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Business context for
information system projects
RusliyawatiRusliyawati
Project Management for Information Systems
Learning Outcomes
 List nine distinct types of IS project that may be
encountered
 Describe two key characteristics of each of these
nine types of IS project
 Describe the particular skills required by project
managers to manage each
of the types of IS project
 Describe how to tailor the project management
approach for smaller IS
projects.
Learning Outcomes
 Explain how an organization’s strategy impacts on
the development of IS projects
 List the characteristics of a good strategy
 List three business analysis tools used in strategy
development
 Describe a process for developing a strategy
 Summarize how strategy interacts with other factors
to determine an organization’s effectiveness
 Suggest some ways in which information systems
can support the development of competitive
strategies.
TYPES IS PROJECT
Software development
Package implementation
System enhancement
Consultancy and business analysis assignments
Systems migration
Infrastructure implementation
Outsourcing (and in-sourcing)
Disaster recovery
Smaller IS projects.
1. Flexibility of approach in being prepared to
revisit the specification and negotiate with
the customer as the project proceeds
2. Well-developed interpersonal and
stakeholder-management skills
SOFTWARE DEVELOPMENT PROJECTS
PACKAGE IMPLEMENTATION PROJECTS
For the customer
•the difficulty of selecting the correct package
in the first
place.
For the supplier
•the problem of being asked to ‘tweak’ or
adjust the package to match the customer’s
ways of working.For both parties
•the issue of integrating a package with other
existing systems.
PACKAGE IMPLEMENTATION PROJECT
main challenges
 Managing the series of sub-projects – package
customization and tailoring, data migration and cleansing,
user training, cutover from old to new system – that is
inevitably involved.
 Ensuring that the suppliers live up to any claims they have
made in the sales process concerning the capabilities of
their product and its suitability for the organization in which it
is to be deployed.
 But also keeping the purchasers and users of the package
realistic in their demands for changes and tailoring; are
these really needed to fulfil a business need or do they result
from a reluctance to change working practices to fit in with
what the package can do?
SYSTEM ENHANCEMENT PROJECTS
The difficulty of
keeping the existing
system operational
while work proceeds
on the
enhancement.
The fact that the
developers involved
in the enhancement
are often also
engaged in
supporting the
system, when it can
be hard to balance
and reconcile the
competing demands
on their time.
The need for rigorous
‘regression testing’ to
ensure that the new
enhancements do
not damage parts of
the existing system
that were working
well.
We have already seen that software is, by its very nature, rather
intangible and therefore difficult to estimate, plan for and control
Because of this, the budget and timescale for the project ought
to be fairly flexible.
It is hard to fix the scope of consultancy projects – what is
included and excluded.
CONSULTANCY AND BUSINESS ANALYSIS
ASSIGNMENTS
SYSTEMS MIGRATION PROJECTS
This type of project is one where an existing operational system has to
be moved to a new operating environment – perhaps because the
current one is now longer supported or supportable. There may be some
software development involved, because the new platform does not
work exactly like the old one, and it may be necessary to create
interfaces with other systems. There may also be infrastructure
implications, for which see the next section, to consider. It might also be
necessary to carry out some limited retraining of users to enable them to
utilize the new environment.
From the point of view of the system’s users, the project’s success will be
judged by the smoothness of the transition and the lack of interruption to
their workload.
This type of project is one where an existing operational system has to
be moved to a new operating environment – perhaps because the
current one is now longer supported or supportable. There may be some
software development involved, because the new platform does not
work exactly like the old one, and it may be necessary to create
interfaces with other systems. There may also be infrastructure
implications, for which see the next section, to consider. It might also be
necessary to carry out some limited retraining of users to enable them to
utilize the new environment.
From the point of view of the system’s users, the project’s success will be
judged by the smoothness of the transition and the lack of interruption to
their workload.
OUTSOURCING (AND IN-SOURCING) PROJECTS
 The wish to gain access to the pooled expertise of the outsourcing
providers.
 Difficulty in managing the IT estate internally.
 A desire to reduce costs, through economies of scale or by taking
advantage of lower labour costs elsewhere.
 The need to reduce employee head-count.
