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Chapter 10

BUS 237 Chapter 10: Chapter 10 - Bus 237

Business Administration
Course Code
BUS 237
Zorana Svedic

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Q1 – How can Information Systems Be Acquired?
1) Buy and use it as is
2) Buy and customize it
3) Rent or lease it
4) Build it yourself
5) Outsource it
“Acquiring software applications is not the same as acquiring information systems”
Regardless of cost, organizations face cost of integrating the software with its current
hardware, data and procedures
Q2 – What are IT Projects, and What does PMBOK Mean?
What is a project?
Project Management Body of Knowledge (PMBOK) – consists of a temporary endeavor
undertaken to create a unique product, service or result
- Begin with a set of goals or objectives
- Scope is created, managers given resources to accomplish goals
- Since objective is something new and unique, often represent change in an
IT Projects – Large IT component (Installation of new email application, CRM system, or ERP
- Projects that require some fundamental change to business processes are often IT
oNew IT supports the change in business processes
oIT Projects aren’t exclusively about technology, they affect data, people and
Information Technology Project Management (ITPM) – Collection of techniques and methods
that product managers use to plan, coordinate and complete it projects.
- Tools of ITPM are same tools used in any project management process
o(Work breakdown structures, budgeting methods, graphical schedule
methods, etc.)
Guide to PMBOK – 5 main process groups in any project
1) Initiating
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2) Planning
3) Executing
4) Controlling and monitoring
5) Closing
Each group can relate to one of 9 project knowledge areas
1) Integration management
2) Scope management
3) Time management
4) Cost management
5) Quality management
6) Human resources management
7) Communications management
8) Risk management
9) Procurement management
Increasing importance of projects, in particular it
- Increase in number of people seeing project management skills
- Project management professionals (PMI, CAPM Program)
- Changing environment, realize the rapid pace of change suggests that organizations
must improve their ability to adapt to changing conditions
Q3 – What should you know about IT Operations and IT projects?
It Departments two main functions
- Maintaining current IT infrastructure
- Renewing and adapting the infrastructure to keep IT working effectively in the the
IT Operations or Services – Delivery of service, maintenance, protection, and management of IT
- Uses a large portion of IT operational budget
- Keeping the lights on (KTLO)
Projects – Renewal and adaptation of IT infrastructure
- Large IT projects are high-profile, high-cost changes to status quo of organization
and generally funded outside of IT operations budget
IT Operations – specialize in particular technologies
- Continually seek ways to improve the efficiency and security of the entire set of
systems that support operations
-Production Systems – Stability, predictability, accountability, reliability, and security
- Ex: Networking specialists, operating systems specialists, data-base administrators
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IT Project – Responsible for changing the production systems, rather than maintaining
- Projects are temporary, often change existing infrastructure, generally require broad
skills and challenge project team members to learn new technologies
- Team members may work several projects simultaneously
- Can provide more opportunities for contact with project stakeholders in other
Differences in core practices of IT professionals
IT Operations – Information technology Infrastructure Library (ITIL) is a well-recognized
collection of books that provide a framework of best-practice approaches to IT operations
- Large set of management procedures that are designed to help businesses achieve
value from IT operations
- Well-developed set of best practices that can support IT operations has been
Operations and Projects are separate fields, they rely on each other for success
- Projects come to an end and must be maintained
- Infrastructure must eventually be replaced
What about the Web?
- IT Department responsible for maintain information about IT services on website
- IT department supports company website, making sure servers and applications that
provide the website are up and running
- Web plays a critical role in delivery of IT services in many organizations
Q4 – Why are IT projects so risky?
All projects, regardless of size or defined face risk
What makes IT Projects so risky?
1) Most IT Project definitions are not easy to represent graphically
- Makes it difficult for people to understand what the system will “look like”
oHow it will behave when finished
oLack of good moodle is, an important risk to recognize in IT projects
2) Precise estimates for IT project costs are difficult to develop because technology is
continually changing
3) Measuring the completion (progress) of the project (A bridge half built, is half built)
- System development is aiming at a moving target
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