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Tuesday, September 21, 2010
Monday, September 13, 2010
Turnkey IT Projects
Many customers invite tender for fixed price turnkey IT projects and many IT vendors bid for them, few not even fully understanding expectations around an turnkey project.
A turnkey project provides a fully tested and ready to use deliverable to customer. Often this deliverable is a new system sometimes replacing existing legacy systems.
This can be a tremedeous advantage to the customer since entire program & project management is done by the vendor which may involve data center setup, network lines leasing, other hardware or software system integrations (3rd parties interfaces/ online/ web services and products), application development & maintenance, legacy data cleansing & migration, data center system support and helpdesk services etc.
Failure to do proper expectations analysis and scope documentation may lead to delays in intangible and tangible losses to client and executing organisation.
Technology maturity assessment is equally important when integrating cutting edge technology for building a new system which may be public facing or expected to be used thousands of users across globe. This leads to capturing pros and cons of such solutions and getting client agreement on same with proper risks mitigation actions planned.
Another key aspects is that vendor should have access to domain knowledge of new system or have some good business analyst on board since project kick off.
One need to plan customer involvement from early stages and keep them engaged in entire solution definition and validation so that they can plan system change management at their end.
Due to involvement of multiple 3rd parties, delays are anticipated so a proper governance and escalation structure should be in place in addition to change control board having senior members from client & vendors.
A program manager should be deployed to ensure successful delivery of multi-year long turnkey project.
A turnkey project provides a fully tested and ready to use deliverable to customer. Often this deliverable is a new system sometimes replacing existing legacy systems.
This can be a tremedeous advantage to the customer since entire program & project management is done by the vendor which may involve data center setup, network lines leasing, other hardware or software system integrations (3rd parties interfaces/ online/ web services and products), application development & maintenance, legacy data cleansing & migration, data center system support and helpdesk services etc.
Failure to do proper expectations analysis and scope documentation may lead to delays in intangible and tangible losses to client and executing organisation.
Technology maturity assessment is equally important when integrating cutting edge technology for building a new system which may be public facing or expected to be used thousands of users across globe. This leads to capturing pros and cons of such solutions and getting client agreement on same with proper risks mitigation actions planned.
Another key aspects is that vendor should have access to domain knowledge of new system or have some good business analyst on board since project kick off.
One need to plan customer involvement from early stages and keep them engaged in entire solution definition and validation so that they can plan system change management at their end.
Due to involvement of multiple 3rd parties, delays are anticipated so a proper governance and escalation structure should be in place in addition to change control board having senior members from client & vendors.
A program manager should be deployed to ensure successful delivery of multi-year long turnkey project.
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