Information Systems Project Management—David Olson
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Session 1:
Introduction to Project
Management
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Information Systems Project Management—David Olson
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Learning Outcomes
• Students be able to identify the importance of
project management in Information System
• Students be able to define the importance
aspects in managing project
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Information Systems Project Management—David Olson
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Discussion Topics
• Definition & characteristics of Project
management
• Challenges of modern environments
• Project management features
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Information Systems Project Management—David Olson
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References
•
•
Information Systems Project Management,
David Olson, Olson, David L., 2003,
Introduction to Information Systems
Project Management, 2nd Ed.,
McGrawHill, ISBN: 0-07-282402-6.
Schwalbe, Kathy, 2003, Information
Technology Project Management, 3rd Ed.,
Course Technology, Inc., ISBN: 0619159847.
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Information Systems Project Management—David Olson
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Project Management Case
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Denver International Airport
Bozman [1994]; Zetlin [1996]; Montealegre & Keil [2000]
• Designed as largest US airport
• Cost
–
–
–
–
Estimate $1.7 billion (to be done Oct 1993)
Pre-construction budget $2.08 billion
Aug 1994 spent $3.2 billion
Final 16 months late, $2 billion over budget
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Denver International AP
• Functionality
– Malfunctioning computerized baggage system
• Cost $193 million
• 55 networked computers, 56 barcode scanners
• Sometimes bags on wrong flights
• Major effort
– Many problems
– Functioning airport
– Typical project
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What is a project?
–
–
–
–
definable purpose
cut across organizational lines
unique
ad hoc
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What is a project?
• everything done the first time is a project
• can be constructing something
– road, dam, building
• can be organizing something
– a meeting, an election campaign, a symphony, a
movie
• GETTING A NEW, COMPLEX ACTIVITY
DONE
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What is a Project? (Cont’d)
• A Project has a unique purpose
• A Project is temporary
• A Project requires resources, often from
various areas
• A Project should have a primary sponsor or
customer
• A Project involves uncertainty
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Project Characteristics
• Because projects are new (not at the repetitive
operations stage), they typically involve
– high levels of uncertainty and risk
– difficult to estimate resources required
– difficult to estimate time required
• Temporary activities by ad hoc organizations
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Project Constaints
• Scope: What is the project trying to
accomplish? What unique product or service
does the customer or sponsor expect from the
project?
• Time: How long should it take to complete the
project? What is the project’s schedule?
• Cost: What should it cost to complete the
project?
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Dimensions of Complexity
• magnitude of effort
• number of groups and organizations
to be coordinated
• diversity in skills or expertise
needed
usually the MORE COMPLEX, the more
time and resources required
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Group Size Dimension
individual
group
organization
multiorganization
term paper
wedding
system implementation
auditing
plant construction
space shuttle
wars
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Information Systems Project Management—David Olson
Challenges of Modern
Environments
• high levels of risk and uncertainty from many
interacting forces and variables
• rapidly changing technology
• rising costs
• increased competition
• frequent resource shortages
• many opposing interest groups
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What is Project Management?
• Project Management is the application of knowledge,
skills, tools, and techniques to project activities in
order to meet or exceed stakeholder needs and
expectations from a project.
• Stakeholders are the people involved in or affected by
project activities and include the project sponsor,
project team, support staff, customers, users,
suppliers, and even opponents to the project
• Knowledge areas: key competencies that project
managers must develop
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Project Management Framework
• Project Scope management involves defining and
managing all the work required to successfully
complete the project
• Project Time management includes estimating how
long it will take to complete the work
• Project Cost management consists of preparing and
managing the budget for the project
• Project Quality management ensures that project will
satisfy the stated or implied needs for which it was
undertaken
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Information Systems Project Management—David Olson
Facilitating Knowledge Areas of
Project Management
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• Project Human Resource Management is concerned
with making effective use of the people involved with
the project
• Project Communications management involves
generating, collecting, disseminating, and storing
project information
• Project Risk management includes identifying,
analyzing, and responding to risks related to the
project
• Project Procurement management involves acquiring
or procuring goods and services that are needed for a
project from outside the performing organization
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson
Project Management
Features
• differs from repetitive operations
–
–
–
–
market and technology much less predictable
greater uncertainty of outcomes
more parties or organizations involved
DYNAMIC environment
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IS Project Features
• technological explosion
– 286; 386; 486; Pentium; ?
– CASE tools; C++; GUI;
• highly volatile & expanding market
– CAD/CAM; EDI; laptops; Internet
• uncertainty
– is what requester wants feasible?
– how long will it take to program?
– will there be any bugs?
• many people involved
– user group; systems designers; programmers; end users;
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the Systems Approach
• recognize that organizations are made up of interrelated
units
• need coordinated goals
• integration benefits global objective attainment
– all pull towards same goal
• PROJECTS are system of interrelated tasks and work
units
• PROJECT MANAGEMENT unifies planning and work
efforts to accomplish multiple goals
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Project Goal Dimensions
INTERRELATED DIMENSIONS
• Cost
– stay within budget
• Time
– stay within time schedule specified
• Performance
– end product performs to specifications
Maintain focus on all 3, control trade-offs
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Adages
• Brooks’s Law
Adding manpower to a late software project
makes it later.
• Throwing money at a project doesn’t solve the
problem
• Taking resources away from a project doesn’t
always make it easier either
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Project Entities
• Project Manager
– coordinates efforts across functional areas;
– integrates planning & controls costs;
– schedules, assigns tasks
• Project Team
– group of people doing what needs to be done
– often from different functions, organizations
• Project Management System
– organizational structure, information processing, procedures
permitting integration of tasks and those who accomplish them
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IS Project Environment
• Risky
– Standish Group reports:
• >30% cancelled
• About 40% lack designed functionality
• Only 13% rated successful by sponsors
– Examples
• Bank of America project
• American Airlines subsidiary travel reservation
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Summary
• All projects are complex
– IS projects even more so
– Get diverse people to work together
• Time
• Cost
• Functionality
• Project management framework: scope, time, cost, quality
• Facilitating knowledge areas of project management: HR,
communications, risks management, procurement
© McGraw-Hill/Irwin 2004