The Nature of Information
Technology Projects
Chapter 1
Learning Objectives
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Describe the dominant eras of information systems called the electronic data
processing (EDP) era, the micro era, the network era, and the globalization era, and
understand how managing IT projects has evolved during these eras.
Understand the current state of IT project management and how successfully
managing IT projects remains a challenge for most organizations.
Explain the value-driven, socio-technical, project management, and knowledge
management approaches that support ITPM.
Define what a project is and describe its attributes.
Define the discipline called project management.
Describe the role and impact IT projects have on an organization.
Identify the different roles and interests of project stakeholders.
Describe some common approaches to structured systems development and
iterative systems development.
Describe the project life cycle (PLC), the systems development life cycle (SDLC),
and their relationship.
Describe extreme project management.
Identify the Project Management Body of Knowledge (PMBOK®) core knowledge
areas.
IT and Modern Day Project Management
1940s
First
Electronic
Computer
1950s
1960s
EDP
Era
1970s
PC
Era
1980s
1990s
Network
Era
2000s
2010s
Globalization
Introduction
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Information Technology (IT) projects are organizational
investments that require
 Time
 Money
 And other resources such as people, technology, facilities,
etc.
Organizations expect some type of value in return for this
investment
IT Project Management is a relatively new discipline that
attempts to make IT projects more successful andcombines
traditional Project Management with Software
Engineering/Management Information Systems
An ITPM Approach
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Organizational resources are limited, so organizations
must choose among competing interests to fund specific
projects
This decision should be based on the value a competing
project will provide to an organization
Which Situation is Worse?
Successfully building and implementing a system that
provides little or no value to the organization?
Or…
 Failing to implement an information system that could
have provided value to the organization, but was
underdeveloped or poorly managed?
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Why Do IT Projects Fail?
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Larger projects have the lowest success rate and appear
to be more risky than medium and smaller projects
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Technology, business models, and markets change too rapidly
so projects that take more than a year can be obsolete before
they are completed
The CHAOS studies also provides some insight as to the
factors that influence project success
The Software Crisis
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The CHAOS study published in 1995 by The Standish
Group found that although the U.S spent over $250
billion on IT projects, approximately…
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31% were cancelled before completion
53% were completed but over budget, over schedule, & did not
meet original specifications
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For mid-size companies, average cost overruns were 182%, while
average schedule overruns were 202%!
Has the Current State of IT Projects
Changed Since 1994?
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The Standish Group has continued to study IT projects
over the years.
In general, IT Projects are showing higher success rates
due to
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Better project management tools & processes
Smaller projects
Improved communication among stakeholders
More skillful IT project managers
But there is still ample opportunity for improvement!
Figure 1.1 - Summary of the Chaos Studies from 1994 to 2006
Table 1.1 Summary of CHAOS Study Factor Rankings for Successful Projects
Sources: Adapted from the Standish Group. CHAOS (West Yarmouth, MA: 1995) & http://www.infoq.com/articles/Interview-Johnson-Standish-CHAOS
Rank
1994
2001
2006
1
User Involvement
Executive Support
User Involvement
2
Executive Management
Support
User Involvement
Executive Management
Support
3
Clear Statement of
Requirements
Experienced Project Manager
Clear Business Objectives
4
Proper Planning
Clear Business Objectives
Optimizing Scope
5
Realistic Expectations
Minimized Scope
Agile Process
6
Smaller Project Milestones
Standard Software
Infrastructure
Project Management Expertise
7
Competent Staff
Firm Basic Requirements
Financial Management
8
Ownership
Formal Methodology
Skilled Resources
9
Clear Vision & Objectives
Reliable Estimates
Formal Methodology
10
Hard-working, focused team
Other
Standard Tools and
Infrastructure
Table 1.2: Project Performance and Internal/External Customer Satisfaction.
Source: Marchewka, J.T. (2008). n = 114.
