Systematic and Holistic IT Project Management Approach for Commercial Software. Theresa Kraft Lawrence Technological University

Transcription

1 Systematic and Holistic IT Project Management Approach for Commercial Software Theresa Kraft Lawrence Technological University

2 Agenda IT Project Failure Rates Literature Review Research Justification Research Methodology Overview of Case Studies Conceptual Solution Research Findings Questions and Answers

3 IT Project Failure Rates Forrester Research: 62% project failure rate 52% of projects cancelled 82% of projects delivered late 5% to 15% of IT projects initiated are abandoned before or shortly after delivery, and are hopelessly inadequate??? many others will arrive late over budget require extensive reworking Other stats between 50% and 80% of IT projects are unsuccessful

4 Business Drivers Project Data Capital expenditures spent on IT US Dept of Commerce 50 % IT projects delivered late Aberdeen 90 % IT projects delivered over budget Gartner IT projects that fail to meet objectives Gartner 50 % 50 % IT projects cancelled prior to completion Aberdeen 30 %

5 IT Project Failure Costs Standish Group 1995 Report estimated that: American companies and government agencies will spend $81 billion dollars for canceled software projects. An additional $59 billion will be spent for software projects that are completed, yet beyond their original time estimates. IT is fast becoming intrinsic to our daily existence. In a few decades, a large-scale IT failure will become more than just an expensive inconvenience: it will put our way of life at risk.

6 IT Project Trends Standish Statistics

7 IT Project Critical Success Factors PROJECT CRITICAL FACTORS Clear Goals and Objectives Realistic Schedule Support from Senior Management Adequate Funds/Resources End User Commitment Clear Communication Channels Effective Leadership/Conflict Resolution Effective Monitoring and Feedback Flexible Approach to change Taking Account of Past Experience Recognizing Complexity Taking Account of External Influences Effective Team Building Motivation Effective Management of Risk COUNT

8 IT Project Critical Success Factors PROJECT CRITICAL FACTORS Training Provision Contextual Awareness Provision of Planning and Control System Appreciating the Effect of Human Error Considering Multiple Views of the project Having access to Innovative Talented people Other Factors Having Relevant Past Experience Support from Stakeholders / Champions Having a Clear Project Boundary COUNT

9 IT Project Failure Causes

10 Research Justification PM remains a highly problematic endeavor Despite the numerous developed and documented methods and techniques Needs for a greater understanding of the effects of various interacting processes and decisions. building up a more holistic view of project management Few publications discuss PM in context of: strategic planning company mission importance of corporate management performance (Jugdev & Muller, 2005).

11 Research Justification COTS represent about 70% of corporate business software purchases. Annual market for COTS is approximately $200 billion worldwide COTS is viewed as: shortening the implementation timeline reducing risks associated with developing custom applications.

12 Research Proposition Adopting a systematic and holistic approach to COTS IT projects could improve the potential for successful implementation of COTS solutions. IT projects will be successful if both the Business Goals & Objectives are satisfied AND the delivered system satisfies IT Governance & Standards.

13 IT Organizational Dynamics Alignment Real benefits reside not within the domain of the IT system but in the changes to the organizational activities that the IT system has enabled (Dhillon, 2005). Many projects that are incorrectly labeled as system projects fail because of the leadership s failure to recognize the relationship of the system within the whole organization (Collyer, 2000). Benjamin and Levison (1993) state that the benefits of IT are often not realized because investment is biased toward the technology and not toward managing change in the process, organizational structure and culture.

14 Business Strategy Alignment Only recently have researchers started to explore the alignment of project management and business strategy more thoroughly, and the need for this is growing (Srivannaboon & Milosevic, 2006). The goal of IT alignment planning is to enable IT projects and clients to achieve their objectives by delivering quality information from IT products and services (Peak et al., 2005). Aligning the IT strategy with an existing business plan allows managers and planners to define a course of action and develop an IT strategy to bridge the gap between IT reality and the strategic target (Peak et al., 2005).

15 Research Methodology

16 CASE #1 Manufacturing Quality Web Based Project objective: Provide Powertrain Organization with Manufacturing Process Failure Mode Effect Analysis (PFMEA) data entry and reporting tool using a vendor based software application Project Justification: Replace numerous manual Excel based reports and provide central storage document repository with web hosted solution.

