1. Chapter 2

2. Phase Description
Systems planning is the first of five phases in the systems development life cycle (SDLC)
In this phase, you will learn how IT projects get started and how a systems analyst evaluates a proposed project and determines its feasibility

3. Chapter Objectives
Explain the concept of a business case and how a business case affects an IT project
Describe the strategic planning process and why it is important to the IT team
Explain the purpose of a mission statement 3

4. Chapter Objectives
Describe the SDLC, and explain how it serves as a framework for systems development and business modeling
Describe risks and risk management features
List the reasons for information systems projects and the factors that affect such projects 3

5. Chapter Objectives
Explain the initial review of systems requests and the role of the systems review committee
Define operational feasibility, technical feasibility, economic feasibility, and schedule feasibility
Describe the steps in a preliminary investigation and the end product of an investigation

6. Introduction
The term business case refers to the reasons, or justification, for a proposal
Systems development typically starts with a systems request, followed by a preliminary investigation, which includes a feasibility study 4

7. Introduction During the systems planning phase of the SDLC:
Project requests are reviewed and approved
Project requests are prioritized
Resources, such as money, people, and equipment, are allocated
Project development teams are formed

8. Strategic Planning – A Framework for IT Systems Development
Strategic planning is the process of identifying long-term organizational goals, strategies, and resources
Strategic Planning Overview
SWOT analysis 4

9. Strategic planning overview
The system analyst need to know about strategic planning. And consider these planning as they carry out their day to day responsibilities.
During strategic planning top managers ask a series of questions that is called a SWOT analysis, because it examines a company’s strengths (s), weakness (W), opportunities (O), and threats (T).
Each questions may lead to an IT related issues which in turn requires more review, analysis, and planning.

10. A company develops a mission statement based on the firm’s purpose, vision, and values.
The mission statement is the foundation for the company’s major goal, shorter term objectives, and day to day.

11. The mission statement describes a company for it’s stockholders and briefly states the company's overall purpose, products, services and values.
Stockholders include any one affected by the company’s operation, such as customers, employees, suppliers, stockholders, and members of the community.

12. Strategic Planning – A Framework for IT Systems Development
From Strategic Plans to Business Results
Mission statement
Stakeholders
Goals
Objectives

13. The mission stamens is the starting point
The mission stamens is the starting point. Next the company identifies a set of goals that will accomplish the mission.
Example, the company might establish one year, three year, and five year goals for expanding market share. To achieve those goals, the company develops a list of shorter term objects.
If the goal is to increase web based order by 30 percent next year, a company set quarterly objectives with monthly millstones.

14. Strategic Planning – A Framework for IT Systems Development
In a Business study you need to consider
Critical success factors
Factors must be archived for enterprise to fulfill it’s mission.
Critical business issues
Issues that are the key problems, opportunities, and constrains that affect and shape the firms decisions.
Case for action
A summary of the project request and a specific recommendation.

15. Strategic Planning – A Framework for IT Systems Development
The Role of the IT Department in Project Evaluation
Management leadership and information technology are linked closely, and remarkable changes have occurred in both areas
Today, systems development is much more team oriented new approach like JAD and RAD that is involve groups of users, managers and IT staff working together.
Although team-oriented development is the norm, some companies see the role of the IT department as a gatekeeper

16. Strategic Planning – A Framework for IT Systems Development
The Future
If you could look into the future, here is what you might see: New industries, products, and services emerging from amazing advances in information technology, customers who expect world-class IT support, a surge in Internet-based commerce, and a global business environment that is dynamic and incredibly challenging. The company should see the opportunities and create a strategic plan.

17. What Is a Business Case?
Should be comprehensive, yet easy to understand
Should describe the project clearly, provide the justification to proceed, and estimate the project’s financial impact

18. A business case should answer questions such as:
Why are we doing this project?
What is the project about?
How does this solution address key business issues?
How much will it cost and how long will it take?
What is the return on investment?
What risks are the risk of doing and not doing the project?
How will we measure success?
What alternatives do we have?

19. Information Systems Projects
The star point of most projects is system request, which is a formal way of asking for asking for IT support.
Main Reasons for Systems Projects are:
Systems request
Improved service
Support for new products and services
Better performance
More information Like a system that predict market trend
Stronger controls of security and data
Encryption and biometric devices
Reduced cost

20. Information Systems Projects
Factors that Affect Systems Projects
Internal and external factors affect every business decision that a company makes, and IT systems projects are no exception

21. Information Systems Projects
Internal Factors
Strategic plan. It sets the overall direction of company
Top managers. It is the prim source of large scale system project
User requests. Sales rep might request changes to companies website
Information technology department. like purposing new data or reporting collection system
Existing systems and data. Errors or problem in existing system

22. Information Systems Projects
External Factors
Changing Technology
Barcode replaced by Electronic product code (EPC) Suppliers
Suppliers
With the growth of
electronic data interchange, the companies data should be compatible with supplier data it
also enable Just-in-time (JIT) inventory system which is
computer to computer data exchange

23. Information Systems Projects
External Factors
Customers
Companies implement Customer Relationship Management (CRM)
Customer may need Electronic proof of delivery (EPOD)
Competitors
The economy
Government
example is income tax reporting requirements must be designed with payroll package.

24. Information Systems Projects
Project Management Tools
All IT projects, large and small, must be managed and controlled
Project management begins with a systems request, and continues until the project is completed or terminated
Risk Management
Every IT project involves risks that system analysts and IT project managers must address
Risk management

25. Evaluation of Systems Requests
Systems review committee
Computer resources committee
Systems Requests Forms

26. Evaluation of Systems Requests
Systems Review Committees
Most large companies use a systems review committee to evaluate systems requests
Many smaller companies rely on one person to evaluate system requests instead of a committee
The goal is to evaluate the requests and set priorities
Disadvantage: action on request should wait until the committee meets.

