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BKAS 5013

SEMINAR IN ACCOUNTING
INFORMATION SYSTEM
Article Summary:
IT PROJECT SUCCESS FACTORS: AN
EXPERIENCE REPORT
Prepared for:
DR. HASLINDA HASSAN

Prepared and presented by:


SYAZWANI BINTI IDRIS
814468
NUR ISDAWANI BT HASSAN
809998

Presentation Outline
Purpose
Motivation
Theory
Forming IT Project
Success Factors

IT Project Discussion
Result Discussion
Validity & Reliability
Future Work
Conclusions

Data Collection

1) PURPOSE
To understand the influence of
IT project success factors on
the projects outcomes in terms
of completing the project on
time, within budget and
achieving its desired quality.

2) MOTIVATION

Organizations increasingly depend on IT


system.
IT projects that exceeds time and budget, or
that fails to fulfil basic systems requirements
is continuously high .
IT projects actually keep failing.

2) MOTIVATION

Lack of easily available information on how


to manage IT projects is no longer a
sufficient answer.
Increasing pace of technical
development, new standards, new
features, product releases, reduced
time to-market and changing customer
demands.
6

2) MOTIVATION Contd

Requirement of flexibility to
incorporate new technical solutions or
functionalities during the development
process.
New circumstances arise throughout
the project that must be dealt with
dynamically to meet both fixed and
emerging targets and requirements.
7

3) THEORY
Logistic approach

4) FORMING IT PROJECT
SUCCESS FACTORS

Start with studying the IT projects


success factors from literature review
The success factors were compared
and clustered into 21 new factors

IT PROJECT SUCCESS FACTORS


FROM LITRATURE REVIEW
Success Factors

Definition

Co-worker influence

The project manager does not make


important decisions without consulting with
the team.

Goals and objectives

The project outcome and purpose of the


project are clearly formulated and
successfully communicated to relevant
stake- holders.

Good estimations

The estimation of needed resources is


realistic and measurable.

Handling of size and


complexity

Allocation of enough resources to coordinate


project stakeholders and personnel.

Internal communication Communication within the project team.


Less commercial
pressure

Project time- line suited to the project rather


than to the market.

Less customized
solution

Higher degree of modular reuse of solutions


10
from previous projects.

IT PROJECT SUCCESS FACTORS


FROM LITRATURE REVIEW
Success Factors

Definition

Lessons learned

Established routines for knowledge transmission


within and between projects are used.

No immature
technology

The system developed only depends on


technology that is acknowledged operational.

No late changes

Requirement changes regarding the outcome of


the project. add value to the project outcome are
carried out.

No superfluous
activities

That do not, directly or indirectly,

Project
monitoring

The active use and continuous updating of the


project plan and actions taken immediately when
the project moves in unexpected directions.

Risk analysis

Established routines for dis- covering risk and to


take preventive or responsive action to avoid
them.
11in general, but
Not only to competent personnel

Skilled project

IT PROJECT SUCCESS FACTORS


FROM LITRATURE REVIEW
Success Factors

Definition

Stakeholder
politics

The relevant stake- holders (e.g. the board of


directors) have the best for the project in mind
rather than departmental interest.

Systems
requirements

Should be complete, clearly formulated and


measurable.

Top management
support

The project sponsor is actively involved in the


project.

Use of tools and


infrastructure

The use of tools and infrastructure is customized


to the project needs.

User involvement

The end user of the project outcome should be


consulted throughout the project.

Working routines

Standardized and communicated to relevant


personnel.
12

4) FORMING IT PROJECT
SUCCESS FACTORS (Contd)
An expert survey is then conducted on
the 21 clustered success factors
On each of the 21 success factors given,
IT project experts need to answer a
question as below:
What is the probability that a currently failed
IT project would have been successful
regarding a) time, b) budget and c) quality if
a best practice factor X had been13present?

4) FORMING IT PROJECT
SUCCESS FACTORS (Contd)

Result of the expert survey indicate


that only 13 factors of the total 21
factors are with the most causal
influence on time, budget and quality

14

IT PROJECT SUCCESS
FACTORS AFTER EXPERT
SURVEY
Factors
Goals and objectives (A)
Risk analysis (H)
Good estimations (B)

Skilled project manager


(I)

Handling of size and


complexity (C)

Skilled team (J)

Internal communication
(D)

Stakeholder politics (K)

Lessons learned (E)

Top management support


(L)

No late changes (F)

15
User involvement
(M)

5) DATA COLLECTION

Done by students taking master level


course in project management
Students need to interview a project
manager. The manager will select a
project to be interviewed on.
As a result, two deliverables are
obtained

5) DATA COLLECTION
Contd
2 deliverables:
Report/
Article
(Interview)

Quantitative
Questionnaire

Descriptions of the projects


Reflections and compare to theory

To indicate whether the project was:


successful in time, budget and quality
completed at the time of the interview
an internal or external project, and
an IT project.
The credibility of respondent are assessed
17

5) DATA COLLECTION
Contd
83 project interview reports were
submitted

Only 28 project interview reports are


selected as primary data for this study
as:

Completed projects
Credible
Project is on IT

6) IT Project Discussion

Out of the 28 projects submitted, only


the results of five projects are being
discussed in more detailed:

19

6) IT Project Discussion (Project 1)


Nature: To develop a new generation
of measurement equipment on the
flatness
in
metal
plates.
The
development include developing both
hardware and software
Type: Internal project
Conducted
by:
The
system
manufacturers in the Nordic region
Successful in: Quality only
20

