Review of IT Project Management Practices in the UAE

Review of IT Project Management Practices in the UAE A Study on the UAE IT Industry ABSTRACT I keep six honest serving men, (They taught me all I know); Their names are What and Why and When And How and Where and Who. -Rudyard Kipling This report presents findings of a research project that explored the distinct approaches of UAE-based IT organisations in following different project management practices to deal with their IT projects. Not too much of project management data on UAE IT industry exists today. Therefore it was decided to do a study on it. The research findings are based on a questionnaire survey conducted between July and August 2008 among 200 organisations of UAE. A total of 48 valid responses were received, representing an overall response rate of 24%. The study achieved a primary aim of explanatory and constructivist research, which is to enhance knowledge and understanding of a phenomenon. An emergent-based, general systems approach was adopted for the whole project. General System theory is a holistic and analytical approach to solving complex problems. It recognizes relativity of perception and is a general science of wholeness (Bertalanffy, 1968). The theory was used to break down the whole research technique into various components yet still maintaining the integrity of the research objective. A key finding was the high amount of failure risks that came along with IT projects. In addition, it was found that project management added a lot of value to IT projects and if carried out efficiently it could help avoid the failure risks. A surprise discovery was that although most of the organisations valued project management a lot, they did not have a dedicated Project Management Office (PMO) in place. Further, it was found out that high involvement of external organisations could be one of the factors responsible for the high amount of risks involved with IT projects. It was observed that 25% of the project managers were not aware of the project management maturity levels of their organisations. Project managers seemed to have tough times managing time, cost and risk in IT projects. Also, most of the organisations did not believe in recording the lessons learned and hence knowledge was not transferred to the new projects from the previous ones. Strong indicators probably exist to warrant further research into investigating the basic reasons behind a high percentage of failed IT projects. Further research into the relationship between project management methodology and project success seems warranted on behalf of the indicators provided by the respondents. INTRODUCTION I have not failed. Ive just found 10,000 ways that wont work. -Thomas Alva Edison (1847-1931) If your project doesnt work, look for the part that you didnt think was important   Arthur Bloch The significant problems we face cannot be solved at the same level of thinking we were at when we created them. -Albert Einstein (1879-1955) The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency. -Bill Gates The Roman bridges of antiquity were very inefficient structures. By modern standards, they used too much stone, and as a result, far too much labor to build. Over the years we have learned to build bridges more efficiently, using fewer materials and less labor to perform the same task. -Tom Clancy (The Sum of All Fears) In 1986, Alfred Spector, president of Transarc Corporation, stated that bridge building could be compared to software development. He added, The premise: Bridges are usually built on-time, on-budget, and do not collapse. On the other hand, software never comes in on-budget or on-time. Also, it always breaks down. One of the biggest reasons why bridges come in on-time, on-budget and do not collapse is because their designs are extremely detailed. Once the designing phase is over, it is then frozen and the contractor has very little flexibility in changing the specifications. However, in todays fast moving business environment, having a frozen design in place means no changes in the business practices. Therefore efforts must be made to use a more flexible model. This could be and has been used as an explanation for development failure. But beside 3,000 years of experience, there is another difference between software failures and bridge collapses. When a bridge collapses, investigation is carried out and a report is written on the cause of the failure. It is not so in the IT industry where failures are covered up, ignored, and/or rationalized. As a result, the same mistakes are repeated over and over again. According to the Standish Group report, more than $250 billion is spent every year on IT application development of approximately 175,000 projects in the United States. The average cost of a development project for a small company is $434,000; for a medium company, it is $1,331,000; and for a large company, it is $2,322,000. A great number of these projects will fail. IT projects have always known to be in chaos. The research showed that a staggering 31.1% of projects got canceled before they ever got completed. Further results indicated that 52.7% of projects had cost 189% of their original estimates. The cost of these failures and overruns were just the tip of the proverbial iceberg. The lost opportunity costs were not measurable, but could easily be in trillions of dollars. The extent of this problem can be realized by looking at example of the City of Denver. The failure to produce reliable software to handle luggage at the new Denver airport was costing the city $1.1 million per day. Based on this research, in 1995 American companies and government agencies spent $81 billion for canceled software projects. These same organisations paid an additional $59 billion for software projects that were completed, but had exceed their original time estimates. Risk is always a factor when pushing the technology envelope, but many of these projects were as ordinary as a driving license database, a new accounting package, or an order entry system. On the success side, the average was only 16.2% for software projects that were completed on-time and on-budget. In the larger companies, the news was even worse: only 9% of their projects came in on-time and on-budget. And, even when these projects were completed, many were no more than a mere shadow of their original specification requirements. Projects completed by the largest American companies had only approximately 42% of the originally-proposed features and functions which goes to show that these projects lacked scope management. Smaller companies fared much better in this aspect. 78.4% of their software projects got deployed with at least 74.2% of their original features and functions. 48% of the IT executives in the research sample felt that there were more failures during that period than those five years ago. But it was also observed that over 50% felt that there were fewer or the same number of failures at that point of time than there were five and ten years ago. So the Standish Group reported an improvement in IT project success rates and claimed that it was due to an increased ability to know when to cancel failing projects. Standish Group Chairman Jim Johnson commented: The real improvement that I saw was in our ability to-in the worlds of Thomas Edison-know when to stop beating a dead horseEdisons key to success was that he failed fairly often; but as he said, he could recognize a dead horse before it started to smellIn information technology we ride dead horses-failing projects-a long time before we give up. But what we are seeing now is that we are able to get off them; able to reduce cost overrun and time overrun. Thats where the major impact came on the success rate. (Cabanis, 1998) There is a new or renewed interest in project management today as the number of projects continues to grow and their complexity continues to rise. As already observed, the success rate of IT projects has more than doubled since 1995, but still only about a third are successful in meeting scope, cost, and time goals. More and more projects and organisations can succeed consistently by adopting a more disciplined approach to managing projects. Research Objectives This study provides first-hand information on success and failure rates of IT projects in the UAE and on distinct approaches and methodologies followed by all different kinds of IT organisations in governing IT projects. It also aims to survey attitudes of organisations towards distinct project management processes like cost management, time management, risk management, etc. and establish a future direction for organisations so that they realize the value of the most significant process groups of project management and do not neglect them in the forthcoming projects. It could be useful in the following four areas : (1) it can be helpful for relevant government departments in preparing strategies for project management in the IT industry; (2) it can promote the awareness of commercial benefits of project management among managers in IT companies of UAE and encourage them to seriously consider project management in their businesses; (3) it can increase the competence and confidence in applying project management by local companies by providing management guidance on the selection and development of project management methodologies; and (4) it can be beneficial to the educational institutions of UAE for teaching and conducting further research on information technology project management. According to the Global Industry Classification Standard (GICS), the IT industry consists of three primary sub-sectors : firstly, Technology Software Services, including companies that primarily develop software in various fields such as the Internet, applications, systems, databases management and/or home entertainment, and companies that provide information technology consulting and services, as well as data processing and outsourced services; secondly Technology Hardware Equipment, including manufacturers and distributors of communications equipment, computers and peripherals, electronic equipment and related instruments; and thirdly, Semiconductors Semiconductor Equipment Manufacturers. This particular report is confined to the use of project management among the areas of Technology Software Services and Technology Hardware Equipment only. The research was not conducted on the Semiconductors Semiconductor Equipment Manufacturers in UAE. Contents of this Report Chapter Two introduces project management and its significance for any business sector. It then demonstrates the rapid growth in adoption of project management in IT projects. This is followed by a synopsis of the UAE market and the UAE IT industry. The chapter ends signifying the impact of project management on the UAE IT industry. Chapter Three expands on the significance of project management as viewed through academic literature. This outlines how project management is known to add value to IT projects and some characteristics observed by organisations that have gone through the process of formalizing project management (Center for Business Practices). Using past works of the last 20 years, it also highlights the most predominant factors responsible for high failures rates of IT projects. This is followed by views of authors on various project management process groups and methodologies. Having discussed not only the pros of project management but also the problems faced during the entire process, Chapter Four is concerned with the research methodology and detailed analysis of the survey conducted. Chapter Five brings out