Agendas
Recap of IT Outsourcing (Recap)
A Managing IT Project Delivery
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Case 3-2: Volkswagen of America : Managing IT Priorities
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Course Road Map
ISQS 5231
Business Impacts
Making Case for IT
Networked
Infrastructure and
Operations
Internetworking
Infrastructure
IT and Strategy
Reliable and
Secure IT Services
IT and
Organization
Diverse IT
Infrastructures
Extending the
Enterprise
Leadership Issues
Management IT
Outsourcing
Managing IT
Projects
IT Leadership
Outsourcing (recap)
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What important issues you need to pay attention to when
outsourcing?
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Recommendations
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Define what your outsourcing plan is
Choose the right person to lead your organization and
hire the right team
Outsource small auxiliary tasks and scale with time
Work with a trusted partner with strong local presence
Choose the right culture and strategy to implement it
Focus on building a strong brand locally to attract top
talent
Think as one company across multiple cultures
Do post-implementation assessments to track costs
and benefits
Chapter 10: A Portfolio Approach to Managing IT Projects
 Three IT Deficiencies
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Failure to assess the implementation risk of a project at the
time it is funded
Failure to consider the aggregate implementation risk of a
portfolio of projects
Failure to recognize that different projects require different
managerial approaches
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Projects Typically Fail
 Over budget
 Average cost overrun: 189%
 Delivered late
 Average schedule overrun: 222%
 Failed to meet expectations
 Average coverage: 61%
 Larger companies are even worse
[Standish Group, 2004]
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Source of Implementation Risk
 Project size
 Experience with the technology
 Requirements volatility
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Effect of Adding Rick Factors
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Risk Metric
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Managing the “Dip” during Project Implementation
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Risk and Return Distribution for a Portfolio of Projects
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Risk and Return Matrix Exercise
 Information Systems Implementation at Texas Tech
 System #1: Updating MS Office Suite
 System #2: Student Relationship Management (SRM)
software in Banner.
 System #3: RFID system for TTU procurement replacing
bar code system.
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Criteria for Selecting the Appropriate Methodology
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Clear user requirements
Familiarity with technology
Complexity of system
Reliability of system
Time schedule
Schedule visibility
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IT Portfolio Approach
 Highlights total implementation risk
 Enables rebalancing of portfolio to key priorities
 Ensure limited resources are linked to critical
company needs
 20 individual unites priorities may not be a good
portfolio
 Existing methods hide commutability (efficiency)
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IT Portfolio Approach
Comparison of Financial and Project Portfolios
Assets
Financial Portfolio
Project Portfolio
Various financial
Various project with
instruments with
distince characteirstics
distinct characteristics
Diversification
Employing multiple
financial instruments
can reduce risk
Many project variables scope, approach, vendor
project manager, etc. - can reduce risk
Goals
Income & capital gains Profitability growth
Asset Allocaiton Invest according to
investment goals
Invest according to
organizational intentions
Connection
Interdependency
Correlation
IT Portfolio Approach – Barriers
 Cut cross management control systems and reallocate
scarce resources differently
 Changing rules win-loose  to much pain
 Can force drastic shift resource allocation inside/out
 Not seen as providing enough value – we are OK
 Cost too much – Don’t understand it
 We choose not to look at IT in aggregate
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THE SYSTEMS DEVELOPMENT
LIFE CYCLE
Project Phases
 Planning (Why build the system? How should the team go
about building it?)
 Analysis (Who uses system, what will it do, where and when
will the system be used?)
 Design (How will the system work?)
 Implementation (System delivery)
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A simple process for making lunch
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Processes and Deliverables
Process
Planning
Analysis
Design
Implementation
Product
System Request
Feasibility Analysis
Workplan
System Proposal
System
Specification
New System and
Maintenance Plan
SYSTEM DEVELOPMENT
METHODOLOGIES
Waterfall Development Methodology
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Parallel Development Methodology
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Rapid Application Development
 Incorporate special techniques and tools:
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CASE tools
JAD sessions
Fourth generation/visualization programming languages
Code generators
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Three RAD Categories
 Phased development
 A series of versions developed sequentially
 Prototyping
 System prototyping
 Throw-away prototyping
 Design prototyping
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How Prototyping Works
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Throwaway Prototyping
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Agile Development: Extreme Programming (UML)
Planning
Analysis
Design
System
Implement
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