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1、The Route to Project SuccessDeveloped for Effat College,January 2003Developed for Effat College,January 2003Data Management ConsultancyData Management Consultancy Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003CONTENTS1.Introduction:A.A.Facts and Figures about I
2、S success Facts and Figures about IS success and failure and failure B.B.What is an Information System What is an Information System strategystrategy2.Understanding different types of IS projects3.Project success and failure Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consul
3、tancy,2003SESSION ONEIntroduction:n nFacts&Figures about IS project failuresn nDefining Information Systems Strategy Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003If building construction had the same ratio of cancellations as IT projects,more than half of the
4、office buildings in the world which were larger than 30 stories tall would be abandoned before completion.The average height of buildings in New York City would be only three stories and there would be no skyscrapers at all.An Interesting FACT Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Dat
5、a Management Consultancy,2003Project Success and Failures:Statisticsn nThe Robbins-Gioia Survey,USA.232 survey The Robbins-Gioia Survey,USA.232 survey respondents from different industries including respondents from different industries including government,IT,Communications,financial,government,IT,
6、Communications,financial,utilities,and healthcare:utilities,and healthcare:51%viewed their ERP implementation as unsuccessful51%viewed their ERP implementation as unsuccessful n nKPMG,Canada.The survey covered1,450 public KPMG,Canada.The survey covered1,450 public and private sector organizations:an
7、d private sector organizations:Over 61%of the IT projects that were analyzed were Over 61%of the IT projects that were analyzed were deemed to have faileddeemed to have failed Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003Project Success and Failures:Statistics
8、n nThe Chaos report,USA.The survey covered 8,380 The Chaos report,USA.The survey covered 8,380 applications through IT executive managers in applications through IT executive managers in large,medium,and small companies across major large,medium,and small companies across major industry segments:ban
9、king,securities,industry segments:banking,securities,manufacturing,insurance and government manufacturing,insurance and government organizations:organizations:31%of the projects will be cancelled before they ever 31%of the projects will be cancelled before they ever get completedget completed 52.7%o
10、f projects will cost over 189%of their original 52.7%of projects will cost over 189%of their original estimatesestimates Only 16.2%of software were completed on-time and on-Only 16.2%of software were completed on-time and on-budgetbudget Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Mana
11、gement Consultancy,2003Statistic cont.n nThe OASIG study,UK.Sample based on 45 experts The OASIG study,UK.Sample based on 45 experts employed by universities and consultancies.employed by universities and consultancies.The bottom line is:7 out of 10 IT projects“fail”in some aspect.The bottom line is
12、:7 out of 10 IT projects“fail”in some aspect.n nSeventy-four percent of all IT projects fail,come in over budget or Seventy-four percent of all IT projects fail,come in over budget or run past the original deadline.28 percent of projects fail run past the original deadline.28 percent of projects fai
13、l altogether.altogether.Source:The Standish GroupSource:The Standish Groupn nEvery year,$75 billion is spent on failed IT projects in the U.S.Every year,$75 billion is spent on failed IT projects in the U.S.Source:The Standish GroupSource:The Standish Group Ali Jawad,Data Management Consultancy,2003
14、 Ali Jawad,Data Management Consultancy,2003Session Two Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003Defining Information Systems Strategy Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003What is an Information System?Main co
15、mponents TechnologyPeopleOrganization/businessData Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003Strategyn nSimple definitionKnowing where we are Knowing where we are nownowKnowing where we Knowing where we wantwant to be to beand knowing roughly and knowing ro
16、ughly howhow to get there to get there Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003Information Systems StrategyBusinessstrategyInformation SystemsstrategyInformationTechnologystrategyWhere are weGoing,and why?What is needed to do in order to achievethe busine
17、ss objectives?How can we deliverThe business objectives?Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003Session Two Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003Let us understand different kinds of IS projects Ali Jawad,Dat
18、a Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003WHY DO WE USE IT?Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003Different Kinds ofInformation Systemsn nSome contribute-simple efficiencyn nSome contribute-competitive advantagen nSome contr
19、ibute-relatively littlerelatively littlen nSome are purely-experimental Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003There is a framework that can help us to organize our thoughts:n nBenefitsBenefitsWhat is most important to doWhat is most important to don nRe
20、sourcesResources What is capable of being doneWhat is capable of being donen nRisksRisksWhat is likely to succeedWhat is likely to succeed Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003The Applications PortfolioStrategicHigh PotentialKey OperationalSupportEvolu
21、tionaryEvolutionaryEffectivenessEffectivenessExploratoryExploratoryEfficiencyEfficiency Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003Application Portfolio:Strategicn nDriving Forces:Driving Forces:Future Future businessbusiness or competitive advantage or comp
22、etitive advantage ExternalExternal factors(market,competition)factors(market,competition)ChangeChange!n nExamples:Examples:Sales forecasting system/student intakeSales forecasting system/student intake A PC-based system used by sales people to A PC-based system used by sales people to capture busine
23、ss new customerscapture business new customers Links to supplier for Just-In-Time deliveryLinks to supplier for Just-In-Time delivery Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003Application Portfolio:Key Operationaln nDriving Forces:Driving Forces:Core activi
24、tiesCore activities of the business of the business If the system fails the business has immediate If the system fails the business has immediate and significant problems leading to and significant problems leading to business business disadvantagedisadvantage High High qualityquality and effective
25、and effective data managementdata managementn nExamples:Examples:ticketing system in an air-line companyticketing system in an air-line company production scheduling in a manufacturing production scheduling in a manufacturing companycompany Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data M
