Kiến trúc máy tính và hợp ngữ - Chapter 2: Project initiation, project management & requirements determination

Chapter 2:Project Initiation, Project Management & Requirements DeterminationObjectivesUnderstand the importance of linking the information system to business needs.Be able to create a system request.Understand how to assess technical, economic, and organizational feasibility.Be able to perform a feasibility analysis.Understand how projects are selected in some organizations.Successful ProjectsCostAt project completion, no more money has been spent than was originally allocatedScheduleThe project is delivered no later than the original delivery datePerformanceWhen delivered, the project has all features and functionality that were originally required of itWhy Should We Care?Would you buy a car that only had a 28% chance of driving off the lot with no problems?Recent Significant IT FailuresCompanyYear OutcomeHudson Bay (Canada)2005Inventory system problems lead to $33.3 million loss.UK Inland Revenue2004/5$3.45 billion tax-credit overpayment caused by software errors.Avis Europe PLC (UK)2004Enterprise resource planning (ERP) system cancelled after $54.5 million spent.Ford Motor Co.2004Purchasing system abandoned after deployment costing approximately $400 MHewlett-Packard Co.2004ERP system problems contribute to $160 million loss.AT&T Wireless2004Customer relations management system upgrade problems lead to $100M lossPROJECT IDENTIFICATIONProject Identification and InitiationProjects are driven by business needsIdentified by business peopleIdentified by IT people(better yet) identified jointly by business and ITThe project sponsor believes in the system and wants to see it succeedNormally this is a business personShould have the authority to move it forwardBusiness ValueTangible ValueCan be quantified and measured easilyExample: 2 percent reduction in operating costsIntangible ValueResults from an intuitive belief that the system provides important, but hard-to-measure, benefits to the organizationExample: improved customer serviceElements of a System RequestProject sponsorPrimary point of contact for the projectBusiness needReason prompting the projectBusiness requirementsBusiness capabilities the system will need to haveBusiness valueBenefits the organization can expect from the projectSpecial issuesAnything else that should be consideredFEASIBILITY ANALYSISFeasibility AnalysisGuides the organization in determining whether to proceed with a projectIdentifies the project’s risks that must be addressed if the project is approvedMayor components:Technical feasibilityEconomic feasibilityOrganizational feasibilityTechnical FeasibilityFamiliarity with applicationLess familiarity generates more riskFamiliarity with technologyLess familiarity generates more riskProject sizeLarge projects have more riskCompatibilityDifficult integration increases the riskCan we build it?Economic FeasibilityDevelopment costsAnnual operating costsAnnual benefits (cost savings and revenues)Intangible costs and benefitsShould we build it?Cost-Benefit AnalysisCost-Benefit AnalysisBreak-Even PointOrganizational FeasibilityStakeholdersProject champion(s)Senior managementUsersOthersIs the project strategically aligned with the business?If we build it, will they come?PROJECT SELECTIONProject SelectionProject portfolio managementA process that optimizes project selection and sequencing in order to best support business goalsBusiness goals are expressed in terms ofQuantitative economic measuresBusiness strategy goalsIT strategy goalsOnce selected, projects enter the project management processHow Not to Select a ProjectFirst in, first outPolitical clout of project inventorSqueaky wheel getting the greaseAny other method that does not involve a deliberate course of action analysisA recent analysis found that between 2% and 15% of projects taken on by IT departments are not strategic to the business.ReviewProject InitiationFeasibility AnalysisProject Selection