1. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.1

2. Describe the steps involved when identifying and selecting projects and initiating and planning projects Discuss the content of and need for a project scope statement and baseline project plan Describe various methods for accessing project feasibility Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.2

3. Explain intangible and tangible costs and benefits Explain recurring and one-time costs Describe various methods of cost/benefit analysis Describe a structured walkthrough Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.3

4. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.4

5.  A senior manager, a business group, an IS manager, or a steering committee identifies and assesses all possible systems development projects that a business unit could undertake  Next, those projects deemed most likely to yield significant organizational benefits, given available resources, are selected Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.5

6.  Vary in organization: › a large organization may follow a formal project identification process that involves rigorously comparing all competing projects › a small organization may use informal project selection processes that allow the highest- ranking IS manager to select projects independently or allow individual business units to decide on projects after agreeing on funding Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.6

7.  Sources of Projects (From where the Requests for information systems development can come) 1.Managers and business units  to gain more information or provide new services 2.Information Systems Managers  to make a system more efficient, less costly, or want a new operating environment 3.Formal planning groups  to improve an existing system in order to help the organization meet its corporate objectives Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.7

8. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.8

9. 1. Projects are identified by  Top management: either the CEO of a small or medium-size organization or a senior executive in a larger organization  Steering committee: a cross section of managers with an interest in systems  User departments: in which either the head of the requesting unit or a committee from the requesting department decides which projects to submit  Development group or senior IS staff Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.9

10. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.10

11. › Top-Down identification  Senior management or steering committee  Focus is on global needs of organization › Bottom-up identification  Business unit or IS group  Don’t reflect overall goals of the organization Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.11

12.  As a systems analyst, you provide ongoing support for users of these types of projects and are involved early in the life cycle. You help managers describe their information needs and the reasons for doing the project  These descriptions are evaluated in selecting which projects will be approved to move into the project initiation and planning activities. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.12

13. 2.Classify and rank development projects(Assessing the merit of potential projects) › classifying and ranking projects can be performed by top managers, a steering committee, business units, or the IS development group › The criteria used to assign the merit of a given project can vary based on the size of the organization (Table 4-2) Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.13

14. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.14

15. 3. Select development projects › The short- and long-term projects most likely to achieve business objectives are considered › Factors:  Perceived needs of the organization  Existing systems and ongoing projects  Resource availability  Evaluation criteria  Current business conditions  Perspectives of the decision makers Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.15

16. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.16

17.  Deliverables and Outcomes › Primary deliverable of this phase is a schedule of specific IS development projects › An outcome of this activity is the assurance that people in the organization gave careful consideration to project selection and clearly understood how each project could help the organization reach its objectives Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.17

18. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.18

19.  Deliverables and Outcomes › Incremental commitment  Continuous reassessment of project after each phase Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.19

20.  Proper and insightful project initiation and planning, including determining project scope and identifying project activities, can reduce the time needed to complete later project phases, including systems analysis › For example, a careful feasibility analysis conducted during initiation and planning could lead to rejecting a project and saving a considerable expenditure of resources › The actual amount of time expended will be affected by the size and complexity of the project as well as by the experience of your organization in building similar systems Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.20

21.  The objective of project initiation and planning is to transform a vague system request document into a tangible project description (Figure 4-5) Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.21

22.  Two major activities:  (1)Project initiation : focuses on activities that will help organize a team to conduct project planning.  one or more analysts are assigned to work with a customer to establish work standards and communication procedures (Table 4-3) Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.22

23.  TABLE 4-3: Types of Activities Performed during Project Initiation Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.23

24.  Two major activities: › (2)Project planning : focuses on defining clear, discrete tasks and the work needed to complete each task › Its objective to produce two documents: a baseline project plan (BPP) and the project scope statement (PSS) Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.24

25.  Objectives (Deliverables and Outcomes) › Baseline Project Plan (BPP)  Internal document  Used by the development team but not shared with customers  Specifies detailed project activities for the next life cycle phase Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.25

26.  Objectives › Project Scope Statement  Prepared for external and internal stakeholders  clearly outlines the objectives of the project for the customer  Provides a high-level overview of the project Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.26

27.  Analysis of assumptions about resource availability and potential problems and system costs and benefits forms a business case Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.27

28. TABLE 4-4: Activities Performed during Project Planning Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.28

29.  Is required for the Baseline Project Plan  Six Categories › Economic › Operational › Technical › Schedule › Legal and contractual › Political Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.29

30. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.30

31.  Cost–Benefit Analysis  Determine Benefits › Tangible benefits  Can be measured easily  Examples (categories)  Cost reduction and avoidance  Error reduction  Increased flexibility  Increased speed of activity  Increased management planning and control  Opening new markets and increasing sales opportunities Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.31

32. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.32

33. › Intangible Benefits  Cannot be measured easily  Examples  Increased organizational flexibility  Increased employee morale  Competitive necessity  More timely information  Promotion of organizational learning and understanding Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.33

34.  Determine Costs › Tangible Costs  Can easily be measured in dollars  Example: Hardware › Intangible costs  Cannot be easily measured in dollars  Examples:  Loss of customer goodwill  Loss of employee morale Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.34

35. › One-Time Costs  Associated with project start-up, initiation and development  Includes  System development  New hardware and software purchases  User training  Site preparation  Data or system conversion Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.35

36. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.36

37. › Recurring Costs  Associated with on-going use of the system  Includes:  Application software maintenance  Incremental data storage expense  Incremental communications  New software and hardware releases  Consumable supplies and other expenses (e.g., paper, forms, data-center personnel) Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

39. › Time value of money (TVM)  The process of comparing present cash outlays to future expected returns › where PVn is the present value of Y dollars n years from now, when i is the discount rate. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

40.  For example, the present value of the three payments of $1,500 to buy a car can be calculated as:  To calculate the net present value (NPV) of the three $1,500 payments, simply add the present values calculated (NPV= PV1 + PV2 + PV3 = 3,730.20 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

41. 4.41

42. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.42

43.  Operational Feasibility › Assessment of how a proposed system solves business problems or takes advantage of opportunities  Technical Feasibility › Assessment of the development organization’s ability to construct a proposed system Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.43

44.  Schedule Feasibility › Assessment of time-frame 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 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.44

45.  Political Feasibility › Assessment of key stakeholders’ view in organization toward proposed system Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.45

46.  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 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.46

47.  Four Sections of a Baseline Project Plan: › Introduction › System description › Feasibility assessment › Management issues Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.47

48. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.48

49.  Introduction › Brief overview › Recommended course of action › Project scope defined  Units affected  Interaction with other systems  Range of system capabilities Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.49

50.  Ensures that both you and your customer gain a common understanding of the project size, duration, and outcomes  High-level summary of the baseline project plan (BPP) information Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.50

51. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.51

52.  System Description › Outline of possible alternative solutions › Narrative format  Feasibility Assessment › Project costs and benefits › Technical difficulties › High-level project schedule Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.52

53.  Management Issues › Outlines concerns that management may have about the project › Team composition › Communication plan › Project standards and procedures Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.53

54.  Management Issues › Outlines concerns that management may have about the project › Team composition › Communication plan › Project standards and procedures Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.54

55.  Management Issues › Outlines concerns that management may have about the project › Team composition › Communication plan › Project standards and procedures Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.55

56.  Objectives › Assure conformity to organizational standards › All parties agree to continue with project Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.56

57.  Walkthrough › Peer group review › Participants  Coordinator  Presenter  User  Secretary  Standard Bearer  Maintenance Oracle › Activities  Walkthrough review form  Individuals polled  Walkthrough action list › Advantages  Assures that review occurs during project Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.57

58. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.58

59. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.59

60.  Development process for Internet projects is no different than other projects  Special issues need to be taken into account Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.60

61.  Internet › Worldwide network comprised of individual networks used for global computing and electronic commerce  Intranet › Internet-based communication to support business activities within a single organization  Extranet › Internet-based communication to support business-to-business activities Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.61

62.  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 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.62

63.  Project Identification and Selection involves: › Identifying potential projects › Classifying and ranking of projects › Selecting projects  Baseline Project Plan (BPP) › Created during project initiation and planning Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.63

64. › Contains:  Introduction  High-level description of system  Outline of feasibility  Overview of management issues  Project Scope Statement › Describes what project will deliver Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.64

65.  Feasibility › Economic › Operational › Technical › Schedule › Legal › Contractual › Political Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.65

66.  Benefits › Tangible vs. Intangible  Costs › Tangible vs. Intangible › One-time vs. Recurring  Internet Applications › Internet › Intranet › Extranet Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4.66

67. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2012 Pearson Education, Inc. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall