9.351 Systems Analysis & DesignPlanning1 Chapter 4: Business and Systems Planning

9.351 Systems Analysis & DesignPlanning2 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…)

9.351 Systems Analysis & DesignPlanning3 System Planning: the first stage in waterfall SDC. an iterative step (workflow) in OO-based SDC, repeats across OO phases and possibly within them.

9.351 Systems Analysis & DesignPlanning4 Main tasks in planning of a system: Write business case (economic implications, feasibility assessment) Write Baseline Project Plan (BPP)

9.351 Systems Analysis & DesignPlanning5 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…)NPV Support to Value Chain Portfolio Analysis (compare risks with benefits; risks assessed as technical feasibility)

9.351 Systems Analysis & DesignPlanning6 Reduced execution time

9.351 Systems Analysis & DesignPlanning7 One-time tangible costs Recurring tangible costs

9.351 Systems Analysis & DesignPlanning8 Net Present Value PV n = present value of Y dollars n years from now based on a discount rate of i. NPV = sum of PVs across years. More: NPV *

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9.351 Systems Analysis & DesignPlanning11 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

9.351 Systems Analysis & DesignPlanning12 Technical Feasibility

9.351 Systems Analysis & DesignPlanning13 High technical familiarity mitigates risk due to project size and structure. Low familiarity increases risk. Technical Feasibility

9.351 Systems Analysis & DesignPlanning14 Baseline Project Plan (BPP); see Fig 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…)