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PROJECT MANAGEMENT CHALLENGES AND

DIFFICULTIES: A CASE STUDY OF INFORMATION
SYSTEM DEVELOPMENT

Article · January 2014

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99 IPBJ Vol. 6 (1), 99-113 (2014)

PROJECT MANAGEMENT CHALLENGES

AND DIFFICULTIES: A CASE STUDY OF
INFORMATION SYSTEM DEVELOPMENT

1
ESUH OSSAI-IGWE LUCKY, 2OJENIYI ADEGOKE,
3
NORANI NORDIN
1
College of Business, Universiti Utara Malaysia
2
School of Computing, Universiti Utara Malaysia
3
School of Technology Management and Logistics, Universiti Utara Malaysia

ABSTRACT

The successful development of Information System (IS) is not high even with
enormous interest and fund committed by organizations on this new technology.
It has been revealed that a combination of insufficient and unsuitable project
management issues are responsible for this low rate of IS development. This paper
presents the findings of the fieldwork and interview conducted on the challenges
and difficulties of system development project. The study employed both
personal interview and observation methods. The findings revealed that fund,
infrastructures (hardware and software), manpower, management commitment,
monitoring and inspection were the critical challenges and difficulties faced by
organizations during their system development. Therefore, the study concludes
that fund, infrastructures (hardware and software), manpower, management
commitment, monitoring and inspection play crucial role for an effective system
development. Our study recommends that there should be sufficient budget
to procure the right system hardware and software for right requirements.
Secondly, training of staff for both IS development and management should be
given urgent attention.

Keywords: Project Managemet, Information System (IS), IS Development,

Challenges, Difficulties.

INTRODUCTION

Information system development is a huge and extreme investment

project for organization seeking competitive advantage edge in this
dynamic global market. In order to survive in this market, many
organizations develop information system to enhance efficiency and
profitability. This usually makes organizations to commits considerable
time, resources and funds to information system development with the
expectation of receiving efficiency and profitability in return. However,
many organizations usually make the mistake of valuing technology
over the organization process (Drucker, 1998).  This usually leads to
investment in technology that goes beyond their needs and resulting
to inefficiency and wastefulness. Likewise, it might even result to
abandonment or failure of the development of the information system.
Information system on its own cannot create the gains and advantages that
organization need to survive the dynamic competitive global market. The
need to explore project management in information system development
becomes desirable to ensure successful and effective organization gains
and advantages in the global market. Hence the combination of project
management and information system development will provide a
better philosophy and method for planning and managing successful IS
development.

Similarly, IS development is a project and success and failure of project

depends largely on the methodology adopted. Project management
methodology defined the step-by-step, quality standard, activities,
tools, controls, processes and deliverable elements to achieve successful
development of the project. Therefore, the success of IS development
project does not totally depends on the development team but more
on the set of processes and procedures in place to ensure successful
completion. Hence, it becomes necessary to investigate difficulties and
challenges experience while development information system from
project management perspective.

LITERATURE REVIEW

In today’s ever increasingly competitive markets, business and

enterprises rely more and more in their information systems to achieve
their purposes of effectiveness and efficiency. New technologies bring
new opportunities to enhance business operations and interactions.
Project management is concerned about the application of tools, skills,
knowledge and techniques to achieve effectiveness and efficiency to
survival in competitive market (PMI, 2000). The usefulness of project
management cut across disciplines and it’s applicable to any industry
regardless of the service and product it aims to achieve. Despite its wide
application in different industries and products, project management has
an enormous usefulness on effective development of IS to significantly
increase the successful completion.

100 IPBJ Vol. 6 (1), 99-113 (2014)

Kerzner (2013) pointed out that project management is successful due to
its methodological approach of process integration, process creativity,
effective planning, execution, supervising and control, and lastly closure
to accomplished completed projects. Similarly, Heagney (2011) echoed
that project management is highly effective particularly in IS due to its
nature of process based. He further added that the sequential phases
of project management directly enhance IS development, making it
an invaluable means in facilitating successful completion of system
corresponding to its original requirements. Hence, the issues of cost,
project scope, time and quality is paramount to business efficiency
and effectiveness which also defines project success particularly IS
development in an organization (Atkinson, 1999). Project management
assists organization management to be able to standardize their project
and ensure that resources are available in achieving targeted project.
It permits organization managers to be able to apply appropriate
techniques and measures to ensure completion of projects with minimal
cost and least resources.