27. Overview of Feasibility
A systems request must pass several tests, called a feasibility study, to see whether it is worthwhile to proceed further

28. Overview of Feasibility
Operational feasibility
If the purposed system will be used effectively after it had been developed
Technical Feasibility
Technical feasibility refers to technical resources needed to develop, purchase, install, or operate the system
Economic Feasibility
Total cost of ownership (TCO)
Tangible benefits that can be measured by company like reducing overtime
Intangible benefits that are difficult to measure in dollar like sale tracing system
Schedule Feasibility

29. Evaluating Feasibility
The first step in evaluating feasibility is to identify and weed out systems requests that are not feasible
Even if the request is feasible, it might not be necessary
Feasibility analysis is an ongoing task that must be performed throughout the systems development process

30. Setting Priorities
The highest priority goes to the project that provide the greatest benefit, at the lowest cost, in the shortest period of time

31. Factors that Affect Priority
Will the proposed system reduce costs? Where? When? How? How much?
Will the system increase revenue for the company? Where? When? How? How much?
Will the systems project result in more information or produce better results? How? Are the results measurable?
Will the system serve customers better?
Will the system serve the organization better?

32. Factors that Affect Priority
Can the project be implemented in a reasonable time period? How long will the results last?
Are the necessary financial, human, and technical resources available?
Whenever possible, the analyst should evaluate a proposed project based on tangible costs and benefits that represent actual (or approximate) dollar values

33. Setting Priorities Discretionary and Nondiscretionary Projects
Projects where management has a choice in implementing them are called discretionary projects
Projects where no choice exists are called nondiscretionary projects
Some people believe that the committee does not be involve with Nondiscretionary project , others believe that the committee should know about the nondiscretionary project to make reasonable plan for other project

34. Preliminary Investigation Overview
Preliminary investigation to study the system request and recommend specific action. The end product is a report to manager
Interaction with Managers and Users

35. Planning the Preliminary Investigation
During a preliminary investigation, a systems analyst typically follows a series of steps
The exact procedure depends on the nature of the request, the size of the project, and the degree of urgency

36. Step 1: Understand the Problem or Opportunity
A popular technique for investigating causes and effects is called a fishbone diagram, or Ishikawa diagram
Pareto chart tool for
Visualizing and
Prioritizing issues that
Need attention

37. Step 2: Define the Project Scope and Constraints
Project scope , defining the boundaries of project
Project without specification can get expanded without any control, in a process called project creep
Constraint is a requirement or condition that system must satisfy.
Present versus future. Is the constraint must meet as soon as the is developed or can be done if future

38. Internal versus external is the constraint due to requirement within the origination or is it from external force like government regulation
Mandatory versus desirable is the constraint mandatory or desired.
Regardless of the type, all constraints should be identified as early as possible to avoid future problems and surprises

39. Preliminary Investigation Overview
Step 3: Perform Fact-Finding
Fact-finding involves various techniques
Fact-finding might consume several hours, days, or weeks
Analyze Organization Charts

40. Step 3: Perform Fact-Finding Conduct interviews
Determine the people to interview
Establish objectives for the interview
Develop interview questions
Prepare for the interview
Conduct the interview
Document the interview
Evaluate the interview

41. Step 3: Perform Fact-Finding
Review documentation
Observe operations
Conduct a user survey
Step 4: Evaluate Feasibility
Evaluate the project’s operational, technical, economic, and schedule feasibility

42. Step 5: Estimate Project Development Time and Cost
What information must you obtain, and how will you gather and analyze the information?
What sources of information will you use, and what difficulties will you encounter in obtaining information?
Will you conduct interviews? How many people will you interview, and how much time will you need to meet with the people and summarize their responses?
Will you conduct a survey? Who will be involved? How much time will it take people to complete it? How much time will it take to prepare it and tabulate the results?

43. Step 5: Estimate Project Development Time and Cost
How much will it cost to analyze the information gathered and to prepare a report with findings and recommendations?
You should provide an estimate for the overall project, so managers can understand the full cost impact and timetable

44. Step 6: Present Results and Recommendations to Management
The final task in the preliminary investigation is to prepare a report to management
The format of the preliminary investigation report varies from one company to another

45. Atypical report might consist of the following sections:
Introduction
Systems request summary
Findings
Recommendations
Project Roles - who will participate in the project
Time & cost estimates
Expected benefits- tangible and intangible benefits
Appendix- reports and supporting information

46. Chapter Summary
Systems planning is the first phase of the systems development life cycle
Effective information systems help an organization support its business process, carry out its mission, and serve its stakeholders 49

47. Chapter Summary
Strategic planning allows a company to examine its purpose, vision, and values and develops a mission statement, which leads to goals, objectives, day-to-day operations, and business results that affect company stakeholders
Systems projects are initiated to improve performance, provide more information, reduce costs, strengthen controls, or provide better service 49

48. Chapter Summary
Various internal and external factors affect systems projects
During the preliminary investigation, the analyst evaluates the systems request and determines whether the project is from an operation, technical, economic, and schedule standpoint 49

49. Chapter Summary
Analysts evaluate systems requests on the basis of their expected costs and benefits, both tangible and intangible
The steps in the preliminary investigation are to understand the problem or opportunity; define the project scope and constraints; perform fact-finding; estimate the project’s benefits; estimate project development time and cost; and present results and recommendations to management 49

50. Chapter Summary
The report must include an estimate of time, staffing requirements, costs, benefits, and expected results for the next phase of the SDLC
Chapter 2 complete 49