Running head: CASE STUDY

IT project case study

Name

Institution
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Following the implementation of the IT projects in New York City, a huge loss of

revenue was felt by the taxpayers. The huge IT costs could not be controlled despite forming the

main objective of the project, which was to reduce the costs incurred in the implementation of

the IT project. The administration of the Bloomberg has been called for a hearing process and

respond to allegations of inflating the city council project budget. More security concern has

been raised by the users since the inflated IT projects have been found to be improperly managed

to lead to a faulty management information system (Fitrios, 2016). The faulty management of the

system is a security concern. Every level of the project implemented by the process resulted in

cost overruns and was found to have been implemented with frauds. The operational efficiency

and business process have been degraded. The site of the IT project where it was intended to be

useful is now difficult for the current workers and retirees to access and be included in the

system. The implementation of the system such as the City Time projects and NYCAPS have

been found to be dissatisfactory to the users. The issues raised are simply the ruined business

impacts following the implementation of the City Time projects and NYCAPS.

The New York City Council should be invited to the hearing process and respond to the

budget-crippling overruns and costs of the IT projects (Schwalbe, 2014). The Bloomberg

administration should respond by simply reviewing the manner in which it handles the

multimillion-dollar complex projects. Some of the proposed changes that it needs to discuss

include searching for the commercial software before coming up with customized software

without the need of requiring it. Further, the administration of the city should adopt the

procedure of billing contractors as functional benchmarks for achieved projects instead of hourly

measurement to prevent the occurrence of future partnerships such as the above mentioned IT

projects. The adopted procedure will ensure every multimillion dollar technology projects are
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supervised by qualified experts but not government administrators with no experience in project

management and from other fields.

The City council is expected to receive a compensation worth $500million in penalties

and restitution to avoid federal prosecution for a number of fraud instances involving the

management and implementation of the IT projects. Although the taxpayers burden from the

fraud involving the project will be lessened by the result of restitution, the scandal case and the

fraud, in general, will remain Bloomberg black mark and his quest to modernize the information

system of the city, there is no doubt of the amount of cash that will be paid by the contractor.

Research that have been done before involving IT projects and the general conclusion is

that IT projects have poor records of success in relation to budget costs. This is according to

Jenkins research that was done during 1984, 1988, and 1992. The IT professional did not give

much attention to project costs especially on periods of previous years before 1992 (Schwalbe,

2015). The estimated cost before 1992 was estimated to be 33-34%. Therefore most IT projects

were unsuccessful in periods before 1994. After experiencing from the continuous failure, the IT

professional increased their focus to accounting and finance tasks of the project (Schwalbe,

2014). The finance aspect includes the net present value of the project that was later concentrated

by the IT professionals. The cost of the project including the activity cost, monitoring and

performance and cost of resources were all put into consideration. The purpose was to calculate

the project integration management, return on investment and payback analysis. The project

performance of the must be discussed with the project managers in form of financial and

technical terms. Other important topics to discuss include the lifecycle cash flow analysis, profit,

and cost both tangible and intangible of the projects. The failure to follow the above guidelines
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will lead to planned cost being overrun by the projector may result in unsuccessful project

altogether.

The main factors that negatively influenced the completion of IT projects in both the

NYCAPS and City Time projects include the cost overruns which is influenced by the project

expenditure being higher than the original estimated budget for the project. Improper

management of the IT project, for example, the government officials have been tasked to monitor

the implementation of the project who are not well conversant with the project implementation

process and hence are unable to make important decisions affecting the project. Project delays

suffered by the NYCAPS caused by poor leadership that saw the original cost of the project

increasing from $66 million to $363 million (Nusa, 2015). As suggested by Caswell F Holloway

the administration plans to ensure the key deliverable for completion are specified before the

payment is done. By handing the project to subcontractors, the whole project was complicated

which caused the budget to increase and project completion period delayed (Schwalbe, 2014).

Other factors include efficiency caused by inexperienced government administration monitoring

the project which ultimately affected the operational efficiency and business process of the

project. All these represented the risk factors of the project implementation.
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Reference

Schwalbe, K. (2015). Information technology project management. Cengage Learning.

Nusa, S. B. (2015). Influence of Organizational Culture And Structure On Quality Of

Accounting Information System. International Journal of Scientific & technology

research, 4(05).

Fitrios, R. (2016). Factors That Influence Accounting Information System Implementation And

Accounting Information Quality. International Journal of Scientific & Technology

Research, 5(4), 193.

Schwalbe, K. (2014). Introduction to Project Management. Course Technology Thomson

Learning. Inc. Cengage Learning. Inc. ISBN-13, 978-1.