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Management Issues in Systems Development (Risk Management (Business Risks,…
Management Issues in Systems Development
Risk Management
30-70% of IT projects fail----- particularly large projects, such as those omplementing ERP or CRM systems
Why do IT projects fail?----- they don't overcome their risks, either technical or business ones
Technical risks
Sub-performance---- a vendor package not scaling up as expected
Scope creep---- the project's scope increased so much that the project becomes too comple to implement
Business Risks
Risk that the business does not change (resistance to change) properly to use the new system
Business change is necessary to achieve business results from IT
Lack of business change can come from
Appropriate new work enviroment not being put in place
People's skills and attitudes not being updated to take advantage of new environment
Business risks are not as easily righted as technical risks
Instilling the right business changes requires using the PM approach that reduces the main risks
When the risks change, the PM approach will need to be changed to keep project on track
3 step process to when main risks change in project
1) Assess the risk--- measure, judge, evaluate
Leadership---- Project leader should be business executive--- How does project leadership affect outcome?
Employee's perspective--- How would they react and why?
Scope and urgency----- is the scope too wide? How urgent?
2) Mitigate the risk--- lessen, alleviate, diminish
Risk avoidance---- identify and eliminate source of perceived risk
Risk limintation--- Implementing control to contain potential risk effects
Risk transfer---- Letting others assume risk ( outsourcing)
3) adjust project management approach--- change, alter, correct
Project management style---- Authritative vs. participatory
Project budget and time frame---- Rigid vs. flexible
Gibson's Four approaches---- Big bang approach ( all other 3 must be positive), Improvisation, Guide evolution, Top-Down coordination
Measure What s important to management
1) Project effciency: meeting time and efficiency and budget targets
2) Impact on the customers: meeting requirements and providing customers satisfaction, benefits, loyalty
3) Impact on the development yeam: job satisfaction, retention, and personal growth
4) Business results: return on investment, market share, and growth
5) Preparation for the future: new technologies, new markets, and new capabilities