CISC 7530 Review Midterm

Chapter 1 1. EDP/Micro Netwrok eras what was unique to each a. EDP -Purchase of centralized mainframe by large organizations. IT projects focused on automating key organizational functions accounting, inventory, production scheduling b. Micro Era - Proliferation (sometimes uncontrolled) of PCs challenged centralized control that was in place. Led to user-developed, decentralized, independent systems that replicated data throughout the organization and vied for IT support PCs needed to coexist and integrate with mainframes c. Network Era - Network era began mid 1990s due to the advances and growth of the ARPANET /Internet. Projects focused on the challenge of creating an IT infrastructure to support many partners, strategic alliances, vendors and customers. 2. 4 main reasons why projects fail a. Poor project management tools & processes b. Large projects c. Poor communication among stakeholders d. Unskillful IT project managers 3. value driven / socio-technical / project management and knowledge management approaches how can they improve chances of succes for IT project a. Value Driven - Plain & Simple: IT Projects must provide value to the organization not just completed on time and within budget b. Socio-technical Approach- Its not just about the technology or building a better mouse trap. Must bring value to the organization. Clients/stakeholders must take an active, participatory role i. It is understanding of the importance of addressing the business and organizational aspects of IT projects as well as the purely technical tools and techniques of IT development and with that understanding in mind, involving end users and stakeholders early and often in the development process to the extent that they become partners with a vested interest in the projects success. Using this approach holds the promise of technologically successful projects with add value to the organization. c. Project Management Approach - Success depends not just on the team but more on the methodology (the set of processes and infrastructure) in place i. Step-by-step activities, processes, tools, quality standards, controls and deliverables d. Knowledge Management Approach Systematic process for acquiring, creating, synthesizing, sharing and using information, insights, and experiences to transform ideas into business value i. lessons learned ii. best practices 4. scope/schedule/budget triangle a. The relationship among scope, schedule, and budget (also called the triple constraint) is based on the fact that it takes time, resources and technology to complete IT projects. Given the fact that computer technology today is relatively less expensive than a projects labor, as the scope (work to be accomplished) increases, the costs (and therefore budgets) increase since more people must be deployed or the same number of people must devote more time to the project, thereby, extending the schedule as well as the cost. If the resources and schedule are fixed, the only way to decrease costs or schedules may be to reduce the projects scope. 5. internal and external project risks a. Internal risks: i. The risk that a key team member might leave a project

ii. the risks of a team misestimating costs associated with the project and therefore founding the project on erroneous assumptions. b. External risks: i. risks associated with dependence on outside contractors or vendors over which the organization has less control 6. Describe the phases of a generic project life cycle and the deliverable of each phase a. Define Project Goal i. Focus on providing business value to the organization ii. Gives the project team a clear focus and drives the other phases of the project b. Plan Project i. What is to be done, why is it being done, how will it be done, who is going to do it, how long will it take, how much will it cost, what can go wrong and what can be done about it, how will we know if the project is successful given the time, money and resources invested? ii. Deliverable is the initial or baseline project plan c. Execute Project Plan i. Put the plan in action build whatever product has been decided based on plan specifications. A continuous monitoring of the actual vs baseline is needed ii. d. Close Project i. A formal closure of the project ensures that all work is completed as planned and agreed to by the team and sponsor ii. Final report and presentation to the client e. Evaluate Project i. Evaluating whether a project met its goals (providing business value) is best done after implementation when it is in production ii. Lessons learned document experiences and best practices for future projects 1. What went right and what went wrong iii. Evaluate the project manager and team members

