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The determinants of success and failure on IT projects
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The failure of Information Technology projects has always been a hurtful problem for many organizations. With tons of new technologies coming out throughout the year, new IT, projects continue to grow by the year. Unfortunately, the success rates of the projects are very low and have actually lowered since its last estimate. Project risk factors are important to know and avoid in making of a success project. This paper is going to explain risks in knowledge areas, how to identify risks, and explain the risk register. Also, it’s going to identify and define the qualitative and quantitative risk analysis. In addition, it will cover planning for positive and negative risk responses. Finally, it will conclude with how to monitor and control IT project risks
Even with new technologies on the rise and countless new projects being created for those technologies, their success is still at a very low percent. According to Standish Groups student to the CHAOS research, Information Technology projects are only 28 percent successful, which is lower than the previous 34 percent that they estimated previously. Also, 18 percent of IT projects were canceled before reaching the development cycle, and 51 percent had to be shutdown because the exceeded the required budget. In addition, the Standish Groups estimated that around 80,000 projects were canceled in 1995. With those estimates they came up with and identified ten main reasons for these cancelations. CHAOS University then did another study to further implement Standish Groups claims which aided the Information technology success potential scoring sheet.
The way that Standish Groups conducted their study was gathering 60 Information Technology professionals and having them give...
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...arch 1, 2011 from http://www.brighthub.com/office/project-management/articles/33403.aspx
3. Tesch, Debbie,Kloppenborg, Timothy J,Frolick, Mark N. (2007). IT Project Risk Factors: The project management professionals perspective. The Journal of Computer Information Systems. Retrieved
March 1, 2011 from http://www.allbusiness.com/management/risk-management/8906256-1.html
4. Ireland, Jaie. How to identify Project Risk
Project Risk Management. Retrieved
March 1, 2011 from http://www.ehow.com/how_5068663_identify-project-risk.html
5. Standish Group. Sample Research.
Unfinished Voyages. Retrieved March 1, 2011,
From http://www.standishgroup.com/sample_research/unfinished_voyages_1.php
6. Cobb, Martin. Unfinished Voyages
A follow-up to the CHAOS Report. Retrieved March 1, 2011
From http://www.umflint.edu/~weli/courses/bus381/assignment/vo.pdf
Marshall, B., Cardon, P., Poddar, A., & Fontenot, R. (2013). Does sample size matter in qualitative research? A review of qualitative interviews in is research. Journal of Computer Information Systems, 54(1), 11-22.
Projects are widely used by many organizations and government institutions in the course of conducting their business. One of the reasons for this is because they have been proven to be effective in initiating change and translating strategic programs into daily activities. However, it has been established that most projects fail to deliver on time, budget, and customer specifications. In most cases, this failure is caused by over-optimism by the project management team. This over-optimism commonly referred to as optimism bias can simply be defined as overestimating the projects benefits and conversely underestimating its cost and duration time. Research have portrayed that this is often caused by failure to properly identify, understand, and manage effectively the risk associated with the project therefore putting its success at jeopardy(Mott McDonald, 2002). Fortunately, this biasness can be detected and minimized during the project gateway process.
Gray, Clifford F.; Larson, Erik W., Project Management – The Managerial Process, Copyright © 2001 by The McGraw-Hill Companies, Inc.
Sharma, D., Stone, M., & Ekinci, Y. (2009). IT governance and project management: A qualitative study. Journal of Database Marketing & Customer Strategy Management, 16(1), 29-50.
Hillson, D, & Simon, P. (2012). Practical project risk management: The ATOM methodology (2nd ed.). Vienna, VA.: Management Concepts.
... recommendation is that better protection should be provided for the management of financial risk. Benkol could use the Net Present Value technique to cover that. Benkol also lacks a proper risk assessment method. Benkol does not use a risk assessment matrix, nor scenario analysis and probability analysis is done by the project manager using subjective assumptions. This can be refined by implementing proper probability analysis and risk assessment matrix.
Laudon, KC & Laudon, JP 2010, Management Information Systems: Managing the digital firm, 11th Global edn, Pearson Education, Inc, Upper Saddle River, New Jersey.
Risk management is among the most important practices in the field of project management. A successful project completion and risk management often go side by side. An interesting aspect of project management is that a project can sti...
Bulchand-Gidumal, J. (2009, December 12). Redesign of the IS/ICT help desk at a Spanish public university. Retrieved January 16, 2010, from Springer Link: http://www.springerlink.com.ezproxy2.library.drexel.edu/content/n37027634m511868/fulltext.pdf
- Sumner, M, 1999, "Critical success factors in enterprise wide information management systems projects", Proceedings of the Americas Conference on Information Systems (AMCIS), 232-4.
Risk management is a process used in all industries to reduce the risk. The Risk management tool usage changes from sector to sector and hence each sector has developed their own risk management tools and methodologies to mitigate the risk. But the concept remains the same behind all the tools (Ropel, 2011). The main steps for risk management irrespective of the sector are:
This paper will reflect on the different uses of Project Risk Management and ways in which it can benefit organizations to have the ability to identify potential problems prior to the problem occurring. Risk, this is not something to be taken lightly whilst dealing with matters that include high end projects meeting specific details, deadlines and expectations for the end client. Project risk management teaches one to be aggressive early on in the phases of planning and implementing the tools for a project. This is usually easier as costs are less and the turnaround time to solve the issues at that present moment is beneficial rather than later. The result in a successful project for one’s self and other key people involved in the process is also another requirement. Stakeholder satisfaction is important because the
The rapid development of information systems and technology brings some positive effects to individuals. In order to use information systems effectively, individuals need to acquire skills and knowledge on using different computer technology. Take an example of an individual working in a project on market research, he needs to learn the way to use spreadsheets for analysing the data. The new knowledge acquired by the individuals will lead to upskilling effect. The innovation of technology brings a lot more new channels of communication, such as e-mail and instant messaging applications, it increases interaction between individuals. The barriers of location is eliminated by technology, people can communicate with one another in anywhere around the world through Internet. In addition, virtual office and work from home are becoming a common practice for companies, people can enjoy more flexibility in working locations and hours, and this is particularly beneficial to individuals who have young children at h...
In this competitive world, companies have to deal with various types of risk all the time with there projects. Generally, it affects the budget and schedule of the project. So it is important to keep in mind the risk management strategies while creating an initial project plan.