Systems Planning & Selection

1. Systems Planning & Selection • Project identification & selection • Project initiation & planning

2. System Request • Project sponsor • Business Need • Functionality • Expected Value

3. Identifying and Selecting Projects • Sources of project development requests: • Management and business units • Managers who want to make a system more efficient • Formal planning groups

4. Identifying and Selecting Projects • Project identification • Bottom Up Identification • Business unit or IS group • Top Down Identification • Senior management or steering committee • Classify and rank projects

5. Characteristics of project Selection Methods • Top management • Greater strategic focus • Largest project size • Longest project duration • Steering committee • Cross-functional focus • Greater organizational change • Formal cost –benefit analysis • Larger and riskier projects • User department • Narrow focus • Faster development • Fewer management layers & business functions • Development group • Integration with existing system focus • Less concern with cost-benefit analysis

6. 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

7. Project Evaluation Criteria • Value chain analysis • Strategic alignment • Potential benefits • Resource availability • Project size/duration • Technical difficulties

8. Decision Outcome • Accept project • Reject project • Delay project • Re-focus project • End-user development • Purchase system • Modify and re-submit

9. Project Initiation Activities • Establishing the project initiation team • Establish a relationship with the customer • Establish a project initiation plan • Establish management procedures & environment • Establish the project workbook

10. Project Planning Activities • Describe the project scope & feasibility • Divide the project into manageable tasks • Estimate resources and create a resource plan • Develop a preliminary schedule • Develop a communication plan • Determine project standards and procedures • Identify and assess risk • Creating a preliminary budget

11. Project Planning Objectives • Deliverables and Outcomes • Baseline Project Plan (BPP) • Scope • Benefits • Costs • Risks • Resources • Statement of Work (SOW) • Describes deliverables • Outlines work needed to be performed • Business Case • Outlines justification for the system

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

13. Assessing Economic Feasibility • Cost – Benefit Analysis • Determine Benefits • Tangible Benefits • Can be measured in $ and with certainty • Intangible Benefits • Cannot be easily measured in $ or with certainty

14. Assessing Economic Feasibility • Determine Costs • Tangible/Intangible Costs • Can/Cannot easily be measured in $ and/or with certainty • One-Time vs. Recurring Costs • Associated with startup & development vs. on-going use of the system • Fixed vs. Variable Costs • Billed at regular intervals and at fixed rates vs. cost items that vary in relation to usage

15. Examples of IS costs • Procurement • Consulting costs, Equipment purchase/lease & installation, Site preparation, Capital costs, Personnel searches • Start-up • Operating system software, Communications equipment, Personnel hiring, Disruption • Project-related • Application software & modifications, Personnel & overhead from in-house development, User training, Documentation • Operating • System maintenance, Space & equipment rental, Asset depreciation, Personnel

16. Cost-benefit Analysis Techniques • Time value of money (TVM) • The process of comparing present cash outlays to future expected returns. • Net Present Value • Return on Investment • Break Even Analysis

17. Assessing Other Project Feasibility Concerns • Operational Feasibility • Assessment of how a proposed system solves business problems or takes advantage of opportunities • Political Feasibility • Assessment of view of key stakeholders in organization toward proposed system

18. Stakeholders • Project Champion • System Users • Organizational Management

19. Assessing 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

20. Technical Feasibility • Project size • Duration, Number of project team members, Number of organizational departments involved • Project structure • Resultant organizational, procedural or personnel changes, Amount of user involvement, Management commitment • Development group • Familiarity with hardware, software development tools, operating system and application area • User group • Familiarity with systems development process and proposed application area

21. 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.

22. Building the Baseline Project Plan • Introduction • Brief overview • Recommended course of action • Project scope defined • Units affected • Interaction with other systems • Range of system capabilities

23. Building the Baseline Project Plan • System Description • Outline of possible alternative solutions • Narrative format • Feasibility Assessment • Project costs and benefits • Technical difficulties • High-level project schedule

24. Building the Baseline Project Plan • Management Issues • Outlines concerns that management may have about the project • Team composition • Communication plan • Project standards and procedures

25. Reviewing the Baseline Project Plan • Objectives • Assure conformity to organizational standards • All parties agree to continue with project

26. Walkthrough • Peer group review • Participants • Coordinator • Presenter • User • Secretary • Standards Bearer • Maintenance Oracle • Activities • Walkthrough review form • Individuals polled • Walkthrough action list

27. Electronic Commerce Applications • Internet • Transactions between individuals and business • Intranet • Internet-based communication to support business activities within a single organization • Extranet • Internet-based communication to support business-to-business activities

28. Internet Development • Electronic Data Interchange (EDI) • The use of telecommunications technologies to transfer business documents directly between organizations • Internet vs. Intranet/Extranet Apps • Intranet/Extranet – Developer knows how application will be run and used • Internet – Developer faces various unknowns

29. Web based System costs • Platform costs • Web server, Server software, Software plug-ins, Firewall server, Router, Internet connection • Content & service • Web project manager, Technical site manager, Content staff, Graphics staff, Support staff, fees to license outside content, Programming & research • Marketing • Launch & public relations, Paid links to other web sites, Promotions, Marketing & Sales staff

30. Unknowns in Developing Internet Applications • User • Who? Where? • What expertise/education/expectations? • Connection Speed • Modem? Cable? Satellite? Cellular? • Access Method • Browser? Cell phone? PDA? Web TV?