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Ali Jawad, Data Management Consultancy, 2003,1,The Route to Project Success,Developed for Effat College, January 2003Data Management Consultancy, Ali Jawad, Data Management Consultancy, 2003,2,CONTENTS,Introduction:Facts and Figures about IS success and failure What is an Information System strategyUnderstanding different types of IS projectsProject success and failure, Ali Jawad, Data Management Consultancy, 2003,3,SESSION ONE,Introduction:Facts & Figures about IS project failuresDefining Information Systems Strategy, Ali Jawad, Data Management Consultancy, 2003,4,If building construction had the same ratio of cancellations as IT projects, more than half of the 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, 2003,5,Project Success and Failures:Statistics,The Robbins-Gioia Survey, USA. 232 survey respondents from different industries including government, IT, Communications, financial, utilities, and healthcare:51% viewed their ERP implementation as unsuccessful KPMG, Canada. The survey covered1,450 public and private sector organizations:Over 61% of the IT projects that were analyzed were deemed to have failed, Ali Jawad, Data Management Consultancy, 2003,6,Project Success and Failures:Statistics,The Chaos report, USA. The survey covered 8,380 applications through IT executive managers in large, medium, and small companies across major industry segments: banking, securities, manufacturing, insurance and government organizations:31% of the projects will be cancelled before they ever get completed52.7% of projects will cost over 189% of their original estimatesOnly 16.2% of software were completed on-time and on-budget, Ali Jawad, Data Management Consultancy, 2003,7,Statistic cont.,The OASIG study, UK. Sample based on 45 experts employed by universities and consultancies. The bottom line is: 7 out of 10 IT projects “fail” in some aspect.Seventy-four percent of all IT projects fail, come in over budget or run past the original deadline. 28 percent of projects fail altogether.Source: The Standish GroupEvery year, $75 billion is spent on failed IT projects in the U.S.Source: The Standish Group, Ali Jawad, Data Management Consultancy, 2003,8,Session Two, Ali Jawad, Data Management Consultancy, 2003,9,Defining Information Systems Strategy, Ali Jawad, Data Management Consultancy, 2003,10,What is an Information System?,Main components TechnologyPeopleOrganization/businessData, Ali Jawad, Data Management Consultancy, 2003,11,Strategy,Simple definitionKnowing where we are nowKnowing where we want to beand knowing roughly how to get there, Ali Jawad, Data Management Consultancy, 2003,12,Information Systems Strategy,Businessstrategy,Information Systemsstrategy,InformationTechnologystrategy,Where are weGoing, and why?,What is needed to do in order to achievethe business objectives?,How can we deliverThe business objectives?, Ali Jawad, Data Management Consultancy, 2003,13,Session Two, Ali Jawad, Data Management Consultancy, 2003,14,Let us understand different kinds of IS projects, Ali Jawad, Data Management Consultancy, 2003,15,WHY DO WE USE IT ?,?, Ali Jawad, Data Management Consultancy, 2003,16,Different Kinds ofInformation Systems,Some contribute - simple efficiencySome contribute - competitive advantageSome contribute - relatively littleSome are purely - experimental, Ali Jawad, Data Management Consultancy, 2003,17,There is a framework that can help us to organize our thoughts:,BenefitsWhat is most important to doResources What is capable of being doneRisksWhat is likely to succeed, Ali Jawad, Data Management Consultancy, 2003,18,The Applications Portfolio,Strategic,High Potential,Key Operational,Support,Evolutionary,Effectiveness,Exploratory,Efficiency, Ali Jawad, Data Management Consultancy, 2003,19,Application Portfolio:Strategic,Driving Forces:Future business or competitive advantageExternal factors (market, competition)Change!Examples:Sales forecasting system / student intakeA PC-based system used by sales people to capture business new customersLinks to supplier for Just-In-Time delivery, Ali Jawad, Data Management Consultancy, 2003,20,Application Portfolio:Key Operational,Driving Forces:Core activities of the businessIf the system fails the business has immediate and significant problems leading to business disadvantage High quality and effective data managementExamples:ticketing system in an air-line companyproduction scheduling in a manufacturing company, Ali Jawad, Data Management Consultancy, 2003,21,Application Portfolio:Support,Driving Forces:Performance of specific business tasksProductivity or efficiency improvements mainly economic benefitsTo