DEVELOPMENT AND APPLICATION OF A STAGE GATE PROCESS TO REDUCE THE UNDERLYING RISKS OF IT SERVICE PROJECTS
Recently IT service projects have increased to introduce new technology as like data analytics, IoT (Internet of Things) cloud and mobile computing and to change or improve business process of finance, manufacturing, service, and government and public organizations, but lots of projects were failed due to cost overrun, schedule delay, and fail to pass user acceptance test on time, and fail to align company's objective and strategy. There are several critical factors of project failure, for example, incorrect project cost estimation, lack of enterprise wide risk management, unfair contract agreement, and missing or incomplete user requirements, and low quality level of design and development, and lack of user participation or cooperation for user requirement definitions and user acceptance test. To prevent the critical risk factors of project, the risks should be identified and assessed during project lifecycle, and report to project governance board, and the project governance board should make the Go/No Go decision at the end of each project stage. The purpose of this thesis is to develop the project SGP(Stage Gate Process) for enterprise wide risk management structure to reduce the project failure rate, and for helping to achieve the company's objective and strategy, and then to verify the effectiveness of the project SGP through application of the SGP to actual IT service projects. We can aware the SGP is very useful to reduce the failure rate of project through preventing the costoverrun, schedule delay, and failure to pass for user acceptance test. The SGP is consisting of assessment of deliverable by project management office and quality assurance, and Go/No Go decision making based on quality criteria by executives for enterprise wide risk and quality management at the end of each project stage. And we confirmed the effectiveness of SGP through FGI (Focus Group Interview) the result show that the SGP is very useful to manage cost, risk, and quality, but the effectiveness of SGP is dependent on company's project governance structure and process, and project governance board's attention and support to the SGP process.