 A wish to put the provision of IT on the same basis as that of other
essential ‘utilities’ such as gas or electricity.
 The belief that IT has become commoditized and no longer
provides a source of competitive advantage.
 Long-term dismay by general managers over the costs of IT and
the seeming impossibility of controlling it.
• Arrangements with other parts of your
organization to provide resources,
such as office space, in the event of an
emergency.
• Up-to-date lists of key personnel, with
essential contact details.
• Equipment stored and accessible if
needed, including, for example, laptops
and printers.
DISASTER RECOVERY PROECTS
• A well-thought-out disaster recovery
plan, covering all the likely
scenarios but also with contingency
for the totally unexpected.
• Arrangements with suppliers of DR
services and resources (nowadays
often called ‘business continuity’
services), such as alternative
workplaces and data centres.
Business strategy and
information systems
Planning for Projects
What is Strategy all about?
James Quinn (1991)
Strategy is the pattern or plan that integrates an
organisation’s major goals, policies
and actions into a cohesive whole. In other words, it
pulls together and gives meaning to everything an
organisation does. A well formulated strategy helps
to organise resources into a unique and viable force
based on the competences and shortcomings of
the organisation, on anticipated changes in the
environment and activities
by competitors.
A good
strategy
is
Clear
Keeps
the
initiative
Concentra
ted
Flexible
Well led
Full og
Surprises
Criteria for a Good Strategy
A Pattern
A Position
A Perspective
A Model of
Strategic
Management
Gordon Greenley (1989)
A SWOT Matrix
The PESTEL Analysis
P •olitical
E •conomic
S •ocio
Cultural
T •Echnological
E •nvironmental
L •egal
The BCG Matrix
Competition and Strategy
Porter’s Five Forces Model
Competition and Strategy
Robson’s Analysis of The Five
Forces and IS Opportunities
Strategies for The Development of IS in
Organization
Centrally Planned
Leading Edge
A Free Market
Monopoly
Scarce Resource
Necessary Evil
Strategy and Culture
Strategy Structure Systems
Style Skills Staff
Shared
Values
Various types of information system projects and general
project management principles are basically the same, which
differs only from the dynamics of each type of project.
The nature of business strategy and the characteristics of a
good strategy can be made from top to bottom by leading to
the development of SI functions and the impact of
organizational culture on strategy. A tool to assist in business
analysis, which is the starting point for developing strategies
namely SWOT analysis, PESTEL analysis and the Balanced
Business Scorecard, Boston Consulting Group matrix and five
Porter tools.
CONCLUSION
PREFERENCE
 Handy, C (1995), The Gods of Management: The Changing Work of
Organisation, Arrow
Greenley, G R (1989), Strategic Management, Prentice Hall
 James Cadle and Donald Yeates (2008), Project Management for Information
Systems, British Library
 Kobayashi-Hillary, M and Sykes, R (2007), Global Services: Moving to a Level
Playing Field, British Computer Society
 Kaplan, R and Norton, D (1992), ‘The Balanced Business Scorecard’,
Harvard Business
Review, Jan/Feb
 Kaplan, R and Norton, D (1996), ‘Using the Balanced Scorecard as a
strategic management system’, Harvard Business Review, Jan/Feb
 Lacity, M C and Hirschheim, R (1993), Information Systems Outsourcing: Myths,
Metaphors and Realities, Wiley
 Laudon, K C and J P (1995), Information Systems: A Problem-Solving Approach,
Dryden
 Morris, J (2006), Practical Data Migration, British Computer Society
PREFERENCE
 Mintzberg, H (1987), ‘Five Ps for strategy’, California Management Review, Fall,
reprinted
in The Strategy Process (1991), Prentice Hall
 Parsons, G (1983), Fitting Information Technology to the Corporate Needs: The
Linking
Strategy, Harvard Business School Press
 Porter, M (1979), ‘How competitive forces shape strategy’, Harvard Business
Review,
March/April, reprinted in The Strategy Process (1991), Prentice Hall
 Quinn, J B (1991), ‘Strategies for change’, in The Strategy Process, 2nd edn,
Prentice Hall
 Robson, W (1997), Strategic Management and Information Systems, 2nd edn,
Prentice Hall
Sparrow, E (2004), A Guide to Global Sourcing: Offshore Outsourcing and Other Global
Delivery Models, British Computer Society
 Office of Government Commerce (2002), Tailoring PRINCE2, The Stationery Office
 Office of Government Commerce (2003), Managing Successful Programmes, The Stationery
Office

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Part 01 business context for is projects

  • 1. Business context for information system projects RusliyawatiRusliyawati Project Management for Information Systems
  • 2. Learning Outcomes  List nine distinct types of IS project that may be encountered  Describe two key characteristics of each of these nine types of IS project  Describe the particular skills required by project managers to manage each of the types of IS project  Describe how to tailor the project management approach for smaller IS projects.