7. What does the SDLC provide for an IT project a. The most common product life cycle in IT is the systems development life cycle, which represents the sequential phases or stages an information system follows throughout its useful life. b. The SDLC establishes a logical order or sequence in which the system development activities occur and indicates whether to proceed from one system development activity to the next 8. Describe waterfall model, prototyping, spiral when is each appropriate i) The Waterfall method of systems development is a sequential and structured way of following the SDLC. Each phases of the SDLC is completed before moving on to the next. All planning is done up front and there is no product until the end. It should be used when the system being developed is highly structured and there are likely to be few changes in requirements once the analysis phase is complete. It is also appropriate when the development team is inexperienced or less technically competent. ii) The Spiral approach is a RAD development approach in which the project is broken down into a number of miniprojects, each addressing one or more major project risks. They are complex projects to manage because there may be many people working on parallel activities. The advantage of this model over the Waterfall model occurs because the completion of each miniproject allows risk to be

addressed incrementally and in smaller pieces. Major problems or challenges will surface early in the process and provide the potential to reduce costs. a. 9. How does XP accelerate the SDLC a. XP is Rad development approach that involves a series of versions of the system called releases. Releases are developed quickly in a similar fashion to prototyping (within a few weeks or months). Each release addresses one or a few functions that are a part of the full project specification. User requirements are documented using an object-oriented model as user stories. Acceptance testing is developed for each story. Releases that pass the acceptance test are deemed complete. XP can accelerate the SDLC process because in addition to the advantages of prototyping, XP often employs teams of programmers who can develop releases in parallel. End users are involved in the process early and their requirements uncovered and understood earlier. Chapter 2 10. Components of a project charter, project plan and business case a. Project Charter - The project charter is a key deliverable for the second phase of the IT project methodology. It defines how the project will be organized and how the project alternative that was recommended and approved for funding will be implemented. The project charter provides another opportunity to clarify the projects goal and defines the projects objectives in terms of scope, schedule, budget, and quality standards. In addition, the project charter identifies and gives authority to a project manager to begin carrying out the processes and tasks associated with the systems development life cycle (SDLC). b. Project plan - The project plan provides all the tactical details concerning who will carry out the project work and when. Additionally, the projects scope, schedule, budget, and quality objectives are defined in detail. c. Business Case A business case is the first deliverable in the IT project life cycle. It provides an analysis of the organizational value, feasibility, costs, benefits, and risks of several proposed alternatives or options. The purpose of a business case is to show how an IT solution can create business value. Since firms have limited resources, they must have a way of deciding which projects to fund, this is done by comparing the potential value of proposed projects as shown in their respective business cases. 11. why separate the charter from the business case a. A Project Charter is a written description of a problem or opportunity, its value to the business, and a broad improvement goal expected from a team assigned to the project. b. A Business Case describes the value and need for a project. It should clearly articulate the benefits that will result from successful completion of the project. Benefits could be in terms of financial gains (revenue increase, cost reduction, cost avoidance), value to the customer (meeting customer expectations in a timely and accurate manner) or to support strategic initiatives like gaining market share or development of a new product.

12. Describe the IT value chain components and how they relate to one another and to success of a project a. The IT value chain suggests that an organizational goal leads to or defines an organizational strategy. In turn, a projects measurable organizational value (MOV) then supports this organizational strategy. The finished project must be compared against the MOV to determine whether it was successful.

13. Potetntial areas of impact for it projects

14. Identifying desired value of an IT project a. BetterWhat does the organization want to do better? (For example, improve quality or increase effectiveness?) b. FasterWhat does the organization want to do faster? (Increase speed, increase efficiency, or reduce cycle times?) c. CheaperWhat does the organization want to do cheaper? (Reduce costs?) d. Do moreWhat does the organization want to do more than it is currently? (Growth or expansion?) 15. TCO , TBO a. Total Cost Of Ownership(TCO) i. (TCO) is a concept that has gained widespread attention in recent years and generally refers to the total cost of acquiring, developing, maintaining, and supporting the application system over its useful life. TCO includes such costs as: 1. Direct or up-front costsInitial purchase price of all hardware, software, and telecommunications equipment, all development or installation costs, outside consultant fees, etc. 2. Ongoing costsSalaries, training, upgrades, supplies, maintenance, etc. 3. Indirect costsInitial loss of productivity, time lost by users when the system is down, the cost of auditing equipment (i.e., finding out who has what and where), quality assurance, and post implementation reviews. b. Total Total Cost Of Ownership(TCO) i. Total Benefits of Ownership (TBO) must include all of the direct, on-going, and indirect benefits associated with each proposed alternative. The TBO should address the benefits of an alternative over the course of its useful life. Benefits can arise from: 1. Increasing high-value workFor example, a salesperson may spend less time on paperwork and more time calling on customers. 2. Improving accuracy and efficiencyFor example, reducing errors, duplication, or the number of steps in a process. 3. Improving decision-makingFor example, providing timely and accurate