the key survey findings in detail and compares these with the literature surveyed in Chapter Two indicating the extent to which the survey findings break new ground. Chapter Six builds up on the key findings outlined here, their practical implications, and a look towards how this research could be developed. This includes a brief description of limitations of this study and of recommendations on how these limitations could be overcome in subsequent studies. BACKGROUND Project management is the most critical business skill and competency of today that forms the basic building block of a knowledge based company for businesses and professions in oil and gas, petroleum, petrochemicals, chemicals, metal and mining, infrastructures, buildings, IT, Healthcare, Finance, Telecoms, Manufacturing, and many more services and banking industries. Project management was declared to be the best career on earth by the Fortune magazine. Recently, PMI reported that nowadays more and more organisations and government agencies are adopting and making project management a strategic competency. Information systems (IS) and information technologies (IT) are the fastest growing industries in developed and most of the developing countries. Huge amounts of money are still being invested in these industries (Abdel-Hamid Madnick, 1990). Every organisation wants to gain a competitive advantage, maintain it and lead from the front. Hence, there is a corresponding pressure to increase productivity. To maintain a competitive edge in todays fast-changing world, the success of an organisation depends on effectively developing and adopting information systems. According to Zells (1994) and other studies, approximately 85% of IT projects under-taken in the western countries are at the lowest level of capability maturity model (CMM). The challenges at this level are to have project planning, project management, configuration management, and quality assurance in place and have them working effectively. To improve project delivery performance, a number of organisations are adopting project management approaches and setting up project management offices (Barnes, 1991; Butterfield Edwards, 1994; King, 1995; Munns Bjeirmi, 1996; Raz, 1993; Redmond, 1991). Current literature on IT projects shows that most of the IT problems are not technical, they are of management, organisational or behavioral nature. (Johnston, 1995; Martin, 1994; Whitten, 1995). Fishers (1991) survey of technology firms showed that if project management improved, time and cost could be reduced by more than 25% and profits would increase by more than 5%. This has since been validated by using different project management methodologies and analyzing the extent to which these practices can be adopted, based on internal benchmarking by the companies involved in the field trials. The UAE Market the UAE IT Industry UAE has realised the significance of project management in the IT due to its rapid growth in the IT industry. As expected by Business Monitor International (BMI), the total size of the UAE IT market is to increase from around US$3.4bn in 2007 to close to US$4bn in 2012. With IT a key element of the Emirates development, a number of major local and federal government initiatives together with a strong and diversifying economy should ensure continued growth over the forecast period. Meanwhile, the oil-led boom across the Middle East will continue to be a boost to IT and infrastructure spending in the UAE. (Marketresearch.com, 2007) As per the BMI report, the federal government is also encouraging the development of smart cities, another regional trend. In 2007 the government announced that its target of getting 90% of businesses online by the end of the year was likely to be met. Services are becoming an increasingly significant component of many deployment contracts, as evidenced by recent projects by leading UAE corporations such as Emirates Airlines and the local telecom provider Etisalat. Investment is expected to be strongest in the government, financial, and oil and gas verticals. Other key non-oil sectors driving the economy include banking and finance, which are likely to be the single largest industry vertical in terms of IT investments over the forecast period. Real estate has also experienced a massive investment boom in the past five years, and this is expected to continue and grow, with the National Bank of Dubai projecting at least US$50bn in outlays in property development in the emirate by 2010. (Mindbranch.com, 2007) Industry Developments The BMI report states that the UAE federal governments recently announced UAE Strategic Plan calls for a strengthening of e-government programmes. The focus of the programme is to support implementation of programmes at federal government level. The federal government ministries have often lagged behind progress by the leading local governments, particularly Dubai. As such, Dubai government, which has had many of its departments and services online for some time, will lend expertise to the project. However, local government continues to dominate and accounts for around 20% of total IT Services spending. Dubai Municipality announced that it expects to spend anything between US$1.6mn and US$2.2mn per year over the next few years implementing its plan of getting 90% of government services online. It is likely the organisation will spend at least US$2.8mn annually on e-government initiatives. Abu Dhabi is accelerating its efforts to emulate Dubai, led by the Abu Dhabi Systems and Information Committee (ADSEIC), a body created in 2005 to develop and drive initiatives to transform government services in the Emirate. (Marketresearch.com, 2007) From the above trend, it can be observed that the number of IT jobs in UAE has gone up by 5000 percent since 2005. This goes to show how rapidly the UAE IT Industry has grown in the past three years and that it is still going strong. Competitive Landscape According to BMI, with government accounting for as much as 40% of IT spending, and e-government programmes alone around half that, vendors are continuing to find opportunities. Recently the Ministry of Development for the Government sector signed a strategic agreement with Microsoft Gulf whereby Microsoft will support federal e-government programmes with training and technical support. Under the agreement Ministries will also use legal Microsoft software. Meanwhile, the leading body for Abu Dhabis e-government programme, the Abu Dhabi Systems and Information Committee (ADSIC) signed an Enterprise Licence Agreement with Oracle. The agreement establishes Oracle as a key technology partner and provides for the Abu Dhabi Government to buy Oracle software solutions and support and maintenance services. The continuing growth in PC sales in 2007 in the UAE did not significantly alter the competitive landscape of a market which accounts for approximately 40% of the overall regional PC sales. Today the market remains dominated by international players such as Acer, Dell and HP with the top five brands accounting for more than 50% of the market. Meanwhile, the share held by local assemblers continues to dwindle, due in part to their relative weakness in the growth area of notebooks. However, local assemblers hope that their future will be brighter since UAE-based firms such as Sky Electronics have already been fighting back. (Mindbranch.com, 2007) Hardware The UAE hardware market is estimated at about US$1.4bn in 2007, which shows a 12% growth from US$1.2bn in 2006, and is one of the largest in the region. Much of the growth is due to small and medium enterprise spending, particular on mobile computers, which are expected to account for around 60% of sales over the forecast period. Notebooks are also proving to be popular with the consumer segment, particularly with the introduction of features such as integrated wi-fi, webcam and entertainment features such as HD DVD. Sales of PC notebooks and accessories have been expected to reach more than US$1bn by the end of 2008, while the compound annual growth rate (CAGR) for the 2007 to 2012 period as a whole is expected to be in the region of 8%. Current and future investments in education and e-government, fuelled by new oil revenues, will lead to desktop rollouts in schools, colleges and government offices across the Emirates. (Marketresearch.com, 2007) Software BMI estimates that the UAEs software spending will pass US$400mn in 2008, representing around 17% of the IT expenditure. CAGR for spending on packaged software is put at 10% over the 2007 to 2012 period, with the UAE being of the regions fastest-growing ERP markets, as more businesses realise the benefits of efficient management of resources within their internal processes. The UAE also has one of the regions lowest software piracy rates at just 35% according to the Business Software Association (BSA), which has praised the UAE government and Ministry of Economy for its efforts in promoting anti-piracy initiatives. The government has combated illegal software in a number of ways, both through anti-piracy legislation and enforcement measures. Customer relationship management (CRM) will be one of the growth areas with fewer than 2% of small- to medium-sized enterprises (SMEs) in the Middle East region having a specialised CRM application in place. BMI predicts plenty of room for growth in the forecast period as numerous untapped sub-sectors still exist. Key verticals include process manufacturing (mainly oil and gas), followed by the financial services industry. Two other key segments are the telecom and the public sectors. During the next five years high-growth categories are set to include CRM, enterprise resource planning (ERP) business intelligence, s torage and security products. (Mindbranch.com, 2007) IT Services BMI expects that the IT Services market will reach a value of more than US$1,003mn by 2012, with outsourcing accounting for an increasingly large portion of up to 25%. IT services revenues compound annual growth rate (CAGR) over the 2006 to 2012 period is expected to be 10%, encouraging vendors to shift their focus away from simply shifting boxes. Services are becoming an increasingly significant component of many deployment contracts, as evidenced by recent projects by leading UAE corporations such as Emirates Airlines and Etisalat. Outsourcing is also predicted to be a growing trend, with recent landmark outsourcing deals awarded by entities such as the Abu Dhabi Water and Electricity Authority (ADWEA)and civil service departments. Global vendors such as IBM Global Services are competing for its business with local companies such as Injazat Data Systems, which with its good government connections has grown to be a major force in the market, reporting BPO deals with 13 leading priva te and public organisations. (Marketresearch.com, 2007) E-Readiness The recent Global Information Technology report sponsored by Cisco noted the UAEs success in creating a good ICT environment by placing it top of the rankings for 122 countries. The survey, which looks at the preference of countries to leverage the opportunities offered by ICT for development and increased competitiveness, praised the UAEs good regulatory environment, and clear government leadership in leveraging IT and promoting its use. According to the report, ICT has empowered individuals and revolutionised the business and economic landscape while fostering social networks and companies. Overall internet penetration in the UAE was estimated at close to 40% by the end of 2006, far above the Middle East and North Africa (MENA) average, reflecting the UAEs status as one of the most advanced