The Study and Application of IT Projects Management

and Control Model for Enterprise Group

Ke Li and Yongteng Wang

CGN Power Co., Ltd., Centre of Information Technology, Shen Zhen, China
{like,wangyongteng}@cgnpc.com.cn

Abstract. In this paper, we are going to introduce PRINCE2 ,which is the

advanced international projects management methodology, to build a model of
projects management and control based on PRINCE2 & CMMI for enterprise
group that has already been implementing CMMI in order both to manage and
control the feasibility analysis, business justification, process monitor, resources
management, appraisal of IT projects and ensure IT projects are necessary,
feasible, economical, controllable, investment effective as well.

Keywords: PRINCE2, CMMI, Project Management & Control, Process

Control.

1 Introduction

With the rapid development of information technology, many enterprise groups are
integrating information technology and core business with management improvement
in recent years. They are vigorously promoting the construction of information
infrastructure construction. Therefore the actual input expenses of information
technology and the number of IT projects are increasing rapidly. Accordingly, how to
implement effective management and control on the numerous IT projects to make
sure that each project can meet the initial expectation is a problem faced by many
enterprise groups.
The introduction of IT project management international standard is the way that
many enterprise groups are now adopting. For example, an enterprise establishes
separately information technology management functions (The Information
technology Functions) and professional IT service center (It Services Department) in
the organizational structure of their headquarters.
It Service Department got the CMMI3 certificate in 2009. By putting CMMI
standard into use, it can implement effective management on resources, quality, cost
and schedule of IT projects.
But the project management, based on the CMMI’s norm, is paying attention to
manage a single project regularly and systematically and ensuring the whole project
successfully through each link’s management. Therefore this design is considering to
the project manager. But what the information technology department confronted is a
number of programs. Their core work is to control the programs and focus on the

© Springer International Publishing Switzerland 2015 287

H. Sun et al. (eds.), Genetic and Evolutionary Computing,
Advances in Intelligent Systems and Computing 329, DOI: 10.1007/978-3-319-12286-1_29
288 K. Li and Y. Wang

business case, scientific decision, process monitoring, resource management and

project evaluation and so on. Only through the effective control and based on the
project management to set up an effective group level of programs control system,
can we ensure the IT item’s scientific decision, to be correspond to the plan of group
information technology, to increase the efficiency of project’s implement, to decrease
their project cost and ensure the investment benefits as well as to realize using
information technology to support the development of enterprise.
This passage is through to study the managerial method of PRINCE2’s item, to
elaborate how to combine PRINCE2 with CMMI’s norm, to establish an IT project
management model which is suitable for a large enterprise groups and to implement
the application.

2 The Circumstance of Application of CMMI

The capability maturity model provides a standard of norm and managerial

requirement which not only can ensure the quality of products, but also can reduce the
period of exploitation and improve their working efficiency. According to the
CMMI’s normative managerial requirement, the IT service department has
accomplished to formulate and release 20 item’s management procedure. At the
same time, they ask for all the IT items must be carried out the projects in accordance
with relevant standard of procedure in instituation. CMMI focuses on the importance
of managing the process of the project’s implement which is in order to play the
important role of helping the project’s manager to improve their managerial ability in
a single project’s lay.

3 PRINCE2 Project Management Methodology

PRINCE is short for Project IN Controlled Environment, which is paying attention to

how to manage the projects in a logical and organized way in controlled environment
and ensuring the project can be available to carry out within the controlled
environment.
PRINCE2 is structured project management method which is adopting a method
based on the process to control the projects. The process not only define management
activities which is in the process of projects needed, but also describe the parts which
the activity is included.
PRINCE2’s management process consists of 8 special parts, covers almost all the
project control and managerial activities from the beginning of the projects to the end
of the projects. Including SU, DP, IP, CS, SB, MP, CP, PL the process of guidance
and plan cover the whole activity. At the same time, the process of PRINCE2’s
management is based on 8 parts, including business case, organization, plan, control,
risk management, quality, configuration management and changed control.
 The Study and Application of IT Projects Management and Control Model 289

Fig. 1. PRINCE2 processes and components

Hence based on the frame of PRINCE2, and to combine the group of enterprise’s
actual condition, we have drowned up the process of PRINNCE2 and the
corresponding content’s relationships in a group of enterprise.

components Quality In A
Business Management Configuratio Change
Organisation Planning Controls Project
Case of Risk n Management Control

√ √ √ √
processes Environment
SU

IP √ √ √ √ √
CS √ √ √ √ √
MP √ √ √ √
SB √ √ √ √ √
CP √ √ √
PL √ √ √
DP √ √ √ √
4 PRINCE2 & CMMI ‘s Projects of Group Control Model

4.1 The Comparison of PRINCE2 & CMMI

According to relevant standard of overlay analysis from 5 COBIT enterprise’s
management frame, as shown in the figure 2, on the life of the product span, CMMI
only focuses on the project life cycle while the PRINCE2 cover more widely,
including the former decision and later evaluation.
And the two parts is just what the information technology department concerned.
Likewise CMMI is more careful and deeper than PRINCE to structure and implement
290 K. Li and Y. Wang

the project in project management and this is also the IT department (particularly the
project manager) is concerned. Hence how to use both projects better and accelerate
their fusions are becoming a problem which need the IT project group of controls of
enterprise to considerate and deal with.

Fig. 2. Product Life Cycle

The information technology function sector and project guide give an analysis to
project group of control level in one enterprise group(as shown in figure 3), the
former at “Project Board” level which is in charge of group control job; IT service
sector at “Project manager” level which is responsible for specific project
management work.

Fig. 3. Project management structure

 The Study and Application of IT Projects Management and Control Model 291

In the process model of PRINCE2, “guiding project” level is realized by project

guiding and five sub procedures, it will be throughout the whole project process from
the beginning early stage of the project to continue to the end of the project post-
evaluation(as shown in figure 4).

Fig. 4. Directing a Project

DP1: Authorising Initiation: This procedure happens after the project preparation is
done. The Information-based Functional Department, by consulting and analyzing the
results that were attained in the preparation, will decide whether the project should be
included in the plan or specific budget should be set aside. If it is passed, then come to
the procedure of Start Project.
DP2 Authorising a Project: After starting the project, the Information-based
Functional Department will organize experts to assess its business case, the matching
rate between the project and the company’s strategies and plans, scheme and cost,
risks and benefits, etc. They will decide whether to approve and initiate the project. If
it is passed, then come to the procedure of Stage Control.
DP3 Authorising a Stage or Exception Plan: This procedure is introduced in when
considerable changes (exceptive events) take place in any milestone of the
construction or the scheme of the project. The Information-based Functional
Department reviews the current situation and risk of the project, its matching rate to
the scheme, resource demand and result target of the forthcoming stage, business
case, prospective benefits, etc. , and decisions on whether to enter the next stage will
be made on the basis of the conclusion. If the expectation exceeds the tolerant
292 K. Li and Y. Wang

deviation which was given in the authorization, the Information-based Functional

Department will consider and decide whether it should be reported to the higher
authorities. With the approval of the higher authorities, the previous plan will be
replaced by an exceptive plan. If the project doesn’t deserve to be continued
according to the decision, then the project manager should be informed to stop it and
works off arrears orderly.
DP4 Giving and hoc direction: This procedure goes through the construction of the
project. When the project is going on well as planned, the project manager can apply
to the Information-based Functional Department for direction and coordination on the
clarification of the program, the consideration of outer influence factors, resource
allocation, inner conflicts and the alternation of project organization. When the
project shows obvious deviation or a considerable change (an exceptive event)
happens, the Information-based Functional Department should intervene actively,
organizing reviews and giving a clear direction.
DP5 Confirming Project Closure: This procedure happens when all the project
close-out has been properly done. The project manager submits the result of the
project as well as the acceptance material for the Information-based Functional
Department to organize appropriate party to check the project before acceptance and
then decide the following schemes and finish the sum-up report.
By analyzing the correspondence between the procedures and contents, the class
that the Information-based Functional Department belongs to and the related sub-
procedures of the Project Direction, we can see what the Information-based
Functional Department does in the management and control of the project groups
coincides with the process of the Project Preparation in PRINCE2, covering and
proceeding through the whole project construction circle, from Project Preparation,
Starting Project, Stage Control to Boundary and Close-out Supervise.

4.2 IT Service Department and Project Management

In the project construction circle, PRINCE2 also has clear and specific requirements
and directions. Considering IT Service Department has passed through the recognition
of CMMI3, lain down project management program which satisfies CMMI, and
carried out direction. These several years’ operation has proved it is practical and
effective. The requirements and directions of PRINCE2 on the project management
can be an equivalent to the procedures of present CMMI management.
 The Study and Application of IT Projects Management and Control Model 293

PRICE2 CMMI
PP
PL
IPM

PPQA

SU RSKM
DAR

PPQA

RSKM

IP PMC
OT

OPD

PPQA

RSKM

PMC
RD
CS
REQM

CM

TS
MA

PPQA

RSKM

MP PMC
MA

DAR

PPQA

RSKM
PMC

SU RD

REQM
CM

VER

4.3 IT Project Control Model

Through the study of the analysis of PRINCE2 process, we combine with the
characteristics of the information technology department in an enterprise group which
is responsible for the guidance and control project, and the characteristics of the IT
services department which is responsible for the project construction and
management, considering the situation of the established CMMI specification, the IT
project group control model is studied and established based on PRINCE2 and
CMMI.
294 K. Li and Y. Wang