information. 4. Improving customer serviceFor example, new products or services, faster or more reliable service, convenience, etc. 16. Base case alternative, other options to consider a. The base case alternative is what the organization will do if no project is undertaken. That is maintain the status quo and do not pursue any options described in the business case. Knowing what the benefits and costs of continuing with the status quo are will allow an organization to determine if an investment in another alternative will provide net positive value to the organization. 17. Feasibility economic, technical. Organizational a. Economic Feasibility - Economic Feasibility requires an organization to consider if the funds and other resources are available to support the project and if the proposed project will yield the benefits envisioned in the project statement. Conducting an economic feasibility should serve as a reality check for each option or alternative. b. Technical Feasibility - Technical feasibility focuses on the existing technical infrastructure needed to support the IT solution. It will help determine if the current infrastructure can support the alternative or if new technology (if available) were needed. It also considers whether the current IT staff has the skills and experience to support the proposed solution and if not can a vendor that has the skills and experience to develop and implement the application be contracted? c. Organizational Feasibility - Organizational feasibility considers the impact on the organization. It focuses mainly on how people within the organization will adapt to this planned organizational change. How will people and the way they do their jobs be impacted? Will they accept this change willingly? Will business be disrupted while the proposed solution is implemented? 18. Payback period, breakeven, ROI, NPV, IRR, scoring models pros and cons of each a. Payback Period is a method of analyzing the value of a project by determining how long it takes to recover the initial investment. Payback Period = Initial Investment/ Net Cash Flows. Its advantages include ease of calculation and understanding and the fact that alternatives can be compared for risk as a function of how long it takes to recoup investment (longer is usually riskier). Its disadvantages include the fact that it ignores cash flows beyond the payback period and it also ignores the time value of money. b. The breakeven method determines when the project recoups its original investment and thus begins to return positive net benefit. It is particularly useful when returns can be calculated on a per unit basis. Breakeven Point = Initial Investment/Net Profit Margin Its advantage includes ease of calculation and the ability to compare project risk (higher breakeven points are usually more risky). Its disadvantages includes the fact that it does not address units produced after the breakeven point and does not account for the time value of money. c. ROI is method of determining the percentage rate of return on a project. It is calculated as: Project ROI = (Total expected benefits-total expected costs)/ total expected costs In applying this method, an organization looks at the ROI and when choosing between competing (mutually exclusive) projects would choose the higher ROI (all other things being equal). If considering a project by itself, often organizations compare the ROI to a hurdle rate which must be equaled or exceeded before accepting. The usefulness of the ROI method is contingent on the ability to define accurately the total costs and benefits associated with the project and the ability to link to benefits directly to the initial investment. One of the