enable resources (people) to be used more appropriatelyThey are NOT critical to the businessExamples:General accounting, personnel record-keeping, expense reporting system, etc.Often using spreadsheets and packaged software to satisfy most needs, Ali Jawad, Data Management Consultancy, 2003,22,Application Portfolio:High Potential,Driving Forces:A new business idea or technology opportunityBenefits are unknownNeed to demonstrate valueNot too long or too costlyPrototypeExamples:The evaluation of image processing technology for document managementThe feasibility if using expert systems to model the behavior of competitors, Ali Jawad, Data Management Consultancy, 2003,23,The Applications Portfolio,TimeQualityCost, Ali Jawad, Data Management Consultancy, 2003,24,The Applications Portfolio (TQM),Strategic,High Potential,Key Operational,Support,Time Quality Cost,R&D projects(what type of benefits?),Time Quality Cost,Time Quality Cost, Ali Jawad, Data Management Consultancy, 2003,25,Is Your Project:,Strategic Key Operational Support High Potential,?, Ali Jawad, Data Management Consultancy, 2003,26,The Applications Portfolio (TQM),Strategic,High Potential,Key Operational,Support,BANNER, Ali Jawad, Data Management Consultancy, 2003,27,Session three, Ali Jawad, Data Management Consultancy, 2003,28,Success & Failure:FactorsProject life CycleMeasures, Ali Jawad, Data Management Consultancy, 2003,29,Why Do IT Projects Fail?,?, Ali Jawad, Data Management Consultancy, 2003,30,Categories,TechnologyHardware/software/networkManagementOrganization, projectPeopleManagement, users, ITDataAvailability and validity, Ali Jawad, Data Management Consultancy, 2003,31,40 Critical Success Factors,Technology Factors:Ease of useEnhancibility Current technologyProven technologyOpenness of the system (OSI)Off-the-Shelf, Ali Jawad, Data Management Consultancy, 2003,32,CSFS,Management Factors (organization):Clarity of business objectivesOrganizational structureInternal CommunicationOrganization previous IT experienceIS strategyIT standardsIS championSufficiency of financial resourcesGovernment general regulations, Ali Jawad, Data Management Consultancy, 2003,33,CSFS,Management Factors (project):Realistic project objectiveAccurate statement of requirementsStable user requirementsSufficient time for completionConsidering hidden costsUser trainingTechnical trainingProject manager, Ali Jawad, Data Management Consultancy, 2003,34,CSFS,Management Factors:Project management methodologyUse of independent consultantSupplier analysisSupplier competenceClient-supplier relationshipContract termsPiloting the projectFeasibility study, Ali Jawad, Data Management Consultancy, 2003,35,CSFS,People Factors:Top management IT awarenessIT managers business understandingIT staff technical capabilitiesUser maturityUser acceptanceUser involvementTop management support, Ali Jawad, Data Management Consultancy, 2003,36,CSFS,Data Factors:Data availabilityData validity, Ali Jawad, Data Management Consultancy, 2003,37,Critical Success FactorsTechnology Vs. Non-Technology,Non-Technology85%Technology15%, Ali Jawad, Data Management Consultancy, 2003,38,Session Four, Ali Jawad, Data Management Consultancy, 2003,39,Project Life Cycle, Ali Jawad, Data Management Consultancy, 2003,40,Project Life CycleInitiationImplementationService, Ali Jawad, Data Management Consultancy, 2003,41,Project Life Cycle,Phase 1: Initiation-Recognition of a need-Specification of requirements-Invitation to supply-Evaluation of offers-Adoption decision-Selection,Phase2: Implementation-System design-System development-Training-Installation-Testing-Acceptance,Phase 1: Service-Delivery-Impact on the organization or individuals,Signing the contract with the supplier,Acceptance test, Ali Jawad, Data Management Consultancy, 2003,42,Success & Failure,Success Measures, Ali Jawad, Data Management Consultancy, 2003,43,What is Success?,?, Ali Jawad, Data Management Consultancy, 2003,44,Success Measures,Elements to be consideredPeople perceptionNature of the projectPhase of the project, Ali Jawad, Data Management Consultancy, 2003,45,8 Success Measures,Business feasibilityTechnical feasibilityOn-timeWithin BudgetSystem performanceUser satisfactionImpact (organization & individuals)Actual use, Ali Jawad, Data Management Consultancy, 2003,46,Success Measures & Project Life Cycle, Ali Jawad, Data Management Consultancy, 2003,47,Success Measures,ServiceUser satisfactionImpact on the organization and individualsActual use,InitiationBusiness feasibilityTechnical feasibility,ImplementationOn-timeWithin BudgetSystem performance, Ali Jawad, Data Management Consultancy, 2003,48,Synthesis:Project Success Model,Critical Success