The comprehensive risk management system based on the software project features of V Corp. is established. Four original risk factors are found with interpretive structural modeling, including analysis risk of product design, communication risk, human resource risk and decision making risk. Finally, some solutions are put forward to help e-business V Corp. improve the ability of software project risk management.
Today, the information technology has become one of the core competitiveness of e-business enterprises. Most of e-business businesses rely on information technology. E-business is the combination of “modern information technology” and “business”, to some extent, e-business enterprises compete at the information technology among enterprises. With the expansion of scale and scope of the market, it becomes a trend for software project management to be complicated and short cycled.
The e-business systems of V Corp. involve all fields which make business process electronic, digital and networked, including B2C website, logistics, finance, customer service, management etc. The e-business systems mainly consist of various subsystems, such as website system, supplier system, logistics system, information platform, marketing system and customer service system. These subsystems are closely coordinated with each other and indispensable. But with the increasing of the business and the expansion of the market, software requirements are increasing so fast that companies often make software projects behind schedule and cause economic losses for lack of project risk management. Therefore, we constructed a risk structure model for e-business V Corp. and then proposed several solutions to deal with the four original risks. The paper is organized as follows: Section 2 is literature review, Section 3 is e-business V Corp. software project risk management analysis, Section 4 is to construct a software project risks structure model with interpretive structural modeling (ISM), Section 5 is the analysis and solutions for original risk factors of e-business V Corp. software project, and Section 6 is conclusion.
The software risk management involves two primary steps each with three subsidiary steps [
J. P. Wan, D. Wan, and H. Zhang identify the risks of CN Group which is working at software outsourcing projects between Hong Kong and Guangdong, discovers the causal relationships among the risk factors, and constructs corresponding risk structure model with ISM. Five original risk factors are identified, including contracts risk, requirements definition and change, lack of communication, political and legal environment differences, and exchange rate fluctuations [
The e-business V Corp., a Chinese company listed on the New York Stock Exchange, is a famous website that specializes in sample sales; its main business is the online sample sales of brand merchandise including luxury clothing, shoes, luggage and bags, household goods, cosmetics, and luxury goods etc. Today, it has established some business platforms such as supplier relationship management platform, marketing platform, mobile terminal platform, payment platform, Customer Relationship Management (CRM) platform and vendor financing platform. Communications among platforms need go through standard interface or layer which has clear information security requirements.
In our understanding, the features of e-business V Corp. software projects are as follows: 1) Software requirements are complicated, not only business department can make requests but product design department and technical department can also raise requirements. 2) Business requirements usually involve multiple platforms which have strong links with each other. Therefore it is very important to study correlation analysis among platforms at production design period. 3) V Corp. operates under functional organization structure, business requirements usually are raised by multiple departments, and many project stakeholders are involved. 4) To respond quickly and flexibly to changing business needs, V Corp. must iterate projects rapidly, and multi projects are often implemented at the same time. 5) Project management office coordinates and manages all project resources. Teamwork is an essential part of a successful project, and PMO has an important significance in cross team projects. 6) Software project implementation processes are under serious specifications, including design, research and develop, test, implementation, end of the project etc.
ISM method can be divided into the following steps: 1) Implement the ISM group; 2) Set the key issues; 3) Select the factors have influence on the key issues of the system; 4) List the correlation of the factors; 5) Establish the adjacency matrix and accessible matrix, according to the correlation; 6) Breakdown the accessible matrix and build the structure model; 7) Establish the interpretative structure model based on the structure mode [
We consulted experts with Delphi, including project managers, product managers, developers, testers, business personnel, software development and the internal control manager, and QA, etc. Based on implementation of e-business V Crop. software project, 24 risk factors are identified. By the way of calculating variable coefficient, ten major risk factors are figured out as follows
For 10 key risk factors Ki of V. Crop. software project (i = 1, 2, 3…10), “1” means Ki has influence on Kj , otherwise, “0” is used. The relationships between row factor and column factor can be illustrated as
The reachable matrix is constructed with WINISM1.1 as
The set for each factor
Code | Risk factors | Description |
---|---|---|
K1 | Analysis risk of product design | System analysts don’t perform feasibility analysis which leads to biases. |
K2 | Requirements change risk | Business department always raises new requirements or changes previous requirements, which leads to expanding project. |
K3 | Technology change risk | Change technology because previous design cannot meet requirements, it may have an impact on development progress. |
K4 | Software quality risk | Testers failed to find bugs duo to carelessness, there might be a problem after publishing software. |
K5 | Communication risk | Communication mechanism doesn’t work across project teams. |
K6 | Schedule risk | Failed to finish the project on schedule |
