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: 1.Management and business units 2.Managers who want to make a system more efficient 3.Formal planning groups

4. Identifying and Selecting Projects 1. Project identification Bottom Up Identification  Business unit or IS group Top Down Identification  Senior management or steering committee 2.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?