University of Southern Queensland

Faculty of Business CIS8011 Emerging Information Technologies

Semester 2, 2011 JOURNAL 6

Project Management Issues & Cost Issues

Date Submitted: 10 October, 2011 Prepared by: Student No: 0050110678

Prepared for: Abdul Hafeez-Baig

Emerging Information Technologies

Executive Summery
Information system and information technologies (IT) are the fastest growing industries in development countries. Huge amounts of money continue investing in this side. Despite significant efforts to improve software project success, many still fail. While the adoption of wireless

technologies in project management issues are to be having in

which has became

increasingly and more can use the wireless technologies and it is a widespread significant issues involving access. Journal shows some challenges issue during the project initiation time into an organization. The process, by which costs incurred on the project are formally identified, approved and paid .To the cost of any project always to make a tough and due to the addition with that more issues are occurred when organization runs in the industry. Its showed the journal, a quantifiable outcome of the project which results in the partial achievement of the project objective of cost analysis. As a project management can be every team member can have a flexible aims to achieve more and cost is always high due to the structure. As a project manager fixed a budget when they start the project for achieve the goal.

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Contents
Executive Summery...............................................................................................................2
Introduction:-........................................................................................................3 Definition of project management:-......................................................................4 Project Management issues..................................................................................4

Managing people:-.................................................................................................................6 The Managerial Challenge:-..................................................................................................7

Technology and system requirements:-................................................................7 Risk Management Issues:-....................................................................................8 Change Management Issues.................................................................................9 Project monitoring and team management problems:-........................................9 Training:-............................................................................................................10 Project Cost Issue:..............................................................................................10 Types of Project Costs.........................................................................................11 Example of the Cost Estimating Process.............................................................12 Conclusion..........................................................................................................12 References..........................................................................................................13

Introduction:Many researches shows that there are several factors contribute to implementation of important IT projects has been become a nightmare. In spite of the significant advances in the IT industry, there are still lots of failed IT projects. This document focuses on the team aspect of the success of IT program developments. Therefore, organizations must need to be understand thoroughly how to invest properly and manage to implement approved emerging technologies, While the adoption of wireless technologies in project management issues are to be having in which has became increasingly and more can use the wireless technologies and it is a widespread significant issues involving access. Evidence from UK experience
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most of project fail because of severely delayed, poor operating and overrunning estimated costs (Genus etl, 2003). This paper briefly describes the definition of the project, project management, project management and cost issues appear in different phases of the project.

Definition of project management:Project is a unique attempt to produce a set of deliverables within clearly specified time, cost and quality constraints Westland (2009). Every project must be clearly defined start and end date. The scope of the Project must clearly define. It also approved the budget, resources and risk plan should be allocated to a project initiation. A successful project should integrate the four managerial areas of PMBOK. It should have proper plan for the time of delivery challenge and also there should have a well judged plan i.e. a realistic plan so that the financial crisis does not occur. To achieve the beneficial change to enhance the organization is the main purpose of a project. The emerging technologies are developing in project management issues team that will arrange new service offering in that offering or new employee and new methods in offering existing services. In addition that will consider include: (Charles, 1996). According to Westland (2009), project management is the skills, tools and management processes required to undertake a project successfully. Project management includes professionals skills to reduce the risks, tools for enhance the productivity of project and various processes for control and monitoring the project.

Project Management issues

Project Management issues

Project planning:Effective and accurate project planning is considered as main backbone of project success. Project manager should responsible for project planning. Lack of knowledge and professional experience involve to unsuccessful project planning without clearly define tasks, allocated
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durations, resources, appropriate priorities, critical path and other variety of plans such as communication plan, risk plan, quality plan and financial plan. Schwechel (2005) shows that projects may become vulnerable to find current situation of the project the schedule, because of milestones and review meeting are not defined in the project plan. VoIP implementation planning and assessment: The very first and most important step in approaching a technological insertion project is to properly plan and assess the undertaking. At this stage, the exact objective of the project is identified. Most new IT projects are designed to solve a business problem or exploit new opportunities. In the case of our organization, the objective is to implement the VoIP system to help reduce or eliminate costs for internal voice communication. Once this goal has been set, we need to look at how best to achieve it. We should start with a feasibility report to help us understand what it will take to complete the project. It will help us (1) evaluate whether the project is actually in line with the goals of our organization; (2) whether we have the technical resources to achieve it; (3) whether we have the necessary budget to see the entire project through. Finally, (4) we need to assess whether or not users will actually adopt the new system.
1. VoIP-enabled low-cost voice services do go along with the companys cost saving

