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7/18/2019 Managing Projects.ppt
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Management Information SystemsManagement Information SystemsMANAGING THE DIGITAL FIRM, 12TH EDITION
MANAGING PROE!TS
!"a#ter 1$
%IDEO !ASESCase 1 Mastering the Hype Cycle: How to Adopt the Right Innovation at
the Right TimeCase 2: NASA: ro!ect Management Challenges
Instr"ctional #ideo 1: So$tware ro!ect Management in 1% Min"tes
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Management Information SystemsManagement Information Systems
• &"at are t"e o'(e)ti*es of #ro(e)t managementan+ "y is it so essentia- in +e*e-o#inginformation systems.
• &"at met"o+s )an 'e /se+ for se-e)ting an+e*a-/ating information systems #ro(e)ts an+a-igning t"em it" t"e firm0s '/siness goa-s.
• Ho )an firms assess t"e '/siness *a-/e ofinformation systems #ro(e)ts.
• &"at are t"e #rin)i#a- ris fa)tors ininformation systems #ro(e)ts.
• &"at strategies are /sef/- for managing#ro(e)t ris an+ system im#-ementation.
Learning O'(e)ti*es
!HAPTER 1$ MANAGING PROE!TS
2
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Management Information SystemsManagement Information Systems
• R/naay #ro(e)ts an+ system fai-/re
• R/naay #ro(e)ts 345 6 $45 IT #ro(e)ts
– E7)ee+ s)"e+/-e, '/+get
– Fai- to #erform as s#e)ifie+
• Ty#es of system fai-/re
– Fai- to )a#t/re essentia- '/sinessre8/irements
– Fai- to #ro*i+e organi9ationa- 'enefits
– !om#-i)ate+, #oor-y organi9e+ /ser interfa)e
– Ina))/rate or in)onsistent +ata
T"e Im#ortan)e of Pro(e)t Management
!HAPTER 1$ MANAGING PROE!TS
3
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ro ec s -Postmortem
Figure 1: Summary of 2009 Standish Group CHAOS report
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EO! E7am#-esEO! E7am#-es
• Standish Group (2004) collected project completionstatistics – 40,000 MIS Project in 14 to 2004 – !oss "alue is #$$ %illion in the &'S' in 2004
• Stateide utomated *hild Support S+stem (S*SS),*aliornia, 12
– e.ati"e si.nals o"er i"e +ears – The project as ultimatel+ cancelled olloin. #100 million in
direct spendin. and #/4$ million in "arious reported costs – (ecom%e, 1 eil, Mann and 3ai, 2000)
• en"er5s International irport – e"elopment o an automated %a..a.e handlin. s+stem – umerous instances o ne.ati"e eed%ac6
– 17 Month %ehind schedule – #2 8illion 9"er %ud.eted – (Monteale.re : eil, 2000)
• eil, Mann and 3ai (2000) report that %eteen /0 and 40percent o all MIS projects demonstrate some de.ree oescalation
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Management Information SystemsManagement Information Systems
T"e Im#ortan)e of Pro(e)t Management
!ONSE:;EN!ES OF POOR PROE!T MANAGEMENT
;ithout proper mana.ement, a s+stems de"elopment project ta6es lon.er to complete and most oten e<ceeds theallocated %ud.et' The resultin. inormation s+stem most li6el+ is technicall+ inerior and ma+ not %e a%le todemonstrate an+ %eneits to the or.ani=ation'
FIG;RE 1$61
!HAPTER 1$ MANAGING PROE!TS
7
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Management Information SystemsManagement Information Systems
• Pro(e)t management
– A)ti*ities in)-/+e #-anning or,assessing ris, estimating reso/r)es
