The decision to invest in IT is always a much-debated one. Companies, regardless of their size, need to weigh the cost of the investment against the benefits it will have for their business. Smaller firms may have less of a budget than their larger counterparts, meaning that every IT investment has to bring significant benefits - and be successful - in order to justify spending the cash.
With all the talk of high-profile IT project failures, such as the government's controversial PPARS system, it is understandable that small businesses are increasingly wary about taking on ambitious IT projects and, when they do, they are sometimes content to leave the project in the hands of IT experts.
However, getting the backing of the board is one of the vital ingredients for the success of a project. While the IT department has the skills, business managers need to be involved at every stage of the project in order to ensure that the business goals remain at the forefront of everyone's mind throughout the implementation process.
Business sponsor
Maire Kearns, director of Bluesky Training and Consulting and co-author of "The No-nonsense Project Handbook", recommends careful selection of a business sponsor for IT projects. A business sponsor is someone from the management side of things - not necessarily connected with IT department - who will take 'ownership' of the project. This can help keep the focus on the business case for the IT project, rather than on the technical details.
Kearns says that making a strong business case is one of the most vital aspects for a project - in other words, defining solid business reasons for implementing the project. If the business benefits to the IT implementation are not made clear from the outset, then the company could simply end up wasting time, money and energy.
Accurate time-frame
Another way to help ensure that your company's IT project runs smoothly is to figure out a time-frame for the project in advance of the implementation. Ensuring that everyone is clear on the life-cycle of a project will help avoid the dreaded "scope creep" - when a project overruns its original parameters, a scenario that can ultimately torpedo an IT implementation.
One mistake often made is under-estimating how much manpower and time a project will take. Kearns stresses the importance of accounting for every element. Often, she says, people forget to factor in things like sick leave, meetings and holidays into the time-frame - all of which can impact on delivering a project successfully and on time.
Instead, companies tend to focus on the technical side of the job and how long that will take to implement, without factoring in other elements. "We find a six-week project can have 21 days missing, allowing for peripheral tasks," says Kearns.
Early and often
Consultancy firm Exoftware says that projects need to deliver value "early and often" in order to be classed as successful - something that projects such as the Health Service Executive's PPARS failed to do. If business leaders can't see the immediate benefits the projects will bring to their firm, they won't want be keen to invest in further developments, which could put their firm at a disadvantage.
This can be done by identifying smaller projects within the larger implementation that can be completed quickly. "Inside every large project is a small project screaming to get out," explains Kearns. She recommends focusing on the "low-hanging fruit" first and identifying elements that will give the biggest bang for the smallest amount of work.
Each project needs to be graded according to three criteria:
- business benefits;
- cost impact;
- technical impact.
Once each criteria has been rated, you should have a clear idea of the most important elements in the project. Identifying these areas - and dealing with them quickly - could mean that the boardroom gets to see some real impact from the project in a short space of time.
Vital communication
Communication is vital to a project's success, whether it involves keeping the business sponsor up-to-date with potential pitfalls or problems, or communicating effectively to the team working on the project exactly what is required of them. A good project manager will help ease this path.
This is something Exoftware agrees with, deeming a lack of communication a major hindrance to the success of projects. Effective communication will ensure that potential problems can be identified and tackled early on, avoiding a knock-on effect in other areas of the project.
Implementing an IT system will normally require a degree of testing to iron out any teething problems before it goes live - something that businesses often fail to factor in to the time-scale. Kearns says that testing time could add between 25 percent and 50 percent extra time to a project.
With all these bases covered, IT projects should run smoothly. In the wake of the PPARS debacle, Exoftware offers one final piece of advice: accept and expect change. If you do not, projects could spin out of control and end up being a costly lesson on the importance of efficient project management.