1. Copyright 2002 Prentice-Hall, Inc. Modern Systems Analysis and Design Third Edition Jeffrey A. Hoffer Joey F. George Joseph S. Valacich Chapter 6 Initiating and Planning Systems Development Projects 6.1

2. Learning Objectives Describe steps involved in the project initiation and planning process Explain the need for and the contents of a Statement of Work and Baseline Project Plan List and describe various methods for accessing project feasibility 6.2

3. Learning Objectives Describe the differences between intangible and tangible costs and benefits and between recurring and one-time benefits and costs Detail various methods of cost/benefit analysis Describe the general rules for evaluating the technical risks associated with a systems development project Describe the activities and participant roles within a structured walkthrough 6.3

5. Initiating and Planning System Development Projects Project Initiation Establishment of project team Development of relationship with customer Project Initiation Plan Establishment of Management Procedures Establishment of Project Workbook and Project Management Environment Project Planning Defining clear, discrete activities and the work needed to complete each activity 6.5

6. Initiating and Planning System Development Projects Deliverables and Outcomes Baseline Project Plan (BPP)  Scope  Benefits  Costs  Risks  Resources Statement of Work (SOW)  Describes deliverables  Outlines work needed to be performed 6.6

7. SOW

8. Assessing Project Feasibility Six Categories Economic Technical Operational Schedule Legal and contractual Political 6.8

9. Assessing Economic Feasibility Economic Feasibility: process of identifying the financial benefits and costs associated with a development project Cost – Benefit Analysis Determine Benefits Tangible Benefits  Can be measured easily Examples Cost reduction and avoidance Error reduction Increased flexibility Increased speed of activity Improved management planning and control Opening new markets and increasing sales opportunities 6.9

11. Assessing Economic Feasibility Intangible Benefits  Cannot be measured easily  Examples Increased employee morale Competitive necessity More timely information Promotion of organizational learning and understanding Determine Costs Tangible Costs  Can easily be measured in dollars Example: Hardware 6.11

12. Assessing Economic Feasibility Determine Costs (Continued) Intangible Costs  Cannot be easily measured in dollars  Examples: Loss of customer goodwill Loss of employee morale 6.12

13. Assessing Economic Feasibility One-Time Costs  Associated with project startup, initiation and development  Includes System Development New hardware and software purchases User training Site preparation Data or system conversion 6.13

15. Assessing Economic Feasibility Recurring Costs  Cost resulting from the ongoing evolution and use of the system  Includes: Application software maintenance Incremental data storage expense New software and hardware releases Consumable supplies Incremental commitment Time value of money (TVM)  The process of comparing present cash outlays to future expected returns 6.15

17. Assessing Technical Feasibility Technical Feasibility  Assessment of the development organization’s ability to construct a proposed system  Project risk can be assessed based upon: Project size Project structure Development group’s experience with the application User group’s experience with development projects and the application area 6.17

19. Assessing Other Project Feasibility Concerns Operational Feasibility Assessment of how a proposed system solves business problems or takes advantage of opportunities 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 6.19

20. Assessing Other Project Feasibility Concerns Political Feasibility The process of evaluating how key stakeholders within the organization view the proposed system. 6.20

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 6.21

22. Building the Baseline Project Plan Four Sections Introduction System Description Feasibility Assessment Management Issues 6.22

23. Building the Baseline Project Plan Introduction Brief overview Recommended course of action Project scope defined  Units affected  Who inside and outside the organization would be involved  Interaction with other systems  Range of system capabilities 6.23

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25. Building the Baseline Project Plan System Description Outline of possible alternative solutions Narrative format( input and result information) Feasibility Assessment Project costs and benefits Technical difficulties High-level project schedules 6.25

26. Building the Baseline Project Plan Management Issues Outlines concerns that management may have about the project Team composition Communication plan Project standards and procedures 6.26

27. Reviewing the Baseline Project Plan Objectives Assure conformity to organizational standards All parties agree to continue with project 6.27

28. Reviewing the Baseline Project Plan Walkthrough Peer group review Participants  Coordinator  Presenter  User  Secretary  Standards Bearer  Maintenance Oracle 6.28

29. Reviewing the Baseline Project Plan Walkthrough (continued) Activities  Walkthrough Review Form  Individuals polled  Walkthrough Action List Advantages  Assures that review occurs during project 6.29

30. Summary Project Initiation Forming project initiation team Establishing customer relationships Developing a plan to get the project started Setting management procedures Creating an overall project management environment Baseline Project Plan (BPP) Created during project initiation and planning 6.30

31. Summary Contains:  Introduction  High-level description of system  Outline of feasibility  Overview of management issues Statement of Work (SOW) Describes what project will deliver Lists all work to be performed 6.31

32. Summary Feasibility Economic Operational Technical Schedule Legal Contractual Political 6.32

33. Summary Benefits Tangible vs. Intangible Costs Tangible vs. Intangible One-time vs. Recurring 6.33