Summary of Project Outputs
The ResNet beta project was the initial phase of the complete new reservation system to be implemented at NWA. Outputs achieved in the ResNet Beta project included the successful customization of the new reservation software and the testing of hardware. Furthermore, a methodology for measuring the benefits of the reservation system was developed. The success of the ResNet beta project provided confidence and evidence that the ResNet project would be feasible, which led to progressing into phase two.
ResNet 1995
This project achieved the installation of the new reservation system in 16 personal computers in three different call centers (Minneapolis, Tampa and Baltimore). Another output achieved was the development of software for Sales Action Center, Iron Range Reservations Center and Reservations Sales and Support.
ResNet 1996
This project was wider installation of software into an additional six centers since its implementation on a smaller scale in the RestNet 1995 project was successful.
What was Fay’s role in initiating ResNet? Why did she succeed when other NWA employees in the IS Department, who had similar ideas years earlier, did not?
Fay’s role in initiating ResNet involved instilling her vision and philosophy to ensure success of the project. She understood that sales were more important than service in the call centers and that a business perspective was necessary to ensure that revenue is generated. Through convincing other managers she would be able to get the support and backing in terms of finances to oversee the development of a new reservation system. Fay succeeded because she did not approach the situation from a technological standpoint rather from a business perspective. She knew that technology was necessary to achieve the business objectives of NWA unlike the employees of information systems department whose focus was purely developing a new system without factoring in the business aspect.
What role did senior managers Peeter and Arvid have in initiating ResNet? Did they make good decisions? Explain your answer
Peeter and Arvid roles involved providing justification for the projects to ensure that funding was received since at the time the finances of NWA were poor. Peeter was appointed the project director or manager and from his vast experience in the airline industry, he was able to develop and gather facts that would be tabled before the finance committee. Arvid assisted Peeter in developing plans within a limited time since he was a specialist in technical information systems. Peeter was also responsible for involving all relevant stakeholders’ especially top management.
What were some of Peeter’s strengths as a project manager? How do these strengths relate to concepts discussed in earlier chapters?
Peeter understood that finances were a major issue at the time. Therefore, he gathered facts and conducted financial analysis of other competitors that had implemented the use of a new reservation system. As a leader, Peeter used his charisma to convince and motivate team members to work on a strict time and a budget. This shows that proper planning was done. The justifications for investing in the projects were done thoroughly and this showed how much Peeter believed in the whole project. His commitment was a sure sign that he would dedicate his time to see that the company would achieve their organizational business goals.
Review the executive summary Peeter prepared to help justify investing in ResNet. What points were made to convince the finance committee to support the project?
In his executive summary, Peeter provided financial details of the ResNet project including details of the NPV and estimates of the required payback period. The financial data provided a strong convincing argument to support investment in ResNet 1995 and 1996. Additionally, Peeter indicated weaknesses in the current 30-year-old technology such as the inflexibility and how financial losses were being incurred in the call centers due to inefficiencies. Moreover, Peeter showed how other competitors had implemented new reservations systems and how efficiencies had improved tremendously in these organizations. He also provided the risk and benefits that would be experienced in the implementation of the project. For instance, he indicated that one of the benefits would be that software could be easily modified without having to change any hardware. New functionalities would be deployed as need arose in the course of operating the new reservation system.
Discuss the major differences between the three ResNet projects. What was the emphasis for each project? How might each be managed differently?
Differences in the three projects revolve around the scope time and cost of each project. The first project, ResNet Beta, was done on a smaller scale compared to the other two projects. New reservation software was installed and tested on 16 personal computers. Further, assessment methodologies were developed at this project phase. This project lasted for one year and cost about$500,000. The ResNet 1995 was bigger than the first project as it involved installation of the reservation system in three specific call centers. Its cost was $13 million and took about one year to implement. ResNet 1996 was a wider scale application of the prior two projects and the new reservation system was installed in other six centers. Project period was about two years and costs amounted to $20 million.