  • 3. Learning Outcomes  Explain how an organization’s strategy impacts on the development of IS projects  List the characteristics of a good strategy  List three business analysis tools used in strategy development  Describe a process for developing a strategy  Summarize how strategy interacts with other factors to determine an organization’s effectiveness  Suggest some ways in which information systems can support the development of competitive strategies.
  • 4. TYPES IS PROJECT Software development Package implementation System enhancement Consultancy and business analysis assignments Systems migration Infrastructure implementation Outsourcing (and in-sourcing) Disaster recovery Smaller IS projects.
  • 5. 1. Flexibility of approach in being prepared to revisit the specification and negotiate with the customer as the project proceeds 2. Well-developed interpersonal and stakeholder-management skills SOFTWARE DEVELOPMENT PROJECTS
  • 6. PACKAGE IMPLEMENTATION PROJECTS For the customer •the difficulty of selecting the correct package in the first place. For the supplier •the problem of being asked to ‘tweak’ or adjust the package to match the customer’s ways of working.For both parties •the issue of integrating a package with other existing systems.
  • 7. PACKAGE IMPLEMENTATION PROJECT main challenges  Managing the series of sub-projects – package customization and tailoring, data migration and cleansing, user training, cutover from old to new system – that is inevitably involved.  Ensuring that the suppliers live up to any claims they have made in the sales process concerning the capabilities of their product and its suitability for the organization in which it is to be deployed.  But also keeping the purchasers and users of the package realistic in their demands for changes and tailoring; are these really needed to fulfil a business need or do they result from a reluctance to change working practices to fit in with what the package can do?
  • 8. SYSTEM ENHANCEMENT PROJECTS The difficulty of keeping the existing system operational while work proceeds on the enhancement. The fact that the developers involved in the enhancement are often also engaged in supporting the system, when it can be hard to balance and reconcile the competing demands on their time. The need for rigorous ‘regression testing’ to ensure that the new enhancements do not damage parts of the existing system that were working well.
  • 9. We have already seen that software is, by its very nature, rather intangible and therefore difficult to estimate, plan for and control Because of this, the budget and timescale for the project ought to be fairly flexible. It is hard to fix the scope of consultancy projects – what is included and excluded. CONSULTANCY AND BUSINESS ANALYSIS ASSIGNMENTS
  • 10. SYSTEMS MIGRATION PROJECTS This type of project is one where an existing operational system has to be moved to a new operating environment – perhaps because the current one is now longer supported or supportable. There may be some software development involved, because the new platform does not work exactly like the old one, and it may be necessary to create interfaces with other systems. There may also be infrastructure implications, for which see the next section, to consider. It might also be necessary to carry out some limited retraining of users to enable them to utilize the new environment. From the point of view of the system’s users, the project’s success will be judged by the smoothness of the transition and the lack of interruption to their workload. This type of project is one where an existing operational system has to be moved to a new operating environment – perhaps because the current one is now longer supported or supportable. There may be some software development involved, because the new platform does not work exactly like the old one, and it may be necessary to create interfaces with other systems. There may also be infrastructure implications, for which see the next section, to consider. It might also be necessary to carry out some limited retraining of users to enable them to utilize the new environment. From the point of view of the system’s users, the project’s success will be judged by the smoothness of the transition and the lack of interruption to their workload.
