Prioritizing the IT Project Portfolio Paper Essay
Prioritizing the IT Project Portfolio Paper
Information Technology (IT) projects are an important part of a company’s growth and advancement. Playing a key role in the development of most businesses, IT projects impact all departments and many work processes that take place throughout an organization. Certain factors must be taken into consideration when moving forward with an IT project, such as budget and importance. Effectively prioritizing IT projects helps to ensure that important projects are completed first. Using Project Portfolio Management (PPM) helps companies to identify projects that offer the most potential return on investment (ROI) and the highest likelihood of success.
Four potential IT projects are currently under consideration the upcoming quarter (Q2), two of which will be selected and two which will be reconsidered for the third quarter (Q3) budget. Presented IT projects will be rated based on set criteria using a number system to determine the importance of each project. The two IT projects that score the highest evaluation will be selected for Q2 and the remaining projects will be reconsidered at a later date.
IT PROJECT CRITERIA AND SCORING SYSTEM
The scoring system will be based on the one of three choices for each criteria; N=No, U=Uncertain, and Y=Yes. No and Uncertain will count as zero points and yes will count as one point. The four scores will be added for each project and the higher scores will represent the higher priority projects.
Each project will be rated based on the same four criteria, using the aforementioned scoring system. The criteria used will be as follows:
The project drives or creates more revenue for the corporation.
The project cuts the cost of doing business.
The project is mandated by laws (federal, state, county, or local) or executive orders.
The competitor has undertaken a similar project.
Project one proposes to create a database that will support company products on distributor ecommerce websites. The project one database will provide distributors with the necessary information for list our company’s products n their ecommerce websites. This project will help also to create revenue for the company by proving vendors with the information required to sell our company’s products via distributor websites. Because our company does not have direct control of the ecommerce website, the first criteria has been assigned a ‘Y’ score.
Mentioned in the prior criteria, the company is not responsible for the ecommerce websites that are selling our products, therefore costs associated with managing the websites are not incurred; earning the second criteria a ‘Y’ score as well. Although laws may be in place governing the sales of goods online, the distributors accessing the data already have established ecommerce websites in place; this helps to ensure any legal concerns have already been addressed. The third criteria is scored as ‘U’. It is known that at least one competitor has undertaken a similar project, therefore the fourth criteria earns a score of ‘Y’. The total score for project one is three.
Project two proposes to create and implement a new Employee policy SharePoint Intranet portal for the HR Department. The proposed Employee policy SharePoint Intranet portal for the HR Department does not create revenue for the company and therefore earns criteria one a score of ‘N’. Furthermore, the project does not cut any costs for the company earning an ‘N’ score for the second criteria. Employee policies are currently posted on the company server, accessible by all employees, and updated as needed. While some aspects of the employee policy must meet certain legal requirements, the project itself will not be mandated by law. The third criteria is scored as ‘N’. Lastly, the company is uncertain of competitors practices for distributing employee policies and therefore must assign a score of ‘U’ for the fourth criteria. The total score for project two is zero.
Project three proposes that the company replace all the PCs for the company’s sales team and upgrade the CRM (customer relationship management) software. Although this project isn’t expected to have a direct impact on revenue, furnishing the sales team with new equipment and more powerful, up-to-date software is likely to motivate the sales people. Criteria one is scored as ‘Y’. Project three will not cut any costs; therefore, it will earn an ‘N’ score for criteria two. Additionally, project three is not mandated by law, earning criteria three an “N’ score as well. What CRM software solutions our company’s competitors are using is unknown, thus resulting in a ‘U’ score for criteria four. The total score for project three is one.
Project four proposes the implementation of a WMS (warehouse management system) with RF guns. Implementation of n new WMS will not drive or create company any new revenue. The score for this criteria one will be ‘N’. However, project four will cut the cost of doing business through time saved and mistakes eliminated. Employees currently log all warehousing functions by hand; therefore, actions are more prone to mistakes and tend to take longer than they would if they were completed using RF methods. The time that will saved through the implementation of this project earns criteria two a ‘Y’ score. Project four will not be mandated by law, thus earning it a score of ‘N’. Most of the company’s competitors have converted their warehousing procedures to the level of technology proposed in this project; therefore a ‘Y’ is earned for criteria four. The total score for project four is two.
Based on the results of the project evaluation, projects one and four have been selected for Q2 implementation, while projects two and three have been pushed back to Q3 consideration status. The priority project will be project one, based on its high score. Project one offers the most likely project to drive revenue and is the only presented project to earn three out of a possible score of four. Project four will be the second project taken on in Q2, earning a score of two out of a possible four points. Project three earned one point and project two earned none. Projects three and two will be submitted for reconsideration in Q3.