

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Completing a PCM

• The score that is assigned must reflect how a
  particular criteria is satisfied (met) by a
  particular project, using the scoring range.
• If scores are not correctly assigned the matrix
  is invalid.
• To calculate the extended score for each criteria
  for each project is straightforward multiply
  the weighting factors by the assigned score.
• To total up the score for each project just add
  up each extended score column.

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PCM usage/misc. points

• The (potential) project with the highest total
  score would be considered the best one to select
• Note remember that other factors may affect
  which project is ultimately chosen
• To complete a PCM requires input from a number of
  sources.

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PCM usage/misc. points

• While the project manager and team may have put
  together the PCM, it would not have been in
  isolation.
• Management, the IT steering committee and other
  stakeholders would likely be involved by
  providing input and/or confirmation of weighting
  factors, determining criteria, etc.
• The PCM would likely require approval of
  management.

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Criteria Weighting Factor (range 1 10) Project 1 Project 1 Project 2 Project 2 Project 3 Project 3
Criteria Weighting Factor (range 1 10) Score (1-5) Extended Score Score (1-5) Extended Score Score (1-5) Extended Score
ROI 10 5 50 5 50 4 40
Innovation 7 3 21 2 14 5 35
Customer Satisfaction 9 4 36 3 27 5 45
Employee Satisfaction 7 3 21 4 28 4 28
Meets Company Goals 8 4 32 5 40 2 16
Best use of Resources 6 3 18 1 6 1 6
TOTAL SCORES TOTAL SCORES 178 165 170