1. Topic # 11 Analysis of Alternatives. BSC method. WSM Method.

2. Analysis of Alternatives

4. “ One Design Strategy” Case: Disadvantages 1)NO GUARANTEE that the best, correct, or even an adequate system for the situation is being developed or purchased. This is not obvious because it is unclear if other alternatives were considered, and if they were, those present cannot see why the one choice won out. 2)ONE VENDOR – ONE PRICE. If the one strategy is chosen because only one vendor is used, there are no benefits from having multiple vendors compete for an RFP. For example, the vendor has no incentive to keep his price as low as possible. 3)NO PUBLIC DETAILED SPECIFICATIONS. Without the detailed, public systems specifications that are part of a competitive bid process, there is not likely to be much in the way of written documentation to refer back to if the vendor does not fulfill his promises. If CIS analysts present only one design strategy to the project steering committee or client, the recommendations are likely to be (at worst) rejected, or (at best) accepted with great skepticism. It is also possible that those present at the meeting will start to generate alternatives, each representing that person’s position. The meeting will quickly deteriorate since a fair assessment of ad hoc alternatives cannot be done within the limits of a meeting. In any event, this is not a good way to begin the development of an information system (or build a career).

6. BSC Method

7. Professional (best) approach: use Balanced Score Card (BSC) Method to analyze company’s status and generate/propose various alternatives

8. Balanced Scorecard (BSC) Method Balanced Scorecard (BSC) is a strategic planning and management system used to align business activities to the vision statement of an organization Before use of BSC method, CIS analysts must know (and understand) the following: 1) The company's mission statement 2) The company's strategic plan/vision 3) The financial status of the organization 4) How the organization is currently structured and operating 5) The level of expertise of employees 6) Customer satisfaction level

9. Balanced Scorecard (BSC) Method: examples Areas (departmen ts) Areas FinancesReturn On Investment Cash Flow Return on Capital Employed Financial Results (Quarterly/Yearly) Internal Business Processes Number of activities per function Duplicate activities across functions Process alignment (is the right process in the right department?) Process bottlenecks Process automation Learning & Growth Is there the correct level of expertise for the job? Employee turnover Job satisfaction Training/Learning opportunities CustomersDelivery performance to customer Quality performance for customer Customer satisfaction rate Customer percentage of market Customer retention rate

10. Balanced Scorecard (BSC) Method: examples

11. Scorecard method in action: an implementation of security system (an example) Source: http://www.isaca.org/Journal/Past-Issues/2006/Volume-6/Pages/JOnline-Framework-for-Measuring-and-Reporting-Performance- of-Information-Security-Programs-in-Offshore-Outso1.aspxhttp://www.isaca.org/Journal/Past-Issues/2006/Volume-6/Pages/JOnline-Framework-for-Measuring-and-Reporting-Performance- of-Information-Security-Programs-in-Offshore-Outso1.aspx KGI – key goal indicator, KPI – key performance indicator

12. Criteria to be used and radar diagrams

14. Use of Radar Diagrams

15. Weighted Scores Model (WSM) method

16. WSM use in Project Management courses WSM main steps: 1. First identify criteria important to the project selection process 2. Then assign weights (percentages) to each criterion so they add up to 100% 3. Then assign BY YOURSELF scores to each criterion for each project (based on calculated numeric values of NPV, ROI, IRR, PTP, etc.) 4. Multiply the scores by the weights and get the total weighted scores Important note: In many cases, scores for all under-review projects should add up to 100 points.

18. WSM application (an example)

19. Computer AComputer BComputer C