Proceedings of the 12th European Conference on Knowledge ...

Risk Analysis for Knowledge Management Projects Using
PMBOK Guidelines and FMEA Techniques: A Case Study
Lila Rajabion 1 and Jafar Zanganeh 2
1
School <strong>of</strong> Information Sciences and Technology, Pennsylvania State
University, USA
2
School <strong>of</strong> Business, Isfahan University, Iran
Lzr1@psu.edu
kia_zgn@yahoo.com
Abstract: In many cases Knowledge management (KM) projects in developing countries were unsuccessful
during establishing and deployment; <strong>the</strong>refore before starting KM projects it is necessary to identify, evaluate,
control and manage potential risks. One <strong>of</strong> <strong>the</strong> main accomplishments <strong>of</strong> <strong>the</strong> modern world is <strong>the</strong> transformation
<strong>of</strong> <strong>the</strong> risk, from just accepting it to study <strong>the</strong> area and being able to analyze it. In this study a new model has
been designed and applied for analyzing risks in KM projects in accordance with PMBOK guideline, FMEA
technique and KM concepts. The severity <strong>of</strong> each potential risk (failure), <strong>the</strong> occurrence and detection rank <strong>of</strong>
each potential risk mechanism was determined by group <strong>of</strong> industry experts (Barez Industrial Group) in
brainstorming meeting. The risk priority number (RPN) was calculated for each potential risk by multiplying
relevant severity, occurrence and detection ranks. Finally suitable series <strong>of</strong> actions for higher risks (top RPNs)
and severe risks (risk with high severity) were conducted.
Keywords: Risk management, Knowledge management, PMBOK, Risk analysis model for KM project
1. Introduction
Today, effective risk management is one <strong>of</strong> <strong>the</strong> most important factors in <strong>the</strong> project management
success.
In order to achieve or execute a new complicated technology or service, accurate resources and
plans are required (Souza Santos, 2008). These factors are main challenges that in order to face
<strong>the</strong>m, <strong>the</strong> organizations create new technologies with special projects.
About 26 percent <strong>of</strong> s<strong>of</strong>tware & information technology projects were successful; however o<strong>the</strong>r 84
percent faced failure, that in <strong>the</strong> case <strong>of</strong> knowledge management project this number reaches 10
percent. Therefore, we shall use risk evaluation methods which are expending in different industries
to <strong>the</strong> extent that currently <strong>the</strong>re are various types <strong>of</strong> qualitative and quantitative risk evaluation
methods all around <strong>the</strong> word (Carbone, 2004).
Statistical studies on <strong>the</strong> success rate <strong>of</strong> projects show that successful projects do not follow a special
rule. Among 30000 projects in <strong>the</strong> ground <strong>of</strong> information technology which were studied by Sundish
group, 63 percent were delayed and 49 percent had unexpected expense. In o<strong>the</strong>r words, success
rate, including planning and budgeting in 28 percent <strong>of</strong> <strong>the</strong> related projects was conforming to reality.
Therefore, successful development and execution <strong>of</strong> <strong>the</strong> project management, and especially risk
management mechanism, is <strong>the</strong> basis <strong>of</strong> <strong>the</strong> project success in <strong>the</strong> ground <strong>of</strong> information technology.
According to <strong>the</strong> project management institute, risk is a situation or event that would influence <strong>the</strong>
project goals negatively or positively (PMI, 2008).risk is usually in <strong>the</strong> future; it is an uncertain event or
reality which, if it occurs, would influence at least one <strong>of</strong> <strong>the</strong> project goals. These goals can be area,
time, expense and quality. A risk can cause failure in <strong>the</strong> program, product or service. The objective <strong>of</strong>
this research is to present some strategies for evaluating risks <strong>of</strong> knowledge management projects in
Iran organizations. Risks <strong>of</strong> knowledge management projects shall be recognized and classified
according to <strong>the</strong>ir occurrence probability and <strong>the</strong>ir severity. According to <strong>the</strong>se classifications, risk
management models shall be used in order to reduce <strong>the</strong>se risks or to make <strong>the</strong>m acceptable, so that
<strong>the</strong> project goals, which are effective establishment <strong>of</strong> <strong>the</strong> project management, shall be achieved. In
order to do this, in this research, we use two techniques and one concept, so that we can achieve a
model for recognizing and evaluating management <strong>of</strong> knowledge management projects. Many
production organizations use FMEA to recognize failures and errors in <strong>the</strong>ir designs, products and
processes. In this research we use FMEA and PMBOK techniques and knowledge management
concepts. We are looking for <strong>the</strong> answer to two main questions: whe<strong>the</strong>r a reasonable relationship
can be found between FMEA and PMBOK and knowledge management concepts, and whe<strong>the</strong>r this
model can be carried out in <strong>the</strong> real environment <strong>of</strong> Iran organizations projects.
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