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Management article
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Reference no. 81510
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1981

Abstract

Managers avoid information system (IS) failure by determining the risk of their projects, singly and as a portfolio, in advance of implementation. Elements of risk include project size, experience with technology, and project structure. Companies should use risk assessment questionnaires to highlight risks and to suggest alternative ways of conceiving and managing the project. A periodic review of the questionnaire reveals major changes. During the feasibility study stage, it is also useful to consider the issues that influence the risk profile of project portfolios. The risk profile includes projects that come from outside software houses as well as those of internal systems development groups.

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Abstract

Managers avoid information system (IS) failure by determining the risk of their projects, singly and as a portfolio, in advance of implementation. Elements of risk include project size, experience with technology, and project structure. Companies should use risk assessment questionnaires to highlight risks and to suggest alternative ways of conceiving and managing the project. A periodic review of the questionnaire reveals major changes. During the feasibility study stage, it is also useful to consider the issues that influence the risk profile of project portfolios. The risk profile includes projects that come from outside software houses as well as those of internal systems development groups.

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