Fig. 5. IT project group control model is studied and established based on PRINCE2 and
CMMI

4.4 Controlled Start

The users give projects. The project manager will research the feasibility and then
make a feasibility report. After that the report will be sent to the information
departments for review.
Combining the information technology planning and annual work plan of the
enterprise, the information departments will examine and verify the feasibility reports,
confirm the annual IT project plan and budget.
Through the budget audit, the construction scheme of the project and technical
specification will be made, and then the information departments will organize to
review
The information departments organize experts to the group level special review of
the project. After the special review, the project comes up to the project approval and
the examination.
The project manager can make an application to the information departments to
guide and coordinate, to inspect the project and give specific suggestions for
improvement when he works on the clarification of the project, the allocation of
resources or when he meets internal conflict and project organization changes.
 The Study and Application of IT Projects Management and Control Model 295

4.5 Controlled Process

According to the requirements of the enterprise IT project management, the project

manager manages the construction of the project according to the plan and stages.
According to the plan, the project manager makes the stages of review of the
process and results of each stage of project activities.
In the course of construction of the project, the project manager needs to report to
the information departments in every important milepost stage or plan changes
(exceptions).The information departments evaluate the status of the project and make
decision including approving exception plans to the next stage, notifying the project
manager to terminate the project or report to the project leadership team.
The project manager can make an application to the information departments to
guide and coordinate when he works on the allocation of resources or when he meets
internal conflict and project organization changes. The information departments
organize to inspect the project and give specific suggestions for improvement when
there is an exception or a serious deviation.

4.6 Controlled Ending

The project manager completes project acceptance stage activities in accordance with
the requirements of project management, submits the results and materials of
acceptance to the information department
Information departments organize the relative parties to check up the project
completion and acceptance, to determine follow-up action list, to complete the
summary report, to arrange the evaluation for the investment value and benefit of the
project.
The project manager can make an application to the information departments to
guide and coordinate if problems happen in the course of the project acceptance. Or
the information departments organize to inspect the project and give specific
suggestions for improvement when there is an exception or a serious deviation.

4.7 Preliminary Application Model

To make project stakeholders clearly understand the project control requirements of the
information technology department in the model, IT project construction process and
management requirements of an enterprise group are established.
For timely tracking and understanding all the group IT projects of the enterprise,
based on the control model, the information function department establishes an IT
project planning and budget tracking system in an enterprise group, project evaluation
system and project processes (see figure 6). Each project manager feedbacks the
progress of IT projects of the above system, and realizes IT online examination and
approval and control of the project in the enterprise.
296 K. Li and Y. Wang

Fig. 6. IT project construction process and management requirements of an enterprise group

Meanwhile, when there is a special exception in the IT projects, for example, a

serious progress deviation occurs in the intelligent project of a building (more than two
months behind schedule), the function department of the information technology, in
accordance with the requirements of DP4 process, organizes project leading group
meetings and carries out the specific improvement action, making sure the current
project is gradually catch up with the original schedule.
To better apply the project control model, and help implement enterprise group real-
time monitor and manage the project group, the function department of the information
technology plans the next step in implementing the requirements of the control mode,
and meanwhile develops project control performance indicators, and establishes a
system for real-time monitoring indicators, IT projects can ensure the enterprise group
is in a controlled environment construction and completed smoothly.
 The Study and Application of IT Projects Management and Control Model 297

5 Conclusion

By establishing the model of IT project group control based on PRINCE2 and CMMI,
the information functions don’t have to focus on the concrete construction process of
each project. What we have to do is to concentrate on the control of project group and
the management by exception on specific items. Theoretically, in this way, we can
complete a series of controllable, visible and well-managed activities and hence
achieve the desired aims under the guidance of information intelligence department.
After the practical application of this model as well as part of the control system,
we have achieved the preliminary track and control of IT project throughout the
annual process.
The information intelligence functions has strengthened the audit efforts of 2013
IT Project Business Case, the yearly budget of IT project decreased about 20% year-
on-year.
In the link of project authorization (DP2) ,in the first half of 2013, IT projects
experienced 33 assessments, and the one-time pass rate is 85%, and the coverage of
the project was as wide as 100%.
During the process or in the link of exception plan (DP3) and special guide (DP4),
we enhanced the check and guidance of the annual key projects, such as intelligence
construction of buildings, management and decision support system as well as the
consolidated financial statements. We also organized more than ten meetings on
different management levels and solved a number of major issues over the
construction process of IT project. .
In the confirmation part of the project closeout, the evaluation of ERP construction
project (ERP system Status Diagnostic Evaluation) is completed, which is the key
project of “Eleventh Five-Year Plan” of group information technology.
It is noted that the group control model needs constant improvement and
optimization according to the practical application effect, and thereby realize
ultimately the Process, indexation, systematization and real-time transformation of IT
group project.

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