Chapter 4: Project Integration ManagementToday’s ScheduleQuick CheckLearning ObjectivesThe Key to Overall Project Success: Good Project Integration ManagementStrategic Planning and Project SelectionInformation Technology Planning ProcessMethods for Selecting ProjectsFinancial Analysis of ProjectsNet Present Value AnalysisNet Present Value ExampleFor Thursday, February 1Chapter 4: Project Integration ManagementInformation Technology Project Management,Fourth EditionGood or Bad: Manager or ProjectTuesday, January 30Information Technology Project Management, Fourth Edition 2Today’s ScheduleCalendar updatesTest #1, Thursday, February 8Project Deliverable #2, Project ContractDue Monday, February 5Chapter 4 Project Integration –Good Manager or Bad,Good Project or Bad???Information Technology Project Management, Fourth Edition 3Quick CheckWhat are the 9 knowledge areas of the project management framework?Draw a diagram if it will help you recall them!For bonus points, these are grouped into two types of functions, what are the functions? Which knowledge areas are in each function?Information Technology Project Management, Fourth Edition 4Learning ObjectivesDescribe an overall framework for project integration management as it relates to the other project management knowledge areas and the project life cycle.Explain the strategic planning process and apply different project selection methods.Information Technology Project Management, Fourth Edition 5The Key to Overall Project Success: Good Project Integration ManagementProject managers must coordinate all of the other knowledge areas throughout a project’s life cycle.Many new project managers have trouble looking at the “big picture” and want to focus on too many details. (See opening case for a real example.)Project integration management is not the same thing as software integration.Information Technology Project Management, Fourth Edition 6Strategic Planning and Project SelectionStrategic planning involves determining long-term objectives, predicting future trends, and projecting the need for new products and services.Organizations often perform a SWOT analysis:Strengths, Weaknesses, Opportunities, and ThreatsInformation Technology Project Management, Fourth Edition 7Information Technology Planning ProcessInformation Technology Project Management, Fourth Edition 8Methods for Selecting ProjectsThere is usually not enough time or resources to implement all projects.Methods for selecting projects include:Focusing on broad organizational needs.Categorizing information technology projects.Performing net present value or other financial analyses.Using a weighted scoring model.Implementing a balanced scorecard.Information Technology Project Management, Fourth Edition 9Financial Analysis of ProjectsFinancial considerations are often an important aspect of the project selection process. Three primary methods for determining the projected financial value of projects:Net present value (NPV) analysisReturn on investment (ROI)Payback analysisInformation Technology Project Management, Fourth Edition 10Net Present Value AnalysisNet present value (NPV) analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time.Projects with a positive NPV should be considered if financial value is a key criterion.The higher the NPV, the better.Information Technology Project Management, Fourth Edition 11Net Present Value ExampleNote that totals are equal, butNPVs arenot because of the time value of money.Information Technology Project Management, Fourth Edition 12For Thursday, February 1For Thursday, February 1Complete Chapter 4 Read for integration process, documents and deliverablesIn teams, work on Team