K7 | Software release risk | Release plan faces problems because technology cannot support it or released software has a side effect on online business. |
K8 | Project management risk | System of mechanism, progress and emergency management is incomplete. |
K9 | Human resources risk | Employees especially technical experts run off. |
K10 | Decision making risk | Make wrong decisions or failed to make decisions in time. |
K0 | K1 | K2 | K3 | K4 | K5 | K6 | K7 | K8 | K9 | K10 | |
---|---|---|---|---|---|---|---|---|---|---|---|
K0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
K1 | 1 | 1 | 1 | 1 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
K2 | 1 | 0 | 1 | 1 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
K3 | 1 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
K4 | 1 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 |
K5 | 1 | 0 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 0 | 0 |
K6 | 1 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 0 |
K7 | 1 | 0 | 0 | 0 | 1 | 0 | 1 | 1 | 0 | 0 | 0 |
K8 | 1 | 0 | 0 | 1 | 1 | 0 | 1 | 0 | 1 | 0 | 0 |
K9 | 1 | 0 | 1 | 1 | 1 | 0 | 1 | 1 | 1 | 1 | 0 |
K10 | 1 | 0 | 1 | 0 | 1 | 0 | 1 | 1 | 0 | 0 | 1 |
P(Ki) is called to reachable set, namely the set of all the reachable factors from factor Ki. Q(Ki), called advanced set, refers to the set of all the factors can reach Ki. Q(Ri) means the universal set, which is the set of all the factors both belong to the reachable set and the advanced set (
Because i = 0 meets
According the results above, re-order reachable matrix is built as
R(Ki) | Q(Ki) | T(Ki) | |
---|---|---|---|
K0 | 0 | 0, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 | 0 |
K1 | 0, 1, 2, 3, 4, 6 | 1 | 1 |
K2 | 0, 2, 3, 4, 6 | 1, 2, 5, 9, 10 | 2 |
K3 | 0, 3 | 1, 2, 3, 5, 8, 9 | 3 |
K4 | 0, 4 | 1, 2, 4, 5, 7, 8, 9, 10 | 4 |
K5 | 0, 2, 3, 4, 5, 6, 7, 8 | 5 | 5 |
K6 | 0, 6 | 1, 2, 5, 6, 7, 8, 9, 10 | 6 |
K7 | 0, 4, 6, 7 | 5, 7, 9, 10 | 7 |
K8 | 0, 3, 4, 6, 8 | 5, 8, 9 | 8 |
K9 | 0, 2, 3, 4, 6, 7, 8, 9 | 9 | 9 |
K10 | 0, 2, 4, 6, 7, 10 | 10 | 10 |
Based on re-order reachable matrix above, the interpretative structural model of 10 key risk factors is established (
Ki | P(Ki) | Q(Ki) | T(Ki) |
---|---|---|---|
Stage 2 = {K3, K4, K6} | |||
K1 | 1, 2, 3, 4, 6 | 1 | 1 |
K2 | 2, 3, 4, 6 | 1, 2, 5, 9, 10 | 2 |
K3 | 3 | 1, 2, 3, 5, 8, 9 | 3 |
K4 | 4 | 1, 2, 4, 5, 7, 8, 9, 10 | 4 |
K5 | 2, 3, 4, 5, 6, 7, 8 | 5 | 5 |
K6 | 6 | 1, 2, 5, 6, 7, 8, 9, 10 | 6 |
K7 | 4, 6, 7 | 5, 7, 9, 10 | 7 |
K8 | 3, 4, 6, 8 | 5, 8, 9 | 8 |
K9 | 2, 3, 4, 6, 7, 8, 9 | 9 | 9 |
K10 | 2, 4, 6, 7, 10 | 10 | 10 |
Stage 3 = {K2, K7, K8} | |||
K1 | 1, 2 | 1 | 1 |
K2 | 2 | 1, 2, 5, 9, 10 | 2 |
K5 | 2, 5, 7, 8 | 5 | 5 |
K7 | 7 | 5, 7, 9, 10 | 7 |
K8 | 8 | 5, 8, 9 | 8 |
K9 | 2, 7, 8, 9 | 9 | 9 |
K10 | 2, 7, 10 | 10 | 10 |
Stage 4 = {K1, K5, K9, K10} | |||
K1 | 1 | 1 | 1 |
K5 | 5 | 5 | 5 |
K9 | 9 | 9 | 9 |
K10 | 10 | 10 | 10 |
The four original risks of e-business V Corp. software project are identified, these are analysis risk of product design, communication risk, human resource risk and decision making risk. We will study these risks further and try to put forward corresponding solutions.
It’s hard for demanders to clearly express their real requirements, communication barriers between demanders and designers, changing requirements over time, all of those lead to analysis risk of product design. We give suggestions as follows: 1) Set up the requirements analysis mechanism, and release standardized management of input and output of product design and analysis; 2) Try to figure out real requirements as clearly as possible at the product design stage, it should have a specific mechanism to change requirements; 3) Sufficiently communicate with demanders when researching requirements, decrease risk of misunderstanding the product design stage, it should have a specific mechanism to change requirements; 4) Sufficiently communicate with demanders when researching requirements, decrease risk of misunderstanding.
When implementing project, demanders, designers and developers may have different understanding of product requirements and project schedule, due to lack of communication or inefficient communication. We give suggestions as follows: 1) Set up communication mechanism, including communication methods, tools and frequency etc. 2) Make project communication plans, carry out plans and check results regularly after communication.
Company sometimes doesn’t have enough technicians, underestimates the quantity of project human resources, or works on multiple projects simultaneously, which may lead to project human resource risk. We can take solutions as follows: 1) Discipline entire project team to take part in project evaluation so that every member can understand project requirements and avoid biases of estimating human resources; 2) Make unified management of project human resources with project management software; 3) Set up project risk reporting mechanism. When project human resource risk occurs, we can take measures quickly and finish project milestone on time.
Unfamiliar with project objectives, insufficient decision making information can lead to project decision-making risk. We give suggestions as follows: 1) Set up project discussion team, all team members have discussion, analyze and then make decision; 2) Project members assist project manager to collect information and ensure the information truthful, accurate and complete; 3) Set up project training team, organize employees to study project decision making, information collecting, sorting and analyzing regularly.
E-business is the combination of “modern information technology” and “business”, to some extent, e-business enterprises compete at the information technology among enterprises. The four original risks of software project are identified, including analysis risk of product design, communication risk, human resource risk and decision making risk with V Corp. case study. We also put forward suggestions to help e-business V Corp. improve the ability of software project risk management. We believe that the research is helpful for both the software project risk management of e-business enterprises and software project risk management study in China.
Thanks for helpful discussion with Mr. Wenlv Chen, and Mr. Jianzhang Li et al.