re8/ire+, organi9ing t"e or, assigningtass, )ontro--ing #ro(e)t e7e)/tion,re#orting #rogress, ana-y9ing res/-ts
– Fi*e ma(or *aria'-es
1' Scope
2' Time
/' *ost
4' >ualit+
$' 3is6
T"e Im#ortan)e of Pro(e)t Management
!HAPTER 1$ MANAGING PROE!TS
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Management Information SystemsManagement Information Systems
• Management str/)t/re for informationsystems #ro(e)ts
– Hierar)"y in -arge firms
• *orporate strate.ic plannin. .roup – 3esponsi%le or irm?s strate.ic plan
• Inormation s+stems steerin. committee
– 3e"ies and appro"es plans or s+stems in alldi"isions
• Project mana.ement .roup
– 3esponsi%le or o"erseein. speciic projects
• Project team
– 3esponsi%le or indi"idual s+stems project
Se-e)ting Pro(e)ts
!HAPTER 1$ MANAGING PROE!TS
9
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Management Information SystemsManagement Information Systems
T"e Im#ortan)e of Pro(e)t Management
MANAGEMENT!ONTROL OFS<STEMSPROE!TS@ach le"el o
mana.ement in thehierarch+ isresponsi%le orspeciic aspects os+stems projects, andthis structure helps.i"e priorit+ to themost importants+stems projects or
the or.ani=ation'
FIG;RE 1$62
!HAPTER 1$ MANAGING PROE!TS
10
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Management Information SystemsManagement Information Systems
• Information systems #-an
– I+entifies systems #ro(e)ts t"at i--+e-i*er most '/siness *a-/e, -ins
+e*e-o#ment to '/siness #-an – Roa+ ma# in+i)ating +ire)tion of systems+e*e-o#ment, in)-/+es
• Purpose o plan• Strate.ic %usiness plan rationale
• *urrent s+stemsAsituation• e de"elopments to consider• Mana.ement strate.+• Implementation plan• 8ud.et
Se-e)ting Pro(e)ts
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Management Information SystemsManagement Information Systems
• In or+er to #-an effe)ti*e-y, firms nee+ toin*entory an+ +o)/ment e7isting softare,"ar+are, systems
• To +e*e-o# effe)ti*e information systems #-an,organi9ation m/st "a*e )-ear /n+erstan+ing of'ot" -ong6term an+ s"ort6term informationre8/irements
• Strategi) ana-ysis or )riti)a- s/))ess fa)tors
=!SF> a##roa)" – Sees information re8/irements as +etermine+ 'y asma-- n/m'er of )riti)a- s/))ess fa)tors
– A/to in+/stry !SFs mig"t in)-/+e sty-ing,8/a-ity, )ost
Se-e)ting Pro(e)ts
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12
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Management Information SystemsManagement Information Systems
• !riti)a- s/))ess fa)tors
– Prin)i#a- met"o+• Inter"ies ith /-4 top mana.ers to identi+ .oalsand resultin. *SBs
• Personal *SBs a..re.ated into small num%er o irm*SBs
• S+stems %uilt to deli"er inormation on *SBs
– S/ita'-e for to# management, '/i-+ing DSS an+ ESS
– Disa+*antages
• o clear methods or a..re.ation o *SBs into irm*SBs
• *onusion %eteen indi"idual and or.ani=ational *SBs
• 8ias toards top mana.ers
Se-e)ting Pro(e)ts
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Management Information SystemsManagement Information Systems
Se-e)ting Pro(e)ts
;SING !SFs TODE%ELOPS<STEMSThe *SB approachrelies on inter"iesith 6e+ mana.ers to
identi+ their *SBs'Indi"idual *SBs area..re.ated to de"elop*SBs or the entireirm' S+stems can then%e %uilt to deli"erinormation on
these *SBs'FIG;RE 1$63
!HAPTER 1$ MANAGING PROE!TS
1!
