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Essentials of Systems Analysis and Design

Essentials of Systems Analysis and Design. Chapter 3: Systems Planning and Selection. Identifying and Selecting Projects. Sources of projects Management and business units Managers who want to make a system more efficient Formal planning groups. 3. 2. Identifying and Selecting Projects.

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Essentials of Systems Analysis and Design

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  1. Essentials of Systems Analysis and Design Chapter 3: Systems Planning and Selection

  2. Identifying and Selecting Projects • Sources of projects • Management and business units • Managers who want to make a system more efficient • Formal planning groups 3.2

  3. Identifying and Selecting Projects • Projects are identified by • Top management • Steering committee • User departments • Development group or senior IS staff • Top-Down Identification • Senior management or steering committee • Focus is on global needs of organization 3.3

  4. Identifying and Selecting Projects • Bottom-Up Identification • Business unit or IS group • Don’t reflect overall goals of the organization • Classify and rank development projects 3.4

  5. Identifying and Selecting Projects 3. Select development projects • Factors: • Perceived needs of the organization • Existing systems and ongoing projects • Resources available • Evaluation criteria • Current business conditions • Perspectives of the decision makers 3.5

  6. Identifying and Selecting Projects • Deliverables and Outcomes • Baseline Project Plan (BPP) • Scope • Benefits • Costs • Risks • Resources • Statement of Work (SOW) • Describes deliverables • Outlines work needed to be performed 3.6

  7. 3.7

  8. 3.8

  9. Assessing Project Feasibility • Six Categories • Economic • Operational • Technical • Schedule • Legal and contractual • Political 3.9

  10. Assessing Economic Feasibility • Cost – Benefit Analysis • Determine Benefits • Tangible Benefits • Intangible Benefits • Tangible Costs • Intangible Costs 3.10

  11. Assessing Economic Feasibility • Tangible Benefits • Can be measured easily • Examples • Cost reduction and avoidance • Error reduction • Increased flexibility • Increased speed of activity • Increased management planning and control 3.11

  12. 3.12

  13. Assessing Economic Feasibility • Intangible Benefits • Cannot be measured easily • Examples • Increased employee morale • Competitive necessity • More timely information • Promotion of organizational learning and understanding 3.13

  14. Assessing Economic Feasibility • Tangible Costs • Can easily be measured in dollars • Example: Hardware • Example: Additional Personnel 3.14

  15. Assessing Economic Feasibility • Intangible Costs • Cannot be easily measured in dollars • Examples: • Loss of customer goodwill • Loss of employee morale 3.15

  16. Assessing Economic Feasibility • One-Time versus Recurring Costs • One-Time Costs -- your books classifies these as intangible; some are really tangible! • Associated with project startup, initiation and development • Includes • System Development • New hardware and software purchases • User training • Site preparation • Data or system conversion 3.16

  17. Assessing Economic Feasibility • Recurring Costs • Associated with ongoing use of the system • Includes: • Application software maintenance • Incremental data storage expense • New software and hardware releases • Consumable supplies • Time value of money (TVM) • The process of comparing present cash outlays to future expected returns 3.17

  18. 3.18

  19. Other Project Feasibility Concerns • Operational Feasibility • Assessment of how a proposed system solves business problems or takes advantage of opportunities • Assessment of how the proposed system will work in the organization • Do we have employees skilled in areas to guarantee success • Do we have other necessary equipment such as monitors to capture data from manufacturing or “wand readers” • Technical Feasibility • Assessment of the development organization’s ability to construct a proposed system 3.19

  20. Other Project Feasibility Concerns • Schedule Feasibility • Assessment of timeframe and project completion dates with respect to organization constraints for affecting change • Legal and Contractual Feasibility • Assessment of legal and contractual ramifications of new system • International systems: cross-borders laws and regulations 3.20

  21. Other Project Feasibility Concerns • Political Feasibility • Assessment of view of key stakeholders in organization toward proposed system 3.21

  22. Building the Baseline Project Plan • Objectives • Assures that customer and development group have a complete understanding of the proposed system and requirements • Provides sponsoring organization with a clear idea of scope, benefits and duration of project 3.22

  23. 3.23

  24. Reviewing the Baseline Project Plan • Walkthrough • Peer group review • Activities • Walkthrough review form • Individuals polled • Walkthrough action list • Advantages • Assures that review occurs during project 3.24

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