objectives. Also, due to the continued growth of the technology as a replacement for traditional analog voice services throughout the industry, it does make more sense for the company to shift to VoIP instead of continuing to spend money supporting the old system.
2. This new and improved system does require a new set of skills that our current

support staff might be lacking. This is the point where we decide whether to outsource the implementation and upkeep of the system, or whether to keep it inhouse. Either choice will require new training. There is the inevitable need to replace the existing equipment. This is an important consideration for our company because our internal and customer satisfaction relies on a dependable communication system.
3. Many IT projects often reach their make-or-break point during the budget process.

We want all the benefits of the new system, while trying to minimize the required costs to implement it. Compromises are always necessary in order to reach a balance point that will make the project feasible. We really need to break down
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everything it will take to integrate the new VoIP system, in order to avoid surprises that might inadvertently spike up our budget. For instance, unlike analog phones systems, VoIP phones require external power, which will increase overall power consumption, or require all new switches with Power over Ethernet (PoE) technology etc.
4. Along with the cost-saving benefits and figuring out the budget for the project, we

need to establish specific objectives on how its going to affect our business operations and our users. We need to understand how users will interact with the system. The bottom line for the success of any project is setting proper expectations. When introducing this VoIP project, the executive management team may have very clearly defined expectations based on ROI and the size of the investment. Our users may have an entirely different set of expectations based on workflows and operations processes. If we build our entire ROI case around the technology but implement the service in a way that increases the labour effort of the staff, the overall result may be counterproductive. Everyone needs to know what to expect and what is expected of them. The only way to really be successful is to clearly define and communicate all expectations. Thats why we need to determine the human information requirements, through interviews, observations, surveys and other unobtrusive methods. For instance, the following table is an example on how telephony users can be classified according to their needs and what the new VoIP system is expected to offer them. Managing people:Managing a project is not just about accomplishing tasks, but getting people to accomplish the work. One of the key challenges for a Project supervisor is supervision of people. Mainly Project Managers have the technological skills required to manage a particular project, but not everybody has the interpersonal skills necessary to manage people productively. A PM has to correspond with people within and external to the organization, and be able to talk their languages. When dealing with senior executive and stakeholders, the PM should tackle how the system will supply to business objectives, and emphasize preliminary asset and return on funds figures. Typically the team consists of people from unlike departments who have their individual priorities, and departmental benefits.

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The Managerial Challenge:-

The majority companies have some kind of hierarchical group, which may challenge the authority of Project Managers (PMs). For example, having Project managers report to a section leader, who is below a team leader who reports to a branch manager who also reports to someone superior, may delay contact among team members from different departments. Idyllically, PMs should be able to organize the companys resources needed to complete their projects, and directly manage their teams. Unfortunately, in the actual world PMs have little or no power, so they have to rely on the official procedure for communicating their needs across the group. These cross-organizational statements can result in delaying project responsibilities, which can eventually bring the project to fail.

