SCHOOL OF GRADUATE STUDIES

3rd Semester, AY 2019-2020

MSIT 204 PROJECT MANAGEMENT AND INFORMATION SYSTEM

Topic:

Measurable Organizational Value (MOV)

• The MOV and Project Objectives
• Developing the MOV

The first phase of a project begins with conceptualizing the project’s goal and overall measure of success
called the Measurable Organizational Value (MOV). The Measurable Organizational Value (MOV) is the
goal of the project and is used to define the value that your project will bring to your client. To provide real
value to an organization, a project must align with and support the organization’s vision, mission, and
strategy.

The MOV must:

 Be measurable: measurement provides a clear definition of success for all of the project’s
stakeholders.
 Provide value: time and resources should not be devoted to a project unless it can bring value to the
organization.
 Be agreed upon: a clear and agreed upon MOV sets expectations for the project’s stakeholders. The
MOV must be doable and worth doing.
 Be verifiable: if the MOV acts as a measure of success, then it must be verified at the end of the
project. This does not always mean that the MOV will be met immediately at the end of the project
when the product, service, or system is delivered. Often there will be a time period of perhaps a
week, a month, or even a year before the full value of the MOV is achieved; however, the organization
should evaluate the MOV in order to know whether it received the value it envisioned for the time,
money, and resources invested in the project.

In addition to an overall goal (MOV), a project will have several objectives. These objectives support the
overall goal and may be defined in terms of the project's scope, schedule, budget, and quality standards.
Separately, each of these objectives cannot define success; however, together they must support the project's
goal. This relationship is illustrated in the figure below.

The following steps to develop project’s MOV:

 Identify the desired area of impact: a project can have an impact on an organization in many different
ways. (Customer, Strategic, Financial, Operational, Social)
 Identify the desired value of the project: once the desired area of impact is identified, the next step
involves determining the desired value the project can bring to the organization.
 Develop an appropriate metric: once there is agreement as to the value the project will bring to the
organization, the next step is to develop a metric, or set of metric, that:
 Provides the project team with a performance target or directive
 Sets expectations among all stakeholders
 Affords a means for evaluating whether the project is a success later on.
 SCHOOL OF GRADUATE STUDIES

3rd Semester, AY 2019-2020

MSIT 204 PROJECT MANAGEMENT AND INFORMATION SYSTEM

 Set a time frame for achieving the MOV: once you have identified the area of impact, value to the
organization, and an appropriate metric, you need to set a time frame for achieving the MOV. Keep in
mind that this time frame may not coincide with the scheduled completion of the project work.
 Summarize the MOV in a clear, concise statement or table: once the impact and value to the
organization are verified and agreed upon by all the project stakeholders, the MOV should be
summarized in a single statement or table. Summarizing the MOV provides an important chance to
get final agreement and verification, provides a simple and clear directive for the project team, and
sets explicit expectations for all project stakeholders.

Sources: https://sis.binus.ac.id/2018/02/09/measurable-organizational-value-mov/

Examples:

Measurable Organizational Value

 Project’s overall goal and measure of success

o The measure of success will be noticeable when Tech support and R&D employee’s spend
less time having to open different tickets and combining information from one format with
their own.
 What elements of the project provide value to the organization?
o The speed at which tickets get resolved for faster turnaround time and higher customer
satisfaction (improved sales). Cost savings on man hours spent with ticketing.
 ROI (return on investment) and cost versus benefit
o ROI will be evident in the 15-20% faster ticket responses. Cost versus benefit will become
evident over the course of a 2-4 year period when customer satisfaction and sales go
increase due to the reduction in tickets.
 Statement
o The plan is to find and implement a Ticketing Software system to speed up customer support
tickets, lessen the return time on tickets and increase over-all customer support as well as
man hours spent sorting through tickets.

Source: http://instekus.com/page3.html

References

Jack T. Marchewka. (2014).Information Technology Project Management. 05th Edition. 1STBL. Singapore.
ISBN: 978-1118911013 .
 SCHOOL OF GRADUATE STUDIES

3rd Semester, AY 2019-2020

MSIT 204 PROJECT MANAGEMENT AND INFORMATION SYSTEM

Topic:

The Business Case

• Definition of Business Case
• Developing Business Case

Definition of Business Case

A business case defines the problem or opportunity, MOV, feasibility, costs, and benefits of several
alternatives that an organization may choose in order to achieve its goals and strategies. Based on the
analysis of the alternatives identified, a recommendation is made to approve and fund a specific project.

