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IT Projects - Control Systems & Balanced Scorecard

Neeraj Dwivedi 0513 Narasimha Rao Taduri 0558 Nitin Dangare - 0510

Projects Vs Operations
Definite end Vs Continuous nature Unique Vs Repetitive Management Control operations change from one stage to the other within a project Sequential nature Vs Cyclical nature Satisfactory Product Vs Activities in a period Rhythm - { Min, Max, Min } Vs { Continuous } Trade offs { Scope, Schedule, Cost } in projects

Execution dependence on Human Resources Large number of IT Projects Involvement of heterogeneous stakeholders (off-shoring & outsourcing points of view) Logical nature of Software Engg Vs Physical nature of other branches of Engg

Control Environment
Influential Factors - Human Resources, Behavioral Science, Computer Science IT Project in a business unit a profit centre Project Manager accountable & whole team responsible for bottom line Nature of organization Dual Reporting Transfer Pricing of Services from Support { Administration, Network Support, etc } (Generally Cost Basis)

Control Environment
Types of IT Projects
Fixed Price Time & Material Transaction/Outcome based

Control Process
IT Project { Governance, Development } Governance
Project Envisioning (define strategic goals) Project Planning (plan for strategy implementation) Project Execution (implement strategy) Project Evaluation (measure efficiency & effectiveness)

Software Engineering Controls Application Controls

Control Process - Governance

Project Planning
Size, Effort & Schedule Variance Utilization

Project Execution
Velocity or Feature Implementation rate Change Requests

Project Evaluation
Cost & Schedule Overrun Overall Productivity Profitability

Control Process - Development

Software Engineering
Requirements Metrics Design Metrics Code Metrics Testing Metrics

Application Controls
Overall Defect Density Performance (Response Time, etc) Usability

Types of Audit
Automatic Manual

Automatic Audit through Tools for ensuring Software Engineering best practices Manual Audit through Internal & independent groups for ensuring Applications functionality Each project undergoes audits like { Startup, Monthly, Technical, Delivery, Closure }

BSC - Financial
How do we look to our shareholders? Project Management Areas
Schedule Cost

Projects Revenue Projects Profitability Risk Assessment (impact & additional cost) Potential revenue resulting from project success Cost Savings through innovations

BSC - Customer
How do customers see us? Project Management Areas
Scope Quality

Project Quality (Defects) Requirements Coverage Customer Support & Lead Time Customer Satisfaction Index/Survey

BSC - Internal Business

How must we excel at internally? Project Management Areas
Communications Risks Integration/Processes

# of Re-usable assets used in Project Extent of Automation (Audit, Testing, etc) Productivity

BSC - Learning & Innovation

How do we learn & innovate to create the future? Project Management Areas
Employee Development Knowledge Management

# of Re-usable assets # of new skills acquired # of new initiatives (Process) developed Revenue per FTE

Control Challenges
Evolving maturity in the field of Software Engineering - for setting up industry standards Availability of quality & authentic data - for setting up organizational standards Empirical approaches are followed instead of scientific High Human Resource centric Tracking & Success depends on combination of { Management, Technology, Function } Deferred Tracking of Quality towards the end

Learning from MCS Sessions Books
Management Control Systems, Anthony &Govindarajan Information Systems Control & Audit, Ron Weber Software Engineering, Roger Pressman


Thank You