Académique Documents
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Culture Documents
Technology Project
Management
by Jack T. Marchewka
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Chapter 2
Conceptualizing and Initializing
The IT Project
Learning Objectives
• Define what a methodology is and describe the role it
serves in IT projects.
• Identify the phases and infrastructure that makes up the
IT project methodology.
• Develop and apply the concept of a project’s measurable
organizational value (MOV).
• Describe and be able to prepare a business case.
• Distinguish between financial models and scoring
models.
• Describe the project selection process as well as the
Balanced Scorecard approach.
Methodology
• A strategic level plan for managing and controlling IT
projects.
• A template for initiating, planning and developing an
information system.
• Recommends:
– phases
– deliverables
– processes
– tools
– knowledge areas
• Must be flexible and include best “practices” learned
from experiences over time.
An IT Project Methodology
Phases
• Phase 1: Conceptualize and Initialize
• Phase 2: Develop the Project Charter and
Detailed Project Plan defined in terms of
project’s:
– scope
– schedule
– budget
– quality objectives
Phases continued
Potential Areas:
• Strategic:
• Customer:
• Financial:
• Operational:
• Social:
Process for Developing the
MOV
1. Identify the desired value of the IT project
Organizational Value:
• Better? What does org. want to do better?
• Faster? What does the org. want to do faster?
• Cheaper? What does the org. want to do cheaper?
• Do More? (growth or expansion).
Metrics:
• Money ($ £ ¥ )
• Percentage (%)
• Numeric Values
Process for Developing the
MOV
1. Set a time frame for achieving the MOV
When will the MOV be achieved?
Process for Developing the
MOV
1. Verify and get agreement from the project
stakeholders
Project manager and team can only guide
the process
Sponsor must identify the value and target
metrics.
Will the successful completion of project
provides the intended value to the
organization?
Is the MOV realistic?
Process for Developing the
MOV
1. Summarize the MOV in a clear, concise
statement or table.
versus
• Respond to 95% of our customers’
inquiries within 90 seconds with less than
5% callbacks about the same problem.
A Really Good Goal
John F. Kennedy
Developing the Business Case
= $100,000
$20,000
= 5 years
Developing the Business
– Break Even
Case
Materials (putter head, shaft, grip, etc.) $12.00
Total $25.00
If you sell a golf putter for $30.00 and it costs $25.00 to make, you have
a profit margin of $5.00:
Where:
I = Total Cost or Investment of the Project
r = discount rate
t = time period
Developing the Business
Case
– Net Present Value
Discounted Cash
Time Period Calculation
Flow
Year 0 ($200,000) ($200,000)
Project Maintainability 5% 4 6 7
Time to develop 5% 5 7 6
Risk 5% 3 5 5
Customer
satisfaction
10% 2 4 9
External
Increased market
share
10% 2 5 8