37746799-Chap01-Introduction-to-Project-Management -...

IT Project Management, Third Edition Chapter 1 1
Chapter 1:
Introduction to Project
Management

IT Project Management, Third Edition Chapter 1 2
Learning Objectives
•
Understand the growing need for better project
management, especially for information
technology projects
•
Explain what a project is and provide examples
of information technology projects
•
Describe what project management is and
discuss key elements of the project management
framework

IT Project Management, Third Edition Chapter 1 3
Learning Objectives
•
Discuss how project management relates to
other disciplines
•
Understand the history of project management
•
Describe the project management profession,
including recent trends in project management
research, certification, and software products

IT Project Management, Third Edition Chapter 1 4
Project Management Statistics
•
The U.S. spends $2.3 trillion on projects every year, an
amount equal to one-quarter of the nation’s gross
domestic product.
•
The world as a whole spends nearly $10 trillion of its
$40.7 trillion gross product on projects of all kinds.
•
More than sixteen million people regard project
management as their profession; on average, a project
manager earns more than $82,000 per year.*
*PMI, The PMI Project Management Fact Book, Second Edition, 2001

IT Project Management, Third Edition Chapter 1 5
More Information
on Project Management
•
More than half a million new information technology
(IT) application development projects were initiated
during 2001, up from 300,000 in 2000.*
•
Famous business authors and consultants are stressing
the importance of project management. As Tom Peters
writes in his book, Reinventing Work: the Project 50 ,
“To win today you must master the art of the project!”
*The Standish Group, “CHAOS 2001: A Recipe for Success”

IT Project Management, Third Edition Chapter 1 6
•
IT projects have a terrible track record
–
A 1995 Standish Group study (CHAOS) found that
only 16.2% of IT projects were successful and over
31% were canceled before completion, costing over
$81 B in the U.S. alone
•
The need for IT projects keeps increasing
–
In 2000, there were 300,000 new IT projects
–
In 2001, over 500,000 new IT projects were started
Motivation for Studying Information
Technology (IT) Project Management

IT Project Management, Third Edition Chapter 1 7
Advantages of Using Formal
Project Management
•
Better control of financial, physical, and human resources
•
Improved customer relations
•
Shorter development times
•
Lower costs
•
Higher quality and increased reliability
•
Higher profit margins
•
Improved productivity
•
Better internal coordination
•
Higher worker morale

IT Project Management, Third Edition Chapter 1 8
What Is a Project?