Systems Project
ISQS 4350
Zhangxi Lin
Chapter 1:
The Nature of
Information Technology
What is a project?
What is project management?
How does project management relate to other
What is the career outlook for project managers in
information technology?
What Is a Project?
A project is “a temporary endeavor undertaken to
accomplish a unique product or service” (Project
management body of Knowledge (PMBOK®) Guide
2000, p. 4)
Attributes of projects
unique purpose
require resources, often from various areas
should have a primary sponsor and/or customer
involve uncertainty
Case #1: Caleb’s Mission Critical Schedule
System (MCSS) for Continental Airlines
If an airline company has to make up a cancelled flight in an emergency, for example, a
plane crash, it may take it several hours to reschedule the relevant flights as well as the
crew teams, and a couple of days to settle down other legacy problems. Caleb has
developed a mission critical schedule system for airline companies, which can find the
solution in minutes and solve other legacy problems in a few hours.
Continental Airlines, as a client of Caleb Technology (Austin) for years, has carefully
evaluated the system and decided to adopt the application. Delighted by the winning of the
contract, Caleb is facing the following several questions:
EDS is the original application developer and will be working with Caleb in the user interface as
Continental Airlines required. How to cooperate with Continental Airlines is the key issue.
MCSS must be integrated into existing enterprise information system of Continental Airlines. How
this will be done?
How test MCSS in the real environment to guarantee its reliability and availability.
How to switch from old system to the new system integrated with MCSS?
Case #2: Online medical services
appointment system
Making the appointment with a PCP or specialist doctor is normally via phone call. Even
though e-commerce and many other online services are prevailing, such a service in
medical area has never been done yet. We there were such a system, this system would
have allowed patents to check the availability of a doctor or any other medical services
from the Internet, making and changing the appointment. So, this is a promising system in
several ways:
It will greatly make the appointment convenient
It can be connected to other networked medical information services, such as medical insurance.
It will also benefit the medical service providers much in saving costs and improving service quality.
There several issues :
Who will initialize the project?
Who should be involved ?
Who is to be a target buyer of the system?
How this system can be co-operated with other medical information systems?
Is this system really beneficial?
Case #3: Adams Globalization online
translation services development
Adams Globalization is a leading translation service company in Austin, Texas. The
company provides the translation between English and several other languages, such as
Spanish, German, French, Japanese, and Chinese. The company started in 1982. In 1993
it hired 4 employees and in 2003 it hired 40 employees and operating a translator network
with more than 1000 freelance translators. The company’s revenue in 2002 was
$4,000,000. Adams Globalization has been facing more and more pressures to convert its
business model from traditional translations to an Internet-based one:
There is an increasing Internet-based application translation demand.
Intensified Internet usage requests the company to change its business processes
The company is moving towards a global market.
Therefore, there are several reasons for Adams Globalization to adopt e-business. There
are several issues:
What is the new business model?
How to develop a web-based business system?
What is the project scope? …
The Software Crisis
If builders built buildings the way
programmers wrote programs,
then the first woodpecker that
came along would destroy
-Gerald Weinberg
Status of IT Projects
31% IT projects were cancelled before
53% were completed, but were over-budget,
over-schedule, and did not meet the original
The average cost overrun of medium-sized
projects was 202%
Why Projects Fail – CHAOS
What is Project
Project management is “the application of knowledge,
skills, tools, and techniques to project activities in order
to meet project requirements” (PMI*, Project
Management Body of Knowledge (PMBOK® Guide),
2000, p. 6)
*The Project Management Institute (PMI) is an international
professional society. Their web site is
Improving the likelihood of
Socio-technical Approach
Project Management Approach
Depending more on processes and infrastructure
Resources management
Delivering the outcomes in a professional way as
Coping with greater internal and external competition
Improving efficiency and effectiveness
Cooperation between developers and users
Knowledge Management Approach
lessons learned
best practices
The 2001 Standish Group Report Showed
Decided Improvement in Project Success
Time overruns significantly decreased to 163% compared to
Cost overruns were down to 145% compared to 189%
Required features and functions were up to 67% compared to
78,000 U.S. projects were successful compared to 28,000
28% of IT projects succeeded compared to 16%
Why the Improvements?
"The reasons for the increase in successful projects vary.