Technology and system requirements:Project managers face the challenge of coordinating the use of expensive resources when other people seem to have superior priorities. Not having control over resources can cause the project to fall behind schedule and subsequently to fail. Ellis (2007) commented the concept of getting business and software requirements right sounds straight-forward. Though most companies would admit they need to improve- in fact, flawed requirements trigger 70% of project failures. Kujula & etl (2005) commented that user involvement is main concept in implementing new technologies at an organization which will result useful systems and user satisfaction. There are several reasons for that effect such as communication gap between users and project team, as users have only business background whereas project team have more advanced technology background ( McNurlin, 2005) and changing user requirements during the project continuing period may happen inappropriate requirements at the project delivery stage of the project. Efficient Use Of Radio Resource in WIMAX: Spectral efficiency is enhanced by WI-MAX Radio Resource Management mechanisms. Those mechanisms, specified in the IEEE 802.16 standards include admission control, power control, link adaption and dynamic frequency. In addition to this radio mechanism, the WIMAX Forum defines a frame- work and a functional split of the radio resource management procedure in the WIMAX radio access network (Nuaymi, L. 2007). On the other hand, high spectral efficiency and performance superiority over the other radio system is also achieved by the use of advanced antenna technology systems. The IEEE 802.16 standards
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alternatives for implementing advanced antenna technology.

and associated WIMAX profiles are presently defining and taking provisions for several

Risk Management Issues:That part of risk management which involves the implementation of policies, standards, procedures and physical changes to eliminate or minimise adverse risks. Brouke(2007) explained several risks directly affect to projects. The implementation of new technologies have not regard as a considered scenario which never attempts to clearly define the importance of the project to users and managers. The second is lack of right people in the project team to give high responsibilities to drive towards the project goals by satisfying user requirements and persuade them to accept new technologies. Another risk is not carefully understood legal issues as well as cultural issues which will badly impact on new implementation. McNurlin (2005) proposed of the three processes whenever the main risks in a project change: assess the risk, mitigate the risk, and adjust the project management approach.

Fig:Risk Management process Management selects a risk response strategy for specific risks identified and analysed, which may include: 1. Avoidance: exiting the activities giving rise to risk 2. Reduction: taking action to reduce the likelihood or impact related to the risk
3. Alternative actions: deciding and considering other feasible steps to minimize risks. Journal-6 (0050110678) October 10, 2011

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4. Share or insure: transferring or sharing a portion of the risk, to finance it 5. Accept: no action is taken, due to a cost/benefit decision

For example: Wearable computer is an enabling technology which in some way will have an impact on many of the currently emerging medical technologies. The potential impact on disease diagnosis, therapy, and prevention is foreseen to change health care in a fundamental way. In particular, wearable computer are reported in surgery, cancer diagnosis and therapy, bio-detection of disease markers, molecular imaging, implant technology, tissue engineering, and devices for drug, protein, and gene delivery. Furthermore, development of regulatory guidance, new mandates for standardization and consideration of the risks of disposal into the environment are recommended. A key starting point for any discussions regarding risks and regulations for medical technology based on wearable technology is that there should always be a balance: patient safety should be protected without hampering innovation.

Change Management Issues When people are more convenience with particular technologies and systems, it is very difficult to change the way of working and unwilling to accept changes (Schweche, 2005). Implementing new technologies to re-engineering organizations are conflicted when senior management also resist with changes (Farhoomand, 2005). One organization should prepare to address such difficulties with well planned change management effort in hand as suggested technologies are modern and unfamiliar to users.

Project monitoring and team management problems:To achieve the triumph, project team must work together sharing professional knowledge. Lack of unity and top level management support decrease the enhancement of team effort. Meredith (2000) pointed out that if the project manager has not frequently reliant with team members to address many problems, the project team will face number of conflicts. Weaknesses of project monitoring will effect implementation on new technologies at MCC. Project action plan is a perfect source to monitor the project. If project team unable to maintain regular updating of task
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couldnt be identified unexpected failures of project.

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completed percentages, status reports and variance reports with help of CASE tools, so that it

Training:Lack of knowledge and skill of the project team member seems to continue to be a recurring problem with the software development projects. Several projects have high level, unclear, and usually unhelpful requirements. This has lead to cases where the developers, having no contribution from the users, build what they consider is needed, without having any real knowledge of the business. Unavoidably when the system is transported business users state it does not do what they want it to. This is directly linked the short of user participation, but goes afar it. Users must identify what it is they desire, and be proficient to state it accurately. As non-IT professionals this means usually they need proficiency training.