Thus, a good IT business case should be (I) thorough in detailing all possible impacts, costs, and
benefits; (2) clear and logical in comparing the cost benefit impact of each alternative; (3) objective through
including all pertinent information; and (4) systematic in terms of summarizing the findings (Schmidt 1999).

Developing the Business Case

The purpose of a business case is to provide senior management with all the information needed to
make an informed decision as to whether a specific project should be funded (Schmidt 1999). Also, to show
how an IT solution can create business value.

Therefore, the business case must show explicitly how an investment will lead to an increase in
business value. The steps below depict the process for developing a business case.

1. Select the Cove Team

There are several advantages for having a core team develop the business case (Schmidt 1999):
Credibility -A team made up of individuals from various organizational areas or departments can
provide access to critical expertise and information that may not be readily accessible to others outside
that particular area.
Alignment with organizational goals-Higher-level managers can help connect the business case with
the organization's long-term strategic plan and mission.
Access to the real costs - Core members with certain expertise or access to important information can
help build more realistic estimates in areas such as salaries, overhead, accounting and reporting
practices, training requirements, union rules and regulations, and hiring practices.
Ownership - A cross-functional team can spread a sense of ownership for the business case.
Agreement - If you develop a business case in isolation, it is very likely that you will have to defend your
assumptions and subjective judgments in a competitive or political setting.
Bridge building - The core team may serve as an effective tool for handling critics of the business case.
2. Define Measurable Organizational Value (M0V)
The MOV must:
Be measurable-Measurement provides focus for the project team in terms of its actions. Instead of
implementing an information system, the project team attempts to achieve a specific performance target.
Provide value to the organization - Resources and time should not be devoted to a project unless they
provide some kind of value to the organization.
 SCHOOL OF GRADUATE STUDIES

3rd Semester, AY 2019-2020

MSIT 204 PROJECT MANAGEMENT AND INFORMATION SYSTEM

Be agreed upon - A clear and agreed upon MOV sets expectations for the project stakeholders. It is
important that all project stakeholders understand and agree to the project's MOV.
3. Identify Alternatives
The alternatives, or options, identified in the business case should be strategies for achieving the MOV.

4. Define Feasibility and Assess Risk

Each option or alternative must be analysed in terms of its feasibility and potential risk. Feasibility should
focus on whether a particular alternative is doable and worth doing. Risk, on the other hand, focuses on
what can go wrong and what must go right. Analysing the feasibility and risk of each alternative at this
point may act as a screening process for ruling out any alternatives that are not worth pursuing.
Feasibility may be viewed in terms of:
 Economic feasibility - an organization may evaluate an alternative in terms of whether funds
and resources exist to support the project. For example, although you may be in a market for a
new car, the reality of your limited income rules out the fancy sports car. Conducting an
economic feasibility should serve as a reality check for each option or alternative.
 Technical feasibility - focuses on the existing technical infrastructure needed to support the IT
solution.
 Organizational feasibility- considers the impact on the organization. It focuses mainly on how
people within the organization will adapt to this planned organizational change.
 Other feasibilities - Depending on the situation and the organization, a business case may
include other issues, such as legal and ethical feasibility.
Risk should focus on:
Identification -What can go wrong? What must go right?
Assessment-What is the impact of each risk?
Response-How can the organization avoid or minimize the risk?
5. Define Total Cost of Ownership
It is a concept that has gained widespread attention in recent years and generally refers to the total cost
of acquiring, developing, maintaining, and supporting the application system over its useful life.
TCO includes such costs as:
 Direct or up, front costs - Initial purchase price of all hardware, software, and
telecommunications equipment, all development or installation costs, outside consultant fees,
etc.
 Ongoing costs - Salaries, training, upgrades, supplies, maintenance, etc. Indirect costs-Initial loss
of productivity, time lost by users when the sys- tem is down, the cost of auditing equipment (i.e.,
finding out who has what and where), quality assurance, and post implementation reviews.
6. Define Total Benefits of Ownership
The Total Benefits of Ownership (TBO) must include all of the direct, on-going, and indirect benefits
associated with each proposed alternative. The TBO should address the benefits of an alternative over the
course of its useful life. Benefits can arise from:
 Increasing high-value work-For example, a salesperson may spend less time on paperwork and
more time calling on customers.
 Improving accuracy and efficiency For example, reducing errors, duplication, or the number of
steps in a process.
 SCHOOL OF GRADUATE STUDIES