When project management is incorporated in Information systems

development, it leads to an improvement in usefulness and efficiency
of business operations and interactions with minimal resources of the
organization (Cadle & Yeates, 2004). The capabilities of the information
system and characteristics of such business, its employees and the
systematic development and implementation of the IS determine the
degree to which that aim is accomplished. Coy (2004) explain that IS
enhance the coordination of hardware and software to collect, filter,
process, create and distribute date within a confine network to achieve
business excellent. It aims to support business operations and managerial
decision making in achieving business productivity and excellent. It
deals with not only infrastructure but also the manner at which users
interact with technology in support of business processes to achieve this
excellent.

Similarly, Kroenke (2008) defined IS as an interaction formed by users

and information technology (such as process, data, models, applications,
machines and others) to achieve some organizational functions and
purposes. This interaction can occur within or across organizational
boundaries. An information system is the technology an organization
uses and the way in which the organizations interact with the technology
and the way in which the technology works with the organization’s
business processes. Hence, Information System (IS) is the interconnection
and operation of information technologies and human managerial skills
to achieve business productivity and excellence.

IPBJ Vol. 6 (1), 99-113 (2014) 101

In the same scenario information systems development (ISD) can be seen
as the process of interaction by which some collective work activity is
facilitated by new information-technological means through analysis,
design, implementation, introduction and sustained support, as well as
process management to achieved business excellence (Korpela, Mursu,
& Soriyan, 2002). It is the developmental change in process that is aim at
achieving certain business objectives or purposes by using information
systems. This change is targeted toward business operational excellence
and productivity. Several information development approaches
have been used since the origin of information technology to achieve
business excellence. Mingers (2003) identified Waterfall, Prototyping,
Incremental, Spiral, Rapid application development (RAD) and Extreme
Programming approaches as commonly used in IS project and system
development. However, these approaches have been found not to be
sufficient on their own to achieve inclusive business excellent that is been
anticipated by developers and business managers. For inclusive business
excellent and comprehensive solution to complex system development, a
multi-methodological approach is considered the most effective strategy
(Iden, Tessem, & Paivarinta, 2012; Higgins, Taylor, & Francis, 2012).

In IS development, no one approaches is regarded as the preeminent

because of the dynamic nature of business and its requirements needed
to achieve operational excellence. These requirements are based on the
ever-increasing competitive global market which every business must
survive. Although information systems (IS) have become one of the most
precious assets in the ever increasingly competitive global market yet
development of such system usually encounter many problems. Among
the most imperative are low productivity, a large number of failures,
and an insufficient relevance of information system with business
needs. Petersen (2011) submitted that low productivity occurs when the
business operation functions and excels better in manual mode compare
to the IS mode.

In the same vein, Conboy (2010) reported that IS development (ISD)

efforts resulted to failure sometimes due to economical mismatches,
such as budget, schedule overruns, poor product quality and insufficient
user satisfaction. This was supported by Yeo (2002) and Standish Group
(1995) revelations that only 16% of all projects are delivered on time
and within their budget. This was carried out as a survey among 365
information technology managers, it also revealed that 31% of ISD
projects were cancelled prior to completion and the majority, 53%, are
completed but over budget and offer less functionality than originally

102 IPBJ Vol. 6 (1), 99-113 (2014)

specified. Correspondingly, from the business point of view, Goyal
(2012) identified growing criticism of poor alignment of ISs and business
needs. He observed that while an increasing part of business’ resources
are spent on recording, searching, refining and analyzing information,
the link between ISs and business performance and strategies has been
shown to be dubious. For example, most managers and users are still
facing situations where they cannot get information they need to run their
units (Rockart & Hofman, 1992). Hence, ISD is continually challenged
by the dynamic nature of business together with the ways that business
activities are organized and supported by ISs.

COMPANY BACKGROUND

PHE is a corporation in Malaysia and it was established through in the

year 1994. This establishment was gazette on 25 August 1994 and became
operational on 30 August 1994. The main purpose of the establishment of
PEH is to provide resettlement training for retiring personnel to inculcate
knowledge, skills and work experiences to enable them to adjust to
new life environments of civilian, and training for retired personnel
for upgrading, value adding or diversification. PEH is an agency under
government body that has been assigned to develop, manage and
conduct skill training for the retiring and retired army personnel. As
most of them retire within ten to fifteen years of service, they usually
require new skill to venture into civilian life. The training will enable
them to compete for job with other job seekers in open market. They
are encouraged to apply for specific training or courses focusing on new
skills that have been developed by PEH.

