Muhammad Ghiffari Faza

18/429426/EK/22035
CHAPTER 14 – MANAGING PROJECTS

Consequences of System Development projects without proper management:

1. Cost that vastly exceeds budget

2. Unexpected time slippage (over schedule)
3. Technical performance less than expected
4. Failure to obtain anticipated benefits.

User Interface (UI)  Part of the system with which end users interact. Poor UI could discourage users and brought confusion.

Project  Planned series of related activities for achieving a specific business objective. While Project Management refers to
the application of knowledge, skills, tools, and techniques to achieve specific targets within specifies budget and time constraints.
Five Major Variables:

1. Scope  What work is or isn’t included in a project.

2. Time  Amount of time required to complete a project.
3. Cost  Time to complete X cost of human resource.
4. Quality  Indicator of how well the end result of the project satisfies the objectives specified by managers.
5. Risk  Potential problem that would threaten the success of a project.

Methods to evaluate informatioon systems projects and align it with firm’s business goals:

1. Management Structure  Corporate strategic planning group develop the firm’s strategic plan, which may require new
system. Choose to develop IT that would improve several key performance indicator (KPI)
2. Linking system projects to business plan  Information systems plan serves as road map of system development
(purpose), rationale, state of current systems, new development, management strategy, implementation plan, and budget.
3. Information requirements and KPIs  Must be understood clearly; both long term and short term.
4. Portfolio Analysis  Use to evaluate alternative systems project. Similar to financial portfolio, systems project have its
own set of risks and benefits.
5. Scoring Models  Useful for selecting projects whre many criteria must be considered. Assigns weights to various
features of a system and calculated the weighted totals.

Assessing business value of information system:

1. Cost and Benefits  Tangible Benefits (can be quantified and assigned a monetary value); Intangible Benefits (cannot
be immediately quantified but may lead to quantifiable gains in the long run).
2. Capital budgeting models  Technique used to measure the value of investing in long term capital investment project
that measures cash flows in and out. Principal models are: Return on Investment (ROI), Net Present Value, and Internal
Rate of Return (IRR).
3. Limitations of Financial Models  Overlook the social and organizational dimensions of information system that may
affect the true costs and benefits of the investment.

Dimensions of Project Risk:

1. Project Size  Larger the project, greater the risk.

2. Project Structure  highly structured project has lower risk; undefined, fluid, and constantly changing requirements
has much higher risk.
3. Experience with technology  Lack technical skills; need to master new skills.

- Implementation  All organizational activites working towar the adoption, management, and routinizatoin of an innovation.
- Change Management  System analyst that redefines configurations, interactions, job activities, and power relationships of
various organizational groups.
o Role of end users  Positive Results, if they are heavily involved.
o Management support and commitment  more likely to be perceived positively and higher attention plus priority
o Challenges  high rate of failure because of fear and anxiety throughout the organization.

Controlling Risk Factors:

1. Managing Technical Complexity

2. Formal Planning and Control Tools
3. Increasing user involvement and overcoming user resistance.