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THE PECULARITIES OF PROJECTS FOR DIGITAL BUSINESS TRANSFORMATION
Danchenko O.,
Doctor of Technical Sciences Professor of the Department of Computer Science and Systems Analysis Cherkasy State Technological University, Cherkasy, Ukraine
Bedrii D.,
Candidate of Technical Sciences Associate Professor of the Department of IT Designing Training, Odesa National Polytechnic University, Odesa, Ukraine
Tkachenko V.,
Candidate of Technical Sciences Associate Professor of the Electrical Power Consumption Systems Cherkasy State Technological University, Cherkasy, Ukraine
Semko O.,
PhD applicant of the Department of Computer Science and Systems Analysis Cherkasy State Technological University, Cherkasy, Ukraine
Kharuta V.
PhD, Associate Professor of the National Transport University Department of Transport Law and Logistics, Kyiv, Ukraine
Abstract
As a part of the research, digital transformation is regarded as a project. In accordance with the project management methodology, digitalized projects are similar to analogous projects in other industries and are characterized by the temporaryity and creation of a unique product (service). Some projects are characterized by a high degree of uncertainty in the process of forming the requirements of the project and methods for their implementation. The usage of information technologies to create and reorganize business processes has become of great importance and common for IT technologies in combination with project management methodologies, among which Waterfall, Scrum, PRINCE2 being the most popular.
Keywords: project, digital transformation, project management, methodologies, business process, Waterfall, Scrum, PRINCE2.
Introduction. In the realities of the modern world, digital transformation (digitalization) is carried out in several directions:
introduction of information technologies to ensure interaction with digital services of public authorities;
creation of digital architecture for running business;
solving information security issues; determining the legal procedure for the status of the service digital products;
effective support of digital projects related to the security of large data amount, service block chain solutions.
That is, digital transformation has covered all spheres of activity, and therefore, there arise a number of questions as to the readiness of the economy, business and in general, society to the perception of information and communication technologies and transformations, as well as its management methods. But first of all, it is necessary to understand: what is society and
economy digitalization: is it a project with characteristic components and management methodology or a process.
Recent research and publication analysis. The
concept of digital transformation is complex and multi-faceted, and there is yet no general opinion in the scientific world as to what should be understood by this phenomenon.
Primary information can be obtained by studying corporate blogs, expert interviews, research works conducted by international organizations. Fundamental research on digital transformation is reflected in the works of A. Russell., G.Meller, theoretical foundations of digitalization of the economy of D. Tapscott, C. Dal-man, N. Lane, S. Koliadenko, O. Dannikov and others.
A modern look at digital transformation can be seen in the articles of leading specialists in this field as Osman Gani, Sam Barnes, Ben Aston, Michael Wood, Muthiah Abbhirami, etc. Among the national scientists, these issues are specified in the works of S. Bushuyev, A. Biloshchytsky, D. Bushuyev, Y. Tesla, O. Dan-chenko, O. Biryukov, Y. Poskrypko, N. Egorchenkova and others.
Scientific literature has plenty of common definitions of digitalization:
a way of transferring any kind of information to a digital form;
process related to the trend of digitalization of a wide variety of information types [1, 2].
Digitalization is a general term for the digitaliza-tion of society and economy, which describes the transition from the industrial era and analog technologies to the era of knowledge and creativity, characterized by digital technologies and innovations in digital business
[3].
In other studies, digitalization is presented as the creation of a digital (based on bytes and bits - minimally addressed units of information) version of analog things on paper documents, video and photo images, sounds, or, as the process of using digital technologies together with improving the customer service system
[4].
Digitalization is understood as transformation, penetration of digital technologies to optimize and automate business processes, increase productivity and improve communication interaction with consumers
[5].
Digitalization is the automation of individual business processes, or a set of projects that digitalize the key business processes of the customer [6].
Only in some works definition of the digitalized project was stated as an event of the departmental program of digital transformation, the implementation of which is carried out by the state body on the principles of project management [7].
The aim of this study. To justify that digital transformation is a project in form and essence and therefore is subject to the rules provided by the project management methodology.
Results and discussion. The author of the study [8] notes that for quite a long time, digital transformation was understood as the transition to the digital format or the storage of traditional data forms in digital
format. This is one of the areas of digitalization, its interpretation in a «narrow sense».
In the article «The Digital PM: Specialization Within the Profession?» Michael Wood defines digital projects as projects focused on the development and management of digital content [9].
Nowadays there are many definitions of both the digitalization itself, and within the concept there are a number of terms that have different interpretations. Gribanov Y.I. emphasizes key terms that sound the same in English, but radically differ in content:
digitization is the transformation of information «rom physical media to digital». Within the framework of digitization there are no changes in the quality and content of information, it will simply turn into an electronic form for further processing in a digital format, which allows to improve existing business processes by adding information within them in a digital format;
digitization is the creation of a new product in a digital form. The main difference between digitaliza-tion is in creating a new innovative product, with new functionality and consumer properties.