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Management Information SystemsManagement Information Systems
• Portfo-io ana-ysis
– ;se+ to e*a-/ate a-ternati*e system#ro(e)ts
– In*entories a-- of t"e organi9ation0sinformation systems #ro(e)ts an+ assets
– Ea)" system "as #rofi-e of ris an+ 'enefit• Ci.h-%eneit, lo ris6• Ci.h-%eneit, hi.h ris6
• !o-%eneit, lo ris6• !o-%eneit, hi.h ris6
– To im#ro*e ret/rn on #ortfo-io, 'a-an)eris an+ ret/rn from systems in*estments
Se-e)ting Pro(e)ts
!HAPTER 1$ MANAGING PROE!TS
1"
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Management Information SystemsManagement Information Systems
Se-e)ting Pro(e)ts
A S<STEMPORTFOLIO
*ompanies should e<aminetheir portolio oprojects in terms o
potential %eneits andli6el+ ris6s' *ertain6inds o projects should%e a"oided alto.etherand others de"elopedrapidl+' There is noideal mi<' *ompanies indierent industriesha"e dierent proiles'
FIG;RE 1$6$
!HAPTER 1$ MANAGING PROE!TS
1#
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Management Information SystemsManagement Information Systems
D S)oring mo+e-sD ;se+ to e*a-/ate a-ternati*e system #ro(e)ts,es#e)ia--y "en many )riteria e7ist
D Assigns eig"ts to *ario/s feat/res of systeman+ )a-)/-ates eig"te+ tota-s
Se-e)ting Pro(e)ts
!HAPTER 1$ MANAGING PROE!TS
17
C$%&'$%A ('%GH& S)S&'* A + S)S&'* ASCO$'
S)S&'* , + S)S&'* ,SCO$'
On-ine order entry 4 67 268 73 292
Customer .redit .he./ 3 66 198 59 177
%nentory .he./ 4 72 288 81 324
(arehouse re.eiing 2 71 142 75 150
'&C
G$A &O&AS 3128 3300
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Management Information SystemsManagement Information Systems
• Information system )osts an+ 'enefits
– Tangi'-e 'enefits• *an %e Euantiied and assi.ned monetar+ "alue
• S+stems that displace la%or and sa"e spaceF – Transaction and clerical s+stems
– Intangi'-e 'enefits• *annot %e immediatel+ Euantiied %ut ma+ leadto Euantiia%le .ains in the lon. run
– @'.', more eicient customer ser"ice,enhanced decision ma6in.
• S+stems that inluence decision ma6in.F – @SS, SS, colla%orati"e or6 s+stems
Esta'-is"ing t"e ?/siness %a-/e of Information Systems
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1
i
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Management Information SystemsManagement Information Systems
• !a#ita- '/+geting for information systems – !a#ita- '/+geting mo+e-s
• Measure "alue o in"estin. in lon.-term capitalin"estment projects
• 3el+ on measures the irm?s – *ash outlos
» @<penditures or hardare, sotare, la%or
– *ash inlos
» Increased sales
» 3educed costs• There are "arious capital %ud.etin. models usedor IT projectsF Pa+%ac6 method, accountin. rateo return on in"estment, net present "alue,internal rate o return (I33)
Esta'-is"ing t"e ?/siness %a-/e of Information Systems
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Project Mana.ement noled.ereas
P j t M t
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Project Mana.ementProcess
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Project !ie *+cle
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Defining t"e Pro(e)t
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(
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Pro(e)t S)o#e
• Project Scope is adeinition o theend result or
mission o +ourproject a productor ser"ice or +our
clientAcustomer'
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Pro(e)t S)o#e 6!"e)-ist
• @mplo+in. a ProjectScope *hec6list
– Project 9%jecti"e
– eli"era%les
– Milestones
– Technical reEuirements
–!imits and e<clusions
– 3e"ies ith customers
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Pro(e)t S)o#e
• Scope deinition should %e as %rieas possi%le %ut complete, one or topa.es are or small projects'
• lso 6non as Scope statement or
Statements o ;or6(S9;)• Project *harter authori=es theproject mana.er to initiate and leadthe project'
• S*9P@ *3@@P hich is the tendenc+or the project scope to e<pand o"ertime'
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Pro(e)t Priorities
• Primar+ jo% o aproject mana.erto mana.e trade-os amon. time,
cost andperormance
• eine :
understandnature opriorities oproject
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Pro(e)t Priorities
• Priority Matri7 (to identi+hich criterion is constrained,hich should %e enhanced :hich is accepted)
!reating &or ?rea+on
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!reating &or ?rea+onStr/)t/re• &?S is deined asF &a
delivera'les(orienteddepiction o$ the wor)involved in a pro!ect thatde$ines the total scope o$the pro!ect*+
Su%di"idin. theproject or6 intosmaller or6elements
• ;8S- Map o theProject .i"in.dierent le"els odetail
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;8S
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&?S De*e-o#ment
•eine the project end item
• !ist o deli"era%les necessar+ to
de"elop end item
• !ist don su% deli"era%les or each
deli"era%le
•@ach su% deli"era%les reEuires or6pac6a.es that is to %e completed %+
the assi.ned or.ani=ational unit
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&?S De*e-o#ment
•;93 P*G@ – eines or6 (hat)
– Identiies time to complete a or6 pac6a.e(ho lon.)