  • 11. OUTSOURCING (AND IN-SOURCING) PROJECTS  The wish to gain access to the pooled expertise of the outsourcing providers.  Difficulty in managing the IT estate internally.  A desire to reduce costs, through economies of scale or by taking advantage of lower labour costs elsewhere.  The need to reduce employee head-count.  A wish to put the provision of IT on the same basis as that of other essential ‘utilities’ such as gas or electricity.  The belief that IT has become commoditized and no longer provides a source of competitive advantage.  Long-term dismay by general managers over the costs of IT and the seeming impossibility of controlling it.
  • 12. • Arrangements with other parts of your organization to provide resources, such as office space, in the event of an emergency. • Up-to-date lists of key personnel, with essential contact details. • Equipment stored and accessible if needed, including, for example, laptops and printers. DISASTER RECOVERY PROECTS • A well-thought-out disaster recovery plan, covering all the likely scenarios but also with contingency for the totally unexpected. • Arrangements with suppliers of DR services and resources (nowadays often called ‘business continuity’ services), such as alternative workplaces and data centres.
  • 15. What is Strategy all about? James Quinn (1991) Strategy is the pattern or plan that integrates an organisation’s major goals, policies and actions into a cohesive whole. In other words, it pulls together and gives meaning to everything an organisation does. A well formulated strategy helps to organise resources into a unique and viable force based on the competences and shortcomings of the organisation, on anticipated changes in the environment and activities by competitors.
  • 17. Criteria for a Good Strategy A Pattern A Position A Perspective
  • 20. The PESTEL Analysis P •olitical E •conomic S •ocio Cultural T •Echnological E •nvironmental L •egal
  • 23. Competition and Strategy Robson’s Analysis of The Five Forces and IS Opportunities
  • 24. Strategies for The Development of IS in Organization Centrally Planned Leading Edge A Free Market Monopoly Scarce Resource Necessary Evil
  • 25. Strategy and Culture Strategy Structure Systems Style Skills Staff Shared Values
  • 26. Various types of information system projects and general project management principles are basically the same, which differs only from the dynamics of each type of project. The nature of business strategy and the characteristics of a good strategy can be made from top to bottom by leading to the development of SI functions and the impact of organizational culture on strategy. A tool to assist in business analysis, which is the starting point for developing strategies namely SWOT analysis, PESTEL analysis and the Balanced Business Scorecard, Boston Consulting Group matrix and five Porter tools. CONCLUSION
  • 27. PREFERENCE  Handy, C (1995), The Gods of Management: The Changing Work of Organisation, Arrow Greenley, G R (1989), Strategic Management, Prentice Hall  James Cadle and Donald Yeates (2008), Project Management for Information Systems, British Library  Kobayashi-Hillary, M and Sykes, R (2007), Global Services: Moving to a Level Playing Field, British Computer Society  Kaplan, R and Norton, D (1992), ‘The Balanced Business Scorecard’, Harvard Business Review, Jan/Feb  Kaplan, R and Norton, D (1996), ‘Using the Balanced Scorecard as a strategic management system’, Harvard Business Review, Jan/Feb  Lacity, M C and Hirschheim, R (1993), Information Systems Outsourcing: Myths, Metaphors and Realities, Wiley  Laudon, K C and J P (1995), Information Systems: A Problem-Solving Approach, Dryden  Morris, J (2006), Practical Data Migration, British Computer Society
  • 28. PREFERENCE  Mintzberg, H (1987), ‘Five Ps for strategy’, California Management Review, Fall, reprinted in The Strategy Process (1991), Prentice Hall  Parsons, G (1983), Fitting Information Technology to the Corporate Needs: The Linking Strategy, Harvard Business School Press  Porter, M (1979), ‘How competitive forces shape strategy’, Harvard Business Review, March/April, reprinted in The Strategy Process (1991), Prentice Hall  Quinn, J B (1991), ‘Strategies for change’, in The Strategy Process, 2nd edn, Prentice Hall  Robson, W (1997), Strategic Management and Information Systems, 2nd edn, Prentice Hall Sparrow, E (2004), A Guide to Global Sourcing: Offshore Outsourcing and Other Global Delivery Models, British Computer Society  Office of Government Commerce (2002), Tailoring PRINCE2, The Stationery Office  Office of Government Commerce (2003), Managing Successful Programmes, The Stationery Office