The paper [10] provides a distinction between concepts of digital transformation, as a set of digitalization projects that digitalize key business processes and dig-italization, as a process of automation of individual business processes. The author highlights the features of digitalized projects:
- the need for high-quality comprehension of the subject industry, project team training as the start of the project;
- special attention is given to the strategy and flexible approaches at the stage of planning with the ability to reorient the project, using models of the following type: the AS-IS model («as is») reflects the current situation, allows to systematize the processes and information flows of the organization within these processes. The model «detects» hotspots with the subsequent introduction of the necessary changes; the TOBE process model («as it should be») is created on the basis of the analysed results from the previous model (AS-IS). The TO-BE model analyzes and optimizes existing processes, as well as describes the future state of processes, taking into account Customer requirements;
- transformation of the classic business model into a business model of a multifaceted market or creation of a new business model next to the existing one;
- support of the high dynamics of continuous development and testing of hypotheses;
- automation of the digitalized project using project management tools.
As a part of our study, we will consider digital transformation as a project.
According to the definition provided [11], project is a temporary enterprise aimed at creating a unique product, service or result.
In the paper [12] authors analyzed the trends in the use of the «digitalization» concept within the field of project management and have found that during the study period the phrase «digitalized projects» comprises 1,6 % (22 works) in 1361 scientific works.
Digital transformation as a project is a unique product creation, such as improving existing product
and developing a new software product to manage dig-italized processes. At the beginning of the project goals, business processes and systems, that will be involved in the project, are defined, as well as timing, budget, team, project management tools, especially related to risk management. Some projects are characterized by a high degree of uncertainty in the process of forming project requirements and methods for their implementation. One of the possible reasons is that the digitalized project may contain several microprojects with their own approaches and differences from the generally accepted project management methodology.
Digitalized projects are characterized according to [11], by temporarity (there is a start and completion point of the project). The duration of projects is quite a difficult question: the high complexity of the problem is revealed by the data of some surveys, according to which only one third of projects meet their deadlines and budgets, and in digitalized projects it's generally 10 % [13].
According to the project management methodology, digitalized projects are similar to similar projects in other industries.
The authors of the work [14] believe that if digital technology is considered as a determining factor, then digital projects are those able to change business processes and form additional value through the use of the latest technologies of business process organization.
The peculiarities of such projects are based on the operation of large databases, automation of the production process, the use of a fundamentally new interaction interface (virtual reality, augmented reality) [15], but at the same time, digital technologies are constantly updated (projects that were implemented several years ago were based on the digital technologies of the previous generation and therefore are not a full-fledged analogue) [16].
For the successful implementation of projects and in accordance with the specifics of the project approach in the management of digitalized projects, there is a need to regularly review the organizational foundations of Project Management, as the introduction of digital technologies brings its own adjustments to the management structure and organizational model [17].
In the paper [18] the author suggets the following general stages, which are structured according to the results of the digitalized project (Fig. 1).
Fig. 1. General stages of digitalized project
Digitalized projects are characterized by a high rate of response to changes and risk level. The traditional approach at the stage of determining the range of project requirements and responding to changes based on changes requests lead to a complication of the project implementation processes.
The most popular project management methodologies as Waterfall, Scrum, PRojects IN Controlled Environments 2 (PRINCE2) help out.
Fig. 2 presents a general diagram of three project management methodologies [17].
If we analyze the Waterfall model based on the Gantt chart, the digitalized project has several equivalent components that consistently change each other according to the management process. The positive point of the model is the ability to start work on a full-fledged analysis of the customer's requirements, perform work with the deadlines, as well as one team manages the project at all stages. The disadvantage is that the initial plan of the project can no longer be adjusted in the process of implementation (even in case of risky situations or technological changes) [20].
Flexible management methodologies and methods such as Agile or Scrum are an effective solution for the implementation of digitalized projects.
Iterative Scrum model [21] is a more flexible methodology that allows to implement the project, dividing it into sprints (a short period of time during which the Scrum team performs its work), the results of which can be already finished (partially finished, but suitable for use) product. The model allows to carry out the necessary adjustments during the project implementation, but this model does not provide constant control over the progress at all stages and costs arising from the change of project goals.
Regarding Agile, it should be noted that rapid changes in the environment require the use of fairly effective Agile methodologies, knowledge systems and competencies of project managers and management of organizations. The basics of environmental change comprise changing the decision-making paradigm in flexible project management [22].
Fig. 2. General scheme of three project management methodologies
PRINCE2 is a digitalized project management model that has a three-level architecture and requires regular evaluation of the economic component of the project, increasing the competence of the implement-ers, and adhering to the clear hierarchy of the team. Among the disadvantages, it is necessary to specify the inefficiency of the model in the course of the implementation of high-risk projects and the low communication capabilities of the team [23].
For the effective implementation of digitalized projects a hybrid approach can be used. Then these models can be combined by using them at different stages of the project.
The main ideology of digitalization is formatting all the processes of information interactions to a digit, with the further goal of improving the efficiency and quality of activities, which in its turn leads to a reduction of time and effort to obtain complete, timely, accurate and reliable information that is so necessary for the management of social, scientific, international projects, etc. [24].
Results and discussion. The obtained results confirm that digitalization in form and essence is a large-scale project that combines program and organizational solutions and has a number of features.
As a part of digitalized project management, there are several different models, at the same time, the choice of a model by the project manager is each time determined by the relevance of the task and the practical activity of the customer.
The development of mechanisms for the implementation of digital transformation is a rather urgent issue that needs further study.
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