Systems Analysis and Design

Chapter 2 Systems Planning and Selection

MaliK ShakeeL KhaN

Copyright 2001 Prentice-Hall, Inc.

Learning ObjectivesDescribe steps involved when identifying, selecting, initiating and planning projectsDiscuss the content of and need for a statement of work and baseline project planDescribe various methods for accessing project feasibility

Learning ObjectivesExplain intangible and tangible costs and benefitsExplain recurring and one-time costsDetail various methods of cost/benefit analysisDescribe a structured walkthroughDiscuss the internet, intranets and extranets

Identifying and Selecting ProjectsSources of projectsManagement and business unitsManagers who want to make a system more efficientFormal planning groups

Identifying and Selecting ProjectsProjects are identified byTop managementSteering committeeUser departmentsDevelopment group or senior IS staffTop Down IdentificationSenior management or steering committeeFocus is on global needs of organization

Identifying and Selecting ProjectsBottom up IdentificationBusiness unit or IS groupDont reflect overall goals of the organizationClassify and rank development projects

Identifying and Selecting ProjectsSelect development projectsFactors:Perceived needs of the organizationExisting systems and ongoing projectsResources availableEvaluation criteriaCurrent business conditionsPerspectives of the decision makers

Identifying and Selecting ProjectsDeliverables and outcomesPrimary deliverable of this phase is a schedule of specific IS development projectsIncremental commitmentContinuous reassessment of project after each phase

Initiating and Planning System Development ProjectsObjectivesBaseline Project Plan (BPP)Internal documentStatement of Work (SOW)Outlines objectives and constraints of the project to the customer

Identifying and Selecting ProjectsDeliverables and OutcomesBaseline Project Plan (BPP)ScopeRisksBenefitsResourcesCostsStatement of Work (SOW)Describes deliverablesOutlines work needed to be performed

Assessing Project FeasibilitySix CategoriesEconomicOperationalTechnicalScheduleLegal and contractualPolitical

Assessing Economic FeasibilityCost Benefit AnalysisDetermine BenefitsTangible BenefitsCan be measured easilyExamplesCost reduction and avoidanceError reductionIncreased flexibilityIncreased speed of activityIncreased management planning and control

Assessing Economic FeasibilityIntangible BenefitsCannot be measured easilyExamplesIncreased employee moraleCompetitive necessityMore timely informationPromotion of organizational learning and understanding

Assessing Economic FeasibilityDetermine CostsTangible CostsCan easily be measured in dollarsExample: HardwareIntangible CostsCannot be easily measured in dollarsExamples:Loss of customer goodwillLoss of employee morale

Assessing Economic FeasibilityOne-Time CostsAssociated with project startup, initiation and developmentIncludesSystem DevelopmentNew hardware and software purchasesUser trainingSite preparationData or system conversion

Assessing Economic FeasibilityRecurring CostsAssociated with on-going use of the systemIncludes:Application software maintenanceIncremental data storage expenseNew software and hardware releasesTime value of money (TVM)The process of comparing present cash outlays to future expected returns.

Assessing Other Project Feasibility ConcernsOperational FeasibilityAssessment of how a proposed system solves business problems or takes advantage of opportunitiesTechnical FeasibilityAssessment of the development organizations ability to construct a proposed system

Assessing Other Project Feasibility ConcernsSchedule FeasibilityAssessment of timeframe and project completion dates with respect to organization constraints for affecting changeLegal and Contractual FeasibilityAssessment of legal and contractual ramifications of new system

Assessing Other Project Feasibility ConcernsPolitical FeasibilityAssessment of view of key stakeholders in organization toward proposed system

Building the Baseline Project PlanObjectivesAssures that customer and development group have a complete understanding of the proposed system and requirementsProvides sponsoring organization with a clear idea of scope,benefits and duration of project.

Building the Baseline Project PlanFour SectionsIntroductionSystem DescriptionFeasibility AssessmentManagement Issues

Building the Baseline Project PlanIntroductionBrief overviewRecommended course of actionProject scope definedUnits affectedInteraction with other systemsRange of system capabilities

Building the Baseline Project PlanSystem DescriptionOutline of possible alternative solutionsFeasibility AssessmentProject costs and benefitsTechnical difficultiesHigh-level project schedule

Building the Baseline Project PlanManagement IssuesOutlines concerns that management may have about the projectTeam compositionCommunication planProject standards and procedures

Reviewing the Baseline Project PlanObjectivesAssure conformity to organizational standardsAll parties agree to continue with project

Reviewing the Baseline Project PlanWalkthroughPeer group reviewParticipantsCoordinatorPresenterUserSecretaryStandards BearerMaintenance Oracle

Reviewing the Baseline Project PlanActivitiesWalkthrough review formIndividuals polledWalkthrough action listAdvantagesAssures that review occurs during project

Internet DevelopmentDevelopment process for Internet projects is no different than other projectsSpecial issues need to be taken into accountElectronic Commerce (EC)Internet based communication designed to support business activities

Internet DevelopmentInternetWorldwide network of networks used for electronic commerceIntranetInternet-based communication to support business activities within a single organization

Internet DevelopmentExtranetInternet-based communication to support business-to-business activitiesElectronic Data Interchange (EDI)The use of telecommunications technologies to transfer business documents directly between organizations

Internet DevelopmentInternet vs. Intranet/Extranet AppsIntranet/Extranet Developer knows how application will be run and usedInternet Developer faces various unknowns

SummaryProject Identification and Selection involves:Identifying potential projectsClassifying and ranking of projectsSelecting projectsBaseline Project Plan (BPP)Created during project initiation and planning

SummaryContains:IntroductionHigh-Level description of systemOutline of feasibilityOverview of Management IssuesStatement of Work (SOW)Describes what project will deliverLists all work to be performed

SummaryFeasibilityEconomicOperationalTechnicalScheduleLegalContractualPolitical

SummaryBenefitsTangible vs. IntangibleCostsTangible vs. IntangibleOne-time vs. RecurringInternet ApplicationsInternetIntranetExtranet