The above mentioned issues, issue management, scope management, quality assurance, less top management support highly effected issues to project management activity. To sum up, every organization expects improvement of profits or competitive advantage by establishing new project. One organization need to decrease the operational cost at their call center implementing new technologies. To achieve intended future goals, accurate and clever project management is the most significant issue.

Cost issues
Project Cost Issue: Project Cost Management is a set of activities for estimating costs of project, determining and approving a necessary budget, allocating financial resources and controlling spending for the purpose of ensuring that the project is performed under approved budget. Project cost management allows addressing the identification, development, allocation and management of the project budget. The total cost of a project is most important apprehension for any organization. Chan & Park (2005, p.1) said in order to control the cost within an acceptable level, it requires appropriate and accurate measurement of various project related determinants and the understanding of the magnitude of their effects. Otherwise most projects are failed due to lack of managing finance and has not ensure that the project is
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completed under the accepted budget. At its planning level, the financial plans comprise the projects costs, which are accountable for them, the expected financial benefits from the project and cash flow. When implementing suggested technologies at Organization, project manager should keen much attention to track the base line of cost by knowing how much has been spent and how much money is left. However project essential requirements such as technological infrastructure, specialized knowledgeable skills, administration and training have highly effect on project cost (Chan & Park, 2005). Initial investments for technological equipments like wearable devices and WIMAX may be in high levels, so that Organization should be careful to select standard and cheapest brands for them. It is mandatory to invest substantial costs for installation of related software applications and hardware requirements. On the other hand, Organization will have to hire or recruit technological specialist for training purposes and extra spends for overtime of staff. Because of technology change is comparatively large at Organization new people should be retrained and upgraded on regular basis. A multiuser management system has very complex and large that need to afford more security concerns to protect data. When implementing new technologies, it does require converting older systems to modern technologies which measures in dollars as conversion costs. Nevertheless, above mentioned costs are compulsory for start new project whereas project team must control and monitor the financial limits for other factors such as labor, overheads and materials within the budget. Schweche (2005) described with proper planning and sound quality assurance techniques, the best run projects should expect quality deliverables on-time and on-budget. By using different measuring methods, financial status of the project can be evaluated.

Types of Project Costs All the costs of a project can be broken down into three categories that include the following project cost types: Variable Cost and Fixed Cost: A Fixed Cost refers to a cost which is not to be changed throughout the project progress. Fixed cost does not change an increase or reduction of the project work amount. Examples of fixed project cost are setup cost, rental cost, cost for hiring of equipment, etc.
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Direct Cost and Indirect Cost: A Direct Cost is a cost that is directly associated with particular tasks or/and activities of the project. Examples of direct project expense are team wages and expense on materials used during the project.

Example of the Cost Estimating Process Most projects face the same or similar problems related to estimating costs and managing financial resources. New technologies, teams unfamiliar with these technologies, or unclear project work statements are most frequent problems. Here is probably one of the best ways to estimate and calculate costs for your project. The given example of cost estimate process is most applicable to IT projects and software development projects.

Step #1. Breaking project work down into smaller tasks. You need to decompose your project work into as many work items (tasks and jobs) as possible. A convenient way to break down your tasks is to consider typical activities appropriate to your project, and then see whether they can be divided into tasks and todo lists. For example, Blog development project involves such typical activities as such Analysis, Designing, Developing, Demo, Testing, Bug Fixing, Documenting, Deploying, and Supporting. Now having these activities, you can divide each of the activities into a number of smaller tasks and actions.

Step #2. Evaluating tasks. Once you have specified tasks and jobs for each typical process/activity in your project, now it is time to evaluate the tasks considering two scales: Complexity (high, medium, low) and Work Size (large, medium, small). Note that less complex tasks may still require a large amount of work, so for example Low Complexity does not necessary involves Small Work Size. For example, you run an IT project, and you need to load a database that contains information taken from paper documents.

