Chapter 3

Making IT Right: Managing Goals, Time, and Costs

3.1 Before You Start: Assessing Value and Risks

Projects create new products, new services, or new capabilities. The first step of a sound management process is to understand whether the new products, services, or capabilities are worth our effort. The relevance of a project depends, in general, upon two main factors:

  1. The value generated by the project
  2. The risks associated with the project.

The meaning of value and risk, however, is not absolute and depends on the circumstances and on the project environment. For instance, a project developed for humanitarian reasons measures value in a different way from a project to launch a commercial product. Similar is the concept of risk. As mentioned ...

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