3rd Semester, AY 2019-2020

MSIT 204 PROJECT MANAGEMENT AND INFORMATION SYSTEM

 Improving decision-making-For example, providing timely and accurate information.

 Improving customer service-For example, new products or services, faster or more reliable
service, convenience, etc.
7. Analyse Alternatives
Once costs and benefits have been identified, it is important that all alternatives be compared with each
other consistently.
The most common are financial models and scoring models.
 Financial models - focus on either profitability and or cash flows. Cash flow mod- else focus on
the net cash, may be positive or negative, and are calculated by subtracting the cash outflows
from the cash inflows.
 Payback - determines how long it will take to recover the initial investment.
 Breakeven Similar to the payback method, the breakeven method attempts to A - determine the
point at which a project would begin to recoup its original investment.
 Return on Investment - is an indicator of a company's financial performance.
 Net Present Value (NPV) - focuses on the time value of money.
 Scoring models - provide a method for comparing alternatives or projects based on a weighted
score.
8. Propose and Support the Recommendation
Once the alternatives have been identified and analyzed, the last step is to recommend one of the options.
It is important to remember that a proposed recommendation must be supported. If the analysis was
done diligently, this recommendation should be a relatively easy task.
The business case should be formalized in a professional-looking report. Remember that the quality and
accuracy of your work will be a reflection on you and your organization.

Examples:

See Sample Business Case.pdf

References

Jack T. Marchewka. (2014).Information Technology Project Management. 05th Edition. 1STBL. Singapore.
ISBN: 978-1118911013 .

Project Management Institute,2013. A Guide to the Project Management Body of Knowledge (PMBOK®
Guide) – Fifth Edition
 SCHOOL OF GRADUATE STUDIES

3rd Semester, AY 2019-2020

MSIT 204 PROJECT MANAGEMENT AND INFORMATION SYSTEM

Topic:

Project Selection and Approval

• The IT Project Selection Process
• The Project Selection Decision

The objective of the business case is to obtain approval and funding for a proposed alternative.

The IT Project Selection Process

The selection process determines which IT projects will be funded in a given period. This period can be for a
quarter, year, or a time frame used by the organization. In order to weed out projects that have little chance of
being approved, many organizations use an initial screening process in which business cases submitted for
review are compared with a set of organizational standards that outline minimum requirements. Projects that
meet the minimum requirements are then forwarded to a decision- making committee of senior managers
who have the authority to approve and provide the resources needed to support the project. On rare
occasions an individual might make such decisions, but most organizations of any size prefer to use
committees. The committee may compare several competing projects based on the costs, benefits, and risks
to projects currently under development and to those already implemented. Projects selected should then be
assigned to a project manager who selects the project team and then develops a project charter and detailed
plan.

The Project Selection Decision

The decision to approve an IT project requires a number of conditions be met:

1. The IT project must map directly to the organization's strategies and goals.
2. The IT project must provide measurable organizational value that can be verified at the completion of the
project.
3. The selection of an IT project should be based upon diversity of measures that include:
Tangible costs and benefits
Intangible costs and benefits
Various levels throughout the organization (e.g., individual, process, department, and enterprise)

References
 SCHOOL OF GRADUATE STUDIES

3rd Semester, AY 2019-2020

MSIT 204 PROJECT MANAGEMENT AND INFORMATION SYSTEM

Jack T. Marchewka. (2014).Information Technology Project Management. 05th Edition. 1STBL. Singapore.
ISBN: 978-1118911013 .

Project Management Institute,2013. A Guide to the Project Management Body of Knowledge (PMBOK®
Guide) – Fifth Edition