26、anagement Consultancy,2003Application Portfolio:Supportn nDriving Forces:Driving Forces:PerformancePerformance of specific business tasks of specific business tasks Productivity Productivity oror efficiency efficiency improvements mainly improvements mainly economiceconomic benefits benefits To enab
27、le resources(people)to be used more To enable resources(people)to be used more appropriatelyappropriately They are NOT critical to the businessThey are NOT critical to the businessn nExamples:Examples:General accounting,personnel record-keeping,General accounting,personnel record-keeping,expense rep
28、orting system,etc.expense reporting system,etc.Often using spreadsheets and Often using spreadsheets and packaged softwarepackaged software to to satisfy satisfy mostmost needs needs Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003Application Portfolio:High Poten
29、tialn nDriving Forces:Driving Forces:A new business A new business ideaidea or technology opportunity or technology opportunity BenefitsBenefits are unknown are unknown Need to demonstrate Need to demonstrate valuevalue Not too Not too longlong or too or too costlycostly PrototypePrototypen nExample
30、s:Examples:The evaluation of image processing technology for The evaluation of image processing technology for document managementdocument management The feasibility if using expert systems to model the The feasibility if using expert systems to model the behavior of competitorsbehavior of competito
31、rs Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003The Applications PortfolioTimeQualityCost Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003The Applications Portfolio(TQM)StrategicHigh PotentialKey OperationalSupportTime Qual
32、ity Cost R&D projects(what type of benefits?)Time Quality Cost Time Quality Cost Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003Is Your Project:Strategic Key Operational Support High Potential?Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management
33、Consultancy,2003The Applications Portfolio(TQM)StrategicHigh PotentialKey OperationalSupportBANNER Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003Session three Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003Success&Failure:n
34、 nFactorsn nProject life Cyclen nMeasures Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003Why Do IT Projects Fail?Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003Categoriesn nTechnologyHardware/software/networkHardware/softwar
35、e/networkn nManagementOrganization,projectOrganization,projectn nPeopleManagement,users,ITManagement,users,ITn nDataAvailability and validityAvailability and validity Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,200340 Critical Success FactorsTechnology Factors:1.
36、Ease of useEase of use2.Enhancibility Enhancibility 3.Current technologyCurrent technology4.Proven technologyProven technology5.Openness of the system(OSI)Openness of the system(OSI)6.Off-the-ShelfOff-the-Shelf Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003CSFS
37、Management Factors(organization):1.1.Clarity of business objectivesClarity of business objectives2.2.Organizational structureOrganizational structure3.3.Internal CommunicationInternal Communication4.4.Organization previous IT experienceOrganization previous IT experience5.5.IS strategyIS strategy6.6
38、.IT standardsIT standards7.7.IS championIS champion8.8.Sufficiency of financial resourcesSufficiency of financial resources9.9.Government general regulationsGovernment general regulations Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003CSFSManagement Factors(proj
39、ect):10.10.Realistic project objectiveRealistic project objective11.11.Accurate statement of requirementsAccurate statement of requirements12.12.Stable user requirementsStable user requirements13.13.Sufficient time for completionSufficient time for completion14.14.Considering hidden costsConsidering
40、 hidden costs15.15.User trainingUser training16.16.Technical trainingTechnical training17.17.Project managerProject manager Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003CSFSManagement Factors:18.18.Project management methodologyProject management methodology19
41、.19.Use of independent consultantUse of independent consultant20.20.Supplier analysisSupplier analysis21.21.Supplier competenceSupplier competence22.22.Client-supplier relationshipClient-supplier relationship23.23.Contract termsContract terms24.24.Piloting the projectPiloting the project25.25.Feasib
42、ility studyFeasibility study Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003CSFSPeople Factors:1.1.Top management IT awarenessTop management IT awareness2.2.IT managers business understandingIT managers business understanding3.3.IT staff technical capabilitiesIT
43、 staff technical capabilities4.4.User maturityUser maturity5.5.User acceptanceUser acceptance6.6.User involvementUser involvement7.7.Top management supportTop management support Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003CSFSData Factors:1.1.Data availabilit
44、yData availability2.2.Data validityData validity Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003Critical Success FactorsTechnology Technology Vs.Vs.Non-Technology Non-Technologyn nNon-TechnologyNon-Technology 85%85%n nTechnologyTechnology 15%15%Ali Jawad,Data Ma
45、nagement Consultancy,2003 Ali Jawad,Data Management Consultancy,2003Session Four Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003Project Life Cycle Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003Project Life Cycle1.Initiation
46、2.Implementation3.Service Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003Project Life CyclePhase 1:Initiation-Recognition of a need-Specification of requirements-Invitation to supply-Evaluation of offers-Adoption decision-SelectionPhase2:Implementation-System de
47、sign-System development-Training-Installation-Testing-AcceptancePhase 1:Service-Delivery-Impact on the organization or individualsSigning the contract with the supplierAcceptance test Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003Success&FailureSuccess Measures
48、 Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003What is Success?Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003Success Measuresn nElements to be consideredPeople perceptionPeople perceptionNature of the projectNature of the
49、projectPhase of the projectPhase of the project Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,20038 Success Measures1.1.Business feasibility2.2.Technical feasibility3.3.On-time4.4.Within Budget5.5.System performance6.6.User satisfaction7.7.Impact(organization&indiv
50、iduals)8.8.Actual use Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003Success Measures&Project Life Cycle Ali Jawad,Data Management Consultancy,2003 Ali Jawad,Data Management Consultancy,2003Success MeasuresServiceServicen nUser satisfactionUser satisfactionn nIm