Applying system dynamics modeling to IT project management

Abstract

The traditional project management tools and methodologies are based on the assumption that dividing project on several stages, which could be better understood (than a whole project), is the way to tackle large projects. General rule is that more detailed model is, the more accurate schedule can be prepared. Whereas, there has been even a tendency to build sophisticated network-based models, experience and surveys reveals that more than 50% (some sources even says about 100%) of large technological development projects fails to meet their cost and schedule targets. An alternative view of a project is offered by system dynamics which concentrate on the whole project. That new approach focuses mainly on relationships between particular project elements. So far, system dynamics has been mainly applied in a industry projects, providing many useful lessons for managers. This paper describes the way how, system dynamics could be applied to IT (Information Technology) project management.