Application Of Project Management Tools In Banking Information Systems Development In Kenya
Abstract
The development of banking information systems is a dynamic environment for banks
with respect to project management, and is prone to failure if not managed with the
criticality it deserves. This study aims to identify the application of various tools and
techniques that aid in the effective and efficient management of the various banking
information system development stages. The objectives of the study were to establish
the project management tools and techniques used in Bank Information system projcct
management in practice, to determine the effectiveness of the tools and techniques
used in Bank Information system projects and to determine the challenges faced in
using project management tools and techniques in Bank Information system projects.
The research targeted all the 43 commercial banks in Kenya. Data was collected using
questionnaires; that used a 'drop-and-pick later* approach. The respondents to the
questionnaire were the project manager(s), business analyst(s) and Heads of ICT from
cach bank. Demographic data of the respondents and the banks were analyzed using
descriptive statistics. Means and standard deviation were used to analyze the use and
effectiveness of tools and techniques used in the phases of a bank information system
project lifecycle. The challenges associated with the use of tools and techniques were
analyzed by employing means and standard deviation.
The study found out that all the banks used various project management tools in bank
information systems analysis and design. The Business Case justification was the
most common technique used by banks in the conceptualization phase while
Requirements analysis is the preferred technique in the planning phase. User
Acceptance Testing and action logs are the most common techniques used in the
execution and termination phases respectively. The least employed techniques in the
conceptualization phase are net present value and decision analysis. In the planning
phase the least used technique was questionnaires and surveys. The Fishbone
diagrams and lessons-learned reports were the least used in the execution and
termination phases respectively.
The study found out that all the banks experienced various levels of effectiveness in
using project management tools in bank information systems analysis and design. The
v
Business Case justification was the most effective technique used by banks in the
conceptualization phase while Requirements analysis is the most effective technique
in the planning phase. User Acceptance Testing and issues logs are the most effective
techniques used in the execution and termination phases respectively. The least
effective techniques in the conceptualization phase are Return on investment and
Payback analysis. In the planning phase the least effective techniques were Decision
trees and Resource histograms. The Fishbone diagrams and lessons-learned reports
were the least effective in the execution and termination phases respectively. The
study established that complexity of the tools and techniques used and differences in
formality of phases in the project lifecycle are the key challenges faced by
commercial banks in information system development life cycles.
The application of project management tools and techniques is largely based on
individual bank judgment most notably from continuous use and size of the
information system development projects undertaken. It was discovered that most
information system developments don't adopt use of more than two to three tools or
techniques to generate a well-grounded base for decision making at the different
stages of the project life cycle. Findings arrived at imply that these banks apply the
same tools and techniques over time and therefore make use of them in the various
bank information system projects undertaken. To ensure that there is a more diverse
use of project management tools and techniques the policy makers within the banks
should institutionalize project management methodologies that should be adopted in
every bank information system project that will ensure at least two or more tools and
techniques are used at the various lifecycle stages of a bank information system
development appreciation of these tools and techniques is also required for project
managers, business analysts and ICT project teams who should use them, therefore
adequate training should be adopted for these crucial resources to gain understanding
on the use of the tools and techniques. Further all bank information system developers
and project managers must ensure to adhere to the traditional system lifecycle in all
bank information system developments, this guide will greatly aid in setting the right
framework for applying the various tools and techniques.
Publisher
University Of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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