The License Application Mitigation Project

Published Date: 02 Nov 2017

In an IT project that have three factors to evaluate a project success or failure. They are scope goal, cost goal and time goal. With completion in this three factors that can satisfy the project sponsor.

Example:

In March 1997, America stopped the biggest IT project. It named License Application Mitigation Project (LAMP). The aim of LAMP is helping in the license renewal processes and vehicle registration.

The project used IBM’s MVS /CICS architecture for creating a relational, client-server system. At first, it was estimated is $16 million in 1990. However in 1992, the project cost has increased to $ 41.8 million. Finally, the last estimated (March 1997) at $67.5 million of which $40 million had been spent without result. Therefore, it was being considered in money-waster project. In 1997, LAMP was turned off. After the calculation, the project would cost $4.2 million more annually to run than the state's $0.8 million per year existing system.

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In fact, it has not reached the cost goal. Since it spent great money to run up the new system however there was no any result. That means, it will not deliver benefit or technology and the profit of the project might not be positive. Therefore, investment is a high risk activity. Base on consideration of most stakeholders, they would cut off the project and stop to invest in the project. In addition, it might relate in scope goal also. The project needs more hard architecture and ability to finish the system. If the difficulty of the project is higher, the time of development is also being greater and therefore, the cost of the project is also expensive. Since, the development company had to provide some courses or introduction to programmers that they need to learn from IBM. In addition, programmers have to more time to absorb the resources. The project may not be finished on time in the uncertainty factors.

Q2

Regards to the author presented that the purpose of the survey was used to share the finding to publish. It can help them doing better job of analysis in iterative, agile, learn, traditional and ad-hoc.

Regards to the previous trend, in the 2011 survey, it had the learn software development that there were no this development in early year.

For the challenged rate in previous years, there were around 20% to 49% projects that were considered in challenged projects. Furthermore, it was only around 10% projects could reach three deliverables according to schedule, within budget and to the specification.

It means most of projects might accept little bit of late for the project, over little budget for the project or etc.

In addition, iterative and agile were almost the largest number of project successful. They are always above 60%. Moreover, the successful rage of tradition method was above 50% but except of 2010 there was below 50%.

For the quality of work, agile teams produced the better quality of work and more fast to deliver. In addition, agile teams are not only quick to build in but also right functionality. Therefore it is more likely to provide greater ROI than traditional teams.

Q3

NIBCO (The company began to reorganize into a cross-functional) in January 1996. Since NIBCO called "associates", the consensus among NIBCO's management team was that the company was "information poor" and needed to be "cut loose" from its existing systems. Therefore, it had to use SAP R/3 (ERP) to centralize the information (organization change for reengineering.

Regards to the benefits of SAP, there are several benefits. Firstly, online system with no traditional batch interfaces that means it can easy to manage the information/data with automation. It can reduced cycle time. Secondly, since it had integrated whole businesses in NIBCO, there were one database for all data that can centralized the data and let the data consistency. It makes costs/cycle reduction. However, NIBCO have to do the backup process very well because all the data in one site. Therefore, it needs to plan some policies to protect the data server such as firewall, access control and encryption method. In addition, since the data has already integrated in one site, there is not any data redundancy. Furthermore, every data item clearly defined & documented in data dictionary and comprehensive business functionality that can help company to be good at analysis/consider about the marketing and helping new product development. And also, it can easy to develop ABAP program to the system. Finally, functionality can be configured by site that can easy to control the function. It can establish new managerial mindset and strategic focus.

There are three area, they are technology, business coordination and change management.

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In addition, the managers have some teams.

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Beutler was in charge of 3 business process teams. They are sales distribution, finance control and materials management production planning team.

Business leaders make BPR decisions based on own knowledge and experience

         Power users knew how transactions processed today and capture operational details from others on problem areas

         Business systems analyst needs to have technical skills and business specific knowledge. Two of each business process team as liaison with technical team 

          Rod Masney hired as many others

 

Wilson was in charge of technical team for infrastructure [clients {email, and WAN and ABAP programming support that is the programming language of SAP system and bar code scanning/labeling.

 

Davis was in charge of change management team (3 person)

    Don Hoffman – communications and product

Steve Hall -- training

    In addition, there were consultants on each of 5 teams  for SAP R/3 knowledge, knowledge transfer, security issues, SAP consultants

 

Extended Team Members (part-timers) brought on for:

    Documenting old and new business processes, master data loads and testing and eventually become "local experts". (IBM)

There are three goals in triple constraint. They are scope goal, cost goal and time goal.

Cost goal

It was 30% higher than the mid-summer estimate as the final project budget was estimated to be $17 million. The major reason was the inclusion of change management costs and it included training cost that had been over budget.

For the trade off, the December plan also addressed two major changes in project scope. One was a recommendation to include North America only. For example, sales offices outside of the U.S. (such as operations in Poland) would not be included in the Big Bang implementation to reduce the cost of using SAP.

Time goal

SAP must live on or before 12/31/97. However, in early December 1996 the final project scope and resource estimates were presented to the ELT and the Board, based on a Go Live date 12 months later.

The time of the project is on time. Since December 30, 1997 was the Go Live date at NIBCO INC because it was required for any incentive pay.

Scope goal

It was not easy to implement it because of technology issues. At the end of 1996, NIBCO had 17 distribution centers, but its long-term strategy was to consolidate to at least half that number. An R/3 project involving 17 distribution centers would have high technology installation and operations costs as well as high project complexity due to the sheer number of locations. A distribution center consolidation prior to the ERP Go Live date would therefore reduce both technology costs and implementation complexity. For the trade-off, the company had committed to consolidate from 17 small distribution centers (DC) to 4 large ones: 1 existing facility would be enlarged and new managers and associates would be hired to run the 3 new DC facilities. The goal was to complete the consolidation by September 1997 to allow time to prepare for the cutover to the ERP system.