why information systems? improved service solve a problem - high costs of operation - lack of data integrity - inability to handle volumes - slow response/turnaround - etc. better performance more information systems requests realize an opportunity - new product or service - new tools available - etc. stronger controls reduced cost University of Toronto at Scarborough © Kersti Wain-Bantin CSCC40 IT projects 1 vision purpose mission statement values goals objectives strategic planning process information technology business operations other corporate resources business results stakeholders University of Toronto at Scarborough © Kersti Wain-Bantin CSCC40 IT projects 2 Hoffer, George, Valacich. Modern Systems Analysis and Design. 2nd ed. Addison Wels parallel activities: corporate strategic planning and information systems University of Toronto at Scarborough © Kersti Wain-Bantin CSCC40 IT projects 3 customers software and hardware vendors suppliers top management executives government factors affecting IT projects user requests IT department technology existing systems the economy University of Toronto at Scarborough © Kersti Wain-Bantin competitors CSCC40 IT projects 4 factors affecting computer systems strategic • short and long-term strategy and plans • values and mission external • government regulations • competitors: domestic and international • products services and markets • role of technology in the business formal • terminology • policies • standards and procedures • standards of practice • formal organization structure • job descriptions informal • influence and inclinations of key personnel • who the experts are in different subject areas • critical incidents in the organization’s history • information organization structure • coalition membership and power structures University of Toronto at Scarborough © Kersti Wain-Bantin CSCC40 IT projects 5 selecting the next project how do we identify and select projects? 1. identify potential projects 2. classify and rank the projects 3. select projects for development considerations? who is involved and why? top management steering committee user departments development group University of Toronto at Scarborough © Kersti Wain-Bantin • size of project • strategic impact • cost/benefit ratio • organizational impact • urgency • value chain impact • resource availability • technological challenge • competitive edge CSCC40 IT projects 6 system request phase 1 systems planning system planning preliminary investigation report stop replace information system phase 2 systems analysis systems requirements document stop 1. 2. 3. 4. 5. 6. phase 3 systems design system design specification phase 4 system implementation complete functioning understand the problem or opportunity stop system define the project scope and constraints perform fact finding estimate the project’s benefits estimate project development time and cost present results and recommendations to management University of Toronto at Scarborough © Kersti Wain-Bantin phase 5 systems operation and support operational information system CSCC40 IT projects 7 University of Toronto at Scarborough © Kersti Wain-Bantin CSCC40 IT projects Hoffer, George, Valacich. Modern Systems Analysis and Design. 2nd ed. Addison Welsey 1999. project selection decisions 8 approving a project users and management IT department problems and opportunities service request long-range plans IT architecture budget system priority board approved project University of Toronto at Scarborough © Kersti Wain-Bantin CSCC40 IT projects 9 baseline project plan report AKA proposal statement of work deliverables project plan University of Toronto at Scarborough © Kersti Wain-Bantin introduction: project overview recommendations system description: alternatives system description feasibility assessment: economic technical operational legal/contractual political schedule management issues: the team communication standards and procedures other project-specific topics CSCC40 IT projects 10 “What could possibly go wrong? We have a great team in IT! We love a challenge.” feasibility • economic • technical • operational • schedule • legal/contractual • political University of Toronto at Scarborough • large team • lengthy project • several departments involved • new application system • corporate reorganization is involved • users don’t think it’s a good idea • users can't agree on what's needed • management worried about funding it • user contribution will be large • leading-edge hardware • new methodology will be used • upgrade to latest development platform © Kersti Wain-Bantin CSCC40 IT projects 11 example of resource planning project phase start-up analysis task consultants first meeting proposal interviews general functional requirements high-level diagrams ETC. total hours labour cost ave. $60/hr materials 2 replacement work stations additional cabling ETC. total cost SE, TRW SE SE, HR HR HR, BJ staffing hrs. client hrs. JFK, LBJ 20 10 30 60 JFK, accountant(s) accountants JFK, LBJ 20 5 5 30 $3,600 $6,000 $400 $10,000 include a legend for any abbreviations University of Toronto at Scarborough © Kersti Wain-Bantin CSCC40 IT projects 12 http://www.visitask.com/img/sample-gantt-chart.jpg