Download Chapter 19 Managing Organizational Projects

Business Driven
Technology
Unit 5
Transforming Organizations
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Unit Five
O Chapter Seventeen – Developing Software to
Streamline Operations
O Chapter Eighteen – Methodologies for Supporting
Agile Organizations
O Chapter Nineteen - Managing Organizational
Projects
O Chapter Twenty – Developing a 21st Century
Organization
19-2
Chapter 19
Managing Organizational
Projects
19-3
LEARNING OUTCOMES
1. Explain project management and identify
the primary reasons projects fail
2. Identify the primary project planning
diagrams
3. Identify the three different types of
outsourcing along with their benefits and
challenges
19-4
Using Project Management to
Deliver Successful Projects
O Tangible benefits – Easy to quantify and
typically measured to determine the success
or failure of a project
O Intangible benefits – Difficult to quantify or
measure
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Using Project Management to
Deliver Successful Projects
O Types of Feasibility Studies
O Economic feasibility
O Operational feasibility
O Schedule feasibility
O Technical feasibility
O Political feasibility
O Legal feasibility
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The Triple Constraint
Project Management Interdependent Variables
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The Triple Constraint
O Benjamin Franklin’s timeless advice - by failing to
prepare, you prepare to fail - applies to software
development projects
O The Hackett Group analyzed 2,000 companies and
discovered
O Three in 10 major IT projects fail
O 21 percent of the companies state that they cannot adjust
rapidly to market changes
O One in four validates a business case for IT projects after
completion
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The Triple Constraint
O Project stakeholder - Individuals and
organizations actively involved in the project or
whose interests might be affected as a result of
project execution or project completion
O Executive sponsor - The person or group who
provides the financial resources for the project
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The Triple Constraint
O
Project deliverable – Any measurable, tangible,
verifiable outcome, result, or item that is produced
to complete a project or part of a project
O
Project milestone – Represents key dates when a
certain group of activities must be performed
O
Project management office (PMO) – An internal
department that oversees all organizational
projects
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SMART OBJECTIVES
O SMART criteria are
useful reminders on
how to ensure that
the project has
created
understandable and
measurable
objectives
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UNDERSTANDING PROJECT
PLANNING
O Project plan – A formal, approved document that
manages and controls project execution
O A well-defined project plan should be
O
Easy to understand and read
O
Communicated to all key participants
O
Appropriate to the project’s size, complexity, and
criticality
O
Prepared by the team, rather than by the individual
project manager
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UNDERSTANDING PROJECT
PLANNING
O Two primary diagrams used in project
planning include PERT and Gantt charts
O PERT chart
O Dependency
O Critical path
O Gantt chart
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UNDERSTANDING PROJECT PLANNING
PERT Chart EXPERT – PERT Chart Example
19-14
UNDERSTANDING PROJECT PLANNING
MS Project – Gantt Chart Example
19-15
MANAGING PROJECTS
O Managing a project includes
O Identifying requirements
O Establishing clear and achievable
objectives.
O Balancing the competing demands of
quality, scope, time, and cost
O Adapting the specifications, plans, and
approach to the different concerns and
expectations of the various stakeholders
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OUTSOURCING PROJECTS
O In-sourcing (in-house-development) –
Uses the professional expertise within
an organization to develop and
maintain its information technology
systems
O Outsourcing – An arrangement by
which one organization provides a
service or services for another
organization that chooses not to
perform them in-house
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OUTSOURCING PROJECTS
O Factors driving outsourcing growth include
O Core competencies
O Financial savings
O Rapid growth
O The Internet and globalization
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OUTSOURCING PROJECTS
O Onshore outsourcing
O Nearshore outsourcing
O Offshore outsourcing
19-19
OUTSOURCING PROJECTS
O Big selling point for offshore outsourcing
“inexpensive good work”
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OUTSOURCING PROJECTS
O Most organizations outsource their noncore business
functions, such as payroll and IT
19-21
Outsourcing Benefits
O Outsourcing benefits include
O Increased quality and efficiency of business
processes
O Reduced operating expenses for head count and
exposure to risk for large capital investments
O Access to outsourcing service provider’s expertise,
economies of scale, best practices, and advanced
technologies
O Increased flexibility for faster response to market
changes and less time to market for new products or
services
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Outsourcing Challenges
O Outsourcing challenges include
O Length of contract
1. Difficulties in getting out of a contract
2. Problems in foreseeing future needs
3. Problems in reforming an internal IT
department after the contract is finished
O Threat to competitive advantage
O Loss of confidentiality
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LEARNING OUTCOME REVIEW
O Now that you have finished the
chapter please review the learning
outcomes in your text
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