Information Technology Project Management 9th Edition Chapter 4

determine NPV

1.) Determine the estimated costs and benefits for the life of the project and the products it creates. 2.) Determine the discount rate. 3.) Calculate the net present value.

Six Main processes involved in Project Scope Management

1.) Developing the project charter involves working with stakeholders to create the document that formally authorizes a project—the charter. 2.) Developing the project management plan involves coordinating all planning efforts to create a consistent, coherent document—the project management plan. 3.) Directing and managing project work involves carrying out the project management plan by performing the activities included in it. 4.) Managing project knowledge involves using existing knowledge and creating new knowledge to achieve project objectives while also contributing to organizational learning. 5.) Monitoring and controlling project work involves overseeing activities to meet the performance objectives of the project. 6.) Performing integrated change control involves identifying, evaluating, and managing changes throughout the project life cycle. 7.) Closing the project or phase involves finalizing all activities to formally close the project or phase.

Five common techniques

1.) Focusing on broad organizational needs 2.) Categorizing IT projects 3.) Performing net present value or other financial analyses 4.) Using a weighted scoring model 5.) Implementing a balanced scorecard

The tools project managers can use to perform activities that are part of execution processes are

Expert judgment Meetings Project management information systems

What are the three main objectives of integrated change control

Influencing the factors that create changes to ensure that changes are beneficial Determining that a change has occurred Managing actual changes as they occur

What are the outputs of closing a project?

Project documents updates Final product, service, or result transition Final report Organizational process asset updates

Possible criteria for IT projects include the following

Supports key business objectives or strategies Has strong internal sponsor Has strong customer support Uses realistic level of technology Can be implemented in one year or less Provides positive NPV Has low risk in meeting scope, time, and cost goals

Explicit knowledge

This type of knowledge can be easily explained using words, pictures, or numbers and is easy to communicate, store, and distribute. Examples include information found in textbooks and encyclopedias as well as project documents and plans.

Tacit knowledge

Unlike explicit knowledge, tacit knowledge, sometimes called informal knowledge, is difficult to express and is highly personal. Examples include beliefs, insight, and experience.

project charter

a document that formally recognizes the existence of a project and provides direction on the project's objectives and management.

project management plan

a document used to coordinate all project planning documents and help guide a project's execution and control

change control board (CCB)

a formal group of people responsible for approving or rejecting changes to a project.

change control system

a formal, documented process that describes when and how official project documents may be changed.

discount factor

a multiplier for each year based on the discount rate and year—and then apply it to the costs and benefits for each year.

baseline

a starting point, a measurement, or an observation that is documented so that it can be used for future comparison.

balanced scorecard

a strategic planning and management system that helps organizations align business activities to strategy, improve communications, and monitor performance against strategic goals.

mind mapping

a technique that uses branches radiating from a core idea to structure thoughts and ideas.

weighted scoring model

a tool that provides a systematic process for selecting projects based on many criteria.

SWOT analysis

analyzing Strengths, Weaknesses, Opportunities, and Threats

When should knowledge management be done?

before, during, and after projects are completed.

cash flow

benefits minus costs or income minus expenses

The following inputs are helpful in developing a project charter

business case Benefits management plan Agreements Enterprise environmental factors Organizational process assets

Monitoring project work includes

collecting, measuring, and disseminating performance information.

Strategic planning

determining long-term objectives by analyzing the strengths and weaknesses of an organization, studying opportunities and threats in the business environment, predicting future trends, and projecting the need for new products and services.

Configuration management

ensures that the descriptions of the project's products are correct and complete.

internal rate of return (IRR)

finding what discount rate results in an NPV of zero for the project.

Integrated change control

identifying, evaluating, and managing changes throughout the project life cycle.

Organizational process assets

include formal and informal plans, policies, procedures, guidelines, information systems, financial systems, management systems, lessons learned, and historical information that can influence a project's success

Project Integration Management

involves coordinating all of the other project management knowledge areas throughout a project's life cycle. This integration ensures that all the elements of a project come together at the right times to complete a project successfully.

Interface management

involves identifying and managing the points of interaction between various elements of a project.

Net present value (NPV) analysis

is a method of calculating the expected net monetary gain or loss from a project by calculating the value of all expected future cash inflows and outflows at the present time

Return on investment (ROI)

is the result of subtracting the project costs from the benefits and then dividing by the costs.

Three primary methods for projecting the financial value of projects

net present value analysis, return on investment, and payback analysis

Impetus for a project

problem, an opportunity, or a directive

Payback period

the amount of time it will take to recoup the total dollars invested in a project, in terms of net cash inflows.

discount rate

the interest rate used to discount cash flows. Also known as capitalization rate or the opportunity cost of capital.

required rate of return

the minimum acceptable rate of return on an investment.

cost of capital

the return available from investing the capital elsewhere