SCS2205

Data Science
Project Management

Lecture 4: Identifying and Selecting Projects

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 Session Objectives

How projects are identified and selected

A project charter

Outsourcing projects using a request for
proposal

The proposal solicitation process

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Project selection and portfolio management

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Project selection and portfolio management

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Project selection and portfolio management

What
Whatare
arethe
theinputs
inputs
that
thatcause
causethe
the
project
projectprocess
processto
to
begin?
begin?

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 Project Identification

Start of Initiating phase

Recognize need, problem, or
opportunity

Various ways for identification
• Organizations strategic planning
• Response to unexpected
events
• Group organized to address a
need

Important to clearly identify need
to determine if worth pursuing

Use decision making process to
prioritize and select project with
greatest need

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 Identifying Data Science Projects

Many organizations follow a formal process for
selecting data science projects which is aligned
with business strategy

Research shows:
• Supporting business objectives is the number one
reason for investing in Data Science projects
• Data science can be applied to find and
refine a target customer base to generate more
revenue.

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 Pyramid for the Project Selection Process
(Schwalbe, 2005, p35)
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 Project Selection

Evaluate needs, costs,
benefits

Determine which are
projects

Select project
• Develop criteria
• List assumptions
• Gather data
• Evaluate each opportunity

Combine “gut” feelings and
quantitative information to
make decision

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 Project Charter
Purpose Possible Elements

Provides sponsor
Project title • Milestone
approval
•

•
Purpose schedule

Commits funding for the •
Description • Key
assumptions
project •
Objective
• Constraints
•
Success

Summarizes key criteria or • Major risks
expected • Approval
conditions and benefits requirements
parameters •
Funding • Project
•
Major manager

Establishes framework to deliverables • Reporting
develop baseline plan •
Acceptance requirements
criteria • Sponsor
designee
• Approval
signature

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 Most business
units have a
strategic plan

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 Which
Which SHOULD
SHOULD align
align with the
with the
organisation’s
organisation’s
strategic plan
strategic plan

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 Solicitation of Project Proposals

Within the organization Request for proposal (RFP)

from external sources
(contractors and vendors)

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 When ranking proposals, consider;

Discipline
Accountability
Responsibility
Constraints
Loss of power

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 Project Initiation forms

Figure 2.4A Major Project Proposal Figure 2.4B Risk Analysis

(Gray & Larson, 2006, p38) (Gray & Larson, 2006, p39)

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 Project Initiation forms

Figure 2.4A Major Project Proposal Figure 2.4B Risk Analysis

(Gray & Larson, 2006, p38) (Gray & Larson, 2006, p39)

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 Preparing a Request for Proposal

Decision made to outsource to external resource

Comprehensively describe project requirements
• Includes need, problem, or opportunity description
• Allows contractors to develop a thorough proposal
• Facilitates the development of evaluation criteria

May be communicated informally or formally, in
writing or verbally

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 Guidelines for Developing an RFP

State project objective or 
State type of contract
purpose 
State payment terms

Provide a statement of work 
State schedule and key

Include customer milestones
requirements 
List format and content

State deliverables the instructions
customer expects 
Indicate due date

State acceptance criteria 
Include evaluation criteria

List customer supplied 
Include level of effort or
items funds available

State approvals required

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 Soliciting Proposals
Solicitation Conditions

Notify potential contractors 
Requirements are sometimes
• Identify selected group in communicated verbally instead
advance to send copy of via a formal RFP
• Advertise in selected 
All RFPs start with
journals, newspapers, or identification of a need,
websites problem, or opportunity

Maintain competitive situation
• Provide equal information
to all bidders
• Hold bidders’ meeting to
answer questions

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Not all project proposals make
it to initiation
Every project idea isn’t progressed.

Why?
• Time
• Money
• Focus
Methods for selecting projects include:

- Focusing on broad organizational needs

- Categorizing Data Science projects
- Financial analysis
- Using a weighted scoring model
- Balanced scorecard
- Strategy mapping
Focusing on Broad Organizational
Needs

– E.g. Non-financial, but important

benefits

– Three important criteria:

• need for the project
• funds available for the project
• will to make the project succeed
Categorizing Data Science Projects

– Does the project provides a response to:

• a problem
• an opportunity
• a directive

– The time and date of expected completion

– The overall priority of the project

 Financial Analysis
Net Present
Value

Payback
model

Return on
Investment
$$$
(there are
more)
Weighted scoring
model

A weighted scoring model is a tool that

provides a systematic process for selecting
projects based on many criteria
– Steps in identifying a weighted scoring model:
• identify criteria for project selection
• assign weights (%) to criteria add up to (100%)
• assign scores to each criteria for each project
• multiply scores by weights to get total scores
– The higher the weighted score, the better $$$
 Balanced
Scorecard

•Balanced Scorecard
– Robert Kaplan and David Norton developed this
approach to help select and manage projects that
align with business strategy
– Methodology that converts an organization’s value
drivers, such as customer service, innovation,
efficiency, and financial performance, to a series
of defined metrics $$$
– See http://www.balancedscorecard.org for more
information
 Business Case

Impacts

Costs & Benefits

Clearly compares alternatives

Objective

Systematic

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 Example business case

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 Contents of a Business Case
1. Introduction/Background
2. Business Objective
3. Current Situation and Problem/Opportunity
Statement
4. Critical Assumptions and Constraints
5. Analysis of Options and Recommendation
6. Preliminary Project Requirements
7. Budget Estimate and Financial Analysis
8. Schedule Estimate
9. Potential Risks
10. Exhibits
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 The Process for Developing a Business
Case

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1. Executive support
2. User involvement
3. Experienced project manager
4. Clear business objectives
5. Minimized scope
6. Standard software
infrastructure
Critical
7. Firm basic requirements
8. Formal methodology
Success
9. Reliable estimates
10. Other criteria, such as small
Factors
milestones, proper planning,
competent staff, and
ownership
 Learning Outcomes

Discuss how projects are identified

Explain how projects are prioritized and selected

Identify and describe at least eight elements of a
project charter

Prepare a project charter

Prepare a request for proposal

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 Thank You.

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