IT countries in the middle-east. Broadband penetration is around 10% and is expected to rise 60% over the forecast period. In terms of e-government development, additional new phases to be introduced in the project last year (as mentioned in the Industry Developments section) include e-portal, e-project, the HR Management System (HRMS) and the Financial Management Integration System (FMIS) projects. The e-government High Committee has expressed satisfaction with the progress made on implementation of the e-government initiative to date. (Mindbranch.com, 2007) Impact of Project Management on the UAE IT Industry Project management has already had a significant impact on IT organisations in UAE and much more dramatic effects are anticipated for the years to come. Greater attention needs to be paid to the interaction of information technology with business methods, work patterns, employees and organisational culture. It was observed that not too much of research work has been carried out on project management in the IT industry of UAE and this is the precise reason why this study was conducted on the UAE market. LITERATURE REVIEW If we built houses the way we build software, the first woodpecker to come along would destroy civilization. John J. Hamre, U.S. Deputy Defense Secretary Phillips (2004) states that IT project management could be as as exciting as a white water rafting excursion or as painful as a root canal. In addition, Anthes (2008) points out that IT project management has always earned a high ranking on the annual list of IT managers worries, but in the first-half of the 2008 Vital Signs survey, it took the No. 1 spot. In other words, the process is all about efficiently handling the complexities that come along with IT projects, right from the word go. The study aims to investigate on how difficult it is for organisations to manage IT projects efficiently. Richardson et al. (2006) claims that project failure is based not only on economic criteria but also on requirements, cost and time parameters. He builds up his reasoning by citing examples of the following project surveys : The Robbins-Gioia Survey (2001) The Conference Board Survey (2001) The KPMG Canada Survey (1997) The Chaos Report (1995) According to IT Cortex (2004), the results of these surveys showed that most of the organisations suffered from high project failure rates and that they heavily exceeded the time and budget constraints. Similarly, Schwalbe (2007) reports that IT projects come along with high failure risks. He defends his thoughts with a study which was conducted by the Standish Group (CHAOS) in 1995. In the survey it was found that only 16.2% of IT projects were successful and over 31% were cancelled before completion, costing over US$81 billion in the US alone. However, when the CHAOS study was conducted again in 2001, the results showed improvements in all areas but still only 28% of IT projects succeeded. The 2001 Standish Group report findings as compared to those of the 1995 report were as follows : Time overruns significantly decreased from 222% to 163% Cost overruns were down from 189% to 145% Required features and functions were up from 61% to 67% Successful IT projects rose from to 16% to 28% One of the objectives of this report is to carry out similar work on finding the failure rates of IT projects but on the UAE market, one on which not much research has been carried out till date. In many previous studies, project failures due to time delay, cost overrun, and abandonment of IT projects have been widely reported (Bailey, 1996; Gibbs, 1994; Lucas, 1995; Martin, 1994; Ward, 1994). In other industries, causes of project failures are investigated and reports written, but in the IT industry their causes are either covered up or ignored. As a consequence, the IT industry keeps repeating the same mistakes over and over again (Johnston, 1995). This report takes this a step further by observing what percentage of IT organisations in UAE believe in maintaining project reports and lessons learned logs for their subsequent projects. In many previous studies, the most commonly reported causes of IT project failure were traced out. They were as follows (based on a content analysis of the cited literature): Misunderstood requirements (business, technical, and social) (King, 1995; Lane, Palko, Cronan, 1994; Lavence, 1996); Optimistic schedules and budgets (Martin, 1994); Inadequate risk assessment and management (Johnston, 1995); Inconsistent standards and lack of training in project management (Jones, 1994; OConner Reinsborough, 1992; Phan, Vogel, Nunamaker, 1995); Management of resources (people more than hardware and technology) (Johnston, 1995; Martin, 1994; Ward, 1994); Unclear charter for a project (Lavence, 1996); Lack of communication (Demery, 1995; Gioia, 1996; Hartman, 2000; Walsh Kanter, 1988). On the other hand, Karten studies reasons for failure by compiling a list of ten ways that can guarantee project failure : Abbreviate the planning process Dont ask what if? Minimize customer involvement Select team members by seeing who is available regardless of skill Work people long and hard Dont inform management of problems Allow changes at any point Discourage questions from team members Dont give customers progress reports Dont compare project progress with project estimates However, this survey goes a bit deeper and also explores the role of project management methodologies and process groups in helping deliver successful projects. The project management frameworks which are rapidly gaining recognition are ITIL, PMBOK and PRINCE2 (Phillips, 2004). Although Leuenberger (2007) considers ITIL to be one of the worlds best ways to align IT with business objectives, he also claims that his research conducted through IDC shows points out that 60% of mid-sized businesses in Australia either are unaware of, or have no plans to implement ITIL and also that on a global scale, only 20% of the mid-market companies are currently using ITIL. In contrast to ITIL, PMI claims that it has grown to become the most widely recognized and the only global certification for the project management profession with more than 260,000 members in over 171 countries. The survey aims to study the UAE IT industry and clarify such claims made by authors and institutes so that the growth of IT project governance methodologies can in an IT industry of a booming economy can be analyzed. Bainey (2004) states that so many IT projects tend to go over budget, run behind schedule, and deliver products or services poor in quality due to the negligence of integration, consistency and standardization. The report builds up on this by going ahead and investigating the significance of integration management for project managers. Harris (2005) asserts that it is high time that the PMO function is placed in its proper organisational alignment. He believes that not only can it combine the corporate planning process with effective delivery of products and services but also provide external clients with traditional client services for the enterprise as a whole or for respective enterprise business unit Review of IT Project Management Practices in the UAE Review of IT Project Management Practices in the UAE A Study on the UAE IT Industry ABSTRACT I keep six honest serving men, (They taught me all I know); Their names are What and Why and When And How and Where and Who. -Rudyard Kipling This report presents findings of a research project that explored the distinct approaches of UAE-based IT organisations in following different project management practices to deal with their IT projects. Not too much of project management data on UAE IT industry exists today. Therefore it was decided to do a study on it. The research findings are based on a questionnaire survey conducted between July and August 2008 among 200 organisations of UAE. A total of 48 valid responses were received, representing an overall response rate of 24%. The study achieved a primary aim of explanatory and constructivist research, which is to enhance knowledge and understanding of a phenomenon. An emergent-based, general systems approach was adopted for the whole project. General System theory is a holistic and analytical approach to solving complex problems. It recognizes relativity of perception and is a general science of wholeness (Bertalanffy, 1968). The theory was used to break down the whole research technique into various components yet still maintaining the integrity of the research objective. A key finding was the high amount of failure risks that came along with IT projects. In addition, it was found that project management added a lot of value to IT projects and if carried out efficiently it could help avoid the failure risks. A surprise discovery was that although most of the organisations valued project management a lot, they did not have a dedicated Project Management Office (PMO) in place. Further, it was found out that high involvement of external organisations could be one of the factors responsible for the high amount of risks involved with IT projects. It was observed that 25% of the project managers were not aware of the project management maturity levels of their organisations. Project managers seemed to have tough times managing time, cost and risk in IT projects. Also, most of the organisations did not believe in recording the lessons learned and hence knowledge was not transferred to the new projects from the previous ones. Strong indicators probably exist to warrant further research into investigating the basic reasons behind a high percentage of failed IT projects. Further research into the relationship between project management methodology and project success seems warranted on behalf of the indicators provided by the respondents. INTRODUCTION I have not failed. Ive just found 10,000 ways that wont work. -Thomas Alva Edison (1847-1931) If your project doesnt work, look for the part that you didnt think was important   Arthur Bloch The significant problems we face cannot be solved at the same level of thinking we were at when we created them. -Albert Einstein (1879-1955) The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency. -Bill Gates The Roman bridges of antiquity were very inefficient structures. By modern standards, they used too much stone, and as a result, far too much labor to build. Over the years we have learned to build bridges more efficiently, using fewer materials and less labor to perform the same task. -Tom Clancy (The Sum of All Fears) In 1986, Alfred Spector, president of Transarc Corporation, stated that bridge building could be compared to software development. He added, The premise: Bridges are usually built on-time, on-budget, and do not collapse. On the other hand, software never comes in on-budget or on-time. Also, it always breaks down. One of the biggest reasons why bridges come in on-time, on-budget and do not collapse is because their designs are extremely detailed. Once the designing phase is over, it is then frozen and the contractor has very little flexibility in changing the specifications. However, in todays fast moving business environment, having a frozen design in place means no changes in the business practices. Therefore efforts must be made to use a more flexible model. This could be and has been used as an explanation for development failure. But beside 3,000 years of experience, there is another difference between software failures and bridge collapses. When a bridge collapses, investigation is carried out and a report is written on the cause of the failure. It is not so in the IT industry where failures are covered up, ignored, and/or