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In our modern world all process in business includes management. But there are a lot of spheres in contemporary world of business which haven`t got structured system of rules. And sphere of IT is not an exсeption. This sphere is very modern. Amount of books and articles which are connected with IT is very law. So in this essay I try to look around all important advices and rules in IT-control. In the end I will try to give advises based on my own experience.
NATIONAL RESEARCH UNIVERSITY
– HIGHER SCHOOL OF ECONOMICS
AT ST. PETERSBURG
COLLEGE OF MANAGEMENT
DEPARTMENT OF MANAGEMENT
IT-SPHERE IN BUSINESS AND MANAGMENT
GUDADZE SERGO
A Paper
Submitted for
The Theory and History of management
Supervisor:
Sarakhanova Natalia Sergeevna
PhD, ass.prof
Management Department HSE
St. Petersburg
2014
Content:
Introduction
In our modern world all process in business includes management. But there are a lot of spheres in contemporary world of business which haven`t got structured system of rules. And sphere of IT is not an exсeption. This sphere is very modern. Amount of books and articles which are connected with IT is very law. So in this essay I try to look around all important advices and rules in IT-control. In the end I will try to give advises based on my own experience.
Literacy review
In my essay I want to show both sides of communication between IT and management. At first article we will see how IT technologies are used in organization and in the second and third we will find out how to manage IT-projects.
First article which was written by Ramanov V.A for the MSU journal tells us about is IT technologies in Russia. The main idea is to show characteristics of information technology typical for Russia. This article tells us that IT is one of the most important part of company which allows:
-For company management - to control employee`s work.
-For IT specialists – makes managing of projects easier. To reduce cost of servicing network of company. What is more it helps to convert routine work to automatic operation.
-For employees – to have access to any information in the world from the every place and have maximum security to corporate files.
Author suggested that russian market as well as IT sphere have a great dependence on changes of world priсe to petroleum. Russian IT sector is on initial step of his development that is why IT is not used as an advantage in competition between companies.
Speaking about effectiveness of using IT author said that software from the box like «Microsoft Axapta» losing in a battle between box software and programs which are written by company for itself because in that case company can think over the most important graphs for itself, while box software gives them only programs which can suit for every company.
At the end of article author said that he notice that in Russia a big amount of IT projects fail.He said that the reason to this is human relations. Today employees can`t understand all the importance of IT projects and can`t control it without help of project-manager. There are interesting statistics at this article. It tells that a half of IT-projects fail if project-managers doesn`t take a part in this projects. Continuing this thought author underlines for us 5 factors which can ruin IT-project:
The second article from very famous IT resource - «Habrahabr» tells us about management in IT-projects. Author (Pereverzev A.N) in his 2 articles gave us the hole information about IT-control management. I divide this information into 6 topics:
1. What should be under control?
2. The main process of management
3. What about delegation?
4. Method of little groups
5. System analysis
6. «Two in one» method
1.Speaking about management author said that managing of process is a work on its parts. And then explaining picture is given:
2. Then article tells us about the main process of management. Author said that it consists from other process like
1. You should formalize data and aims.
2. Analysis is optional if project haven`t got enough money
3. At the time of planning you should choose methods of solving problems and decide how to reach aims
4. You should make a checklist to have criterions of ending projects.
5. Executor should have free access to all the information which are connected with the projects like source data, aims and demands from checklist
6. If you want to use this project one more time you should add results of preceding iteration to source data.
3. Next topic is delegation. And in IT-projects sphere, which is very close to startup sphere the main problem is lack of money. Usually IT team consists of 2 or 3 person and «everyone do everything», because there is no money for outsourcing. That is why to providing effective management author advise to gives more attention to other methods like:
-system analysis
-interactive control
-risk management
4. Method of little groups. The main idea is that excess resources discourage. And the main aim is to work in a small groups consists from 3-7 person. Author said a lot about advantages of small groups.
And then author gives an example that strong companies like «Google» use this technology and try to divide staff into a small groups.
5. System analysis allows
small groups solve hard tasks. This method means that all the information
which have influence on smth should be written down.
It doesn`t mean that you must make a kilograms of useless papers
but using even some of this methods gives your project «life»
- division your tasks into subtasks
- highlighting of subprojects
- recording (logging) everything important
Aims of system analysis are:
- receiving obviously and quick-witted conception of all details in project
- finding potentially week points
- finding latent factors (outgoing)
6. Two in one. In this part of article author consider that preparatory
actions of project and project in a work are very distinction
things. It likes you have two different projects in one. And that is
why author gives advice to work with them separately. In great amount
of IT startups teams do a lof of unnecessary work and outgoing but it
is really easy to reduce them by asking yourself two questions.
