Topic 5: INFORMATION SYSTEM PROJECT MANAGEMENT
Meaning and importance of information system
Is the coherent organization of the information required for an organization to
execute projects successfully? A PMIS is typically one or more software
applications and methodical process for collecting and using project information.
This electronic system helps to plan, execute, and close project management
goals.
Information system project management techniques/tools
1. PERT: Project Evaluation Review Technique. It is a planning and control tool
used for defining and controlling the tasks necessary to complete a project.
2. CPM: critical path method is an algorithm for scheduling set of project
activities.
3. GANTT CHART: it a type of bar chart developed by Henry Gantt that
illustrates a project schedule.
Project management process
1. Initiating the project
2. Planning the project
3. Executing the project
4. Closing the project
Importance of ICT project management
- Leads to good, consistent and complete documentation of the system at all
system development stages
- Leads to good interaction and communication among various diverse
groups within an enterprise hence success of the project.
- It avoids Overambitious objectives
- It prevents Low projects poor performance in project development
- Leads to strategic control of costs and expenses with regular reviews of
progress, accurate estimates of the total hence minimal chances of project
failure
Reasons for ICT project failure
Lack of clear, understandable specifications
Poor documentation
Poor communications
Overambitious objectives
Low quality, poor performance
Never-ending development
High costs and cost overruns
Perpetual maintenance
Poor management
Lack of solid project plan
Team weakness
Overrun of schedule and cost
How to avoid project failure/Strategies for managing a failing ICT project
Divide and conquer: Divide the project up into manageable chunks
Measurable deliverables: Define the minimum set of measurable
deliverables required to be completed at the end of each system
development stage.
Reviews and walk-throughs
Testing
Project staffing: have the right and qualified staff in the project devpt
Change control
Maintenance
Topic 5: INFORMATION SYSTEM ACQUISITION
"Acquisition" means to purchase a package, have in-house information systems
personnel develop it, hire a consultant, or develop it yourself.
Information Technology Acquisition Process
1. Define your information requirements
2. Find the software that will satisfy your information requirements
3. Find the hardware that will run the software that you found
4. Identifying a development alternative
5. Conducting a feasibility analysis
6. Performing the selection procedure
7. Implementing the selected option
Describing information system acquisition process
STAGE 1: Define your information requirements
Analyzing the decisions you make and the information required to make
them
Identifying pertinent information requirements
STAGE 2: Find the software that will satisfy your information requirements
search for software to accomplish your system requirements
By having specific software requirements you can better work with
analysts, consultants, or salespersons.
Ensure that the system reflects YOUR information requirements rather than
the analysts', consultants', or salespersons' concept of your information
requirements.
STAGE3: Find the hardware that will run the software that you found
search for hardware to run the selected software
Check on hardware capabilities
STAGE 4: IDENTIFYING A DEVELOPMENT ALTERNATIVE
There are several options in procuring software solutions. Some available
alternatives are: (1) Developing the system in-house, (2) Off-the self-
solutions (Purchasing commercially available solution), (3)Buying a custom
made system for a vendor, (4) Leasing software from an application service
provider (ASP) or lease through utility computing (contracted
development), (5) Outsourcing a system from other companies (6)
Participating in auction, e-marketplace, or a public exchange (consortium) ,
(7)Use a combination of these listed options.
While an organization is in the phase of deciding which alternative being
selected, the management should carefully examine not only the
advantages and disadvantages of each procuring option, but more
importantly, the option must be best-fit with the organization business plan
that has been documented in the previous steps
STAGE 5: CONDUCTING A FEASIBILITY ANALYSIS
A feasibility analysis is carried out to identify the constraints for each
alternative from both technical and business perspective. This will
incorporate:
Economic feasibility
Technical feasibility
Operational feasibility
Legal and contractual feasibility
Political feasibility
STAGE 6: PERFORMING THE SELECTION PROCEDURE
Selection procedure is the process of identifying the best match between
the available options and the identified requirements. In this process, the
company requests for a proposal from prospective providers, evaluates the
proposal, and selects the best available alternative.
Some of the common methods comprise
a. Request for information (RFI): An RFI is used to seek information from
vendors for a specific intention. RFI should act as a tool for determining
the alternatives or associated alternatives for meeting the organization’s
needs.
b. Request for bid (RFB): An RFB is designed to procure specific items or
services and used where either multiple vendors are equally competent
of meeting all of the technical and functional specifications or only one
provider can meet them
c. Request for proposal (RFP): RFP specifies the minimal acceptable
requirements, including functional, technical, and contractual aspects.
This document offers flexibility to respondents to further define the
requested requirements. RFPs can be a lead to a purchase or continued
negotiation.