17 PFMEA Process Model

18 CASE #2 CAD Data Management Project objective: Data management of AutoCAD drawings files using Product Data Management (PDM) COTS application Project Justification: Replace legacy application developed internally using the relational data base Ingress which was costly to maintain

19 CAD Data Management Current State

20 CAD Data Management Vision

21 Conceptual Model

22 Model Validation Survey was conducted of PMP executives to evaluate importance of Project Critical Success Factors.

23 Survey Results Total Responses Likert Scale Project Management Standards & Practices: Business Process Alignment System Design and Architecture Alignment Organizational Dynamics IT Governance and Standards IT Governance and Project Management Software Vendor/ Supplier Responsiveness

24 Conceptual Solution Business Domain

25 Conceptual Solution IT Domain

26 PFMEA Second Attempt Conceptual Solution Assessment Proposition P1 Business Process Requirements Alignment with System Design P2 Business Process Requirements Alignment with Architecture Rank 5 4 P3 Architecture Alignment with IT Governance 4 P10 P9 P11 P P13 0 P1 P2 P3 P4 Project Management Requirements, Deliverables, PMO office engagement P5 System Functionality and Design alignment with Organizational Dynamics P6 Software Enhancements Requests P7 IT Governance Request for Changes to Vendor P8 P4 P8 Refinements in Business Processes and Objectives 4 P7 P6 P5 P9 IT Governance and Standards Flexibility 3 P10 Software Vendor Response to Business Organizational Dynamics 4 P11 Software Vendor Response to IT Governance and Standards 5 P12 Satisfying Business Goals and Objectives 4 P13 Satisfying IT Governance and Standards 5

27 ACAD PDM Conceptual Solution Assessment Proposition P1 Business Process Requirements Alignment with System Design P2 Business Process Requirements Alignment with Architecture Rank 1 2 P3 Architecture Alignment with IT Governance 4 P10 P9 P11 P P13 0 P1 P2 P3 P4 Project Management Requirements, Deliverables, PMO office engagement P5 System Functionality and Design alignment with Organizational Dynamics P6 Software Enhancements Requests P7 IT Governance Request for Changes to Vendor P8 P4 P8 Refinements in Business Processes and Objectives 2 P7 P6 P5 P9 IT Governance and Standards Flexibility 2 P10 Software Vendor Response to Business Organizational Dynamics 1 P11 Software Vendor Response to IT Governance and Standards 4 P12 Satisfying Business Goals and Objectives 2 P13 Satisfying IT Governance and Standards 4

28 CASE #3 Manufacturing Quality Desktop Project objective: Provide Powertrain with Manufacturing Process Failure Mode Effect Analysis (PFMEA) data entry and reporting tool using a vendor based software application Project Justification: Replace numerous manual excel based reports and provide central storage document repository First Attempt At PFMEA, which was unsuccessfull

29 PFMEA First Attempt Conceptual Solution Assessment Proposition P1 Business Process Requirements Alignment with System Design P2 Business Process Requirements Alignment with Architecture P3 Architecture Alignment with IT Governance P4 Project Management Requirements, Deliverables, PMO office engagement P5 System Functionality and Design alignment with Organizational Dynamics P6 Software Enhancements Requests P7 IT Governance Request for Changes to Vendor P8 Refinements in Business Processes and Objectives P9 IT Governance and Standards Flexibility P10 Software Vendor Response to Business Organizational Dynamics P11 Software Vendor Response to IT Governance and Standards P12 Satisfying Business Goals and Objectives P13 Satisfying IT Governance and Standards Rank

30 CASE #4 Advanced Invoice Management System Project objective: Implementation of an E-Commerce invoicing system for the Legal department that provides for electronic invoice delivery, management and workflow. Project Justification: Replace the existing invoicing system (PFM), which is no longer supported since the software vendor has discontinued the product.

31 AIMS Process Vision

32 AIMS Conceptual Solution Assessment Proposition P1 Business Process Requirements Alignment with System Design P2 Business Process Requirements Alignment with Architecture P3 Architecture Alignment with IT Governance P4 Project Management Requirements, Deliverables, PMO office engagement P5 System Functionality and Design alignment with Organizational Dynamics P6 Software Enhancements Requests P7 IT Governance Request for Changes to Vendor P8 Refinements in Business Processes and Objectives P9 IT Governance and Standards Flexibility P10 Software Vendor Response to Business Organizational Dynamics P11 Software Vendor Response to IT Governance and Standards P12 Satisfying Business Goals and Objectives P13 Satisfying IT Governance and Standards Rank

33 Holistic Project Management Framework

34 Summary The traditional PM triple constraint or iron triangle techniques (cost, schedule, scope) must be expanded to include business process alignment, IT governance and flexibility, and organizational dynamics. IT alignment planning must take a strategic view across the corporation

35 Contributions of Research The only thing harder than predicting the future is changing the past. The research effort provides a systematic and holistic systematic approach to project management for improving project success rates. The conceptual solution provides a diagnostic tool which may be used during each phase of the project life cycle to identify those aspects that require remedial action. The use of the Likert scale and the Kiviat diagram provides a quantitative and graphical diagnostic techniques for project management.

36 Contributions of Research Extensive Literature Review of Project Management, Organizational Dynamics, IT Business Alignment. Innovative Approach of Case Study Analysis to IT field.

37 Conclusions An effective IT alignment process will anticipate future IT requirements of the company, and ensure that adequate IT capabilities and functionality exist now and in the future. Business IT alignment is not a single event but a rather a process of continuous adaptation and change. Project Management must be expanded to include: Business Process Alignment IT Governance Organizational Dynamics Adoption of a Systematic and Holistic Approach to COTS IT Project Management improves potential for successful project implementation.

38 Questions and Discussion