rationalized. As a result, the same mistakes are repeated over and over again. According to the Standish Group report, more than $250 billion is spent every year on IT application development of approximately 175,000 projects in the United States. The average cost of a development project for a small company is $434,000; for a medium company, it is $1,331,000; and for a large company, it is $2,322,000. A great number of these projects will fail. IT projects have always known to be in chaos. The research showed that a staggering 31.1% of projects got canceled before they ever got completed. Further results indicated that 52.7% of projects had cost 189% of their original estimates. The cost of these failures and overruns were just the tip of the proverbial iceberg. The lost opportunity costs were not measurable, but could easily be in trillions of dollars. The extent of this problem can be realized by looking at example of the City of Denver. The failure to produce reliable software to handle luggage at the new Denver airport was costing the city $1.1 million per day. Based on this research, in 1995 American companies and government agencies spent $81 billion for canceled software projects. These same organisations paid an additional $59 billion for software projects that were completed, but had exceed their original time estimates. Risk is always a factor when pushing the technology envelope, but many of these projects were as ordinary as a driving license database, a new accounting package, or an order entry system. On the success side, the average was only 16.2% for software projects that were completed on-time and on-budget. In the larger companies, the news was even worse: only 9% of their projects came in on-time and on-budget. And, even when these projects were completed, many were no more than a mere shadow of their original specification requirements. Projects completed by the largest American companies had only approximately 42% of the originally-proposed features and functions which goes to show that these projects lacked scope management. Smaller companies fared much better in this aspect. 78.4% of their software projects got deployed with at least 74.2% of their original features and functions. 48% of the IT executives in the research sample felt that there were more failures during that period than those five years ago. But it was also observed that over 50% felt that there were fewer or the same number of failures at that point of time than there were five and ten years ago. So the Standish Group reported an improvement in IT project success rates and claimed that it was due to an increased ability to know when to cancel failing projects. Standish Group Chairman Jim Johnson commented: The real improvement that I saw was in our ability to-in the worlds of Thomas Edison-know when to stop beating a dead horseEdisons key to success was that he failed fairly often; but as he said, he could recognize a dead horse before it started to smellIn information technology we ride dead horses-failing projects-a long time before we give up. But what we are seeing now is that we are able to get off them; able to reduce cost overrun and time overrun. Thats where the major impact came on the success rate. (Cabanis, 1998) There is a new or renewed interest in project management today as the number of projects continues to grow and their complexity continues to rise. As already observed, the success rate of IT projects has more than doubled since 1995, but still only about a third are successful in meeting scope, cost, and time goals. More and more projects and organisations can succeed consistently by adopting a more disciplined approach to managing projects. Research Objectives This study provides first-hand information on success and failure rates of IT projects in the UAE and on distinct approaches and methodologies followed by all different kinds of IT organisations in governing IT projects. It also aims to survey attitudes of organisations towards distinct project management processes like cost management, time management, risk management, etc. and establish a future direction for organisations so that they realize the value of the most significant process groups of project management and do not neglect them in the forthcoming projects. It could be useful in the following four areas : (1) it can be helpful for relevant government departments in preparing strategies for project management in the IT industry; (2) it can promote the awareness of commercial benefits of project management among managers in IT companies of UAE and encourage them to seriously consider project management in their businesses; (3) it can increase the competence and confidence in applying project management by local companies by providing management guidance on the selection and development of project management methodologies; and (4) it can be beneficial to the educational institutions of UAE for teaching and conducting further research on information technology project management. According to the Global Industry Classification Standard (GICS), the IT industry consists of three primary sub-sectors : firstly, Technology Software Services, including companies that primarily develop software in various fields such as the Internet, applications, systems, databases management and/or home entertainment, and companies that provide information technology consulting and services, as well as data processing and outsourced services; secondly Technology Hardware Equipment, including manufacturers and distributors of communications equipment, computers and peripherals, electronic equipment and related instruments; and thirdly, Semiconductors Semiconductor Equipment Manufacturers. This particular report is confined to the use of project management among the areas of Technology Software Services and Technology Hardware Equipment only. The research was not conducted on the Semiconductors Semiconductor Equipment Manufacturers in UAE. Contents of this Report Chapter Two introduces project management and its significance for any business sector. It then demonstrates the rapid growth in adoption of project management in IT projects. This is followed by a synopsis of the UAE market and the UAE IT industry. The chapter ends signifying the impact of project management on the UAE IT industry. Chapter Three expands on the significance of project management as viewed through academic literature. This outlines how project management is known to add value to IT projects and some characteristics observed by organisations that have gone through the process of formalizing project management (Center for Business Practices). Using past works of the last 20 years, it also highlights the most predominant factors responsible for high failures rates of IT projects. This is followed by views of authors on various project management process groups and methodologies. Having discussed not only the pros of project management but also the problems faced during the entire process, Chapter Four is concerned with the research methodology and detailed analysis of the survey conducted. Chapter Five brings out the key survey findings in detail and compares these with the literature surveyed in Chapter Two indicating the extent to which the survey findings break new ground. Chapter Six builds up on the key findings outlined here, their practical implications, and a look towards how this research could be developed. This includes a brief description of limitations of this study and of recommendations on how these limitations could be overcome in subsequent studies. BACKGROUND Project management is the most critical business skill and competency of today that forms the basic building block of a knowledge based company for businesses and professions in oil and gas, petroleum, petrochemicals, chemicals, metal and mining, infrastructures, buildings, IT, Healthcare, Finance, Telecoms, Manufacturing, and many more services and banking industries. Project management was declared to be the best career on earth by the Fortune magazine. Recently, PMI reported that nowadays more and more organisations and government agencies are adopting and making project management a strategic competency. Information systems (IS) and information technologies (IT) are the fastest growing industries in developed and most of the developing countries. Huge amounts of money are still being invested in these industries (Abdel-Hamid Madnick, 1990). Every organisation wants to gain a competitive advantage, maintain it and lead from the front. Hence, there is a corresponding pressure to increase productivity. To maintain a competitive edge in todays fast-changing world, the success of an organisation depends on effectively developing and adopting information systems. According to Zells (1994) and other studies, approximately 85% of IT projects under-taken in the western countries are at the lowest level of capability maturity model (CMM). The challenges at this level are to have project planning, project management, configuration management, and quality assurance in place and have them working effectively. To improve project delivery performance, a number of organisations are adopting project management approaches and setting up project management offices (Barnes, 1991; Butterfield Edwards, 1994; King, 1995; Munns Bjeirmi, 1996; Raz, 1993; Redmond, 1991). Current literature on IT projects shows that most of the IT problems are not technical, they are of management, organisational or behavioral nature. (Johnston, 1995; Martin, 1994; Whitten, 1995). Fishers (1991) survey of technology firms showed that if project management improved, time and cost could be reduced by more than 25% and profits would increase by more than 5%. This has since been validated by using different project management methodologies and analyzing the extent to which these practices can be adopted, based on internal benchmarking by the companies involved in the field trials. The UAE Market the UAE IT Industry UAE has realised the significance of project management in the IT due to its rapid growth in the IT industry. As expected by Business Monitor International (BMI), the total size of the UAE IT market is to increase from around US$3.4bn in 2007 to close to US$4bn in 2012. With IT a key element of the Emirates development, a number of major local and federal government initiatives together with a strong and diversifying economy should ensure continued growth over the forecast period. Meanwhile, the oil-led boom across the Middle East will continue to be a boost to IT and infrastructure spending in the UAE. (Marketresearch.com, 2007) As per the BMI report, the federal government is also encouraging the development of smart cities, another regional trend. In 2007 the government announced that its target of getting 90% of businesses online by the end of the year was likely to be met. Services are becoming an increasingly significant component of many deployment contracts, as evidenced by recent projects by leading UAE corporations such as Emirates Airlines and the local telecom provider Etisalat. Investment is expected to be strongest in the government, financial, and oil and gas verticals. Other key non-oil sectors driving the economy include banking and finance, which are likely to be the single largest industry vertical in terms of IT investments over the forecast period. Real estate has also experienced a massive investment boom in the past five years, and this is expected to continue and grow, with the National Bank of Dubai projecting at least US$50bn in outlays in property development in the emirate by 2010. (Mindbranch.com, 2007) Industry