Conclusion
This journal contains a brief synopsis of some of issue to success in Information Systems projects. In project management system, planning includes goals, objectives, tasks, resources, budgets and timelines. Before implementing a project, a Project Manager should to identify

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all requirement analysis about new emerging technology like WiMAX, Wearable computer and Blog. A project manager responsibility as a bridge between the key pieces, and in order to reach pieces efficiently he needs to encompass equilibrium between soft skills and technical knowledge. Some of these key pieces need to be handled with soft skills, particularly those that depend heavily on people to complete the work. Other key pieces need to be addressed rationally and specifically, for an example instruction given to programmers and engineers for system implementation. There is also a need of Project manager be able to gain knowledge quickly and become recognizable with the needs of the company and the business objectives. It is important for a Project Manager to sustain a positive approach even when projects fail or are cancelled. The time management scope management resource, quality and integration management processes of the management project must be followed.

References
Nuaymi, L . 2007, WiMAX : technology for broadband wireless access,John Wiley & Sons Ltd, England. Ellis, K. 2007, Executive Guide to Business and Software requirement, IAG Consulting, North America, viewed 28th September, 2011, <http://whitepapers.technologyevaluation.com/pdf/5610/Executive-Guide-to-BusinessandSoftware-Requirements.pdf>. Schweche, J. 2005, 10 Keys for project success, Retail Process Engineering,LLC, Viewed 30th Septmber, 2011, http://www.rpesolutions.com/RPE_White_Paper_10_Keys_for_Project_Success.pdf. Chan, SL & Park, M 2005, 'Project cost estimation using principal component regression', Construction Management and Economics, vol. 23, no. 3, pp. 295-304, EBSCOhost, Business Source Premier, item: 16606673. Genus, A, Rigakis, A & Dickson, K 2003, 'Managing large-scale IT projects : the case of national air traffic services new en route centre at Swanwick', Technology Analysis and Strategic Management, vol. 15, no. 4, pp. 491-503, <http://ezproxy.usq.edu.au/login? url=http://search.ebscohost.com/login.aspx? direct=true&db=aph&AN=11591838&site=ehost-live>.
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Technology,Boston, Massachusetts. Summer,J&Smith,B. 2010,Communication skills handbook,3rd edn,John Wiley &Sons,Milton,Queensland.

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Schwalbe, K 2010, Information technology project management ,6th edn,Thomson Course

Auditor-General Australia, 16 Sept 2003, "Report of the Auditor-General on Parliament's information technology upgrade" viewed 21 Aug 2011,<http://archive.audit.vic.gov.au/reports_other/agparlynet00.html> Schwalbe, K 2010, Information technology project management, 6th edn,Thomson Course Technology,Boston, Massachusetts. Philips,Joseph 2010. IT Project Management On Track from Start to Finish,3rd edn,McGrewHill companies, United State. Chan, SL & Park, M. 2005, 'Project cost estimation using principal component regression', Construction Management and Economics, vol. 23, no. 3, pp. 295-304, EBSCOhost, Business Source Premier, item: 16606673. Tesch, D, Kloppenborg, TJ & Stemmer, JK. 2003, 'Project management learning : what the literature has to say', Project Management Journal, vol. 34, no. 4, pp. 33-39, <http://ezproxy.usq.edu.au/login?url=http://search.ebscohost.com/login.aspx? direct=true&db=buh&AN=11583975&site=ehost-live>. McNurlin, BC & Sprague, RH. 2005, Information systems management in practice: instructors resource guide, 7th edn, Prentice Hall, Upper Saddle River. Meredith,JR, (ed.) 2000, Project Management: A Managerial Approach, Newyork: John Wiley & Sons. Kujala, S. Kauppinen, M. Lehtola, L, Kojo, T. 2005, The role of user involvement in requirements quality and project succes , Helsinki Univ. of Technol, Finland; Westland, J . 2009 , Project management guide book, Method123, Empowering managers, viewed 4th October, <http://www.thoughtware.com.au/documents/method123-ebook.pdf>
<http://wysterdesir.com/2008/12/28/implementing-voip-into-your-it-

infrastructure/>

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3supp03a02.pdf> Turnitin Report

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<http://forum.ecmjournal.org/journal/supplements/vol013supp03/pdf/vol01

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