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Background of the Situation
The background for the case pertains to the issues that affect Information Technology (IT) departments in organizations. Overtime IT managers have encountered issues relating to poor costing and inefficient management of projects. The results of poor costing and inefficient management comprise cost overruns, malfunctions, and technical issues that augment operational costs in project development. According to Schwalbe (2012), IT managers have continually experienced issues regarding the cost and management of projects. The problem further compounds since several managers focus on profits, sales, and financial investments as opposed to the requirements advanced by IT equipment. Therefore, the purpose of this study is to assess the issues, causes, solutions, and results, which transpire after the successful implementation of the proposed solutions.
Some of the issues or matters of concern that affect IT departments include overruns in cost, poor project performance, and technical problems. In the elucidation advanced by Schwalbe (2012), overruns usually relate to costs that exceed the budgeted resources, whereas poor performance implies the inability of a particular project to meet the expected demands. Consequently, technical problems usually arise during and after the execution of the projects. Technical problems are high and unpredictable when IT managers fail to engage in the correct analysis of the project requirements. These issues or matters of concern are crucial and need effective systems of redress.
Unclear budgets, poor implementation of the project, and incompetent human resources are some of the factors, which have given rise to the issues that currently affect the IT sectors in various organizations. Schwalbe (2012) explains that some managers in the IT sector do not develop a clear budget in relation to the actual cost of a project. As such, the project exceeds the allocated resources, and thus, strains the organization. Moreover, poor implementation leads to delays, high costs, and inaccurate timing, a factor that hampers the overall execution of IT projects. It is notable to highlight that several individuals in the IT sector do not have a clear understanding of the concepts that concern IT and its financial requirements. In essence, most of the IT managers are concerned with software development, increased revenues, and profits accrued by the project.
Project monitoring, information on changes, and undertaking timely requisite changes are some of the solutions that IT managers can employ to address the issues relating to the cost of project management. In effect, project monitoring entails a continuous assessment of IT projects in the quest to ascertain the extent to which they attain the expected results (Schwalbe, 2012). Consequently, the development of a good system of information that enhances communication between project managers in the IT department and other managers in various departments is very instrumental in solving the issues of costs and project overruns. It is paramount to explain that the implementation of the requisite changes in a timely manner is one of the major solutions that IT managers can use in successful project cost management.
Practically, the results that emanate when project managers implement the solutions comprise minimal losses, successful integration of time, scope, and schedule, as well as timely achievement of goals. These solutions collectively lead to minimal losses and facilitate early detection of errors that can result in huge losses if they remain unaddressed. According to Schwalbe (2012), by implementing the solutions in an effective manner, IT project managers will be in a good position to employ concepts such as Earned Value Management (EVM) and integrate cost, time, scope, and schedule successfully. Moreover, project managers can employ the solutions so that the project becomes timely and organized. The results that transpire after project managers implement the solutions are very important in addressing the issue of cost management evident in IT departments of several organizations.
Schwalbe, K. (2012). Information Technology Project Management. New York: Cengage Learning.