STAGE 7: IMPLEMENTING THE SELECTED SOLUTION
During this process, the application is also tested and user reactions are
evaluated. After the application or prototype of the application has passed
user requirements, they can be deployed. Under this circumstance, the
company management may deal with organizational issues such as
conversion strategies, training, and resistant to change.
STAGE 8: REVIEWING AND MONITORING THE ACQUISITION PROCESS
This process can involve external evaluation to make sure the procedures
and processes in place and whether the acquisition was in compliance with
institutional processes and operating procedures.
CRITERIA FOR SELECTING A SOFTWARE APPLICATION PACKAGE TO USE
Usability and functionality- User easiness to learn
Portability –easy to install from one computer to another.
Documentation – manuals prepared by developer having details on how to
install use and maintain the software
System flexibility and scalability
Easy Maintenance and operational requirement
Authenticity
Reliability and System security
Compatibility and system configuration- compatible with the existing
hardware and operating system
Cost- consider cost. Try avoiding freeware
User needs- user needs should dictate the system
Upgradeability
DESCRIBING INFORMATION SYSTEM ACQUISITION METHODS
This methods include:
i. Buying the Applications (Off-the-Shelf Solution)/ Buy a prepackaged
system from a software development company or consulting firm.
Example: Payroll system.
Advantages
1. Easily be installed and run
2. Cheaper than in-house developed systems
3. Readily available
4. Minor or no errors since they are thoroughly tested
5. They can easily be modified to meet users’ needs
ADVANTAGES DISADVANTAGES
Shorter Incompatibility with
implementation time company needs
Use of proven Incompatibility between
technology different apps
Availability of outside Limitation on the s/w
technical expertise customization
Easier to define costs Have no control over s/w
improvement
Frequent software Long term reliance on
updates vendor support
The price is usually Specific H/w or S/w
cheaper requirements
Minimal IT personnel
ii. Leasing the information system- the use of an information system for a fixed period of
time at an agreed amount of money for the lease.
Advantages and Disadvantages of ‘Lease’ Option
ADVANTAGES DISADVANTAGES
Shorter time May not exactly fit with
implementation company needs
Cost saving (cheaper Limitation on the
than buy option) software customization
Ease to maintain cash Have no control over
flow S/w improvements
Required only minimum Specific H/w or S/w
IT staff requirements
Less risky to anticipate Include an interest
technology updates component that a cash
purchase wdn’t include
iii. Developing the applications in-house/Build your own/ End user
development: Individual users and departments build their own custom
systems to support their individuals.
Advantages and Disadvantages of ‘In-house development’ Option
ADVANTAGES DISADVANTAGES
Best fit with the Required more IT
company reqts personnel
Have control over s/w High overhead cost
imprvmnts
Have all of the required Time consuming
features
Main core Problem with usability of
competencies and the system
maintain level of quality
service
Make a distinction with High switching cost
other firm
Difficult to update to
newer technology.
iv. Outsourcing the applications/ Outsource development to a 3 rd party:
outside organization custom build a system to an organization’s
specifications. Good option when an organization does not have adequate
resources or expertise.
Meaning:
- is a strategic use of outside resources to perform activities traditionally
handled by internal staff and resources
- The practice of turning over responsibility of some to all of an
organization’s information systems development and operations to an
outside firm
- The process of turning over an organization computer center,
telecommunication network or application development to external
vendors
Types of outsourcing relationships
- partnership
- service provider
- Vendor.
- Basic relationship
- Preferred relationship
- Strategic relationship
Why Outsource?
- Cost and quality concerns
- Problems in IS performance
- Supplier pressures.
- Simplifying, downsizing, and reengineering.
- Financial factors.
- Organizational culture
- Internal irritants
Advantages and Disadvantages of Outsourcing
ADVANTAGES DISADVANTAGES
Cost Reduction Loss of organizational
competencies
Access to world class Reduction in quality of
specialist providers services
Improved focus on core Cost escalation from
business unforeseen expenses
Subcontracting of
workload
Better risk management
FACTORS FOR SUCCESS AND FAILURES IN IS ACQUISITION
Factors of Success Factors of Failure
Understanding of Short term benefits
company objectives motivation
Strategic vision and plan Unqualified service
providers (vendors)
Executive and Domination of service
management level providers in decision
support making
Comprehensive financial Lack of management
justification capability
Use of external expertise Failure in IS Acquisition
in decision process planning
Open communication Cultural issue (Resistant to
with users change)
Careful selection of the Lack of defined process
vendor and change management
Ongoing management of
the acquisition
Periodical performance
review
Criteria for information system acquisition
- Vendors background
- Security
- Cost benefit analysis
- Performance measure
- Maintenance requirements