Much
Worse
Worse
Same
Better
Much
Better
0.0%
12.3%
40.4%
41.2%
6.1%
1.8%
10.5%
44.7%
37.7%
5.3%
2.6%
7.0%
41.2%
41.2%
7.9%
Overall
satisfaction
of the
customer
1.8%
13.2%
34.2%
39.5%
11.4%
Perceived
value of the
delivered
product to
the customer
0.0%
9.6%
39.5%
38.6%
12.3%
Potential for
future work
with the
customer
0.9%
3.5%
42.1%
38.6%
14.9%
Ability to
meet project
schedules
Ability to
meet
project
IT Project
budgets
Performance
Over the
Past 3 Years
Ability to
complete
project scope
or system
requirement
s
Customer
satisfaction
over the past
3 years
(Customers
can be
internal –
e.g., HR
department
or external –
e.g., a
particular
client)
Table 1.3: Summary of Factor Rankings for Challenged and Failed (Impaired) Projects
Source: Adapted from the Standish Group. CHAOS (West Yarmouth, MA: 1995)
Rank
Factors for Challenged Projects
Factors for Failed (Impaired) Projects
1
Lack of user input
Incomplete requirements
2
Incomplete requirements
Lack of user involvement
3
Changing requirements & specifications
Lack of resources
4
Lack of executive support
Unrealistic expectations
5
Technology incompetence
Lack of executive support
6
Lack of resources
Changing requirements & specifications
7
Unrealistic expectations
Lack of planning
8
Unclear objectives
Didn’t need it any longer
9
Unrealistic time frames
Lack of IT management
10
New technology
Technology illiteracy
Tata Consultancy Services 2007 Report
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Included 800 senior IT managers from the UK,
US, France, Germany, India, Japan, & Singapore:
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62% of the IT projects failed to meet their
schedules
49% experienced budget overruns
47% experienced higher-than expected
maintenance costs
41% failed to deliver the expected business value
and ROI
Figure 1.2 - When IT projects have gone wrong, what has been
the reaction from the business managers and the Board of
Directors?
Don't know
None
Looked for a scapegoat among IT staff
Sought compensation from IT vendors
Reluctant to fund new IT projects
Reduced IT budgets
Tend to accept problems as the norm (i.e., a
necessary evil)
Continued to provide support to improve IT
1%
2%
9%
13%
19%
21%
43%
69%
Improving the likelihood of success
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A Value-Driven Approach
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Socio-technical Approach
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It’s not just about the technology or building a better mouse trap
Project Management Approach
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Plain & Simple: IT Projects must provide value to the organization
processes and infrastructure (Methodology)
resources
expectations
competition
efficiency and effectiveness
Knowledge Management Approach
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lessons learned, best practices & shared knowledge
The PMBOK® Guide’s Definitions for Project
and Project Management
A project is a temporary endeavor undertaken to
create a unique product, service, or result.
 Project Management is the application of knowledge,
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skills, tools and techniques to project activities to meet
project requirements. Managing a project includes:
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Identifying requirements
Establishing clear and achievable objectives
Balancing the competing demands for quality, scope, time, and
cost
Adapting the specifications, plans, and approaches to the
different concerns and expectations of the various
stakeholders
The Context of Project Management
Project Attributes
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Time Frame
Purpose (to provide value!)
Ownership
Resources (the triple constraint)
Roles
 Project Manager
 Project Sponsor
 SME (domain & technical)
Risk & Assumptions
Interdependent Tasks
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progressive elaboration – steps & increments
Planned Organizational Change
Operate in Environments Larger than the Project Itself
–
The Triple Constraint
Figure 1.3
The Project Life Cycle and IT
Development
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Project Life Cycle (PLC)
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A collection of logical stages or phases that maps the life of a
project from its beginning to its end in order to define, build, and
deliver the product of the project – i.e., the information system
Projects are divided into phases to increase manageability
and reduce risk
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Phase exits, stage gates, or kill points are decision points at the end
of each phase to evaluate performance or to correct problems or
cancel the project
Fast tracking is the overlapping of phases to reduce the project’s
schedule
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Can be risky!
Generic Project Life Cycle
Figure 1.4
Systems Development Life Cycle
(SDLC)
Figure 1.5
Waterfall Method
Define
Requirements
Design
Build
Test
Implement
Maintenance
Figure 1.6
The Relationship Between the PLC & SDLC
Figure 1.7
Putting the SDLC into Practice
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Structured Approach to Systems Development
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Waterfall Method
Iterative Development
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Rapid Applications Development (RAD)
Prototyping
Spiral Development
Extreme Programming
Extreme Project Management (XPM)
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A new approach & philosophy to project management that is becoming
increasingly popular
Characterizes many of today’s projects that exemplify speed,
uncertainty, changing requirements, and high risks
Traditional project management often takes an orderly approach while,
XPM embraces the fact that projects are often chaotic and
unpredictable
XPM focuses on flexibility, adaptability, and innovation
Traditional and new approaches together can provide us with a better
understanding of how to improve the likelihood of project success
The Project Management Body of
Knowledge (PMBOK®)
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The Guide to the Project Management Body of Knowledge (PMBOK®
Guide) documents 9 project management knowledge areas
The PMBOK® Guide is published and maintained by the Project
Management Institute (PMI)
 http://www.pmi.org
PMI provides a certification in project management called the Project
Management Professional (PMP) that many people today believe will be
as relevant as a CPA certification
PMP certification requires that you pass a PMP certification exam to
demonstrate a level of understanding about project management, as
well as satisfy education & experience requirements and agree to a
professional code of conduct
Project Management Body of Knowledge Areas
Figure 1.8