Developments The BMI report states that the UAE federal governments recently announced UAE Strategic Plan calls for a strengthening of e-government programmes. The focus of the programme is to support implementation of programmes at federal government level. The federal government ministries have often lagged behind progress by the leading local governments, particularly Dubai. As such, Dubai government, which has had many of its departments and services online for some time, will lend expertise to the project. However, local government continues to dominate and accounts for around 20% of total IT Services spending. Dubai Municipality announced that it expects to spend anything between US$1.6mn and US$2.2mn per year over the next few years implementing its plan of getting 90% of government services online. It is likely the organisation will spend at least US$2.8mn annually on e-government initiatives. Abu Dhabi is accelerating its efforts to emulate Dubai, led by the Abu Dhabi Systems and Information Committee (ADSEIC), a body created in 2005 to develop and drive initiatives to transform government services in the Emirate. (Marketresearch.com, 2007) From the above trend, it can be observed that the number of IT jobs in UAE has gone up by 5000 percent since 2005. This goes to show how rapidly the UAE IT Industry has grown in the past three years and that it is still going strong. Competitive Landscape According to BMI, with government accounting for as much as 40% of IT spending, and e-government programmes alone around half that, vendors are continuing to find opportunities. Recently the Ministry of Development for the Government sector signed a strategic agreement with Microsoft Gulf whereby Microsoft will support federal e-government programmes with training and technical support. Under the agreement Ministries will also use legal Microsoft software. Meanwhile, the leading body for Abu Dhabis e-government programme, the Abu Dhabi Systems and Information Committee (ADSIC) signed an Enterprise Licence Agreement with Oracle. The agreement establishes Oracle as a key technology partner and provides for the Abu Dhabi Government to buy Oracle software solutions and support and maintenance services. The continuing growth in PC sales in 2007 in the UAE did not significantly alter the competitive landscape of a market which accounts for approximately 40% of the overall regional PC sales. Today the market remains dominated by international players such as Acer, Dell and HP with the top five brands accounting for more than 50% of the market. Meanwhile, the share held by local assemblers continues to dwindle, due in part to their relative weakness in the growth area of notebooks. However, local assemblers hope that their future will be brighter since UAE-based firms such as Sky Electronics have already been fighting back. (Mindbranch.com, 2007) Hardware The UAE hardware market is estimated at about US$1.4bn in 2007, which shows a 12% growth from US$1.2bn in 2006, and is one of the largest in the region. Much of the growth is due to small and medium enterprise spending, particular on mobile computers, which are expected to account for around 60% of sales over the forecast period. Notebooks are also proving to be popular with the consumer segment, particularly with the introduction of features such as integrated wi-fi, webcam and entertainment features such as HD DVD. Sales of PC notebooks and accessories have been expected to reach more than US$1bn by the end of 2008, while the compound annual growth rate (CAGR) for the 2007 to 2012 period as a whole is expected to be in the region of 8%. Current and future investments in education and e-government, fuelled by new oil revenues, will lead to desktop rollouts in schools, colleges and government offices across the Emirates. (Marketresearch.com, 2007) Software BMI estimates that the UAEs software spending will pass US$400mn in 2008, representing around 17% of the IT expenditure. CAGR for spending on packaged software is put at 10% over the 2007 to 2012 period, with the UAE being of the regions fastest-growing ERP markets, as more businesses realise the benefits of efficient management of resources within their internal processes. The UAE also has one of the regions lowest software piracy rates at just 35% according to the Business Software Association (BSA), which has praised the UAE government and Ministry of Economy for its efforts in promoting anti-piracy initiatives. The government has combated illegal software in a number of ways, both through anti-piracy legislation and enforcement measures. Customer relationship management (CRM) will be one of the growth areas with fewer than 2% of small- to medium-sized enterprises (SMEs) in the Middle East region having a specialised CRM application in place. BMI predicts plenty of room for growth in the forecast period as numerous untapped sub-sectors still exist. Key verticals include process manufacturing (mainly oil and gas), followed by the financial services industry. Two other key segments are the telecom and the public sectors. During the next five years high-growth categories are set to include CRM, enterprise resource planning (ERP) business intelligence, s torage and security products. (Mindbranch.com, 2007) IT Services BMI expects that the IT Services market will reach a value of more than US$1,003mn by 2012, with outsourcing accounting for an increasingly large portion of up to 25%. IT services revenues compound annual growth rate (CAGR) over the 2006 to 2012 period is expected to be 10%, encouraging vendors to shift their focus away from simply shifting boxes. Services are becoming an increasingly significant component of many deployment contracts, as evidenced by recent projects by leading UAE corporations such as Emirates Airlines and Etisalat. Outsourcing is also predicted to be a growing trend, with recent landmark outsourcing deals awarded by entities such as the Abu Dhabi Water and Electricity Authority (ADWEA)and civil service departments. Global vendors such as IBM Global Services are competing for its business with local companies such as Injazat Data Systems, which with its good government connections has grown to be a major force in the market, reporting BPO deals with 13 leading priva te and public organisations. (Marketresearch.com, 2007) E-Readiness The recent Global Information Technology report sponsored by Cisco noted the UAEs success in creating a good ICT environment by placing it top of the rankings for 122 countries. The survey, which looks at the preference of countries to leverage the opportunities offered by ICT for development and increased competitiveness, praised the UAEs good regulatory environment, and clear government leadership in leveraging IT and promoting its use. According to the report, ICT has empowered individuals and revolutionised the business and economic landscape while fostering social networks and companies. Overall internet penetration in the UAE was estimated at close to 40% by the end of 2006, far above the Middle East and North Africa (MENA) average, reflecting the UAEs status as one of the most advanced IT countries in the middle-east. Broadband penetration is around 10% and is expected to rise 60% over the forecast period. In terms of e-government development, additional new phases to be introduced in the project last year (as mentioned in the Industry Developments section) include e-portal, e-project, the HR Management System (HRMS) and the Financial Management Integration System (FMIS) projects. The e-government High Committee has expressed satisfaction with the progress made on implementation of the e-government initiative to date. (Mindbranch.com, 2007) Impact of Project Management on the UAE IT Industry Project management has already had a significant impact on IT organisations in UAE and much more dramatic effects are anticipated for the years to come. Greater attention needs to be paid to the interaction of information technology with business methods, work patterns, employees and organisational culture. It was observed that not too much of research work has been carried out on project management in the IT industry of UAE and this is the precise reason why this study was conducted on the UAE market. LITERATURE REVIEW If we built houses the way we build software, the first woodpecker to come along would destroy civilization. John J. Hamre, U.S. Deputy Defense Secretary Phillips (2004) states that IT project management could be as as exciting as a white water rafting excursion or as painful as a root canal. In addition, Anthes (2008) points out that IT project management has always earned a high ranking on the annual list of IT managers worries, but in the first-half of the 2008 Vital Signs survey, it took the No. 1 spot. In other words, the process is all about efficiently handling the complexities that come along with IT projects, right from the word go. The study aims to investigate on how difficult it is for organisations to manage IT projects efficiently. Richardson et al. (2006) claims that project failure is based not only on economic criteria but also on requirements, cost and time parameters. He builds up his reasoning by citing examples of the following project surveys : The Robbins-Gioia Survey (2001) The Conference Board Survey (2001) The KPMG Canada Survey (1997) The Chaos Report (1995) According to IT Cortex (2004), the results of these surveys showed that most of the organisations suffered from high project failure rates and that they heavily exceeded the time and budget constraints. Similarly, Schwalbe (2007) reports that IT projects come along with high failure risks. He defends his thoughts with a study which was conducted by the Standish Group (CHAOS) in 1995. In the survey it was found that only 16.2% of IT projects were successful and over 31% were cancelled before completion, costing over US$81 billion in the US alone. However, when the CHAOS study was conducted again in 2001, the results showed improvements in all areas but still only 28% of IT projects succeeded. The 2001 Standish Group report findings as compared to those of the 1995 report were as follows : Time overruns significantly decreased from 222% to 163% Cost overruns were down from 189% to 145% Required features and functions were up from 61% to 67% Successful IT projects rose from to 16% to 28% One of the objectives of this report is to carry out similar work on finding the failure rates of IT projects but on the UAE market, one on which not much research has been carried out till date. In many previous studies, project failures due to time delay, cost overrun, and abandonment of IT projects have been widely reported (Bailey, 1996; Gibbs, 1994; Lucas, 1995; Martin, 1994; Ward, 1994). In other industries, causes of project failures are investigated and reports written, but in the IT industry their causes are either covered up or ignored. As a consequence, the IT industry keeps repeating the same mistakes over and over again (Johnston, 1995). This report takes this a step further by observing what percentage of IT organisations in UAE believe in maintaining project reports and lessons learned logs for their subsequent projects. In many previous studies, the most commonly reported causes of IT project failure were traced out. They were as follows (based on a content analysis of the cited literature): Misunderstood requirements (business, technical, and social) (King, 1995; Lane, Palko, Cronan, 1994; Lavence, 1996); Optimistic schedules and budgets (Martin, 1994); Inadequate risk assessment and management (Johnston, 1995); Inconsistent standards and lack of training in project management (Jones, 1994; OConner Reinsborough, 1992; Phan, Vogel, Nunamaker, 1995); Management of resources (people more than hardware and technology) (Johnston, 1995; Martin, 1994; Ward, 1994); Unclear charter for a project (Lavence, 1996); Lack of communication (Demery, 1995; Gioia, 1996; Hartman, 2000; Walsh Kanter, 1988). On the other hand, Karten studies reasons for failure by compiling a list of ten ways that can guarantee project failure : Abbreviate the planning process Dont ask what if? Minimize customer involvement Select team members by seeing who is available regardless of skill Work people long and hard Dont inform management of problems Allow changes at any point Discourage questions from team members Dont give customers progress reports Dont compare project progress with project estimates However, this survey goes a bit deeper and also explores the role of project management methodologies and process groups in helping deliver successful projects. The project management frameworks which are rapidly gaining recognition are ITIL, PMBOK and PRINCE2 (Phillips, 2004). Although Leuenberger (2007) considers ITIL to be one of the worlds best ways to align IT with business objectives, he also claims that his research conducted through IDC shows points out that 60% of mid-sized businesses in Australia either are unaware of, or have no plans to implement ITIL and also that on a global scale, only 20% of the mid-market companies are currently using ITIL. In contrast to ITIL, PMI claims that it has grown to become the most widely recognized and the only global certification for the project management profession with more than 260,000 members in over 171 countries. The survey aims to study the UAE IT industry and clarify such claims made by authors and institutes so that the growth of IT project governance methodologies can in an IT industry of a booming economy can be analyzed. Bainey (2004) states that so many IT projects tend to go over budget, run behind schedule, and deliver products or services poor in quality due to the negligence of integration, consistency and standardization. The report builds up on this by going ahead and investigating the significance of integration management for project managers. Harris (2005) asserts that it is high time that the PMO function is placed in its proper organisational alignment. He believes that not only can it combine the corporate planning process with effective delivery of products and services but also provide external clients with traditional client services for the enterprise as a whole or for respective enterprise business unit

Blackberry

The product that we have chosen Is Blackberry smartened. The term BlackBerry refers to a line of wireless handheld devices and services designed and marketed by BlackBerry Limited, formerly known as Research In Motion Limited (RIM). Target Markets: Its target markets are Business professionals who opt for high security text messaging and E-mails.Productivity of BlackBerry and why It has Targeted the business professionals: During the early 20005, Research In Motion's Blackberry's were the most popular smartness In the world; since then, though, RIM's market hare In the Industry has been eaten up by Apple's Phone and Google's Android. Still, the BlackBerry remains a popular model amongst business professionals, as It offers not only a fast and powerful processor, but also Blackberry's Enterprise Services.This corporate email system makes it easy and convenient for professionals on-the-go to connect to their respective corporate email accounts and is undedicated by other major smartene d lines like the phone and Android. Visualize and risk taking strategy: Blackberry main strategy is how secure the customer data and E-mails with this agenda they mainly targeted the business professionals which can be called as a Niche market . With the development of new technology and o. The Android smart phones and phone devices which made the technology user friendly with millions of APS. These Android mobiles and phone has targeted each and every individual right from students who are interested in playing games but also the business professionals by integrating and synchronizing treachery in Motion's future grows iffier each quarter as it signs on fewer new customers and has had to discount large numbers of BlackBerry smartness and Playback tablets to clear inventory.The company revealed today that its revenue dropped 25 percent in the last fiscal quarter versus a year earlier, a decrease of $5. 6 billion. RIM executives said they were willing to explore other business models , such as licensing all or some BlackBerry technologies to other companies. Some Investors have suggested that RIM license or sell access to Its secure messaging network or Its BlackBerry Messenger instant messaging service.RIM has licensed there IBM services and made the app available In android and Los this made the Blackberry unique. Santos Krishna Surest shogun Blackberry By Crackerjacks messaging and E-mails. Productivity of BlackBerry and why it has Targeted the business professionals: During the early sass, Research in Motion's Blackberry's were the most popular smartness in the world; since then, though, RIM's market share in the industry has been eaten up by Apple's phone and Google's Android.Still, the BlackBerry remains a popular model amongst business professionals, as it offers not only a fast and powerful processor, but also BlackBerry's Enterprise agenda they mainly targeted the business professionals which can be called as a phones and ‘phone devices which made the technology user friendly with millions of PlayBook tablets to clear inventory.The company revealed today that its revenue as licensing all or some BlackBerry technologies to other companies. Some investors have suggested that RIM license or sell access to its secure messaging network or its services and made the app available in android and ISO this made the Blackberry

The How Of Happiness A New Approach For Getting The Life...

The How of Happiness: A New Approach to Getting the Life You Want by Dr. Sonja Lyubomirsky is simultaneously an academic book and comprehensive guide about positive psychology and it’s applications in daily life. Dr. Lyubomirsky provides not only facts and figures to back up her science but also includes quizzes and exercises for the reader to learn more about himself or herself in context with the book. The book is broken down into 3 different sections: How to Attain Real and Lasting Happiness, Happiness Activities, and Secrets to Abiding Happiness. In the first part of the book, Dr. Lyubomirsky explains her 40% solution. Think of happiness as 100%. 50% of this is based on genetics and this is a person’s set happiness point. Even when a person experiences extreme emotion like winning the lottery after some time his or her happiness level will return to the set point. 10% is based on a person’s life circumstances such as where he or she lives, how much money he o r she has, how you look, etc. The final 40% is where Dr. Lyubomirsky puts her focus because this is the part of person’s happiness that he or she is able to control; this is ultimately determined by a person’s behavior. If someone wants to be happier, he or she needs to make changes to their behavior not their circumstances. Dr. Lyubomirsky goes into more detail about how a person can make this change in the second part of her book. Firstly, though, she provides the reader with a couple exercises and debunks aShow MoreRelatedThree Steps to the Happy Life: Why this Approach Does Not Work1097 Words   |  5 PagesThe happy life. What does this mean to me? Kristen Linker, a third year student at Redeemer University College. It begins with balance: trusting God, finding Joy, having harmonious relationships with the people in my life and doing the best I can with what I have at this stage in life. If I would have had to write this paper at the beginning of this semester, I would have had a completely different view on the happy life. However, through this course, I have learned what I think are the most important

Electrum Metal Alloy or Green Gold

Electrum is a naturally occurring alloy of gold and silver with a small amount of other metals. The man-made alloy of gold and silver is chemically similar to electrum  but usually is called green gold. Electrum Chemical Composition Electrum consists of gold and silver, often with small amounts of copper, platinum, or other metals. Copper, iron, bismuth, and palladium commonly occur in natural electrum. The name may be applied to any gold-silver alloy that is 20-80% gold and 20-80% silver, but unless it is the natural alloy, the synthesized metal is more correctly termed green gold,  gold, or silver (depending which metal is present in the higher amount).  The ratio of gold to silver in natural electrum varies according to its source. Natural electrum found today in  Western  Anatolia contains  70% to 90% gold. Most examples of ancient electrum are coins, which contain increasingly lower amounts of gold, so its believed the raw material was alloyed further to conserve profit. The word electrum has also been applied to the alloy called German silver, although this is an alloy that is silver in color, not elemental composition. German silver typically consists of  60% copper, 20% nickel and 20% zinc.   Electrum Appearance Natural electrum ranges in color from pale gold to bright gold, depending on the amount of the element gold present in the alloy. Brassy-colored electrum contains a higher amount of copper. Although the ancient Greeks called the metal white gold, the modern meaning of the phrase white gold  refers to a different alloy that contains gold  but appears silvery or white. Modern green gold, consisting of gold and silver, actually does appear yellowish -green.  Intentional addition of cadmium may  enhance the green color, although cadmium is toxic, so this limits the uses of the alloy. The addition of 2% cadmium produces a light green color, while 4% cadmium yields a deep green color. Alloying with copper deepens the color of the metal. Electrum Properties The exact properties of electrum depend on the metals in the alloy and their percentage. Generally, electrum has a high reflectivity, is an excellent conductor of heat and electricity, is ductile and malleable, and is fairly corrosion resistant. Electrum Uses Electrum has been used as currency, to make jewelry and ornaments, for drinking vessels, and as an exterior coating for pyramids and obelisks. The earliest known coins in the Western world were minted of electrum and it remained  popular for coinage until about 350 BC. Electrum is harder and more durable than pure gold, plus the techniques for gold refining were not widely known in ancient times. Thus, electrum was a popular and valued precious metal. Electrum History As a natural metal, electrum was obtained and used by early man.  Electrum was used to make the earliest metal coins, dating back at least to the 3rd millennium BC in Egypt. The Egyptians also used the metal to coat important structures. Ancient drinking vessels were made of electrum. The modern Nobel Prize medal consists of green gold (synthesized electrum) plated with gold. Where Can You Find Electrum? Unless you visit a museum or win the Nobel Prize, you best chance of finding electrum is to seek the natural alloy. In ancient times, the chief source of electrum was  Lydia, around the Pactolus River, a  tributary of the Hermus, now called the  Gediz Nehriin in Turkey. In the modern world, the primary source of electrum is Anatolia. Smaller amounts also may be found in Nevada, in the USA.

