18. 5 Forces analysis Supplier power Customer power Threat of New Entrants Substitutes Intensity of competition Michael Porter’s ‘5 Forces’ – 1980’s
19. business model template VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIP TARGET CUSTOMER DISTRIBUTION CHANNEL VALUE CONFIGURATION CORE CAPABILITIES PARTNER NETWORK REVENUE STREAMS INFRASTRUCTURE CUSTOMER OFFER FINANCE Osterwalder’s Business Model framework 2006 http://business-model-design.blogspot.com
20. Process efficiency Scorecard Customer satisfaction Financial Learning and innovation Balanced Scorecard Kaplan & Norton (1994?) HBR
53. Categories Venture: Projects that transform the business Growth: Projects that grow revenue or market share Core: Projects that help run the business
Changes to organization’s mission and strategy Project managers must respond to changes with appropriate decisions about future projects and adjustments to current projects Project managers who understand their organization’s strategy can become effective advocates of projects aligned with the firm’s mission Strategic Management Overview Involves determining long-term objectives, predicting future trends, and projecting the need for new products and services Provides the theme and focus of the future direction for the firm respond to change allocating scarce resources Requires strong links among mission, goals, objectives, strategy, and implementation SWOT analysis S trengths, W eaknesses, O pportunities, and T hreats Strategic planning process should Review and define the organizational mission Set goals and objectives (see Doran’s SMART) Analyse and formulate strategies to reach objectives Implement strategies through projects
Strategic Management Overview Involves determining long-term objectives, predicting future trends, and projecting the need for new products and services Provides the theme and focus of the future direction for the firm respond to change allocating scarce resources Requires strong links among mission, goals, objectives, strategy, and implementation
Strategic planning process should Review and define the organizational mission Set goals and objectives (see Doran’s SMART) Analyse and formulate strategies to reach objectives Implement strategies through projects
Strategic planning process should Review and define the organizational mission Set goals and objectives (see Doran’s SMART) Analyse and formulate strategies to reach objectives Implement strategies through projects
SWOT analysis S trengths, W eaknesses, O pportunities, and T hreats
SWOT analysis S trengths, W eaknesses, O pportunities, and T hreats
SWOT analysis S trengths, W eaknesses, O pportunities, and T hreats
SWOT analysis S trengths, W eaknesses, O pportunities, and T hreats
SWOT analysis S trengths, W eaknesses, O pportunities, and T hreats
SWOT analysis S trengths, W eaknesses, O pportunities, and T hreats
Strategic planning process should Review and define the organizational mission Set goals and objectives (see Doran’s SMART) Analyse and formulate strategies to reach objectives Implement strategies through projects
Doran’s characteristics of objectives S Specific Be specific in targeting an objective M Measurable Establish a measurable indicator(s) of progress A Assignable Make the objective assignable to one person for completion R Realistic State what can realistically be done with available resources T Time related
Strategic planning process should Review and define the organizational mission Set goals and objectives (see Doran’s SMART) Analyse and formulate strategies to reach objectives Implement strategies through projects
Strategic planning process should Review and define the organizational mission Set goals and objectives (see Doran’s SMART) Analyse and formulate strategies to reach objectives Implement strategies through projects
Strategic planning process should Review and define the organizational mission Set goals and objectives (see Doran’s SMART) Analyse and formulate strategies to reach objectives Implement strategies through projects
Many organizations support an emerging business strategy of project portfolio management Organizations group and manage projects as a portfolio of investments that contribute to organizations success Managing the Portfolio Senior management input Priority team responsibilities
Sample Approaches for Creating a Project Portfolio One approach is adopting a large portfolio for the entire organization. Sections of the portfolio are broken down into groups IT projects are broken down into three categories: Venture: Projects that help transform the business Growth: Projects that help increase revenues Core: Projects that help run the business
Sample Approaches for Creating a Project Portfolio One approach is adopting a large portfolio for the entire organization. Sections of the portfolio are broken down into groups IT projects are broken down into three categories: Venture: Projects that help transform the business Growth: Projects that help increase revenues Core: Projects that help run the business
