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Strategy for Consistently Delivering Successful IT Projects in Indonesia

STUDENT PAPER

By Delano Irawadi 

Jakarta, Indonesia
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Abstract

Project management involves the short-term goals of creating a service, program or product that meets customer satisfaction. Successful project will create a service, program or product that is considered asset that supports business line. The purposes of this paper is to clearly explain SWOT analysis that is applied into project life cycle in order to create strategy needed to overcome factors that influence project failures in Indonesia. This is done by using strategy formulation framework in project life cycle phase. In the end, the result would provide the analysis and what potential strategy could be taken into account for the identified issue.

Keywords: project life cycle, IT projects, SWOT analysis, strategy formulation framework, project management, project failure factors.

1.    Introduction

Based on Association for the Advancement of Cost Engineering (AACE) International Total Cost Management (TCM) framework there are five stages in life cycle of strategic asset that is ideation, creation, operation, modification and termination. Project is on creation stage in asset life cycle. Product in information technology (IT) projects are considered good asset if:

  • The product delivered on schedule and meets user needs on that particular time period. Because if the product is so late that by the time it is rolled out, the users either no longer need it nor another product is found to fulfill the user needs. 
  • The product meets user needs. In other words, users feel that the product will allow them to do their work efficiently by using it. The product works as required because if there are major bugs in the system, users do not trust the product functionality and hence they will not use it. 
  • The product that project produced is not considered overpriced so project should be on budget. 

A product delivered on time, within budget and with all features and functions as specified is an asset created from a successful project, so it is important to have successful project.

Based on Standish CHAOS Manifesto 2011 project is classified by following criteria:

  • Successful if products are delivered on time and within budget, with all features and functions worked as stated on project requirement. 
  • Challenged if products are delivered but over budget, delivered late or lacking some originally specified features and functions. 
  • Failed if the project team fails to deliver a solution at all. For example project cancelled before the product is complete or can be delivered. 

The study shows that IT projects using traditional waterfall development methodologies are 14% successful, 29% failure and the remaining 57% challenged, while IT projects using agile development methodologies are 42% successful, 9% failed and the remaining 49% challenged. Chart for the IT projects success rate is presented in Figure 1.

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Editor’s note: Student papers are authored by graduate or undergraduate students based on coursework at accredited universities or training programs.  This paper was prepared as a result of a course delivered by Dr Paul Giammalvo of PT Mitratata Citragraha in Jakarta, Indonesia.  The paper was submitted to the Association for the Advancement of Cost Engineering International (AACEi) in partial fulfillment of the Certified Cost Professional (CCP) requirements. http://www.aacei.org/cert/whatCertOffers.shtml 

About the author 

flag-indonesiapmwj19-feb2014-irawadi-AUTHOR PHOTODelano Irawadi

Jakarta, Indonesia

Delano Irawadi is a professional in fields of Integrated Asset, Portfolio, Program and Project Management. He is currently Project Control for Network Projects and Implementation at SmartFren Telecom (Indonesia) and a student at Bandung Institute of Technology (ITB, Indonesia) pursuing his master’s degree for Master of Business Administration.

Delano Irawadi has a Bachelor’s degree in Engineering and is a Certifed Cost Professional (CCP-AACEI). His past engagement was 6 years in telecomunications  industries at Nokia Solutions Networks. He lives in Jakarta, Indonesia and can be reached at [email protected]