6) IT Project Discussion (Project 1)


Other details:
Resources
used
were
in-house
competence (no expensive external
consultants)
Lack
of
support
from
top
management (best developers doing
other projects with higher priority)
Goals and objectives written by the
project manager

6) IT Project Discussion (Project 1)


Best Practice
Goals and
objectives
Handling of size
and complexity

Not Best Practice


Good Estimations
Lessons learned

Internal
No late changes
communication
Risk analysis
Project monitoring
Skilled project
Stakeholder

Skilled project
manager
Top management

6) IT Project Discussion (Project 2)


Nature: Systems integration project
Type: External project with Asian
customer
Conducted by: leading telecom
company in the Nordic region.
Successful in: None at all
Other details:
Involved 150 persons
Expected to exceed in time and
budget

6) IT Project Discussion (Project 2)


Other details:
Divided into many sub-projects, but
fail in
its communication and
coordination
Changing a new team of project
managers
Fail to meet customers expectation

6) IT Project Discussion (Project 2)


Best Practice
Goals and objectives
Handling of size and
complexity

Not Best Practice


Good Estimations
Internal
communication

Lessons learned

Skilled project
manager

No late changes
Project monitoring
Risk analysis
Skilled team
Stakeholder politics
Top management

6) IT Project Discussion (Project 3)


Nature: Develop a health care
system
based
on
3G
telecommunication technology
Type: External project
Conducted
by:
A
large
multinational company in the Nordic
region.
Successful in: Time & Budget
Other details:
Consist of a skilled team as
managers and team members both

6) IT Project Discussion (Project 3)


Other details:
Have a risk analysis and schedule for
partial deliveries to prevent delays
Progress of project are closely
monitored with weekly meetings
The project was cancelled two years
after project started due to lack of
financial support (withdrawal of
sponsors)

6) IT Project Discussion (Project 3)


Best Practice

Not Best Practice

Goals and objectives

No late changes

Good Estimations

Risk Analysis

Handling of size and


complexity

Top management
support

Internal
communication
Lessons learned
Project monitoring
Skilled project
manager
Skilled team
Stakeholder politics

6) IT Project Discussion (Project 4)


Nature: Build, integrate and
implement a new web page for a
Swedish municipality
Type: External
Conducted by: Middle sized IT
infrastructure company in Nordic and
Baltic regions
Successful in: Budget and quality
Other details:
Schedule to involve 13 people over
six months time

6) IT Project Discussion (Project 4)


Other details:
Support on the requirements on the
web page framework was difficult
Late changes due to the hiring of
business consultant to clarify on the
customers requirement but has
improve on the end user involvement
Technical
difficulties
and
late
requirement changes causing the
project not able to finish on time (one
month delay)

6) IT Project Discussion (Project 4)


Best Practice
Goals and
objectives
Handling of size and
complexity
Risk Analysis
Lessons learned
Skilled project
manager
Skilled team
Stakeholder politics

Not Best Practice


Good Estimations
Internal
Communication
No late changes
Project Monitoring
User Involvement

6) IT Project Discussion (Project 5)


Nature: Development of hardware and
software device that can trace trucks in
traffic
Type: Internal and to be included in
their cars
Conducted by: Car manufacturing
company in the Nordic region
Successful in: Time, budget and
quality
Other details:
Coordination of projects through a

6) IT Project Discussion (Project 5)


Other details:
Project manager and the development
team
had
plenty
experience
in
conducting
internal
development
projects
Extensive pre-study including a careful
risk analysis was conducted
Minor problems during execution phase
due to usage of lots of new technology
but was resolved quickly

6) IT Project Discussion (Project 5)


Best Practice

Not Best Practice

Goals and objectives

Lesson Learned

Good Estimations

No late changes

Handling of size and


complexity
Internal
Communication
Project Monitoring
Risk Analysis
Skilled project
manager
Skilled team
Stakeholder politics

7) Results Discussion

Proje
ct

Result

There are two factors that are more


important than other, namely the top
Strategy
Formulation
management
support and understanding
user requirements

Only three IT success factors considered


to have not following best practice (good
estimations, internal communication, and
skilled project manager) and yet the
project still fails

- Project fails when the sponsors withdraw


- This is a tough example of how crucial
top management support is in the success
of a project

Proje
ct

Result
- Most of the problems derived from not
Strategy
Formulation
understanding
the environment and
needs of the end users from the
beginning.
- Problem is solved when a business
consultant was appointed
- Indicate the importance of establishing
good communication with customers
- Only lessons learned and no late
changes is not in best practice
- Impossible to avoid late changes
- Structured project organization which

8) Threats to Validity & Reliability

1) The definition of the term IT project.


2) Interview using master students
3) Selection
managers

of

projects

by

4) Problem in self-assessment.

project

9) FUTURE WORKS
1) Additional interviews could be
conducted in the same way in order to
enlarge the dataset.
2) Increase the share of non-successful
projects in order to decrease the bias of
project selections.
3) Perform more detailed case studies on
some of the projects included in this
dataset.

10) Conclusion
The dataset is too small to allow
statistical analysis on a satisfying
significance level
The interview material in this study
should be viewed as qualitative data,
providing interesting examples from
specific projects rather than generalised
success factor
Risk analysis, User involvement and Top
management support are examples of
success factors that turned out to be
particularly important emphasized by
the interviewed project managers.