Journal of Management Information and Decision Sciences (Print ISSN: 1524-7252; Online ISSN: 1532-5806)


Scope confirmation exercise (SCE): A pre-project exercise to ensure a successful capital market fintech project

Author(s): Kumar, S.

Cost and time overruns is persistent problem in software projects. The chaos report (1994) from the Standish group reported the extent of time and budget overruns in a software project delivery, which was quite intriguing. They had reported an average of 178% of the cost overruns for large companies, 182% for the medium, and 214% for the small companies. Time overruns averages are 230%, 202%, and 239%, respectively. Similar findings were reported by McKinsey & Company in 2012 even after 18 years. McKinsey Company said that around 66% of the software projects suffer from cost overrun, 33% from Schedule overun, and 17% get delivered with benefits shortfall. This is a significant project risk. While there are multiple methods proposed to mitigate this project risk, there is no evaluated project risk management methodology available in the literature. We offered a Pre-Project Scope Confirmation Exercise (SCE) as an activity, if done correctly that can lead to successful project delivery. We proposed a framework of SCE and then evaluated the SCE approach using 20 capital market financial technology projects done for the last 11 years, between 2010 and 2021, and suggested a newly proposed TUB score (Project success score). We have found that more time spent on one SCE drives to a better TUB Score. Essentially a detailed SCE ensures the success of the project. The analysis is done on the primary data collected from those 20 projects.

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