– Identiies a time-phased %ud.et to completea or6 pac6a.e (cost)
– Identiies resources needed to complete aor6 pac6a.e (ho much)
– Identiies a sin.le person responsi%le orunits o or6 (ho)
– Identiies monitorin. points or measurin.pro.ress (ho ell)
Integrating &?S it" t"e
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Integrating &?S it" t"eOrgani9ation
Organi9ation 'rea+on str/)t/re6 O?SIt depicts ho the irm has or.ani=edto dischar.e the or6 responsi%ilit+
• Purpose o 98SF
– Pro"ide rameor6 to summari=eor.ani=ation unit or6 perormance
– Identi+ or.ani=ation units responsi%leor or6 pac6a.es
– Tie the or.ani=ational unit to costcontrol accounts
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Integration ofIntegration of
WBS and OBSWBS and OBS
! +i t" &?S f t" I f ti
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!o+ing t"e &?S for t"e InformationSystem
• ;8S *odin. S+stem – einesF
• !e"els and elements o the ;8S
• ;or6 pac6a.es
• 8ud.et and cost inormation
– llos reports to %e consolidatedat an+ le"el in the or.ani=ation
structure
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;8S to etor6 ia.ram
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Gantt *hart
R i'i-i M i
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Res#onsi'i-ity Matri7
• 3esponsi%ilit+ Matri< (3M)
– lso called a linear responsi%ilit+chart'
– Summari=es the tas6s to %eaccomplished and ho is responsi%leor hat on the project'
• !ists project acti"ities andparticipants'
• *lariies critical interaces %eteenunitsand indi"iduals that need coordination'
• Pro"ide an means or all participants
to "ie their responsi%ilities anda.ree on their assi.nments'
• *lariies the e<tent or t+pe oauthorit+ that can %e e<ercised %+ eachparticipant'
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Res#onsi'i-ity Matri7 for a !on*eyer?e-t Pro(e)t
ro ec ommun ca on
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ro ec ommun ca onPlan
Management Information SystemsManagement Information Systems
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Management Information SystemsManagement Information Systems
• Dimensions of #ro(e)t ris
– Le*e- of #ro(e)t ris inf-/en)e+ 'y
• Project si=e
– Indicated %+ cost, time, num%er oor.ani=ational units aected
– 9r.ani=ational comple<it+ also anissue
• Project structure – Structured, deined reEuirements runloer ris6
• @<perience ith technolo.+
Managing Pro(e)t Ris
!HAPTER 1$ MANAGING PROE!TS
!2
Inluence o ris6 across
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Inluence o ris6 acrosstime
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The 3is6
Mana.ementProcess
Management Information SystemsManagement Information Systems
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Management Information SystemsManagement Information Systems
• !"ange management
– Re8/ire+ for s/))essf/- system'/i-+ing
– Ne information systems "a*e#oerf/- 'e"a*iora- an+organi9ationa- im#a)t
• *han.es in ho inormation is used
oten lead to ne distri%utions oauthorit+ and poer
• Internal or.ani=ational chan.e %reedsresistance and opposition
Managing Pro(e)t Ris
!HAPTER 1$ MANAGING PROE!TS
!"