In the past all information related to the courses, trainees, budgets,

duration, location and other information are kept at central location.
To keep track with all these activities, PEH need to have a systematic
filling system, this in the past is hard to achieve due to large amount of
data managed manually that is, using forms, letter, cards etc. Almost all
information is input by typing or hand written and kept in a convention
filing system. The management was facing many errors, inefficient and
low productivity as a result of manual and conventional filling system
usage. The only part that are being computerized at early stage are the
trainees information detail however, it only uses Microsoft Excel to store
the data. In early 1996, the management decided to have a database to
handle trainee information. The system was known as “Sistem Maklumat
Pelatih”. It consists of few modules such as Registration of trainee,

IPBJ Vol. 6 (1), 99-113 (2014) 103

Courses, Budget for the Course and some reports. System requirement
and system development were done in house under the Information
System Department led by the Head of IT department.

In 1996, the usage of computer was still new at PEH. They did not see
the need and the importance of having a database system. To develop a
database, it requires fund and time to collect all the relevant information
and data. Finally, the management agreed to give a chance to prove
that computer system can improve her overall data management in
PEH. With minimum support from the management, the head of IT
department and her team took the challenge to develop the system. They
review the whole process of the registration, the need and requirement
of the system and develop an in-house system. They have to work with
basic infrastructure due to low budget. A critical observation shows that
developing IS at PEH was not only a management challenge but also
includes users’ problem where staff (user) keeps changing due to either
retirement or transfer or other reasons.

In 1998 the system was finally ready for implementation. At this stage
according to the head of the IT department, the issues of end users were
still critical particularly where the end-users were afraid to use the system.
A special training on computer usage was conducted for the first stage
in order to make them familiar with the new equipment. They also have
to hire new staff (computer skilled) to speed up the implementation. In
2000, PEH developed a web page for the organization. The web consists
of Bulletin of PEH, organization chart, course offer and most important
is the registration form. They received a good feedback for the future
retiree army personnel since most of them are youngster and technology
driven.

RESEARCH METHODOLOGY

Rosenberg and Yates (2007), Sekaran and Bougies (2009) and Zikmund,
Carr, and Griffin (2012) noted that for an adequately and in-depth
understand of phenomenon, case-study research design with interview
and observation research techniques are very important. Therefore,
toeing this line, this study utilized a case-study research design with
a face-to-face interview and observation research approaches. Two
key personnel of PEH were interviewed on the project management
challenges and difficulties experienced during the implementation of IS
in their organization.

104 IPBJ Vol. 6 (1), 99-113 (2014)

 RESULTS AND DISCUSSIONS

In the early stage of establishment, there was no specific information

system been developed to cater for data collections in PEH. This was
due to:

• lack of requirement on information system

• lack of knowledge of the people (employee) on the system
• lack of budget for software and hardware
• lack of staff to implement the system

Even PEH was established in 1994, yet the first recruitment of an IT staff
was conducted in 1996. There was no IT Department specifically at that
point of time. A critical observation shows that IS implementation of
PERHEBAT at the initial stage was manually. For example, the system
was stand-alone based on the requirement of each department. At this
stage, all data collected been processed in and by the ready-market
applications of database and spreadsheets such as Microsoft Access
for database and Excel for spread-sheet were later on converted to
Microsoft SQL Server 2000 to deal with number of data. They engaged
IS professional to develop the system for trainees’ data and registration.
They named it as Sistem Maklumat Pelatih (Trainee Information System).
As time goes by, the requirements of information are getting more
challenging and more complex from related departments for registration
of trainees, payrolls, procurements, human resource activities and
financial recordings and reports. The organization has developed in-
house systems based on departmental processes. However, the in-
house systems were not integrated with each other but stood alone
and were developed to serve each department alone. With the consent
of Management, few options have been considered and implemented
gradually to cater for requirements such as:

• Bought off-the-shelf system and did some modifications for

payroll. They named it as BOSS Payroll System.
• Bought off-the-shelf system for financial recordings and reports.
They named it as OBM System.

Presently, the IT department has been established with three employees

under the name of Unit Teknologi Maklumat. The functions of IT
department are not only to monitor the systems and hardware but
also the components of IS function that make the systems work. These
include the people and the procedures needed for processing those data
for the organization. Given the above background, the major objective
of this study therefore, is to identify and reveal the project management

IPBJ Vol. 6 (1), 99-113 (2014) 105

major challenges and difficulties of IS development in the organization
in a particular PEH.

DISCUSSION

From the interview, the major challenges to IS development were

identified. The aim was to provide validation and more insight on the
key challenges impacting on the system development in PEH. The key
informant reported all the major challenges faced by PEH during their
initial IS development. Challenges were categorized into five major
themes namely: fund, infrastructure, upgrading previous system, skills,
monitoring and inspection.

