Although the idea of project management does exist for a long time, the technology, tools and methods for successfully carrying out projects have constantly been further developed.7 The internet, networking and computers have all provided a basis for undertaking and managing projects with greater success (Yap 2001). But despite all of these advances, many projects still fail or run into severer trouble (Glass 1999, p. 17). Therefore evaluating and measuring project success continuous to be highly important.
In project management literature, a variety of empirical studies concerning project success factors do exist.8 The complexity of the project success measurement is demonstrated by the outcome of past empirical studies. In one study 32 out of 200 potential success factors were identified (Murphy et al. 1974). In another study even more than 100 success factors were identified (Daum 1992). But, as McCoy (1986), Wateridge (1998) and Wells (1998) observed, neither a standardized definition of project success does exist nor an accepted methodology to measure it.
For defining the project success, as it is understood in this study, the author uses a definition of project success, which goes along with Lechler (1997). The project success of the B2B E- marketplace introduction project consists of three success areas: costs, time and performance (Lock 1997).
7 For further details on the origins and development of project management refer to Litke (1995, p. 21).
For a systematic approach on different studies concerning project success refer to Lechler (1997. p. 59).
Performance
Costs Time
Figure 4.3 Triangle of project objectives (Lock 1997, p. 23)
Baguley (1999, p. 22) further differentiates the performance dimension into two sub-aspects:
quality and execution.9 Depending on the priority of the objectives, one specific success area can have a higher impact on the overall success than others.
In this study the success dimensions time and costs are covered by measuring efficiency.
Along with GemUnden (1993), the author uses efficiency as a measurement of cost and time constraints. When projects are planned with the objective to stick to a certain time frame, the initial planning plays a vital role in the successful achievement of project deadlines (Dey &
Ogunlana 2001, p. 24). For defining the project duration, several steps have to be executed.
First the project scope has to be defined. Second, the work breakdown structure has to be derived, which is the basis for resource allocation. Finally, critical project tasks have to be identified to be able to estimate the related risk areas for planning a buffer time. Based on these steps the time target can be set. Only based on a thoughtful time definition, the risk of time overrun can be minimized (Williams 1995).1° For controlling purposes, not only the total actual project duration is measured against the predefined plan (GemUnden 1990a, p. 8, Lechler 1997, p. 90, Hogl 1998, p. 76), but also during the execution of the project the actual duration of single project tasks is measured against the plan, so that time overrun can be identified as early as possible to be able to take the appropriate action (Litke 1995, p. 106).
Similar to the time controlling, the cost controlling also depends on a detailed capacity plan on a single task basis. For each task the capacity requirement needs to be estimated. Then actual costs are measured against the plan.
It is an iterative process with the goal of optimizing the time constraints with given resources (Litke 1995, p. 115).
• For the quality aspect refer to Zenz (1981, p. 153).
10 !o get an overview on project risk management refer to Williams (1995).
62
Resources/
costs
Start dale
Capacity
Duration
4 The B2B E-marketplace introduction project
Time Deadline
Figure 4.4 Interaction between time and cost constraints (Litke 1995, p. 115)
If time is the !imitating factor, further resources can only partly compensate missing time, increasing project costs might occur as a consequence. Additional resources, which are added later on to the project, need to be well introduced to the project. Further time is lost and the coordination outlay increases exponentially with each added resource (Lechler 1997, p. 90).
Therefore in most cases an overrun of time also leads to an overrun in cost as Brooks (1975, p. 25) states "adding manpower to a late software project makes it later". This assumption of strong correlation between cost and time constraints was positively supported in diverse empirical studies (e.g. Might & Fischer 1985, p. 73, Larson & Gobeli 1989, p. 122, Lechler 1997, p. 172).
As mentioned earlier, the success dimension performance can be further differentiated into quality and execution. For evaluating the quality as one sub-dimension, the measure effectiveness is used. The effectiveness measures the objective realization (Gemilnden 1981, pp. 166, Scholz 1992, pp. 533). Although it is difficult to clearly define the objectives of innovative and mostly highly complex projects (Jenkins et al. 1984, p. 79, Hauschildt &
Pulczinsky 1992, p. 74, Weltz & Ortmann 1992, p. 35), the objectives in the specific case of B2B E-marketplace introduction projects are a combination of process cost, material cost and inventory reduction. Additional objectives, such as price and supplier comparability, improvement of existent supplier relationships and supplier concentration are included to measure effectiveness. Clarity about the objectives of the project is key to the project success (Hendrix 2001, p. 122). Not only joint agreement on the project objectives by the top management, but also by the project team is required (Neef 2001, p. 161, Simpson 2001, p.
23). The project team needs to consist of highly goal-oriented individuals, strong-willed with high leadership skills (Seely & Duong 2001, p. 31). The project effectiveness evaluates the fulfillment of these diverse objectives compared to the targets defined at the project start.
The execution aspect of the performance dimension is evaluated by measuring the B2B E- marketplace acceptance. Along with Martin (1993, p. 18) acceptance summarizes on the one hand the attitude towards the new technology and on the other hand the readiness and willingness to use the new technology. Based on this definition Schonecker (1985) as well as Miiller-Boling and Miiller (1986) diversified the acceptance measure into four different groups depending on the intensity of the attitude towards the new technology and the willingness to use the new technology. For the B2B E-marketplace acceptance the author uses the following three measures: B2B E-marketplace acceptance evaluated from the project team and B2B E-marketplace acceptance evaluated from the procurement organization. In both measures the attitude towards the new system as well as the willingness to use it is evaluated.
As a third dimension the supplier's willingness to use the new technology is incorporated.
This dimension is also critical to the project success, since it measures, how successful the project team has convinced the supplier about the benefits of the new E-procurement environment.
B2B E-marketplace acceptance I
828 Eãnwi<ctplacc 828 E-marltetpbcc Supplier's 828
acccptanec from the accepc.anc:c from the Eãmarl<ctplacc
project perspective procurcmcnl perspective willingness
Figure 4.5 B2B E-marketplace acceptance
Joseph (1990) developed a model for analyzing the acceptance of CAD systems. He classified four areas of impact on the acceptance measure: people care, personal aspects, organizational issues and technology. These factors properly applied lead to the above-defined B2B E- marketplace acceptance.
To summarize above: the project success of the B2B E-marketplace introduction project can be seen as the first step towards the new procurement environment. Due to project termination on time and within the given budget the project team can provide the deliverables in a very efficient manner. But efficiency is just one aspect of project success; same importance should be attached to the content of the deliverables. They need to fulfill the required objectives. The third contribution to the project success is the acceptance of the B2B E-marketplace.
64 4 The B2B E-marketplace introduction project
Project success
I I I I
828 E-
Efficiency Effectiveness maricelplace
accepcance
Fi&tJre 4.6 Definition of project success