project planning University of Toronto at Scarborough © Kersti Wain-Bantin CSCC40 IT projects 13 ces.asu.edu/.../management/gantt_chart.gif University of Toronto at Scarborough © Kersti Wain-Bantin CSCC40 IT projects 14 tangible system costs one-time project costs: - labour - materials recurring costs: - labour - materials intangible system costs - disruption of production or service - inconvenience to customers - etc. University of Toronto at Scarborough © Kersti Wain-Bantin CSCC40 IT projects 15 University of Toronto at Scarborough © Kersti Wain-Bantin CSCC40 IT projects 16 costs per phase for a small system (<5K lines of code) 30 25 20 15 10 5 University of Toronto at Scarborough © Kersti Wain-Bantin va lid at io n te st in g iza t io n op tim co di ng n po sit io de co m sp ec if ica tio n 0 CSCC40 IT projects 17 software costs for a large system (>10K lines of code) 70 60 50 40 30 20 10 0 analysis University of Toronto at Scarborough design programming © Kersti Wain-Bantin integration maintenance CSCC40 IT projects 18 600 cumulative costs VS cumulative benefits 500 $000 400 cum cost 300 cum ben 200 100 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 years University of Toronto at Scarborough © Kersti Wain-Bantin CSCC40 IT projects 19 return on investment Net Economic Benefit Discount Rate PV of Benefits Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 TOTALS $0 $30,000 $30,000 $30,000 $30,000 $30,000 1 0.8928571 0.7971939 0.7117802 0.6355181 0.5674269 $0 $26,786 $23,916 $21,353 $19,066 $17,023 NPV of Benefits $0 One-time Costs -$100,000 Recurring Costs Discount Rate PV of Recurring Costs NPV of all COSTS discount rate $26,786 $50,702 $72,055 $91,120 $108,143 $108,143 $0 -$2,000 -$2,000 -$2,000 -$2,000 -$2,000 1 0.8928571 0.7971939 0.7117802 0.6355181 0.5674269 $0 -$1,786 -$1,594 -$1,424 -$1,271 -$1,135 -$100,000 -$101,786 -$103,380 12% University of Toronto at Scarborough © Kersti Wain-Bantin -$104,804 -$106,075 -$107,210 -$107,210 Overall NPV $934 Overall ROI (= NPV/NPV of all costs) 0.01 CSCC40 IT projects 20 typical IT department organization University of Toronto at Scarborough © Kersti Wain-Bantin CSCC40 IT projects 21 Hoffer, George, Valacich. Modern Systems Analysis and Design. 2nd ed. Addison Welsey 1999. the art of project management • leadership • management • customer relations • technical problem solving • conflict management • team management • risk and change management University of Toronto at Scarborough © Kersti Wain-Bantin CSCC40 IT projects 22 establish project initiation team establish relationship with customers establish project initiation plan establish management procedures establish project management environment and project workbook describe project scope, alternatives, feasibility divide project into manageable tasks estimate resources and create a resource plan project develop an preliminary schedule management develop a communication plan determine project standards and procedures methodology identify and assess risk create a preliminary budget develop a statement of work execute the baseline project plan set a baseline project plan monitor project against baseline plan manage changes to the baseline plan maintain project workbook communicate project status close customer contract close down the project conduct post-project reviews University of Toronto at Scarborough © Kersti Wain-Bantin CSCC40 IT projects 23 Summary of Classic Mistakes People-Related Mistakes 1. Undermined motivation 2. Weak personnel 3. Uncontrolled problem employees 4. Heroics 5. Adding people to a late project 6. Noisy, crowded offices 7. Friction between developers and customers 8. Unrealistic expectations 9. Lack of effective project sponsorship 10. Lack of stakeholder buy-in 11. Lack of user input 12. Politics placed over substance 13. Wishful thinking This material is Copyright © 1996 by Steven C. McConnell. All Rights Reserved. University of Toronto at Scarborough © Kersti Wain-Bantin CSCC40 IT projects 24 Summary of Classic Mistakes Process-Related Mistakes 14. Overly optimistic schedules 16. Insufficient risk management 17. Contractor failure Insufficient planning 18. Abandonment of planning under pressure 19. Wasted time during the fuzzy front end 20. Shortchanged upstream activities 21. Inadequate design 22. Shortchanged quality assurance 23. Insufficient management controls 24. Premature or too frequent convergence 25. Omitting necessary tasks from estimates 26. Planning to catch up later 27. Code-like-hell programming This material is Copyright © 1996 by Steven C. McConnell. All Rights Reserved. University of Toronto at Scarborough © Kersti Wain-Bantin CSCC40 IT projects 25 Summary of Classic Mistakes Product-Related Mistakes 28. Requirements gold-plating 29. Feature creep 30. Developer gold-plating 31. Push me, pull me negotiation 32. Research-oriented development Technology-Related Mistakes 33. Silver-bullet syndrome 34. Overestimated savings from new tools or methods 35. Switching tools in the middle of a project 36. Lack of automated source-code control This material is Copyright © 1996 by Steven C. McConnell. All Rights Reserved. University of Toronto at Scarborough © Kersti Wain-Bantin CSCC40 IT projects 26