disadvantages of the method relates to the difficulty of measuring those two contingencies because of intervening variables indirect influence. The advantage of the ROI method includes the clarification of the relationship between the benefits and the costs of a project (ROI increases as benefits increase or costs decrease). d. Net Present Value(NPV) Shows the time value of money.The NPV method focuses on the time value of money. A projects NPV is equal to the sum of all of the future net cash flows that derive from the project, discounted by the firms required rate of return, minus the initial investment. The rule for applying NPV is to take the higher NPV when considering mutually exclusive projects and to accept only positive value NPV projects when considering stand-alone projects. The advantage of this method is that it takes into account the time value of money and also all relevant cash flows and when they are received. The disadvantage of the NPV method includes the fact that as with all methodologies, accurately estimating future cash flows can be difficult. The choice of the appropriate discount rate is also controversial at times. e. Internal Rate of Return: Is the method of capital budgeting in which we can calculate IRR and compare it with cut off rate for selecting any project.With the IRR method, the advantage is that it shows the return on the original money invested. With the IRR method, the disadvantage is that, at times, it can give you conflicting answers when compared to NPV for mutually exclusive projects. The 'multiple IRR problem' can also be an issue, as discussed below. f. Scoring Models Is the tool that provides a systematic process for selecting projects based on many criteria. The advantages of using a scoring model to compare several projects include the ability to combine both qualitative and quantitative variables, (leading to a quantification of intangible benefits) and the transcending of the short run bias of most financial models. The ability to rank and weight the impact value of multiple criteria may be either an advantage or a disadvantage if there is disagreement as to the appropriate weights and/or selection criteria. The disadvantage is that the outcome of a scoring model is heavily influence by subjective judgments. 19. IT project portfolio a. An IT portfolio is a set of multiple projects that an organization may undertake. These projects may vary significantly as to their levels of risk, technological complexity, size and strategic intent. b. Balanced scorecard The Balanced Scorecard approach helps balance traditional financial measures with operational metrics across four different perspectives: finance, customer satisfaction, internal business processes, and the organizations ability to innovate and learn. An organization that utilizes the Balanced Scorecard approach must create a set of measurements, or key performance indicators, for each of the perspectives. In turn, these measures are used to create a report or scorecard for the organization that allows management to track, or keep score, of the organizations performance. The four perspectives provide a balanced approach in terms of tangible and intangible benefits and long and short term objectives, as well as how each perspectives desired outcomes and drivers impact the other perspectives. 20. PMO purpose a. Its role is to provide support and collect project-related data while providing tools and methodologies. 21. IT governance purpose and best practices a. Purpose -Focuses on the processes that coordinate and control an organizations resources, actions, and decisions to help prevent people from making bad investments, acting unethically, or doing something illegal b. Best Practices i. Identify strategic value

1. Organizations are often faced with a stack of potential IT projects, so it is important to compare them in terms of their business value as well as their costs and potential risks ii. Top business managers should set IT priorities 1. Many organizations rely on a committee of business and IT leaders to determine how the IT budget will be spent. Helps align IT with organizational objectives and increase shared accountability. iii. Communicate priorities and progress clearly 1. The priorities defined by the top IT and business managers must be communicated clearly to the rest of the organization to ensure that everyone is aware of and understands how the governance process works iv. Monitor projects regularly 1. An organization needs to track each projects progress on a regular basis to protect the value of its investment. Summary of key project metrics, spotlight potential issues or problems early on Chapter 3 22. Project management process vs product oriented processes a. Project management processes are an integral component of project management and are concerned with defining and coordinating the activities and controls needed to manage the project. They support all of the activities necessary to create and implement the product of the project. Examples include: i. Initiating ii. Planning iii. Executing iv. Controlling v. Closing b. Product-oriented processes are those which focus on the tangible results of the project. They require specific domain knowledge, tools, and techniques in order to complete the work. An example would be the creation of a software application package 23. Relationship between the project management process groups and ITPM phases 24. Processes of Project Management Integration Management 25. Realtionship between MOV and project scope; project scope and phases a. Since the projects scope is the work that needs to be completed in order to achieve the projects MOV, the MOV supports the project scope by defining what work should comprise the scope and which things should be left out or avoided if they do not move the project toward the realization of the MOV. The schedule and budget as well are defined and deemed adequate if they allow the project to achieve the MOV. MOV provides a raison d'tre for scope, schedule, and budget. b. The Project Management Body of Knowledge defines scope as the product or services to be provided by the project and includes all of the project deliverables. One can think of scope as the work that needs to be completed in order to achieve the projects MOV. Breaking a project down into phases and subphases reduces complexity and risk. In many cases it is easier to focus on the pieces instead of the whole. Chapter 4 26. Functional, project and matrix organizational structures pros and cons, for what type of project is each best suited 27. Purpose and benefits of stakeholder analysis 28. What characteristics describe a work group and real team; what are the team basics 29. Traditional teams vs radical teams

Chapter 5 30. Scope planning, scope definition and WBS deliverable and purpose of each 31. Purpose of DDT and DSC, relationship between DSC and WBS 32. How DFD and use case diagrams define scope 33. Scope grope, creep, leap 34. Importance of scope change control Question on CUNYfirst talk Question on paper about motivational theories