First, the average cost of a project has been more than cut in
half. Better tools have been created to monitor and control
progress and better skilled project managers with better
management processes are being used. The fact that there
are processes is significant in itself.“*
*The Standish Group, "CHAOS 2001: A Recipe for Success" (2001)
Factors For Successful Projects
User involvement
Executive management support
Clear statement of requirements
Proper planning
Realistic expectations
Smaller project milestones
Competent staff ownership
Clear vision & objectives
Hard-working, focused team
Chaos Study
Why do we learn project
It is different from system analysis
It will allow you to apply all the knowledge you have learned in IS, such
as programming, data management, and system analysis, into the
But more – management
Consider you get a programming job. In the first week in the company
you are asked:
To work with someone to do some Java programming but you don’t know
what it is for;
To join a project group for internal software resource sharing project but you
don’t know who are your colleagues before a meeting; or
To look into the latest WiMAX (IEEE 802.16e) technology to see the
potential application to your company’s business. You here of it but wonder
To investigate the search engine market and write a proposal – it is a task for
a programmer?
What should you do?
The context of project
Project Attributes:
Time Frame
Risks & Assumptions
Interdependent tasks
Organizational change
Operating Environment
The Triple Constraint of Project
Roles in a project
Project Manager
 Project Sponsor
 Subject Matter Expert(s) (SME)
 Technical Expert(s) (TE)
Risks & Assumptions
Internal risk
External risk
From the estimation process or from the fact
that a key member of the project team could
leave in the middle of the project
Arises from the dependencies on other
contractors or vendors
What we used to estimate scope, schedule,
and budget and to assess the risk of the
The Project Life Cycle and
IT Development
Project Life Cycle (PLC)
 A collection of logical stages or phases that maps
the life of a project from its beginning to its end for
a project
 A tangible and verifiable product of work
Phase exits, stage gates, or kill points
 Phase-end review of key deliverables that allow
the organization to evaluate the project’s
performance and take immediate action to correct
errors or problems
Generic Project Life Cycle
Phases/Stages of PLC
Define project goal
Plan project
Answer questions (What, why, how, who, et al)
Baseline plan
Execute project plan
Close project
Evaluate project
Systems Development Life
Systems Development Life
SDLC: sequential phases or stages an information
system follows throughout its useful life.
Maintenance and Support
Systems Development Life Cycle
1. Problem
Definition & Feasibility
6. Operations &
2. Analysis
5. Implementation
3. Design
4. Development,
Implementing SDLC:
Structured Approaches:
Waterfall Method
Implementing SDLC:
Rapid Application Development (RAD) Approaches:
 Prototyping
Spiral Development
Develop a small test system in a short time and improve it.
The project is broken into mini-projects each addressing
one or more risks until all risks are addressed
Extreme Programming (XP)
The system is transferred to the users in a series of
releases. Each release is a working system that only
includes one or several functions.
The PLC vs the SDLC
PLC focuses on the processes of managing a
SDKC focuses on creating and implementing
a product – the information system
SDLC is part of PLC – most of SDLC
activities occur during the execution phase of
Enterprise System
Implementation Phases
1. Initiation
6. Operations &
2. Planning
3. Analysis &
process design
5. Transition
4. Realization
(Fulfill ERP)
What is PMBOK
The Project management body of Knowledge
A document providing a basis for identifying and
describing the generally accepted principles and
practices of project management
Originally published in 1987
Available from Project Management Institute
Project Management Framework
Project Management
Knowledge Areas
Project integration management
Project scope management
Project time management
Project cost management
Project quality management
Project Management
Knowledge Areas
Project human resource management
Project communication management
Project risk management
Project procurement management
Sample Gantt Chart
The WBS is on the left, and each task’s start and finish date
are shown on the right using a calendar timescale. Early Gantt
Charts, first used in 1917, were drawn by hand.
Sample Network Diagram
Each box is a project task from the WBS. Arrows show dependencies
between tasks. The bolded tasks are on the critical path. If any tasks on the
critical path take longer than planned, the whole project will slip
unless something is done. Network diagrams were first used in 1958 on the Navy
Polaris project, before project management software was available.
The Project Management
The job of IT Project Manager is in the list of the
top ten most in demand IT skills
Professional societies like the Project
Management Institute (PMI) have grown
Project management research and certification
programs continue to grow
Top Ten Most in Demand IT Skills
R an k
IT S kill/J ob
A verage A n n u al S alary
S Q L D atabase A nalyst
O racle D atabase A nalyst
C /C + + P rogram m er
V isual B asic P rogram m er
E -com m erce/Java D eveloper
W indow s N T /2000 E xpert
W indow s/Java D evelopert
$93 ,785
S ecurity A rchitect
P roject M anager
N etw ork E ngineer
P aul Z iv, “T he T op 10 IT S kills in D em and,” G lobal K now ledge W ebcast
(w w w .globalknow ) (11/20/2002).
