©AliJawad,DataManagementConsultancy,2003TheRoutetoProjectSuccessDevelopedforEffatCollege,January2003DataManagementConsultancy©AliJawad,DataManagementConsultancy,2003CONTENTS1.Introduction:A.FactsandFiguresaboutISsuccessandfailureB.WhatisanInformationSystemstrategy2.UnderstandingdifferenttypesofISprojects3.Projectsuccessandfailure©AliJawad,DataManagementConsultancy,2003SESSIONONEIntroduction:Facts&FiguresaboutISprojectfailuresDefiningInformationSystemsStrategy©AliJawad,DataManagementConsultancy,2003IfbuildingconstructionhadthesameratioofcancellationsasITprojects,morethanhalfoftheofficebuildingsintheworldwhichwerelargerthan30storiestallwouldbeabandonedbeforecompletion.TheaverageheightofbuildingsinNewYorkCitywouldbeonlythreestoriesandtherewouldbenoskyscrapersatall.AnInterestingFACT©AliJawad,DataManagementConsultancy,2003ProjectSuccessandFailures:StatisticsTheRobbins-GioiaSurvey,USA.232surveyrespondentsfromdifferentindustriesincludinggovernment,IT,Communications,financial,utilities,andhealthcare:•51%viewedtheirERPimplementationasunsuccessfulKPMG,Canada.Thesurveycovered1,450publicandprivatesectororganizations:•Over61%oftheITprojectsthatwereanalyzedweredeemedtohavefailed©AliJawad,DataManagementConsultancy,2003ProjectSuccessandFailures:StatisticsTheChaosreport,USA.Thesurveycovered8,380applicationsthroughITexecutivemanagersinlarge,medium,andsmallcompaniesacrossmajorindustrysegments:banking,securities,manufacturing,insuranceandgovernmentorganizations:•31%oftheprojectswillbecancelledbeforetheyevergetcompleted•52.7%ofprojectswillcostover189%oftheiroriginalestimates•Only16.2%ofsoftwarewerecompletedon-timeandon-budget©AliJawad,DataManagementConsultancy,2003Statisticcont.TheOASIGstudy,UK.Samplebasedon45expertsemployedbyuniversitiesandconsultancies.•Thebottomlineis:7outof10ITprojects“fail”insomeaspect.Seventy-fourpercentofallITprojectsfail,comeinoverbudgetorrunpasttheoriginaldeadline...28percentofprojectsfailaltogether.Source:TheStandishGroupEveryyear,$75billionisspentonfailedITprojectsintheU.S.Source:TheStandishGroup©AliJawad,DataManagementConsultancy,2003SessionTwo©AliJawad,DataManagementConsultancy,2003DefiningInformationSystemsStrategy©AliJawad,DataManagementConsultancy,2003WhatisanInformationSystem?•Maincomponents•Technology•People•Organization/business•Data©AliJawad,DataManagementConsultancy,2003StrategySimpledefinitionKnowingwherewearenowKnowingwherewewanttobeandknowingroughlyhowtogetthere©AliJawad,DataManagementConsultancy,2003InformationSystemsStrategyBusinessstrategyInformationSystemsstrategyInformationTechnologystrategyWhereareweGoing,andwhy?Whatisneededtodoinordertoachievethebusinessobjectives?HowcanwedeliverThebusinessobjectives?©AliJawad,DataManagementConsultancy,2003SessionTwo©AliJawad,DataManagementConsultancy,2003LetusunderstanddifferentkindsofISprojects©AliJawad,DataManagementConsultancy,2003WHYDOWEUSEIT?©AliJawad,DataManagementConsultancy,2003DifferentKindsofInformationSystemsSomecontribute-simpleefficiencySomecontribute-competitiveadvantageSomecontribute-relativelylittleSomearepurely-experimental©AliJawad,DataManagementConsultancy,2003Thereisaframeworkthatcanhelpustoorganizeourthoughts:BenefitsWhatismostimportanttodoResourcesWhatiscapableofbeingdoneRisksWhatislikelytosucceed©AliJawad,DataManagementConsultancy,2003TheApplicationsPortfolioStrategicHighPotentialKeyOperationalSupportEvolutionaryEffectivenessExploratoryEfficiency©AliJawad,DataManagementConsultancy,2003ApplicationPortfolio:StrategicDrivingForces:•Futurebusinessorcompetitiveadvantage•Externalfactors(market,competition)•Change!Examples:•Salesforecastingsystem/studentintake•APC-basedsystemusedbysalespeopletocapturebusinessnewcustomers•LinkstosupplierforJust-In-Timedelivery©AliJawad,DataManagementConsultancy,2003ApplicationPortfolio:KeyOperationalDrivingForces:•Coreactivitiesofthebusiness•Ifthesystemfailsthebusinesshasimmediateandsignificantproblemsleadingtobusinessdisadvantage•HighqualityandeffectivedatamanagementExamples:•ticketingsysteminanair-linecompany•productionschedulinginamanufacturingcompany©AliJawad,DataManagementConsultancy,2003ApplicationPortfolio:SupportDrivingForces:•Performanceofspecificbusinesstasks•Productivityorefficiencyimprovements–mainlyeconomicbenefits•Toenableresources(people)tobeusedmoreappropriately•TheyareNOTcriticaltothebusinessExamples:•Generalaccounting,personnelrecord-keeping,expensereportingsystem,etc.•Oftenusingspreadsheetsandpackagedsoftwaretosatisfymostneeds©AliJawad,DataManagementConsultancy,2003ApplicationPortfolio:HighPotentialDrivingForces:•Anewbusinessideaortechnologyopportunity•Benefitsareunknown•Needtodemonstratevalue•Nottoolongortoocostly•PrototypeExamples:•Theevaluationofimageprocessingtechnologyfordocumentmanagement•Thefeasibilityifusingexpertsystemstomodelthebehaviorofcompetitors©AliJawad,DataManagementConsultancy,2003TheApplicationsPortfolioTimeQualityCost©AliJawad,DataManagementConsultancy,2003TheApplicationsPortfolio(TQM)StrategicHighPotentialKeyOperationalSupportTimeQualit