Fund

Generally, fund has been identified as one of the major that hinders
many projects particularly during early stage. As revealed by the key
informants, fund was a major obstacle and challenge that organization
faced during there IS development. This finding corroborates the ideas of
Benjamin and Blunt (2012) and Lederer (2013) that sufficient funding and
financial empowerment of new technologies is needed to survive in this
age of technological ever increasing competitive business environment.
Expressing her view, she said:

“The major difficulties faced with this organization in the time past are
lack of fund. There is always little money budgeted to the IT department
from the total budget of PERHEBAT. This has caused the department
so many limitations to carry on smooth running of the department.
There is an intention to move and upgrade to the latest technology but
cannot achieve this objective because of lack of fund. The organization is
constraint and could not move to the latest technology available in the
then market. Due to the same financial constraints, the IT departments
were unable to make purchases of latest technology in the market that
would have enhance the performance of the organization in general.
Example of such purchases includes; hardware, software, cable, and
other component relevant for upgrading.”

Infrastructure issues
Another factor that was identified to imposed a challenge on IS
development in PEH is infrastructures (hardware and software). There
is need for procurement of some hard ware facilities and migration from
old to the new or conventional machines. There is also need to build

106 IPBJ Vol. 6 (1), 99-113 (2014)

Local Area Network (LAN) for communication purpose. From our
observations, we found that the state of the infrastructural facilities at the
early stage of the IS development were old and outdated. This is in line
with Hatling (1996) who affirmed that good and standard infrastructure
is the backbone of techno-driven business in this present business
environment. The informant stated:

“My major concern was how to procure up-to-date

infrastructures that can meet up with the new proposed IS.
This is because majority of the board members don’t make
to commit much fund to IT but we need to procure new
hardware that will support the proposed IS. “

Similarly, there were major concerns about the software

currently in use by the organization. At the short run, may
not be compatible with the IS. This software caused the
organization some fortune. For effective operation, they may
be need for procurement of a new and compatible IS as stated
by the interviewee.

“In a situation where most board members are of the view

that IT engulf lot of fund with little to compensate for it.
Then, it is a critical circumstance to stand up and explain
to them that application currently in use should be replaced
or up-graded with new vision because of compatible issues.
Am sure cost implication should be the first question to be
asked. “

Similarly, the informant also identified upgrading as a major challenge

and difficulty faced during IS development at PEH. For example
upgrading pervious systems to IS was a major challenge. The informant
revealed:

“Having an IS, Network and collaboration with Ministry of

Defence and Armed Forces Fund Board (LTAT) can be made. Detail
information about the retired and retiring army can be collected and
a recommendation can be made to them to attend training. The retired
and retiring army cannot avoid from attending any training that been
assigned to them by the Ministry of Defence and Armed Forces Fund
Board (LTAT). PEH always take a one step forward and be ready to
give the best advice to personnel who retire in accordance with the
current state. They used more than one approach to give advice to the
retired and retiring army personnel. PEH Portal is the best way to

IPBJ Vol. 6 (1), 99-113 (2014) 107

 inform and communicate to the retired and retiring army personnel
to offer services that provide by PEH. The retired and retiring army
personnel can have a look in the Portal at anytime and anywhere. The
Portal consists of training provided, training date, training location
etc. They can easily send the e-mail to enquire regarding the training.
The portal should always be up to date to ensure all the information can
be delivered accordingly.”

Skilled Manpower

Furthermore, lack of computer skill was equally identified as a key

challenge and major difficulty to the development of IS. There is lack
of general computer skill amongst the employee of the organization.
The employee of PEH need to be trained and those with little computer
knowledge need to be retrained for proper handling of the IT department
and IS. This factor hinders the smooth running of the IT department. Most
of the older employee displayed lack of interest and willingness to learning
computer skills which have great negative impact on the operation of the
organization. Therefore, the organization requires qualified personnel to
handle the IT unit if the IS system is to be implemented. The qualified
personnel are difficult to recruit since other organization pay higher for
professional compared to public one like PEH. This finding is consistent
with Watson, Boudreau, and Chen (20100 argument on the fact that skill
is a key factor in technological sustainability in any organization. The
informant reported:

“The report of the study and review shows that there is low
number of computer literate staff in PERHEBAT. This is
because older staffs run away from computer job while only
younger staffs are interested in such job. Therefore, it calls
for training of older staffs or recruiting younger ones that
are interested in the job”.

