Information Technology Project Management Ch 4 6ed Key Terms

Balanced scorecard
A methodology that converts an organization’s value drivers to a series of defined metrics.
The approved project management plan plus approved changes.
Business service management (BSM) tools
Tools that help track the execution of business process flows and expose how the state of supporting IT systems and resources affects end-to-end business process performance in real time.
Capitalization rate
The rate used in discounting future cash flow; also called the discount rate or opportunity cost of capital.
Cash flow
Benefits minus costs or income minus expenses.
Change control board (CCB)
A formal group of people responsible for approving or rejecting changes on a project.
Change control system
A formal, documented process that describes when and how official project documents should be changed.
Configuration management
A process that ensures that the descriptions of a project’s products are correct and complete.
Cost of capital
The return available by investing capital elsewhere.
New requirements imposed by management, government, or some external influence.
Discount Factor
A multiplier for each year based on the discount rate and year.
Discount rate
The rate in discounting future cash flow; also called the capitalization rate or opportunity cost of capital.
Integrated change control
Identifying, evaluating, and managing changes throughout the project life cycle.
Interface management
Identifying and managing the points of interaction between various elements of a project.
Internal rate of return (IRR)
The discount rate that results in a NPV of zero for a project.
Mind mapping
A technique that uses branches radiating from a core idea to structure thoughts and ideas.
Net present value (NPV) analysis
A method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time.
Chances to improve an organization.
Opportunity cost of capital
The rate used in discounting future cash flow; also called the capitalization rate or discount rate.
Organizational process assets
Formal and informal plans, policies, procedures, guidelines, information systems, financial systems, management systems, lessons learned, and historical information that can influence a project’s success.
Payback period
The amount of time needed to recoup the total dollars invested in a project, in terms of net cash inflows.
Undesirable situations that prevent an organization from achieving its goals.
Project charter
A document that formally recognizes the existence of a project and provides direction on the project’s objectives and management.
Project integration management
Processes that coordinate all project management knowledge areas throughout a project’s life, including developing the project charter, developing the preliminary project scope statement, developing the project management plan, directing and managing the project, monitoring and controlling the project, providing integrated change control, and closing the project.
Project management plan
A document used to coordinate all project planning documents and guide project execution and control.
Required rate of return
The minimum acceptable rate of return on an investment.
Return on investment (ROI)
A method for determining the financial value of a project; the ROI is the result of subtracting the project costs from the benefits and then dividing by the costs.
Strategic planning
Determining long-term objectives by analyzing the strengths and weaknesses of an organization, studying opportunities and threats in the business environment, predicting future trends, and projecting the need for new products and services.
SWOT analysis
Analyzing Strengths, Weaknesses, Opportunities, and Threats; used to aid in strategic planning.
Weighted scoring model
A technique that provides a systematic process for selecting projects based on numerous criteria.