Utilizing Qr Code Technology for Emr. - 4005 Words

Utilizing QR Code Technology In Encoding Patient Summary List 2012 Utilizing QR Code Technology In Encoding Patient Summary List Fatima Alsaleh and Samir Elmasri PhD College of Computer and Information Systems, King Saud University, Saudi Arabia Abstract: In situations like emergency, where the immediately gained, summarized and accurate information may radically make the difference between life and death, the need for a solution that fulfills this requirement arises. Number of solutions was previously proposed including emergency card and smart cards, but each has number of cons and pros. With the rapid adoption of smartphones, QR codes (Quick Response) is the ideal substitute for the current circumstances. It can be easily read by†¦show more content†¦Smart Card is the perfect media that can be used as a health card due to its small size, secure, capability of digitizing a huge amount of personal and medical data [4]. Some attempts have been done by researchers to develop a personal portable healthcare record smart cards and a corresponding framework to simplify maintenance and transfer of patient records [9]. Researchers in the U.K. have created MyCare, a smart card with a fold-out USB plug that can hold a patien t’s medical history. MyCare was developed with open source that enables it to run on different computers and operating systems. Data is protected through PINs and encryption, with a higher level of encryption planned for further stages in the development process [5][6]. These smart card projects work better in countries with nationalized health care. In the US For example, competition among hospitals is a barrier to a smart card system [5]. Smart card technology was not widely spread due to lack of standards (Dash, 2001); the communications between a smart card and smart card reader. The cards also need to be updated constantly which would be hard to enforce [10]. For smart cards, user mobility is only possible if every machine that the user access has a smart card reader attached. The machine must support the same standard smart card reader interfaces or use the same proprietary smart card reader [11]. Research Statement Due to the barriers of smart cards usage including, the high cost value, the

Reasons Why Investment Trusts Trade at a Discount Free Essays

Abstract The fact that investment trusts and close-end funds in general trade at a discount has elicited debates among financial scholars and practitioners, often referred to as the closed-end puzzle. Based on this, this paper explores and explains some of the reasons that investment trusts trade at a discount. It also provides an in-depth explanation of characteristics of close-ended funds and conditions that lead to the classification of the share price as either a discount or a premium. We will write a custom essay sample on Reasons Why Investment Trusts Trade at a Discount or any similar topic only for you Order Now Investment trusts trading at a discount are those trading at prices that are below their net asset value. Those trading at a price higher than the net asset value are considered as being sold at a premium. Some of the main reasons that are explored in this paper include miscalculation of the net asset values of the investment trust, taxes on realized capital gains, agency costs, managerial abilities and investor sentiment. Even with the explanations that are provided in this paper, the closed-end fund prize puzzle continues to be debated upon and researched. Introduction The fact that investment trusts often trade at a discount is an aspect that has drawn interests from academics and practitioners in the field of finance. To have a better understanding of these reasons, it is ideal to provide an exhaustive definition of investment trusts. Investment trusts, which are typical to the United Kingdom, are defined by Barnhart and Rosenstein (2010) as types of investment firms that are formed with the primary aim of holding securities for other companies and the obtainment of capital from the public issue of shares trading on the stock market. They are also referred to as closed-end funds because they only offer a fixed quantity of shares that new investors can purchase from already existing shareholders (Hartzell et al., 2006). The prices of shares of investment trusts are determined by the forces of supply and demand in the share market. As a consequence, there are incidents where the price of a share may either be higher or lower than its net asset valu e. Whenever a share trades at a price that is higher than its net asset value, it is considered to be trading at a premium. On the contrary, if a share trades at a value that is lower that its net asset value, it is considered to be trading at a discount (Berk Stanton, 2007). In this regard, this report intends to discuss reasons why they trade at a discount. Reasons for discounting Investment Trusts One main characteristic of investment trusts and closed-end funds in general is the fact that they are permanent capital ventures and thus, the shares’ supply is fixed (Chan et al., 2008). Numerous attempts that have been made by researchers and practitioners to explain the investment trust discounts, and have resulted in conflicting results, commonly referred to as the closed-end fund puzzle. Even though these funds are known to trade at discounts, it is important to note that newly opened investment trusts and closed-end funds in general, usually begin trading at a premium of approximately 10% of their net asset value. After their initial premium trading, they shift towards trading at a discount that is at average rate of 10% within the first 120 days. After which, discounts remain substantial. In case closed-end funds are closed or terminated, there is an increase in their share prices, which in turn eliminates the existent discounts (Cherkes et al., 2009). Explanations for investment trust discounts that have been made by researchers include the risk of liquidity, the past and future performance of shares on the market and the miscalculation of the fund’s net asset value. Investor sentiment is also another reason for discount trading in investment trusts (Yanran Liyan, 2007). This section intends to provide a more in-depth discussion of these reasons. Misestimating the Net Asset Value (NAV) This reason has been pointed out by Halkos and Krintas (2006), who argue that such miscalculations of the NAV can result from a possible accumulation of capital gains illiquid assets that had not been realized. The reason why funds with high capital appreciations that have been unrealized ought to trade at a discounted share price is that potential holders of such funds will assume a potential tax liability. In a research that was carried out by Kousenidis et al. (2011) on the effect of liquidity on closed-end funds, he established that there is a possibility of illiquid assets to be traded at a discount to provide higher expected returns. In support of inaccuracy of NAV measurement as a reason for discounts in closed-end fund trading, Yanran and Liyan(2007)suggested that when closed-end funds own large amounts illiquid assets or restricted stock that are not fairly trading in the market, their NAVs can fail to provide an accurate reflection of their true value. As a consequence of this, the shares might either trade at a lower or higher value than the NAV. Investment trust discounts are also affected by restricted stock holdings. However, given that such holdings are often quite small or at a zero value, they do not hold as valid reasons for investment trusts trading at a discount. For investment trusts, there is usually no assurance that there will always be an available market. Therefore, this lack of an assured redemption of shares makes their valuation to be discounted. In addition to this, investment trusts that hold relatively liquid securities are valued lower than their net asset values (NAVs) at the marketpla ce (Cherkes et al., 2009). Putting appropriate measures in place to avoid miscalculation of the trust net asset value is vital to solve this issue. Agency Costs and Managerial Ability Discounts in closed-end funds could be a reflection of poor performance in the management of the fund or an overcharge of management fees (Bradley et al., 2010). Agency costs may also vary according to the agency issues or conflicts that may occur due to different interests between agents and principals. Managerial abilities have also been listed by researchers as being among the main factors that determine whether investment trusts can trade at a premium or a discount. The theory that investment trusts can trade at a discount if the managers charge a fee was originally proposed by Boudreaux in 1973 (Berk Stanton, 2007). He suggested that if fund managers charge investors a fee but fail to add value to their investments, then the value of the fund is likely to be less than its NAV. In a case where managers add value to the investment trust, the reason why it might trade at a discount is when investors are made to believe that the funds’ managers are not good at investing thei r funds. If investors believe that their money is being managed by people who are good at selecting viable investments, then the fund will trade at a premium. In a research carried out on the ownership of closed-end funds Cherkes et al.(2009) established that investment trusts with larger percentage of insider ownership are likely to trade at higher discounts. This is because investors of funds that are selling at higher discounts stand a chance of receiving windfall gains in case the funds undergo immediate liquidation at their net asset value. He also established that higher expense ratios lead to higher discounts of funds because management fees are considered as being deadweight losses. Thus, discounts are used to represent the capitalization of the management fees value. Management of trusts also affects their future performances in the market, which also determine whether investment trusts are to be traded at a discount or premium. Halkos and Krintas (2006) argue that in cases where investment trusts are managed in a highly professional manner and with a positive track record, investors may have the will to pay a premium for a share of the funds. This is also due to the fact that such trusts are often expected to maintain their superior performances in future. On the other hand, funds that are expected to underperform in the market are expected to be traded at higher discounts, mainly because of the scepticism that potential investors may have for the fund (Berk Stanton, 2007). Estimation of future performance of investment trusts can be done by comparing trends in the NAV, which are estimated on a frequent basis. It can also be done by evaluating the managerial capabilities of the fund. It can be thus argued that investment trusts whose management has a good reputation tend to perform well in the market and therefore, trade at a premium. On the contrary, poorly managed trusts fail to thrive in the market and therefore, are likely to trade at a discount. Taxes Another reason why investment trusts trade at a discount is taxes. According to Jin(2006), full taxes on the realized capital gains of a fund are paid for by the current shareholders, even though the highest percentage of their gains was accumulated before the investors bought the shares. Based on this, it can be argued that funds whose accumulated gains are large ought to trade at a price lower than their NAVs also suggests that investment trusts that have a high appreciation of unrealized capital sell at discounts because holders of such funds assume potential tax liabilities that depend on the holding periods of the investors. Berk and Stanton (2007) posit that discounts in closed-end funds are partially caused by the fact that investors usually lose valuable opportunities to trade tax because of holding shares in closed-end funds. Some of the tax trading approaches include individual portfolio movement. On comparing British and U.S. closed-end funds, Cherkes et al.