And only after that
While your project doesn`t exist, all works before profit is delivered to the first part. While project is in work it can be delivered to the second part. Obviously you work with different components and aims at those times and specification of work is not the same. So you must work with this two stages in different ways. Marketing and business-model should be delivered to the second part as well as commercial and technical outgoings. And as an example I made my own table with two parts of business project:
Preparatory work |
The main process |
Buying software and programming |
Supporting of technical software |
Design |
Business-model, plan of outgoings and profits |
Research and first planning of marketing and commercial |
Marketing and realization of commercial plans |
So after reviewing this three articles we can see the dynamics of changing in contemporary world. 10 years ago no one can think about managing in IT-project but today it is one of the high-paid and respectable job position in management. Startup – it is what about every teenager who connect with IT is dreaming about. History of success telling by young and perspective entrepreneurs inspire youth to start their own project. And if they will follow advices which were given by professional project-manager they can rich success and profit.
What is more, IT technologies inculcate in companies structure all over the world and help them a lot, but unfortunately in Russia this process takes place very slow and with big expenses. However even in our country (especially in international companies) business process are developed by IT technologies.
Discussion
In this part of essay I would like to review and to think over risks which will be connected with IT startup and problems which project-manager can face. To start with I want to write down the hole list of risks. After reading modern book and a pair of articles I decide that the most dangerous point are:
Incorrect choice of product or target audience.
Understanding of what people want to get is one of the most important thing that you should know before opening a startup. It is a philosophy of startups. If you want to have a success project first of all you must know your audience. As promptly as it possible. In fact it always one or some more groups of people with the same age, sex, geography of living and social status. You can easily said that you have wrong determination of audience if it includes the word «everybody».
To see right determination of audience is easy, too. Usually it consists from concrete information and has definite description of some groups.
Scanty activity of target audience
You have 3 million entrance to your web-site but only 300-500 active users, who pay money and use your product. It is very common problem. To solve it you have to work to increase loyalty of audience. It should be like separate project. The most effective way is to use outsourcing companies but if there is not so much money, resources like socialization and opening groups in social network will help you. The best way is to become a copyrighter or find him. Make contests between participants of groups in social networks. Meet with this people, make photos of events which you make. Try to be friends with the most activity person in groups and ask them, why did they choose your service and why did they pay money for it. All this methods can hardly increase loyalty of audience.
Wrong business model
It is the most famous mistake, even serious adults do it. To avoid this crucial fail you should understand how it can influence on your project. Business model is the way how you will earn money and only with the help of it you can comprehend whether your project will be profitable or not and how much time you will need to return your inputs. In our (IT) sphere business models usually call model of monetization. When you made your own business model information which will be bring from marketing research can be used to calculate future profits. After research you ought to have answers on questions: «how?» and «how much?». Plan of profits can be not very exact but it must be calendar.
Failure of lead time
First of all give priority to planning. Then before working up ask an opinion from outsourcers. Increase this two times and after it you will see real time constraints and real costs. It is better to work with float, than have seen problem after they happened. It will be great if you make calendar plan-graph with the periods is about month and will control parts of the project with the help of it.
Projects with budget
less than $1000
It sounds very strange
but it is a fact that 60% IT-projects which were made like startups
have failed in a 6 month after opening if they have less than $1000.
There is such a term like «Level of entrance to the market». Thousands
of hundreds startups died because of this thing. There is an opinion
that the level of entrance to the IT-startups is very law, and it is
true if we speak about projects which will be closed in 3-6 month. So
study on others failure.
Next part will be dedicated to my own experience in the sphere of IT-startups and project-management. After working as a project-manager in my own studio of development mobile apps (for IOS, android and windows phone) I think that I can share this experience and give useful advise hot to control and rule your team after my mistakes and successes.
Conclusion:
My aim was to tell you about all spheres of It. It can be IT-service in organization, which develop all business process and make them easier. It can be IT-projects as startups and risks which is always connected with this business. One of my editional tasks was to give advice for effective project-managers using my own experience and information which I take from articles. I suppose that I successfully rich all my aims and after this essay I understand how much perspectives IT-sphere has in our modern world. Because even today IT is the main part of profitable business process and technologies only increase the amount of their opportunities.
References