Selecting Project Management Methodologies for Business Intelligence Projects - A Value Based Approach

While it is common practice to use value based decision models for decisions whether to invest in certain projects or not, there is scarce value based decision support for the selection of the most promising project management methodology to be applied in a specific Business Intelligence project. Addressing the lack of a formal yet practical decision model, this paper proposes a risk-adjusted net-present-value-based model to support decision makers in this particular decision situation. Apart from a project’s estimated cash flows, we focus on two decisive risk parameters – the likelihood of environmental changes and the peril of improper system integration. Using an exemplary calculation, the trade-off between those risks and their impact is formalized and made transparent. Therefore, this paper suggests a decision model to improve the understanding of project management methodology types and hereupon the foundation for the selection of the appropriate one in a specific project setting.