Management Information SystemsManagement Information Systems
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Management Information SystemsManagement Information Systems
• Im#-ementation – A-- organi9ationa- a)ti*ities oringtoar+ a+o#tion an+ management of aninno*ation
• !"ange agent One ro-e of systemsana-yst – Re+efines t"e )onfig/rations,intera)tions, (o' a)ti*ities, an+ #oer
re-ations"i#s of organi9ationa- gro/#s – Res#onsi'-e for ens/ring t"at a-- #artiesin*o-*e+ a))e#t )"anges )reate+ 'y nesystem
Managing Pro(e)t Ris
!HAPTER 1$ MANAGING PROE!TS
!#
Management Information SystemsManagement Information Systems
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Management Information SystemsManagement Information Systems
• Ro-e of en+ /sers
– &it" "ig" -e*e-s of /ser in*o-*ement• S+stem more li6el+ to conorm to
reEuirements• &sers more li6el+ to accept s+stem
• ;ser6+esigner )omm/ni)ation ga#
– ;sers an+ information systems s#e)ia-ists
• ierent %ac6.rounds, interests, andpriorities
• ierent lo+alties, priorities,"oca%ularies
• ierent concerns re.ardin. a ne s+stem
Managing Pro(e)t Ris
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!7
Management Information SystemsManagement Information Systems
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Management Information Systemsg y
• Management s/##ort an+)ommitment
• Positi"e perception %+ %othusers and technical sta
• @nsures suicient undin.and resources
• @norcement o reEuiredor.ani=ational chan.es
Managing Pro(e)t Ris
!HAPTER 1$ MANAGING PROE!TS
!
Management Information SystemsManagement Information Systems
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a age e o a o Sys e sg y
• %ery "ig" fai-/re rate among enter#risea##-i)ation an+ ?PR #ro(e)ts =/# to @45 for?PR> – Poor im#-ementation an+ )"ange management
#ra)ti)es• @mplo+ee?s concerns a%out chan.e• 3esistance %+ 6e+ mana.ers• *han.in. jo% unctions, career paths, recruitmentpractices
• Mergers an+ a)8/isitions – Simi-ar-y "ig" fai-/re rate of integration#ro(e)ts
– Merging of systems of to )om#anies re8/ires• *onsidera%le or.ani=ational chan.e• *omple< s+stems projects
Managing Pro(e)t Ris
!HAPTER 1$ MANAGING PROE!TS
!9
Management Information SystemsManagement Information Systems
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g yg y
• !ontro--ing ris fa)tors
– First ste# in managing #ro(e)t ris in*o-*esi+entifying nat/re an+ -e*e- of ris of #ro(e)t
– Ea)" #ro(e)t )an t"en 'e manage+ it" too-s an+ris6management a##roa)"es geare+ to -e*e- ofris
– Managing te)"ni)a- )om#-e7ity• Internal inte.ration tools
– Project leaders ith technical and administrati"e
e<perience
– Ci.hl+ e<perienced team mem%ers
– BreEuent team meetin.s
– Securin. o technical e<perience outside irm inecessar+
Managing Pro(e)t Ris
!HAPTER 1$ MANAGING PROE!TS
"0
Management Information SystemsManagement Information Systems
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g yg y
Managing Pro(e)t Ris
A GANTT !HART
The Gantt *hart in this i.ure shos the tas6, person-da+s, and initials o each responsi%le person, as ell as the start and inishdates or each tas6' The resource summar+ pro"ides a .ood mana.er ith the total person-da+s or each month and or each personor6in. on the project to mana.e the project successull+' The project descri%ed here is a data administration project'
FIG;RE 1$6
!HAPTER 1$ MANAGING PROE!TS
"1
Management Information SystemsManagement Information Systems
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g yg y
Managing Pro(e)t Ris
A GANTT !HART =)ontB>