Sample Approaches for Creating a Project Portfolio One approach is adopting a large portfolio for the entire organization. Sections of the portfolio are broken down into groups IT projects are broken down into three categories: Venture: Projects that help transform the business Growth: Projects that help increase revenues Core: Projects that help run the business
Implementation Gap lack of understanding and consensus on strategy among top management and middle-level (functional) managers who independently implement the strategy
Resource Conflicts and Multitasking Multi-project environment creates interdependency relationships of shared resources which results in the starting, stopping, and restarting projects
Changes to organization’s mission and strategy Project managers must respond to changes with appropriate decisions about future projects and adjustments to current projects Project managers who understand their organization’s strategy can become effective advocates of projects aligned with the firm’s mission
Solicitation of Project Proposals Within the organization Request for proposal (RFP) from external sources (contractors and vendors) Ranking Proposals Discipline Accountability Responsibility Constraints Reduced flexibility Loss of power
Solicitation of Project Proposals Within the organization Request for proposal (RFP) from external sources (contractors and vendors) Ranking Proposals Discipline Accountability Responsibility Constraints Reduced flexibility Loss of power
Solicitation of Project Proposals Within the organization Request for proposal (RFP) from external sources (contractors and vendors) Ranking Proposals Discipline Accountability Responsibility Constraints Reduced flexibility Loss of power
Solicitation of Project Proposals Within the organization Request for proposal (RFP) from external sources (contractors and vendors) Ranking Proposals Discipline Accountability Responsibility Constraints Reduced flexibility Loss of power
Solicitation of Project Proposals Within the organization Request for proposal (RFP) from external sources (contractors and vendors) Ranking Proposals Discipline Accountability Responsibility Constraints Reduced flexibility Loss of power
There are a variety of methods to assess whether a project is a good idea. Strategic alignment is one of them But there are several ways to address strategic plans, so a more detailed assessment process is needed.
Methods for selecting projects include: Focusing on broad organizational needs Categorizing IT projects Financial analysis Using a weighted scoring model Implementing a balanced scorecard Focusing on Broad Organizational Needs It is often difficult to provide strong justification for many IT projects, but everyone agrees they have a high value Three important criteria for projects: need for the project funds available for the project will to make the project succeed Categorizing IT Projects One categorization assesses if the project provides a response to: a problem an opportunity a directive Another categorization is based on the time and date of expected completion Another categorization is the overall priority of the project
Successful organizations initiate projects to meet business needs, and a common business need is to spend money wisely A business case is a document that provides justification for investment It is a good idea to have one of the company’s financial managers review the information for accuracy – not formally part of the project management plan Attributes of a Good Business Case Details all possible impacts, costs, benefits Clearly compares alternatives Objectively includes all pertinent information Systematic in terms of summarizing findings
Successful organizations initiate projects to meet business needs, and a common business need is to spend money wisely A business case is a document that provides justification for investment It is a good idea to have one of the company’s financial managers review the information for accuracy – not formally part of the project management plan Attributes of a Good Business Case Details all possible impacts, costs, benefits Clearly compares alternatives Objectively includes all pertinent information Systematic in terms of summarizing findings
Source: CHAOS Report 1995 by the Standish Group Access it here: http://net.educause.edu/ir/library/pdf/NCP08083B.pdf Since 1995 several subsequent versions have been published. Project performance has improved… incrementally.. Over the subsequent decade. There is still significant improvement opportunities for the IT projects industry. What do you think is going wrong at your workplace? What can be done to improve things? The 1995 Standish (CHAOS) report found the following factors common to successful projects1. User Involvement 15.9% 2. Executive Management Support 13.9% 3. Clear Statement of Requirements 13.0% 4. Proper Planning 9.6% 5. Realistic Expectations 8.2% 6. Smaller Project Milestones 7.7% 7. Competent Staff 7.2% 8. Ownership 5.3% 9. Clear Vision & Objectives 2.9% 10. Hard-Working, Focused Staff 2.4% Other 13.9%
Improved Project Performance Standish Group’s CHAOS studies show improvements in IT projects in the past decade
