CASE $2$: IT Project

Enterprises and business systems are introducing modern information and communication technologies into their organizations to improve their business processes and gain a competitive advantage. Companies take this step without the necessary professional analysis of business processes and insufficient knowledge of the project management methodology. Modern companies' business and business systems are based almost exclusively on project management. For this reason, knowledge and skills in project management become an increasingly important resource for every successful company. Projects are usually multidisciplinary and therefore project management involves many complex activities in planning, coordination and control from different areas of business: sales, marketing, IT$,$ etc.

The project is usually defined as a one$-$off venture, undertaken to create a unique product, service, or other particular result. However, this definition only indicates some basic characteristics of the project. Wysocki described the project as a series of unique, complex and interconnected activities, with one goal or purpose, which must be achieved at a given time and budget and in accordance with the specifications.

The project can also be the realization of a new venture in terms of risk and uncertainty, competition with the necessary resources, in a certain period, with a defined cost price and the required quality. Today, all major business systems tend to project their activities and thereby gain a competitive advantage. The efficiency of modern business depends to a great extent on the application of information technologies $($IT$)$ in solving complex business tasks and projects. According to Schwalbe, IT projects are those that use certain hardware, software and the network to create an informational product, service, or result. In practice, the IT project can be realized by introducing the information system, introducing new hardware and$/$or software solutions and as a training for users.

Project management is the leading tool chosen to implement the strategy and achieve key business goals. Therefore, this is no longer the sole responsibility of the individual the project manager, but the entire company, including the leading management. About $60\%$ of leading executives believe that a strong discipline of project management should be among the three most important strategic priorities for their company in the future. Project management has, as a scientific discipline, evolved over time from a set of desirable processes in the organization, to a structured methodology that is necessary for the survival of the company.

Although project management gets important, many projects do not achieve the set goals. This is especially true for IT projects, where projects are unsuccessful regardless of the way they are organized. In $2017,$ only $34\%$ of the projects were completed on time and $42\%$ within the planned budget. The situation improved slightly in $2018,$ when $40\%$ of the projects were completed on time and $46\%$ within the budget. Different approaches to project management adopt various project success criteria. Some authors have the view that it is the responsibility of the management team to determine what is appropriate and applicable to a particular project.

a$)$ Critically analyse ten $(10)$ reasons for the failure of IT projects.

$[10$ marks$]$

b$)$ Discuss ways that can be used to reduce the risk of project failure in this case.

$[12$ marks$]$

$[$Hint: Project management tools and techniques$]$