(2009) establis hed that British funds do not have the freedom of distributing capital gains as the US funds do. In addition, shareholders have no liability in case the invested capital gains tax, except if they decide to put the holdings that they have in the fund up for sale. Yet U.S. and British closed-end funds behave in a quite similar manner. Thus, it can be concluded that discounts in investment trusts and closed-end funds cannot be explained based on country-specific tax factors. Investor Sentiment Many researchers have focused on the aspect of investor sentiment as a reason for discounts in investment trust trading. This hypothesis was proposed Lee, Shleifer and Thaler in 1991 (Yanran Liyan, 2007). According to them, premiums and discounts in closed-end funds are determined by the attitudes of opinions that investors have about them. To explain this hypothesis, two kinds of investors are identified. These are the noise investors and rational investors. Whereas the expectations of rational investors on their asset returns are rational, noise investors’ expectations are influenced by sentiment. They have the tendency of either overestimating or underestimating the expected returns on investment. Therefore, when investment trust shares are traded, noisy and rational investors make their investments based on their respective judgments. Due to the risk associated with assets and the fact that every investor is risk averse, closed-end funds ought to trade at equilibrium pric es that reflect opinions of the noisy and rational investors, which are often discounts. A proposal was made by Halkos and Krintas (2006) that noisy investors tend to concentrate more on the closed-end fund ownership than on the ownership of the underlying assets of the funds. Pessimism by noise traders on the future of fund drives down its price to a value lower than its NAV. This causes rational investors to avoid the buying the fund’s shares because of the risks associated with trading the funds at a discount. Chan et al. (2008) also argue that the sentiment of noise traders is stochastic and, therefore, cannot be accurately predicted by rational traders. Particularly, it is impossible for rational investors to make a perfect forecast whether noise investors will either be pessimistic or optimistic at the time that they intend to sell their assets. Due to the fact that rational traders are careful about the prices with which they will resale their assets, the unpredictable nature of noise traders’ sentiment increases the level of risk on the assets they intend to trade (Kousenidis et al., 2011). The biggest risk associated with noise investors is that they will be pessimistic at the time when rational investors intend to sell their assets, causing a drop in prices. Since there is always a risk of an adverse sentiment shift, the possibility of trading shares at a discount is always existent (Yanran Liyan, 2007). Conclusion This paper has provided an in-depth explanation of some of the reasons why investment trusts usually trade at a discount. Apart from this, other aspects of investment trusts have been explained. One of the main characteristics of investment trusts that has guided the establishment of reasons discussed in this paper is that it is a closed-end fund. This means that supply of shares is fixed, regardless of the market dynamics. Therefore, fluctuations of these funds that result into premiums or discounts are mainly caused by demand factors. The main reasons why investment trusts trade at discounts include the attitudes that investors have on the fund, commonly referred to as investor sentiment, agency costs and managerial abilities, taxes and miscalculation of the net asset value of the fund. However, the factor that is contented upon by most researchers in this field of finance is investor sentiment, which is a behavioural approach of understanding this concept. Some of the other reason s that have been cited in several other researchers include the institutional ownership and performance of the trust in the market. In future research, a more specific research could be carried out by focusing on a specific investment trust in the UK. References Barnhart, S.W. Rosenstein, S., 2010. Exchange?Traded Fund Introductions and Closed?End Fund Discounts and Volume. Financial Review, 45(4), pp.973-94. Berk, J.B. Stanton, R., 2007. Managerial Ability, Compensation, and the Closed?End Fund Discount. The Journal of Finance, 62(2), pp.529-56. Bradley, M., Brav, A., Goldstein, I. Jiang, W., 2010. Activist arbitrage: A study of open-ending attempts of closed-end funds. Journal of Financial Economics, 95(1), pp.1-19. Chan, J.S., Jain, R. Xia, Y., 2008. Market segmentation, liquidity spillover, and closed-end country fund discounts. Journal of Financial Markets, 11(4), pp.377-99. Cherkes, M., Sagi, J. Stanton, R., 2009. A liquidity-based theory of closed-end funds. Review of Financial Studies, 22(1), pp.257-97. Halkos, G.E. Krintas, T.N., 2006. Behavioural and fundamental explanations of discounts on closed end funds: an empirical analysis. Applied Financial Economics, 16(5), pp.395-404. Hartzell, J.C., Sun, L. Titman, S., 2006. The effect of corporate governance on investment: evidence from real estate investment trusts. Real Estate Economics, 34(3), pp.343-76. Jin, L., 2006. Capital gains tax overhang and price pressure. The Journal of Finance, 61(3), pp.1399-431. Kousenidis, D.V., Maditinos, D.I. Sevic, Z., 2011. Premium/Discount Of Closed-End Funds As A Measure Of Investor Sentiment: Evidence From Greece. Journal of Applied Business Research, 27(4), pp.29-52. Yanran, W. Liyan, H., 2007. Imperfect Rationality, Sentiment and Closed end fund Puzzle. Economic Research Journal, 3, pp.117-29. How to cite Reasons Why Investment Trusts Trade at a Discount, Essay examples

Analysis on Exposure Poem free essay sample

It portrays the message of the real enemy of the soldiers being the cold and icy conditions. Moreover, it provides us with a lively description of the persistent cold and awful conditions during one of the worst winters in the first world war. It shows that most of the soldiers were exposed rather than shot by enemies. The poem portrays all the opposing facts to make young men not join the war as it is nothing heroic. Owen uses all his senses to describe the frosty atmosphere and sets a lamenting and descriptive tone. The rhyme scheme is ABBA and the stanzas are continuous, emphasizing the continuous suffering of the British. It is written in first person plural, which makes us feel with the soldiers and put ourselves into their position. Exposure transports the reader into the pitiless trench warfare of the First World. It allows the reader to share the experience of having all vestiges of shelter removed, stripped back to the nakedness and feebleness of the human body against the wintry savagery of a snow storm in the dark, at the point of death. It starts by setting the scene of tired soldiers being ‘knived’ by the wind, too worried to sleep because of the unnatural silence. â€Å"Worried by silence, sentries whisper, curious, nervous, But nothing happens. † The sibilance of the repeated ‘s’ sound creates the effect of whispering, an attempt to not draw the attention of the enemy, who are futilely using flares to see what is going on. The trenches were protected by rolls of barbed wire, the barbs snagging the clothing and skin of any person trying to manoeuvre through it, delaying their passage and increasing the chances of being shot. Then allowing their comrades to witness their dying agony held up twitching on the wire. Owen uses a simile with naturally occurring brambles. The war continues in the distance but the silence and inactivity in the bitter cold makes it all sound unreal, as dawn brings more snow laden clouds into view. â€Å"Sudden successive flights of bullets streak the silence. † Has the battle started again? It is compared as less ‘deathly’ than the snow. Are the men staring so hard that they can no longer actually see and their mind accept what is happening. Is this the approach of death, where exposure to the winter cold is so close that a bullet seems less probable? The next lines are a reflection on the comforts of home, but only seen through the chinks in the shutters. The hopelessness of not being allowed into the warmth by the repeated use of closed; â€Å"Shutters and doors, all closed: on us the doors are closed,† The minds of the dying men are driven back to the battlefield because of the fear that if the enemy isn’t conquered that there will never be fires burning in the hearths of home again. He mentions children enjoying the sunshine, another reason that the war is for a just cause, to give security to the generations to come. The final part of the poem relates how the dead bodies will be found frozen with the mud by those designated to handle and remove bodies. Owen describes the unpleasant reality of fulfilling this last duty for comrades, some acquaintances, in these terrible conditions and the numbness of emotions that it would cause. Nature is used throughout the poem, its effect on the body, the coldness of the wind and snow; the fussing of the blackbird, in contrast to the stillness and the silence of the dawn; the innocence of the mice freely enjoying the warmth and comfort of the empty home, while the soldier is away. The exposure is not only to the cruelty of war, but also experiencing the cruelty of nature. How does ‘Exposure’ by Wilfred Owen tackle the Theme of War? ‘Exposure’ is a war poem written by Wilfred Owen in 1917 which describes how it felt like to be a soldier fighting war in the winter season. Owen focuses on the weather and shows how they are suffering more from the cold than getting wounded and hurt from the enemy which is not typical in war poetry. He has used a lot of figurative language and literary techniques to portray the cold and the soldiers’ feelings. Firstly, Owen applies figurative language like personification to describe the cold in the first stanza, where he says: ‘Our brains ache, in the merciless iced east winds that knife us†¦Ã¢â‚¬â„¢ This line explains how the winds are so cold and strong that it feels like it is cutting the soldiers. It is like the wind is slowly killing them by stabbing them to death. Owen has also said the winds are merciless showing the wind isn’t showing any pity for the soldiers which is quite similar to the enemy’s attitude towards them. The use of personifying the icy winds creates a sense of suffering towards the soldiers. Furthermore this line of the poem has used a lot of ‘i’ sounds like in ‘brains’, ‘merciless’, ‘iced’, ‘winds’ and ‘knife’ and this ‘i’ sound produces a sharp sound which, relating to an earlier point, reinforces the sharpness of the ‘knives’ and how painful the wind was. The assonance applied here has enhanced and has exaggerated the pain for readers to understand. A different way Owen attempts to show the theme of war is in the second part of the poem where many soldiers have died from the cold. Owen writes ‘The burying-party, picks and shovels in their shaking grasp’ which shows that although the soldiers are very tired and cold they still are willing to bury their unfortunate friends who have frozen to death. This line from the poem possibly suggests that the ‘burying party’ are angry and fed up of seeing soldiers dying because of war as Owen has used plosives like ‘burying’, ‘picks’ and