Page 22 -

1 - INTRODUCTION

engage in process improvement initiatives that will be of benefit to all projects within the organization’s portfolio.
Within a portfolio, software projects are prioritized for execution based on parameters such as: complexity, degree
of uncertainty, business value, return on investment, and so forth. Standardized life cycle frameworks that can be
tailored for each project are important elements of portfolio management for software organizations.

1.4.2 Program Management

Software is sometimes regarded as a secondary system component in programs that involve development of
diverse components; as a result, there may be no explicitly designated software project manager. Given the central
role of software in current systems and the impact software has on system characteristics (as well as software
being a primary component that can impact completion of a system on a predetermined schedule), a designated
software project manager should be a member of the program management team.

1.4.3 Projects and Strategic Planning

®
In addition to the strategic considerations for authorizing projects, as mentioned in the PMBOK Guide, software
projects are sometimes undertaken to explore the feasibility of using a new development process within a specific
context (such as an adaptive project life cycle model), to explore and learn a new technology (such as cloud
computing), to develop a prototype of a new style of user interface (such as a holographic or 3-dimensional display),
or to exploit a software-based innovation (such as including a multimedia interface to a software application). In
these cases, the business value of the software project is not the output product but the institutional knowledge
gained from the project.

1.4.4 Project Management Office

®
In addition to the functions and objectives cited in the PMBOK Guide, a project management office (PMO) that
manages a collection of software projects (perhaps in addition to managing other kinds of projects) may also:

s Provide a common repository for data relating to effort, cost, schedule, defects, stakeholders, and risk
factors collected from software projects within an organization;

s Use the data repository to develop one or more cost models;
s Use the data repository to analyze strengths and weaknesses among software projects as a basis for
process improvement initiatives and for analyzing the results of process improvement activities;

s Assist project managers in making cost and schedule estimates and preparing project plans;
s Provide templates, forms, and automated data collection;
s Acquire and harmonize the use of new tools and platforms for software development, program
management, and portfolio management throughout the organization;

s Maintain a library of reusable code modules;

10 ©2013 Project Management Institute. Software Extension to the PMBOK Guide Fifth Edition
®