If the project is working with a new technology, is using a new development methodology, or even if there are new, relatively unknown team members, these need to be listed as potential risks to the project. That step happens later. Each risk should be evaluated based both on its probability and on the impact that it would cause if it happens. Most of all, however, it should include the things that are new in the project. Once the risks are prioritized, go through the list and identify which risks are controllable, which risks are things that can be mitigated, and which risks must be accepted. The other factor to evaluate when looking at a risk is its duration–how long that it can have a potential impact on the project.
However, later in the project they may not have much input and therefore aren’t a risk if they leave. It should also include all external factors such as a change in company direction or a change of technology direction. Most people value their own sense of self-worth and they believe that their ability to meet their personal commitments is a part of the admirable part of their self. Newer Post Older Post Home. For instance, the loss of a subject matter expert early in the project is a risk because their input is still needed. Each risk should be evaluated based both on its probability and on the impact that it would cause if it happens. The loss of a key team member may have a low probability; however, the impact to the project can be great.
The more quickly the risk associated with an item to be validated the more quickly the risk is no longer a risk so its probability can be zeroed out. However, later in the project they may not have much input and therefore aren’t a risk if they leave.
JetBlue and WestJet: A Tale of Two IS Projects – Case Study Example
These problems impact both of the airlines operational activities and decision making to change their initial carrier which had started out as a system designed for smaller start-up airlines to a better carrier. Last but not least, they need to have experience with technology to deal with the risk. This is also a part of the process that typically helps validate the estimates made above.
It is structured, defined requirements run lower risk. Airlines such as WestJet and JetBlue promote low-cost and high-efficiency carriers by giving extremely competitive fares and outstanding customer service. Once the risks are prioritized, go through the list and identify which risks are controllable, which risks are things that can be mitigated, and which risks must be accepted.
For instance, the risk of losing key personnel can be mitigated by providing completion bonuses or even just monitoring their happiness more closely. Newer Post Older Post Home. Since WestJet had not anticipated the transfer time required to move the files, they had failed to reduce its passenger loads on flights operating immediately after the charge over.
Some people struggle with the evaluation step because both of the numbers, percentage and impact, are guesses. The files still cannot be access for a period of time thereafter, because Sabre had to adjust the flights using the new system. Most of all, however, it should include the things that are new in the project.
The step is to inventory the situation. Posted by d ace at 2: For WestJet, the critical issue that they face was the transfer of itsfiles containing data on transactions for past WestJet customers who had already purchased flight, from its old reservation system serves in Calgary to Sabre servers in Oklahoma.
Simply getting a verbal, personal commitment to finish the project is often enough to further reduce the probability that a person will leave during the project. Other than that, both airlines needed more processing power to deal with a far greater volume of customers. Technical risks can be controlled by moving them forward in the project so that they are proven out nearly immediately.
It also serves as yet another reminder of how successfully planning for and implementing nad technology is just as valuable as the technology itself. In FebruaryJetBlue tried to operate flights during a blizzard when all other major airlines had already canceled their flights.
Upgrading reservations systems carries special risks. From a customer perspective, only one of two things can happen: This delay provoked a deluge of customer dissatisfaction. They also wanted additional functions, such as the ability to link their prices and seat inventories to other airlines with whom they might wish to cooperate. On the other hand, JetBlue make its switch on Friday night because Saturday solutionn tends to be low. The objective is to develop a framework for evaluating the proiects risks against one another.
The resulting number is a single number, a risk quotient, which can be used to prioritize risks within the project.
The project size is indicated by cost, time, number of organizational units affected, and issue of organizational complexity. The risk of a functional analyst leaving is greatest in the initial phases of the project when they are intensively interacting with the customer. Reservation system for these airlines are so important that when projectz companies yale to make sweeping IT upgrades, their relationships with customers and their brands can be tarnished if things go awry.
d’ace: CHAPTER JETBLUE AND WESTJET: A TALE OF TWO INFORMATION SYSTEM PROJECTS
Next key risk factor is the project structure. For instance, if the greatest risk is personnel turnover as it usually is then, the probability may have to be evaluated more objectively.
Not every mitigation strategy needs to involve money.