Management Information Systems Chapter 14: Managing Projects

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Questions and Answers

What is a primary objective of project management in developing information systems?

To increase revenue

To improve efficiency

To reduce costs

To align with the firm’s business goals (correct)

Which of the following is NOT a key consideration when evaluating information systems projects?

Financial viability

Technical feasibility

Business value

Marketing strategy (correct)

What is a major risk factor in information systems projects?

Technical complexity

Poor communication

Inadequate budgeting

All of the above (correct)

What is the main purpose of assessing the business value of information systems projects?

To measure the project's contribution to the firm's goals Signup and view all the answers

Which of the following is a key method for selecting and evaluating information systems projects?

Cost-benefit analysis Signup and view all the answers

What is the primary problem with Coke Bottling's existing project management software?

It was unable to deliver needed reports Signup and view all the answers

What percentage of IT projects are considered runaway projects?

30% - 40% Signup and view all the answers

What is a consequence of poor project management?

The project takes longer to complete and exceeds the allocated budget Signup and view all the answers

What is a type of system failure?

Failing to capture essential business requirements Signup and view all the answers

What was the solution implemented by Coke Bottling to manage their projects effectively?

Microsoft Office Enterprise Project Management (EPM) Solution Signup and view all the answers

Why is organizational and management change necessary to ensure the success of new technology?

To ensure the technology is used to its full potential and brings organizational benefits Signup and view all the answers

What is the purpose of aggregating individual CSFs?

To create a system to deliver information on CSFs Signup and view all the answers

What is the primary objective of portfolio analysis in the context of project management?

To balance risk and return from systems investments Signup and view all the answers

What is a key consideration when selecting projects in a portfolio?

The combined risk and benefit of each project Signup and view all the answers

What is the outcome of balancing risk and return from systems investments?

An improved return on portfolio Signup and view all the answers

What is a characteristic of companies in different industries?

They have different profiles Signup and view all the answers

What is the purpose of evaluating alternative system projects?

To select the most beneficial projects Signup and view all the answers

What is the likely outcome of a poorly managed information system project?

It is technically inferior and may not be able to demonstrate any benefits to the organization. Signup and view all the answers

What are the five major variables in project management?

Scope, Time, Cost, Quality, Risk Signup and view all the answers

What is the primary role of the corporate strategic planning group?

To develop the firm's strategic plan Signup and view all the answers

What is the purpose of an information systems plan?

To link development to business plan Signup and view all the answers

What is the primary benefit of using the CSF approach?

It is suitable for building DSS and ESS Signup and view all the answers

What is the primary limitation of the CSF approach?

There is no clear method for aggregating CSFs into firm CSFs Signup and view all the answers

What is the primary role of the project management group?

To oversee specific projects Signup and view all the answers

What is included in an information systems plan?

A road map indicating direction of systems development, including purpose, rationale, current systems, and implementation plan Signup and view all the answers

Why is it necessary to inventory and document existing software, hardware, and systems?

To develop an effective information systems plan Signup and view all the answers

What is the primary method used in the CSF approach?

Interviews with 3-4 top managers Signup and view all the answers

What is a key aspect of sociotechnical design in managing project risk?

Addressing both technical and social objectives Signup and view all the answers

What is a capability of project management software like Microsoft Project 2010?

Defining, ordering, and editing tasks Signup and view all the answers

What is a key consideration in organizational impact analysis?

How the system will affect organizational structure and attitudes Signup and view all the answers

What is critical path analysis used for in project management?

Analyzing the most critical tasks in a project Signup and view all the answers

What is a trend in project management software?

Increase in SaaS and open-source options Signup and view all the answers

Why is project management critical at Motorola?

To manage various projects and prioritize resources effectively Signup and view all the answers

Study Notes

Overview of Project Management in Information Systems

Project management is crucial for developing information systems, ensuring projects meet budget, schedule, and performance specifications.
Poor project management can lead to 30%-40% of IT projects exceeding timelines, overstretched budgets, or system failures.

Importance and Consequences of Poor Project Management

Runaway projects result from inadequate scope capture, lack of organizational benefits, complicated interfaces, and inaccurate data.
Without proper management, projects take longer and exceed budgets; this can endanger overall project success and quality.

Project Selection and Evaluation

Portfolio analysis evaluates alternative system projects using a profile of risk and benefit.
Projects should be categorized into four groups: high-benefit low-risk, high-benefit high-risk, low-benefit low-risk, and low-benefit high-risk.
An effective mix of projects enhances return on investments.

Project Management Structure

A hierarchy exists within large firms for managing information systems projects, including corporate strategic planning, systems steering committees, project management groups, and project teams.
Each management level is responsible for specific project aspects, ensuring alignment with firm priorities.

Information Systems Planning

An information systems plan outlines projects that deliver business value, linking system development to overall corporate strategy.
Key components include current systems analysis, new developments, management strategies, and budget planning.

Critical Success Factors (CSFs) Approach

CSFs are essential for assessing information requirements based on top management's goals through interviews.
Personal CSFs aggregate into organizational CSFs, guiding system development to meet those strategic goals.

Managing Project Risks

Organizational impact analysis assesses how new systems influence company structure and operations.
Sociotechnical design balances both technical and social objectives, addressing human and organizational factors in system implementations.

Project Management Software

Automation tools streamline project management tasks, enabling resource assignment, task tracking, and project scheduling.
Widely used project management software includes Microsoft Project 2010, alongside PERT, Gantt Charts, and critical path analysis, with growth in SaaS and open-source solutions.

Case Study: Coca-Cola Bottling

Coca-Cola faced issues with outdated project management software, leading to poor reporting and budget overruns.
Implemented Microsoft Office EPM to centralize project management, highlighting the need for both technological and organizational changes for project success.

Additional Insights

Motorola's project portfolio management emphasizes the significance of effective project management in navigating business challenges, underpinning organizational success.

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Description

This quiz covers the objectives of project management and its importance in developing information systems. It includes video cases, including Mastering the Hype Cycle and NASA: Project Management Challenges. Learn how to adopt the right innovation at the right time.