Project Decision and Risk Analysis

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Project Risk Management and Decision Analysis: Articles and White Papers 

Making Right Decisions in IT Project Management

Several years ago a telecommunication company started to offer a shared web hosting solution to their clients. Shared hosting required a tool to manage accounts, access to webmail, and other functions. The company made a decision to develop their own applications instead of purchasing or modifying available off-the-shelf software. The development of these applications took longer cost more than originally planned. In addition, major improvements to satisfy new customer requirements were required. At this point company still had choice to use off-the-shelf software, but did not because of the investment that they had made in its own system. Currently, the cumulative development and maintenance costs of this system is several times higher than if the company had made the decision to go with off-the-shelf software at the start of the project. 

Project managers are making decisions all the time on different stages of the project. Some decisions are strategic: they are usually made during initiation of the project and significantly affect the further course of actions. Other project decisions may not be so important, and it is possible to make some corrective actions if something goes wrong. 

 

The Role of Decision Science

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