Abstract
In this study, the efficiencies of Project Management Offices (PMOs) in large-scale information system (IS) projects are addressed by using data envelopment analysis. Moreover, the potential improvement levels for each input and output factors of inefficient PMOs are examined. The effects of performance levels of PMO functions on project outcomes with respect to efficiency levels are also analyzed. A total of forty-nine PMOs are analyzed for this study. The result shows that twenty-four PMOs are found to be efficient. As a result of analyzing the impact of efficiency on project performance depending on the functional levels of PMOs, those groups with a high degree of efficiency show higher outcomes compared with the groups with a low degree of efficiency regardless of the functional levels of PMOs. Furthermore, the gap in outcome between the groups with a high degree of efficiency and the groups with a low degree of efficiency is maintained at almost the same level, regardless of the functional levels of PMOs, with the exception of the case of practice management. This indicates that even those groups with a low degree of efficiency could expect high outcomes in terms of schedule and cost compliance if their level of practice management is high.
Highlights
Corporations today are making a lot of effort to improve their competitiveness by constructing information systems (IS) in a rapidly changing business environment
The impacts of efficiency on project outcomes according to Project Management Offices (PMOs) functions were studied
The result from analysing the output-based BCC Data Envelopment Analysis (DEA) model, found that the number of PMOs that are efficient was twenty-four and the remaining twenty-five PMOs were relatively inefficient with an average of 0.89
Summary
Corporations today are making a lot of effort to improve their competitiveness by constructing information systems (IS) in a rapidly changing business environment. They have increased their investment in information systems every year. A large number of these IS projects are causing many serious problems such as cost overruns and schedule delays. They are unable to properly achieve the intended outcomes. Information systems are an integrated set of components for collecting, storing, and processing data and for delivering information and knowledge (Encyclopædia Britannica, 2015). The enterprise resource planning system (ERP), supply chain management system (SCM), and customer relationship management system (CRM) are examples of IS projects
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