AN OVERVIEW OF INFORMATION

TECHNOLOGY PROJECT
MANAGEMENT
Chapter 1
 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 some common approaches to structured systems development and iterative systems development.
 Describe the project life cycle (PLC), the systems development life cycle (SDLC), and their relationship.
 Describe extreme project management.
 Identify the Project Management Body of Knowledge (PMBOK®) core knowledge areas.
 Motivation for Studying Information Technology (IT)
Project Management
 IT Projects have a terrible track record, as described in the “What Went
Wrong?” section
 A 1995 Standish Group study (CHAOS) found that only 16.2% of IT projects
were successful in meeting scope, time, and cost goals
 Over 31% of IT projects were canceled before completion, costing over $81
billion in the U.S. alone
 IT and Modern Day Project Management

1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s

First EDP PC Network Globalization

Electronic Era Era Era
Computer
 What Is a Project?
 A project is “a temporary endeavor undertaken to create a unique product,
service, or result” (PMBOK® Guide, Third Edition, 2004, p. 5)
 Operations is work done to sustain the business
 Projects end when their objectives have been reached or the project has been
terminated
 Projects can be large or small and take a short or long time to complete

5
 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 and combines traditional Project
Management with Software Engineering/Management Information
Systems
 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
 Examples of IT Projects
 A small software development team adds a new feature
to an internal software application for the finance
department
 A college campus upgrades its technology infrastructure
to provide wireless Internet access across the whole
campus
 A cross-functional task force in a company decides what
Voice-over-Internet-Protocol (VoIP) system to purchase
and how it will be implemented
 Top Ten Technology Projects in 2006
 VoIP  Supply chain management
 Outsourcing  Desktop upgrades
 Data networking  Application performance
management
 Customer relationship
management  Business analytics
 Collaboration  Compliance tracking
Top Ten Technology Projects in 2019
 Artificial Intelligence
 Hybrid Approach
 Project Management Office (PMO)
 Emotional Intelligence (EQ)
 Kanban Boards (billboards)
 Analytics
 Cybersecurity
 Internet of Things
 Remote Teams
 https://www.whizlabs.com/blog/project-management-trends/
 Project Success
 There are several ways to define project success
– The project met scope, time, and cost goals
– The project satisfied the customer/sponsor
– The results of the project met its main objective, such as
making or saving a certain amount of money, providing a
good return on investment, or simply making the sponsors
happy
 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?
 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
 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

 For mid-size companies, average cost overruns were 182%,

while average schedule overruns were 202%!
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!
Summary of the Chaos Studies from 1994 to
2006
 Summary of CHAOS Study Factor Rankings for Successful Projects
Sources: Adapted from the Standish Group. CHAOS (West Yarmouth, MA: 1995) & http://www.infoq.com/articles/Interview-Johnson-Standish-CHAOS

Rank 1994 2001 2006

1 User Involvement Executive Support User Involvement

2 Executive Management Support User Involvement Executive Management Support

3 Clear Statement of Requirements Experienced Project Manager Clear Business Objectives

4 Proper Planning Clear Business Objectives Optimizing Scope

5 Realistic Expectations Minimized Scope Agile Process

6 Smaller Project Milestones Standard Software Infrastructure Project Management Expertise

7 Competent Staff Firm Basic Requirements Financial Management

8 Ownership Formal Methodology Skilled Resources

9 Clear Vision & Objectives Reliable Estimates Formal Methodology

10 Hard-working, focused team Other Standard Tools and Infrastructure

2015 Ranking Factors of Success
 Project Performance and Internal/External Customer Satisfaction.
Source: Marchewka, J.T. (2008). n = 114.
Much Much
Worse Worse Same Better Better
Ability to meet 0.0% 12.3% 40.4% 41.2% 6.1%
project schedules

Ability to meet 1.8% 10.5% 44.7% 37.7% 5.3%

IT Project project budgets
Performance
Over the Past 3
Years
Ability to complete
project scope or 2.6% 7.0% 41.2% 41.2% 7.9%
system
requirements