The Gantt chart in this i.ure shos the tas6, person-da+s, and initials o each responsi%le person, as ell as the start and inishdates or each tas6' The resource summar+ pro"ides a .ood mana.er ith the total person-da+s or each month and or each personor6in. on the project to mana.e the project successull+' The project descri%ed here is a data administration project'
FIG;RE 1$6
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A GANTT !HART =)ontB>
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A PERT !HART
This is a simpliied P@3T *hart or creatin. a small ;e% site' It shos the orderin. oproject tas6s and the relationship o a tas6 ith precedin. and succeedin. tas6s'
FIG;RE 1$6C
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• In)reasing /ser in*o-*ement an+ o*er)oming/ser resistan)e
– E7terna- integration too-s )onsist of ays to-in or of im#-ementation team to /sers at a--
organi9ationa- -e*e-s• cti"e in"ol"ement o users
• Implementation team?s responsi"eness to users
– ;ser resistan)e to organi9ationa- )"ange• &sers ma+ %elie"e chan.e is detrimental to their
interests• *ounterimplementationF eli%erate strate.+ to thartimplementation o an inormation s+stem or an inno"ationin an or.ani=ation
– @'.', increased error rates, disruptions, turno"er,sa%ota.e
Managing Pro(e)t Ris
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• Strategies to o*er)ome /serresistan)e
– ;ser #arti)i#ation – ;ser e+/)ation an+ training
– In)enti*es for )oo#eration
– Im#ro*ement of en+6/ser interfa)e
– Reso-/tion of organi9ationa-#ro'-ems #rior to intro+/)tion ofne system
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• Designing for t"e organi9ation
– Information system #ro(e)ts m/st a++ressays in "i)" organi9ation )"anges it"
ne system• Procedural chan.es• Ho% unctions• 9r.ani=ational structure• Poer relationships• ;or6 structure
– Ergonomi)s Intera)tion of #eo#-e an+ma)"ines in or en*ironment
• esi.n o jo%s• Cealth issues• @nd-user interaces
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• Organi9ationa- im#a)t ana-ysis
– Ho system i-- affe)t organi9ationa-str/)t/re, attit/+es, +e)ision maing,
o#erations• So)iote)"ni)a- +esign
– A++resses "/man an+ organi9ationa- iss/es
• Separate sets o technical and social
desi.n solutions• Binal desi.n is solution that %estmeets %oth technical and socialo%jecti"es
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• Pro(e)t management softare
– !an a/tomate many as#e)ts of #ro(e)tmanagement
– !a#a'i-ities for• einin., orderin., editin. tas6s• ssi.nin. resources to tas6s• Trac6in. pro.ress
– Mi)rosoft Pro(e)t 2414
• Most idel+ used project mana.ement sotare• P@3T, Gantt *harts, critical path anal+sis
– In)rease in SaaS, o#en6so/r)e #ro(e)tmanagement softare
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Read the Interactive Session and disc"ss the $ollowing,"estions
• &"at are some of t"e )"a--enges Motoro-a fa)esas a '/siness. &"y is #ro(e)t management so
)riti)a- at t"is )om#any.
• &"at feat/res of HP PPM ere most /sef/- toMotoro-a.
• &"at management, organi9ation, an+ te)"no-ogy
fa)tors "a+ to 'e a++resse+ 'efore Motoro-a)o/-+ im#-ement an+ s/))essf/--y /se HP PPM.
• E*a-/ate t"e '/siness im#a)t of a+o#ting HPPPM at Motoro-aB
Managing Pro(e)t Ris
MOTOROLA T;RNS TO PROE!T PORTFOLIO MANAGEMENT
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All rigt! re!er"ed# $o %art of ti! %&'li(ation )a* 'e re%rod&(ed+ !tored
in a retrie"al !*!te)+ or tran!)itted+ in an* for) or '* an* )ean!+
ele(troni(+ )e(ani(al+ %oto(o%*ing+ re(ording+ or oter,i!e+ ,ito&t te
%rior ,ritten %er)i!!ion of te %&'li!er#
-rinted in te .nited State! of A)eri(a#
*op+ri.ht 2011 Pearson @ducation, Inc'
Pu%lishin. as Prentice Call
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