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Chapter 4: Business and Systems Planning

Chapter 4: Business and Systems Planning. Planning. Systems planning related to planning business. Systems must accomplish business goals. Business Planning: - Top-down (Top management, Steering committee) - Bottom-up approaches (User departments, Development group)

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Chapter 4: Business and Systems Planning

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  1. Chapter 4: Business and Systems Planning Planning

  2. Planning • Systems planning related to planning business. • Systems must accomplish business goals. • Business Planning: - Top-down (Top management, Steering committee) • - Bottom-up approaches (User departments, Development • group) • There may be competing projects (upgrades, new ones, • priorities…) Planning

  3. System Planning: • the first stage in waterfall SDC. • an iterative step (workflow) in OO-based SDC, repeats across OO phases and possibly within them. Planning

  4. Main tasks in planning of a system: • Write business case (economic • implications, feasibility assessment) • Write Baseline Project Plan (BPP) Planning

  5. Business Case = Assessment of systems economic • implications and of feasibility of IS development project. • Economic Implications: • List of Benefits and Costs -> next • Capital Budgeting Models (NPV, Break-Even…) • Support to Value Chain • Portfolio Analysis (compare risks with benefits; risks • assessed as technical feasibility) Planning

  6. Reduced execution time Planning

  7. One-time tangible costs Recurring tangible costs Planning

  8. Net Present Value * PVn = present value of Y dollars n years from now based on a discount rate of i. NPV = sum of PVs across years. More: NPV Planning

  9. Planning

  10. Planning

  11. Feasibility Assessment: • Economic feasibility (result of analysis of economic • implications) • Technical feasibility (development capability & • risks)  most important! • Operational feasibility (support to business) • Schedule feasibility • Legal feasibility • Political feasibility Planning

  12. Technical Feasibility Planning

  13. Technical Feasibility High technical familiarity mitigates risk due to project size and structure. Low familiarity increases risk. Planning

  14. Baseline Project Plan (BPP); see Fig. 4-14 • Content: • Project Name (usually system’s name) • Introduction • Project Scope (what organizational parts it affects) • System Description • Economic implications • Feasibility • Management (workers, lines of reporting…) Planning

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