Overall
satisfaction of the 1.8% 13.2% 34.2% 39.5% 11.4%
customer
Customer
satisfaction over
the past 3 years Perceived value
(Customers can of the delivered
be internal – product to the 0.0% 9.6% 39.5% 38.6% 12.3%
e.g., HR customer
department or
external – e.g., a
particular client)
Potential for
future work with 0.9% 3.5% 42.1% 38.6% 14.9%
the customer
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

 Tata Consultancy Services 2007 Report
 Included 800 senior IT managers from the UK, US, France,
Germany, India, Japan, & Singapore:
– 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
 When IT projects have gone wrong, what has been the reaction
from the business managers and the Board of Directors?

Don't know 1%

None 2%

Looked for a scapegoat among IT staff 9%

Sought compensation from IT vendors 13%

Reluctant to fund new IT projects 19%

Reduced IT budgets 21%

43%
Tend to accept problems as the norm (i.e., a necessary evil)

Continued to provide support to improve IT

69%
 Improving the likelihood of success
 A Value-Driven Approach
– Plain & Simple: IT Projects must provide value to the organization
 Socio-technical Approach
– It’s not just about the technology or building a better mouse trap
 Project Management Approach
– processes and infrastructure (Methodology)
– resources
– expectations
– competition
– efficiency and effectiveness
 Knowledge Management Approach
– lessons learned, best practices & shared knowledge
 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. Managing a
project includes:
– Identifying requirements
– Establishing clear and achievable objectives
– Balancing the competing demands for quality, scope, time, and cost
– Adapting the specifications, plans, and approaches to the different
concerns and expectations of the various stakeholders
 The Context of Project Management
PROJECT ATTRIBUTES PROJECT CHARACTERISTICS
 Time Frame
 It focuses on producing or achieving a benefit or
 Purpose (to provide value!) objective
 It is temporary, has a beginning and an end
 Ownership  There is a clear achievable goal with in a limited
 Resources (the triple constraint) period
 A planning process is required
 Roles  A set of activities or tasks are identified
– Project Manager  It presents a logical sequence of activities or
phases
– Project Sponsor
 It requires the involvement of people and
– SME (domain & technical) specialists in function of the specific needs of
 Risk & Assumptions each activity
 It requires many resources to develop the activity
 Planned Organizational Change
 Operate in Environments Larger than the Project Itself
The Triple Constraint
 The Project Life Cycle and IT Development
 Project Life Cycle (PLC)
– A collection of logical stages or phases that maps the life of a project from
its beginning to its end in order to define, build, and deliver the product of
the project – i.e., the information system
 Projects are divided into phases to increase manageability and reduce risk
– Phase exits, stage gates, or kill points are decision points at the end of
each phase to evaluate performance or to correct problems or cancel the
project
– Fast tracking is the overlapping of phases to reduce the project’s schedule
 Can be risky !
Generic Project Life Cycle
Systems Development Life Cycle
(SDLC)
 Waterfall Method
Define
Requirements

Design

Build

Test

Implement

Maintenance
The Relationship Between the PLC &
SDLC
 Putting the SDLC into Practice
 Structured Approach to Systems Development
– Waterfall Method
 Iterative Development
– Rapid Applications Development (RAD)
– Prototyping
– Spiral Development
– Extreme Programming
 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
 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
Project Management Body of Knowledge
Areas
 GROUP ASSIGNMENT 1 
 
1. Using the Web or library, (unique to everybody) find an article that describes either a
successful or an unsuccessful IT project.

2. Based on any of the project factors listed in slide 39 (at least 2 factors) discuss how
the factors will impact the success of the IT project.
 
3. Find out what kind of factors that have major significant towards the successful of IT
project.

References/Reading Material:

Information Technology Project Management, Jack T. Marchewka 2nd Edition. (Chapter 2)

http://www.standishgroup.com/sample_research/chaos_1994_1.php 
Potential Areas of Impact for IT Projects
END OF CHAPTER