Information Technology Project
Management – Fourth Edition
By Jack T. Marchewka
Northern Illinois University
Power Point Slides by Gerald DeHondt
Grand Valley State University
1-1
Copyright 2012 John Wiley & Sons, Inc.
The Nature of Information
Technology Projects
Chapter 1
1-2
Copyright 2012 John Wiley & Sons, Inc.
Learning Objectives









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 Extreme project management.
Identify the Project Management Body of Knowledge (PMBOK®)
core knowledge areas.
1-3
Copyright 2012 John Wiley & Sons, Inc.
IT and Modern Day Project Management
1940s
First
Electronic
Computer
1-4
1950s
1960s
EDP
Era
1970s
PC
Era
1980s
1990s
Network
Era
Copyright 2012 John Wiley & Sons, Inc.
2000s
2010s
Globalization
Introduction



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
1-5
Copyright 2012 John Wiley & Sons, Inc.
An ITPM Approach


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
1-6
Copyright 2012 John Wiley & Sons, Inc.
Modern Project Management



Often credited to the U.S. Navy as an outgrowth of the
Polaris Missile Project in the 1950’s.
Focuses on reducing costs and product cycle time.
Provides an important link between an organization’s
strategy and the deployment of that strategy.

1-7
Can have a direct impact on an organization’s bottom line and
competitiveness.
Copyright 2012 John Wiley & Sons, Inc.
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?

1-8
Copyright 2012 John Wiley & Sons, Inc.
Why Do IT Projects Fail?

Larger projects have the lowest success rate and appear
to be more risky than medium and smaller projects


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
1-9
Copyright 2012 John Wiley & Sons, Inc.
The Software Crisis

The CHAOS study published in 1995 by The Standish
Group found that although the U.S spent over $250
billion on IT projects, approximately…


31% were cancelled before completion
53% were completed but over budget, over schedule, & did not
meet original specifications

1-10
For mid-size companies, average cost overruns were 182%, while
average schedule overruns were 202%!
Copyright 2012 John Wiley & Sons, Inc.
Has the Current State of IT Projects
Changed Since 1994?


The Standish Group has continued to study IT projects
over the years.
In general, IT Projects are showing higher success rates
due to





Better project management tools & processes
Smaller projects
Improved communication among stakeholders
More skillful IT project managers
But there is still ample opportunity for improvement!
1-11
Copyright 2012 John Wiley & Sons, Inc.
Figure 1.1 - Summary of the Chaos Studies from 1994 to 2008
Sucessful
32%
2008
1998
26%
1996
27%
1-12
16%
18%
51%
28%
2000
19%
53%
34%
2002
24%
46%
29%
2004
Failed
44%
35%
2006
1994
Challenged
15%
49%
23%
46%
33%
28%
40%
53%
Copyright 2012 John Wiley & Sons, Inc.
31%
Table 1.1 Summary of CHAOS Study Factor Rankings for Successful Projects
Sources: Adapted from the Standish Group. CHAOS (West Yarmouth, MA: 1995, 2010) & http://www.infoq.com/articles/Interview-Johnson-Standish-CHAOS
Rank
1994
2001
2006
2008
1
User Involvement
Executive Support
User Involvement
User Involvement
2
Executive Management
Support
User Involvement
Executive Management
Support
Executive Support
3
Clear Statement of
Requirements
Experienced Project
Manager
Clear Business
Objectives
Clear Business
Objectives
4
Proper Planning
Clear Business
Objectives
Optimizing Scope
Emotional Maturity
5
Realistic Expectations
Minimized Scope
Agile Process
Optimizing Scope
6
Smaller Project
Milestones
Standard Software
Infrastructure
Project Management
Expertise
Agile Process
7
Competent Staff
Firm Basic
Requirements
Financial Management
Project Management
Expertise
8
Ownership
Formal Methodology
Skilled Resources
Skilled Resources
9
Clear Vision &
Objectives
Reliable Estimates
Formal Methodology
Execution
10
Hard-working, focused
team
Other
Standard Tools and
Infrastructure
Tools & Infrastructure
1-13
Copyright 2012 John Wiley & Sons, Inc.
Table 1.2: IT Project Success Criteria
Source: Source: http://www.drdobbs.com/architecture-and-design/202800777.
Criteria
Schedule
1-14
Response
61.3% said it is more important to deliver a system when it is
ready to be shipped than to deliver it on time.
Scope
87.3% said that meeting the actual needs of stakeholders is more
important than building the system to specification.
Money
79.6% said that providing the best return on investment (ROI) is
more important than delivering a system under budget.
Quality
87.3% said that delivering high quality is more important than
delivering on time and on budget.
Staff
75.8% said that having a mentally and physically healthy
workplace is more important than delivering on time and on
budget.
Copyright 2012 John Wiley & Sons, Inc.
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
1-15
Copyright 2012 John Wiley & Sons, Inc.
Tata Consultancy Services 2007 Report

Included 800 senior IT managers from the UK,
US, France, Germany, India, Japan, & Singapore:




1-16
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
Copyright 2012 John Wiley & Sons, Inc.
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
1%
2%
9%
13%
19%
21%
Tend to accept problems as the norm (i.e., a
necessary evil)
Continued to provide support to improve IT
1-17
Copyright 2012 John Wiley & Sons, Inc.
43%
69%
Improving the likelihood of success

A Value-Driven Approach


Socio-technical Approach


It’s not just about the technology or building a better mouse trap
Project Management Approach






Plain & Simple: IT Projects must provide value to the organization
processes and infrastructure (Methodology)
resources
expectations
competition
efficiency and effectiveness
Knowledge Management Approach

1-18
lessons learned, best practices & shared knowledge
Copyright 2012 John Wiley & Sons, Inc.
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, skills, tools and techniques to project
activities to meet project requirements.

A project manager is the person assigned by the
performing organization to achieve the project
objectives.
1-19
Copyright 2012 John Wiley & Sons, Inc.
The Context of Project Management
Project Attributes







Time Frame
Purpose (to provide value!)
Ownership
Resources (the triple constraint)
Roles
 Project Manager
 Project Sponsor
 SME (domain & technical)
Risk & Assumptions
Interdependent Tasks



1-20
progressive elaboration – steps & increments
Planned Organizational Change
Operate in Environments Larger than the Project Itself
Copyright 2012 John Wiley & Sons, Inc.
–
The Triple Constraint
1-21
Figure 1.3
Copyright 2012 John Wiley & Sons, Inc.
Extreme Project Management (XPM)





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
1-22
Copyright 2012 John Wiley & Sons, Inc.
The Project Management Body of
Knowledge (PMBOK®)




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
1-23
Copyright 2012 John Wiley & Sons, Inc.
Project Management Body of Knowledge Areas
Figure 1.8
1-24
Copyright 2012 John Wiley & Sons, Inc.
Copyright 2012 John Wiley & Sons, Inc.
All rights reserved. Reproduction or translation of this work beyond that
permitted in section 117 of the 1976 United States Copyright Act without
express permission of the copyright owner is unlawful. Request for further
information should be addressed to the Permissions Department, John
Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own
use only and not for distribution or resale. The Publisher assumes no
responsibility for errors, omissions, or damages caused by the use of these
programs or from the use of the information herein.
1-25
Copyright 2012 John Wiley & Sons, Inc.