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Project Management: Establishing the Business Value of Systems and Managing Change

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LEARNING OBJECTIVES Management Information Systems Chapter 14 ... supply chain management system The payback method ... involved when one firm acquires ... – PowerPoint PPT presentation

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Title: Project Management: Establishing the Business Value of Systems and Managing Change


1
14
Chapter
Project Management Establishing the Business
Value of Systems and Managing Change
2
Management Information Systems Chapter 14 Project
Management Establishing the Business Value of
Systems and Managing Change
LEARNING OBJECTIVES
  • Identify and describe the objectives of project
    management and why it is so essential in
    developing information systems.
  • Compare models for selecting and evaluating
    information systems projects and methods for
    aligning IS projects with the firms business
    goals.
  • Evaluate models for assessing the business value
    of information systems.

3
Management Information Systems Chapter 14 Project
Management Establishing the Business Value of
Systems and Managing Change
LEARNING OBJECTIVES (contd)
  • Analyze the principal risk factors in information
    systems projects.
  • Select appropriate strategies for managing
    project risk and system implementation.

4
Management Information Systems Chapter 14 Project
Management Establishing the Business Value of
Systems and Managing Change
A.G. Edwards Turns Around Its Project Management
  • Problem Competitive, information-intensive
    industry.
  • Solutions Identify important projects and plan
    and monitor them appropriately to reduce costs
    and increase revenue.
  • Primavera project management software increases
    success rate of IS projects.
  • Demonstrates ITs role in reducing projects costs
    and completion times.
  • Illustrates digital technology as a key to
    assessing the business value of building new
    systems and managing the changes that result from
    new technology.

5
Management Information Systems Chapter 14 Project
Management Establishing the Business Value of
Systems and Managing Change
The Importance of Project Management
  • Runaway projects and system failure
  • Project management objectives

Consequences of Poor Project Management
Without proper management, a systems development
project takes longer to complete and most often
exceeds the allocated budget. The resulting
information system most likely is technically
inferior and may not be able to demonstrate any
benefits to the organization. Great ideas for
systems often flounder on the rocks of
implementation.
Figure 14-1
6
Management Information Systems Chapter 14 Project
Management Establishing the Business Value of
Systems and Managing Change
Selecting Projects
  • Management structure for information systems
    projects
  • Linking systems projects to the business plan
  • Enterprise analysis and critical success factors
  • Portfolio analysis
  • Scoring models

7
Management Information Systems Chapter 14 Project
Management Establishing the Business Value of
Systems and Managing Change
Selecting Projects
Management Control of Systems Projects
Each level of management in the hierarchy is
responsible for specific aspects of systems
projects, and this structure helps give priority
to the most important systems projects for the
organization.
Figure 14-2
8
Management Information Systems Chapter 14 Project
Management Establishing the Business Value of
Systems and Managing Change
Selecting Projects
A System Portfolio
Companies should examine their portfolio of
projects in terms of potential benefits and
likely risks. Certain kinds of projects should be
avoided altogether and others developed rapidly.
There is no ideal mix. Companies in different
industries have different profiles.
Figure 14-5
9
Management Information Systems Chapter 14 Project
Management Establishing the Business Value of
Systems and Managing Change
Establishing the Business Value of Information
Systems
  • Information system costs and benefits
  • Capital budgeting for information systems
  • Case example Capital budgeting for a new supply
    chain management system
  • The payback method
  • Accounting rate of return on investment (ROI)
  • Net present value
  • Internal rate of return (IRR)
  • Results of the capital budgeting analysis

10
Management Information Systems Chapter 14 Project
Management Establishing the Business Value of
Systems and Managing Change
Establishing the Business Value of Information
Systems
  • Real options pricing models
  • Limitations of financial models

11
Management Information Systems Chapter 14 Project
Management Establishing the Business Value of
Systems and Managing Change
Managing Project Risk
  • Dimensions of project risk
  • Change management and the concept of
    implementation
  • The concept of implementation
  • The role of end users
  • Management support and commitment
  • Change management challenges for business process
    reengineering, enterprise applications, and
    mergers and acquisitions

12
Management Information Systems Chapter 14 Project
Management Establishing the Business Value of
Systems and Managing Change
Managing Project Risk
  • Controlling risk factors
  • Managing technical complexity
  • Formal planning and control tools
  • Increasing user involvement and overcoming user
    resistance
  • Designing for the organization
  • Sociotechnical design
  • Project management software tools

13
Management Information Systems Chapter 14 Project
Management Establishing the Business Value of
Systems and Managing Change
Managing Project Risk
A PERT Chart
This is a simplified PERT chart for creating a
small Web site. It shows the ordering of project
tasks and the relationship of a task with
preceding and succeeding tasks.
Figure 14-9
14
Management Information Systems Chapter 14 Project
Management Establishing the Business Value of
Systems and Managing Change
Managing Project Risk
Managing IT in the Merger and Acquisition Game
  • Read the Interactive Session Management, and
    then discuss the following questions
  • What are some of the risks involved when one firm
    acquires another firms IT infrastructure?
  • Why do firms often fail to take the target firms
    information systems and IT infrastructure into
    account when purchasing other firms?
  • How would you go about assessing the value of
    another firms IT infrastructure and operational
    capabilities? What questions would you ask?

15
Management Information Systems Chapter 14 Project
Management Establishing the Business Value of
Systems and Managing Change
Managing Project Risk
Getting Buy-In and ROI for CRM
  • Read the Interactive Session Organizations, and
    then discuss the following questions
  • Why was the director of IT assigned the job of
    implementing a CRM system? Would this job be
    better performed by the sales manager?
  • Why were sales reps reluctant to share customer
    information with other sales reps? What
    strategies did Kirstin Johnson use to overcome
    user resistance? How would you recommend the firm
    overcome this problem?
  • What do you think the metrics for CRM success
    should be in a firm like this? How would you
    change the sales rep compensation plan to support
    more effective use of the CRM system?
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