Project Management Knowledge
Continues to Grow and Mature
PMI hosted their first research conference in June 2000 in
Paris, France, and the second one in Seattle in July 2002
The PMBOK® Guide 2000 is an ANSI standard
PMI’s certification department earned ISO 9000 certification
Hundreds of new books, articles, and presentations related
to project management have been written in recent years
Project Management
PMI provides certification as a Project
Management Professional (PMP)
A PMP has documented sufficient project
experience, agreed to follow a code of ethics, and
passed the PMP exam
The number of people earning PMP certification is
increasing quickly
PMI and other organizations are offering new
certification programs (see Appendix B)
Growth in PMP Certification, 19932002
Software outsourcing
Supplemental material
Offshore Software
In next few years, about 2 million IT jobs will shift to foreign
countries because of outsourcing, e.g. to India.
Companies have to do so because of the tough surviving
This is the trend of globalization as the economies in different
countries are more dependent of each other.
While India’s position is reasonably secure, there is no room for
being complacent. Several upcoming destinations—Argentina, the
Czech Republic and China in particular. India scores over China in
employee costs, primarily due to that country importing project
managers from Hong Kong and Australia. East Europe is home to
top-notch engineering talent; it is quite likely that high-end
engineering work will flow there.
Software Industry in
Developing Countries
Many developing countries have adopted the development of
Software Industry as a long-term strategy for economy growth
As software outsourcing is a global trend for developed
countries, there are good opportunities for developing countries
to speed up their software industry development
The suggested two-stage development strategy for the software
industry in developing countries:
Focus on the domestic market first
Go to global market once the software companies are competitive
Current two patterns of software industries reflect the two-stage
development strategy:
International market oriented – normally providing outsourcing
market for the developed countries, which is the pattern for those
“early birds”, e.g. India,
Domestic market oriented – for latecomers, e.g. China
The Pattern of ExportOriented: India
Comparatively, in 2002-2003, the software industry in
India was worth US$ 12 billion, of which software export
was $9.5 billion with a growth rate of 25.3%.
The software industry is expected to account for
something like 20% of India’s exports for 2002-03.
Heeks (1996) indicated that if the software exports grows
rapidly, the growth of the domestic market is prevented.
The Pattern of Domestic
Market Oriented: China
In the past 10 years China’s software industry revenue has
been growing at an annual rate between 20-40%. The
revenue of software industry in 2002 reached US$13.3 billion,
a 46.5% increase from 2001.
In the last three years its software export almost doubled
every year. However, China’s software market is domesticoriented - nearly 90% software products were sold
In 2002, China’s application software accounted for 64.5% of
the total domestic software products.
Foreign software and system integration still account for
95.3% of the upper software market
India Pattern vs. China Pattern
Comparison of software revenue in 2002:
India: $12.5 billion, with $9.5 billion from the export
China: $13.3 billion, with $1.5 billion from the export
India’s case is a successful example, while China’s
case is more representative for the developing
countries just started their software industry.
Heeks (1999) outlines some generic approaches to a
developing country’s software industry development.
Two dimensions, the target market served (Domestic
vs. Export) and the types of business intended
(Service vs. Packages), are used in analyzing the
strategic positioning for a developing country.
Potentials of India’s software
Several markets that could result in large opportunities for Indian.
Product Data Management (PDM) is one such area, covering applications that
manage product data and product development workflow. The global market for
PDM is projected to grow to $11 billion by 2006, according to CIMData.
Automotive, electronics and telecom, aerospace, machinery and process
industries are major users of PDM.
Content management is another growth area with the thrust being on delivering
digital content across multiple channels. This market is projected to be worth $27
billion by 2006. Services account for roughly 90 percent of this market.
Enterprise Application integration (EAI) is a potential gold mine for Indian
software houses. It is projected to be a $43.4 billion market by 2005; services
account for 73 percent of this market. Business Intelligence and data
warehousing will together account for a $29 billion market by 2005.
The market for wireless and mobile infrastructure consulting, integration and
management services will be worth $37.4 billion by 2006.
Straight-through processing (STP) is the complete automation of stock
trading from order entry to final settlement. The global market for STP is
expected to touch $6.3 billion by 2004. India can offer customised
application development, maintenance and support, consulting and
transaction processing outsourcing in this segment.
References in offshore
Heeks, Richard, “Software strategies in developing countries”,
Development Informatics working paper series, 1999.
Li, M., and M. Gao, “Strategies for Developing China’s Software
Industry,” Information Technology and International Development

Chapter 1: The Nature of Information Technology Projects