2. Lecture 4 1 Introduction to Systems Planning

3. Lecture 4 2 Objectives n Describe the strategic planning process n Explain the purpose of a mission statement n Explain why and how systems projects are initiated n Explain how systems projects are evaluated

4. Lecture 4 3 Objectives n List the objectives of the preliminary investigation n Describe what activities occur during the preliminary investigation n Describe what takes place at the completion of the preliminary investigation

5. Lecture 4 4 n Systems Planning Objectives u Learn how projects get started u Learn how projects are evaluated initially n Systems planning tasks u Examine the systems request u Conduct a preliminary investigation u Determine whether further development is warranted Introduction

6. Lecture 4 5 The Strategic Planning Process n Describes a company’s reason for existing and plan for the future n Begins with a mission statement that sets forth an overall purpose and direction for stakeholders (customers, employees, suppliers) n Examples of mission statements u Federal Express u Toshiba International Corporation u Keyport Life Insurance Company Click to see Figure

7. Lecture 4 6 The Strategic Planning Process n The impact of technology u Rapid expansion of information technology is creating entirely new industries, such as F E-commerce Click to see Figure F Online stock trading

8. Lecture 4 7 The Strategic Planning Process n The impact of technology u Rapid expansion of information technology is creating entirely new industries, such as F E-commerce F Online stock trading u Change will be constant F Global competition F Rapidly changing markets F Explosive growth of information technology

9. Lecture 4 8 Information Systems Projects n Starting point is a systems request n Reasons for systems projects u Improved service u Better performance u More information u Stronger controls u Reduced cost Click to see Figure

10. Lecture 4 9 Information Systems Projects n Sources of systems projects u User requests u Top-management directives u Existing systems u Information systems department u External factors Click to see Figure

11. Lecture 4 10 Information Systems Projects n Request form and procedure u Streamlines the process u Ensures consistency u Must be easy to understand and use u Must include clear instructions Click to see Figure

12. Lecture 4 11 Evaluation of Systems Requests n Responsibility for evaluating systems requests u A group of key managers and users F Systems review committee þ Steering committee þ Computer resources committee þ Computer policy committee u A single individual F Typical in smaller companies F Must consult with users & managers

13. Lecture 4 12 TRADEOFF n A single individual versus a systems review committee — pros and cons n A committee can rely on the IS director as a technical consultant n Compared to an individual, a committee: u Provides a variety of experience and knowledge u Has a broader viewpoint and less bias u Might take longer to handle systems requests u Sometimes has internal political differences

14. Lecture 4 13 Evaluation of Systems Requests n Evaluation of projects u Systems review committee tasks: F Reviews, evaluates, approves (or rejected) and establishes priorities for system request F Assess feasibility

15. Lecture 4 14 Evaluation of Systems Requests n Overview of feasibility u Feasibility study uses three main yardsticks: F Operational feasibility F Technical feasibility F Economic feasibility Click to see Figure

16. Lecture 4 15 Evaluation of Systems Requests u Operational feasibility F Is the system a practical and effective approach? u Operational feasibility depends on: F Management and user support F User involvement in planning F Impact on performance, customers, and company image F Reasonable schedules

17. Lecture 4 16 Evaluation of Systems Requests u Technical feasibility F Does the organization have resources to develop/purchase and operate the system? u Technical feasibility depends on: F Technical expertise within the organization F Availability of necessary equipment F Hardware and software reliability F Adequate performance that will meet specifications F Capacity for future needs/projected growth

18. Lecture 4 17 Evaluation of Systems Requests u Economic feasibility F Do the projected benefits outweigh the estimated costs of development, installation, and operation? u Economic feasibility depends on: F Costs — one time and continuing costs F Benefits — tangible and intangible benefits F Timing of various costs and benefits F Cost of not developing the system

19. Lecture 4 18 Evaluation of Systems Requests n Determining feasibility u First step is a determination of feasibility u Goal is to identify nonfeasible projects as soon as possible u Feasibility can change over time F Nonfeasible projects can be resubmitted F Initially feasible projects can be rejected later

20. Lecture 4 19 Evaluation of Systems Requests u Criteria used to evaluate systems requests F Reduce costs F Increase revenue F Produce more information or better results F Serve customers and the organization better F Reasonable time frame and lasting results F Resources available F Necessary or discretionary F Tangible or intangible factors

21. Lecture 4 20 TRADEOFF n Must nondiscretionary projects be reviewed u Pros F Improve communication F Set priorities for limited resources F Enable better scheduling u Cons F Unnecessary waste of time F Potential delays in project

22. Lecture 4 21 Preliminary Investigation Objectives n Purpose u To decide whether to continue the project n Objectives for a preliminary investigation 1. Understand the problem 2. Define the project scope and constraints 3. Identify the benefits (Tangible and Intangible) 4. Estimate the time and costs 5. Report to management Click to see Figure

23. Lecture 4 22 Preliminary Investigation Steps n Steps in a preliminary investigation 1. Obtain authorization to proceed 2. Identify the necessary information 3. Perform fact-finding to gather the required information 4. Analyze the information 5. Present results and recommendations to management Click to see Figure

24. Lecture 4 23 Preliminary Investigation Steps n Present your results and recommendations to management u Typical report sections F Introduction F Systems request summary F Findings F Recommendations F Time & cost estimates F Expected benefits F Appendix Click to see Figure

25. Lecture 4 24 End of Lecture 4