Info IV IT Project Management. A Sad Story. Why IT-Projects Fail. Prof. Dr. Peter Müller. Standish Group Research Study CHAOS 1995

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Info IV IT Prof. Dr. Peter Müller Software Component Technology Introduction A Sad Story Standish Group Research Study CHAOS 1995 Fully successful (on-time, on-budget, with all features as initially specified cancelled prior to completion 16% 31% 53% late, over-budget, or offered fewer features than originally specified The average unsuccessful project (yellow and red) - Lasts 222% longer than it was planned to last - Goes over budget by 189% (4% by more than 400%) - Offers 61% of originally specified features (yellow) 2 Introduction Why IT-s Fail Top 5 reasons measured by frequency of responses by IT executive management Failure profiles of yellow projects 1. Lack of User Input 12,80% 2. Incomplete Requirements 12,30% 3. Changing Requirements 11,80% 4. Lack of Executive Support 7,50% 5. Technology Incompetence 7% Failure profiles of red projects 1. Incomplete Requirements 13,10% 2. Lack of User Involvement 12,40% 3. Lack of Resources 10,60% 4. Unrealistic Expectations 9,90% 5. Lack of Executive Support 9% 3 1

Introduction How to Avoid Troubled s Apply proper engineering Characteristics of IT-projects s of IT-projects with their purpose, methods, and deliverables Apply proper project management Main processes of project management with their inputs, techniques, tools, and outputs Main areas of project management (scope, time, cost, quality, risk, etc.) Recognize the importance of non-technical aspects Some basic rules of successful project management 4 Agenda Agenda 5 Integration Lifecycle Lifecycle What is a? Every project has a definite beginning and a definite end Definition: A project is a temporary endeavor undertaken to create a unique product or service The product or service is different in some distinguishing way from all similar products and services 6 In contrast: Operations are ongoing and repetitive 2

Examples for s and Operations 7 s - Developing a new software application - Implementing a new business procedure - Adding functionality to an IT system - Doing a Diplomarbeit Operations - Bugfixing of an existing software application - Selling train tickets - Running a car factory What is an IT-? 8 Definition: An IT-project is a project to create a product or service, of which the usage of information technology is the decisive characteristic Examples - The development of a software application is an ITproject (IT-based product) - The development of a car is not an IT-project, although information technology is involved substantially From s to Operations 9 management Operation management Ideas, studies (Development) Operation (Production) start duration end Applications are neither projects nor operations, but products 3

Characteristics of s 10 Temporary endeavor Unique product or service Performed by people Constrained by limited resources - Budget, time, staff Planned, executed, and controlled Have their own organization Core Activities and 11 ultimately create the product of a project Core Activities organizes and leads the project work to meet project requirements 12 Definition of (PM): is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements. 4

Typical Core Activities in IT-s 13 Design of a graphical user interface Installation of a local area network Integration test of all system components Training of users on a new application Implementation of a set of Java classes Documentation of design decisions and code Typical Activities 14 Communication with team, clients, management Effort estimations Planning activities and assigning resources Comparing actual performance to plan Risk analysis Negotiation with subcontractors Staff acquisition PM Knowledge Areas 15 PM activities fall into nine Knowledge Areas Integration Cost Communications Scope Quality Risk Human Resource Procurement 5

Agenda Agenda 16 Integration Life Cycle Integration The Triple Constraint 17 Scope Cost objectives are equally important Actions in one project area usually affect other areas Integration The Triple Constraint Scope 18 Cost Tradeoffs among objectives must be managed Priorities are set by customers and management 6

Integration More Competing Objectives 19 Scope Quality Risk Cost Customer Satisfaction Integration Success 20 Definition: A project is successful if the specified results are delivered in the required quality and within the predetermined time and resource limits. Computer scientists tend to focus on scope and quality only - The development of a technically perfect application is not a success if the cost exceeds the price clients are willing to pay - Excellent project results often are worthless if they come too late (temporary market windows, external deadlines) Integration Integration 21 Ensure that various elements of the project are properly coordinated - Estimate cost of staffing alternatives - Determine effects of a scope change on schedule Make tradeoffs among competing objectives and alternatives Primarily task of project manager since he / she is responsible for seeing the overall big picture 7

Integration Integration 22 plan development - Integrates various planning outputs (time, cost, risk, etc.) - Produces a formal, consistent document to manage project execution plan execution - Produces actual work results Integrated change control - Determines that a change has occurred - Manages the changes as they occur - Results in corrective actions and project plan updates Agenda Agenda 23 Integration Life Cycle s are Complex 24 Requirements Unique Product or Service At project start, only broad information about characteristics of product are available Average size of IT projects is 500-2000 person days Different tasks have to be performed such as designing a GUI, testing a module, installing hardware, training users, or negotiating with customers How can we handle this complexity? 8

Decomposition According to Product 25 Subproject Requirements Subproject Subproject Unique Product or Service Subproject Subprojects 26 Decomposition usually follows structure of product Subprojects are easier to manage Subprojects enable one to use specialized staff Remaining and new problems - Only broad information about product characteristics - Managing the interfaces between subprojects - Integrating the results of the subprojects - Increased need for communication Subprojects are still complex Progressive Elaboration 27 Characteristics of a unique product or service must be progressively elaborated Continuing steadily by increments Worked out with care and detail During the project, characteristics are defined in more detail as the project team develops a better and more complete understanding of the product 9

s Precisely documented interfaces between phases: deliverables 28 Requirements Unique Product or Service s are divided into project phases Deliverables 29 Definition: Any measurable, tangible, verifiable outcome, result, or item that must be produced to complete a project or part of a project Examples - An object-oriented design, described by a UML diagram - A project schedule as MS file - A user guide for a new application - Software, delivered as compiled binary s 30 Definition: A collection of logically related project activities, usually culminating in the completion of a major deliverable Requirements Unique Product or Service 10

s 31 Definition: A collection of logically related project activities, usually culminating in the completion of a major deliverable Requirements Unique Product or Service Waterfall Model of 32 Analysis Design Implementation Test Deployment Properties of the 33 Cost and Staffing Level Start End Stakeholders influence on product characteristics and final cost is highest at project start and decreases progressively Cost of changes and error correction increases during the project life cycle 11

From s to Operations 34 Ideas, Studies Analysis Design Implementation Test Deployment Operation (Production) start end phases are surrounded by related activities that are not part of the project Product Life Cycle 35 Business Requirements Business Need Customer Request Market Demand Technological Advance Legal Requirement Operation Product Agenda Agenda 36 Integration Life Cycle 12

Life Cycle Core and 37 Core Grouped into phases Grouped into process groups Life Cycle Life Cycle 38 Initiating Planning Controlling Executing Closing Life Cycle Example: 39 Schedule Development Schedule Updates Task List for Each Team Member Schedule Control Status Reports Plan Execution Corrective Actions 13

Life Cycle Process Groups 40 groups are not discrete one-time events They overlap and occur at varying levels of intensity within each phase of the project Level of Activity Executing Planning Initiating Controlling Closing Start End Life Cycle Interaction between s 41 Design Implementation Initiating Planning Initiating Planning Controlling Executing Controlling Executing Closing Closing Input and output of the processes depend on the phase in which they are carried out But processes are not limited to one phase (overlaps) Life Cycle Core and 42 Core 14

Life Cycle Core and 43 Core BACKUP 15