Management Commitment

In addition to computer skill, the ability to convince the board on the need
for IS development was one key factor that was found challenging and
difficulty. Just like the issue of budget and fund, the ability to convince
the top management on why such fund should be use to that particular
project is more difficult. Because IS development is very expensive and
involves a lot of cost. It is always very difficult to convince the decision
makers why such budget or fund should be invest in the project. From
our observations, we discovered that it took the I.T department a lot

108 IPBJ Vol. 6 (1), 99-113 (2014)

of effort to convince and talk the top management into accepting the
need to spend such fund on IS development. Expressing her view, the
informant said:

“In a situation where most board members are of the view that IT
engulf lot of fund with little to compensate for it. Then, it is a critical
circumstance to stand up and explain to them that application
currently in use should be replaced or up-graded with new vision
because of compatible issues. Am sure cost implication should be the
first question to be asked”.

Monitoring and Inspection

Apart from lack of fund, infrastructure, upgrading previous systems and

lack of skills, monitoring and inspection was a critical factor as identified
by the informant. PEH has a big problem when coming to the processing
of an application to attend a new training by the applicant. This is because
all the information is kept manually and has to be retrieved manually.
The information about the trainee and courses attended are not been
kept accordingly. This will then slow down the process of approving of
the new application by the current trainee. She said,

“An integrated IS shall reduce the trauma and stress on the of manual
information retrieval system which slow down work process. With the
use and structured information system, PERE can have a good way for
tracking the trainees courses attended. Retrieving information of the
trainee, retrieving about the course attended, course offer and duration
are easier, faster and more efficient. Monitoring and inspection to
ensure all the trainee have completed their courses and succeed in their
life after retirement can be monitored. A list of report can be accessed to
show courses that they have attended and the advanced courses offered
if required by them.”

Project Management ISD Checklist

Today, the usage of computer is beyond office use to support business

operations but more to creation of central database, central information
processing and decision making to improve the organization overall
performance and to give better mean to provide information and training
for the future retiring army. The study asserts that the installation of
central database will straighten ICT infrastructure in any organization
with integration of up-to-date technologies and application. With this
inline PEH mission to set up a University College by the year of 2015
is seem possible. Having a central database will enhance all processes

IPBJ Vol. 6 (1), 99-113 (2014) 109

that are mostly managed either manually or in isolation. IS not only will
help to improve current PEH website/Portal but most importantly it can
minimize tasks that are currently redundancy.

Having a central database also will then improve on corporate governance

through a well-structured information system where they can have
a good collaboration with the Ministry of Defence to have the data/
information of the future retiree army (New trainee) been shared by the
Academy. Documentation process also will be better structured compare
to the current methods of using a conventional filling system. Beside that
it will also enhance the usage of ICT as a training tool. ICT will enhance
Employee Skill on using of new applications and new approaches. It is
recommended that PEH to have a new ICT Lab for training to achieve
the above. Having a central database will then give them an opportunity
to upgrade their databases and Backup system used. Since centralized
database will deal with huge data and number of process involved. A
new Backup strategy, a new Backup plan and a new backup system has
to be introduced in order to deal with new enhancement.

Apart from having, a central database there is need for PEH to upgrade
the Information System Department itself by having Secure Data Centre
to secure the data and the system by upgrading their Networking System
(LAN & WAN) and replacement of New Computer for each department.
From our reading and talk to the expert in Information System the
following action must be taken by PEH for their sustainable success
to improve their overall data management and other administration
processes:

• Sufficient budget to procure the right system (hardware &

software for right requirements (process, procedures and
end results)
• Top management ‘buy in’ to the propose project
• Training of the staff to manage the system
• Useful data to be input for processing (remember; garbage
in garbage out)
• Monitoring and inspection of both software and hardware
• Data security

Information system can solve complex problems and managed huge

data, only when the implementation project is successfully and
comprehensively achieved. With the right hardware, software, data
and procedures managing data can be much simpler and took shorter
time to resolve. Data can be shared transfer and in large amount in a
shorter time, minimize errors and manage different type of reporting for

110 IPBJ Vol. 6 (1), 99-113 (2014)

different uses at ease. In today’s world of internet system can also be
linked to other system via network that make task much easier even if we
are at different part of the world.

CONCLUSION

Taking the decision to development IS can hold the promise of big

gains and rewards both to the IT department and the organization
management. However, the risk involve in such project is enormous and
huge to both parties too. Therefore, it becomes imperative to consider
project management guidelines and checklist for successful ISD projects.
This is because the implication and consequent of a failed or even a less
successful ISD project exceed the significant of cost. It also impact on the
credibility of organization management, competency of both consultant
and IT personnel and potentially hampers organizational operations.
Hence, this paper had explored challenges, difficulties and checklist to
mitigate risk and improves chances of success in ISD projects.

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