1. Systems Analysis and Design in a Changing World, 5 rd Edition Chapter 3: The Analyst as a Project Manager

2. Learning Objectives 2 Explain the elements of project management and the responsibilities of a project manager Explain project initiation and the activities in the project planning phase of the SDLC Describe how the scope of the new system is determined

3. Learning Objectives ( continued ) 3 Develop a project schedule using PERT and Gantt charts Develop a cost/benefit analysis and assess the feasibility of a proposed project Discuss how to staff and launch a project

4. Project Management 4 Organizing and directing other people to achieve a planned result within a predermined schedule and budget. Management: Getting things done through other people

5. Reasons for Project Failure 5 Incomplete or changing requirements Limited user involvement Lack of executive support Lack of technical support Poor project planning Unclear objectives Lack of required resources

6. Reasons for Project Success 6 Clear system requirement definitions Substantial user involvement Support from upper management Thorough and detailed project plans Realistic work schedules and milestones

7. Project Management Roles Systems Analysis and Design in a Changing World, 3rd Edition 7 Internal Responsibilities  Identify project tasks and build a work breakdown structure.  Develop the project schedule  Recruit and train team member  Assign team members to task.  Coordinate activities of team members and subteams.  Assess project risks.  Monitor and control project deliverables and milestones.  Verify the quality of project deliverables.

8. Project Management Roles Systems Analysis and Design in a Changing World, 3rd Edition 8 External Responsibilities:  Report the projects status and progress.  Establish good working relationships with those who identify the needed system requirement.  Work directly with the client and other stakeholders.  Identify resource needs and obtain resources.

9. Participants in a System Development Project 9 Client: The person or group that funds the project. Oversight Committee: Clients and key managers who review and direct the project. User: The person or group of people who will use the new system.

10. Strategic Planning – A Framework for IT Systems Development Strategic Planning Overview SWOT analysis 10

11. Strategic Planning – A Framework for IT Systems Development From Strategic Plans to Business Results Mission statement Stakeholders Goals Objectives 11

12. Project Management Body of Knowledge 12 Scope management Control functions included in system Control scope of work done by team Time management Build detailed schedule of all project tasks Monitor progress of project against milestones Cost management Calculate cost/benefit initial analysis Monitor expenses

13. Project Management Body of Knowledge ( continued ) 13 Quality management Establish quality plan and control activities for each project phase Human resource management Recruit and hire project team members Train, motivate, team build Communications management Identify stakeholders and their communications Establish team communications

14. Project Management Body of Knowledge ( continued ) 14 Risk management Identify and review risks for failure Develop plans to reduce these risks Procurement management Develop requests for proposals (RFPs) Evaluate bids, write contracts Monitor vendor performance

15. Activities of the Project Planning Phase 15

16. Defining the Problem 16 u The main objective is to define precisely the business problem and determine the scope of the new systems Review business needs Use strategic plan documents Consult key users Develop list of expected business benefits ( measured in monetary terms). Identify expected system capabilities Define scope in terms of requirements Create system scope document (a document containing problem description, business benefit, and system capabilities to help define the scope of the new systems). Build proof of concept prototype (a very preliminary prototype built to illustrate the solution t a business need is feasible). Create context diagram (Da ta Flow Diagram showing the scope of the system).

17. Project Initiation and the Project Planning Phase 17 Driving forces to start project Respond to opportunity Resolve problem Conform to directive ( matching the goals and objectives). Project Initiation comes from: Long-term IS strategic plan (top-down) prioritized by weighted scoring (Technique used by companies to prioritize project based on criteria with unequal weight). Department managers or process managers (bottom-up) Response to outside forces

18. Preliminary Investigation Overview 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 18

19. Preliminary Investigation Overview Step 2: Define the Project Scope and Constraints Project scope Project creep Constraint 19

20. Preliminary Investigation Overview Step 2: Define the Project Scope and Constraints Present versus future Internal versus external Mandatory versus desirable Regardless of the type, all constraints should be identified as early as possible to avoid future problems and surprises 20

21. Setting Priorities 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? 21

22. Setting Priorities Factors that Affect Priority 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? 22

23. Setting Priorities 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 23

24. 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 24

25. Overview of Feasibility A systems request must pass several tests, called a feasibility study, to see whether it is worthwhile to proceed further Operational Feasibility Depends on several vital issues 25

26. Overview of Feasibility Technical Feasibility Economic Feasibility Total cost of ownership (TCO) Tangible benefits Intangible benefits Schedule Feasibility 26

27. 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 27

28. Preliminary Investigation Overview Step 3: Evaluate Feasibility Start by reviewing the answers to the questions you asked Operational feasibility Technical feasibility Economic feasibility Schedule feasibility 28

29. Preliminary Investigation Overview Step 4: 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 29

30. Preliminary Investigation Overview Step 4: Present Results and Recommendations to Management Introduction Systems request summary Findings Case for action 30

31. Preliminary Investigation Overview Step 4: Present Results and Recommendations to Management Project Roles Time & cost estimates Expected benefits Appendix 31

32. Initiating Customer Support System RMO 32 Strategic IS plan directs IS development’s project priorities Customer support system (CSS) selected John MacMurty - creates project charter Barbara Halifax - project manager Steven Deerfield - senior systems analyst Goal is to support multiple types of customer services (Ordering, returns, on-line catalogs) Project charter describes key participants

33. RMO Project Charter 33

34. Defining the Problem at RMO 34 Barbara: Completed problem definition statement Steve: Conducted preliminary research on alternative solutions Barbara, Steve and William McDougal: Proceed with analysis before making solution decisions Barbara, Steve: Began schedule, budget, feasibility statement for new system

35. Producing the Project Schedule 35 Developing Work Breakdown Structure (WBS) List of tasks and duration required for project Similar to outline for research paper WBS is foundation for project schedule Good example find in page 91 Building a GANT Chart Assists in assigning tasks Critical path method

36. Confirming Project Feasibility Why? 36 To determine whether a development project has a reasonable chance to success. Assess the risk of the project Economic Cost/benefit analysis Sources of funds (cash flow, long-term capital) Organizational and Cultural Technological Schedule Resource

37. Risk Management Figure 3-19 P 100 Systems Analysis and Design in a Changing World, 3rd Edition 37 Is the project management area that forward-looking, during which the team tries to identify potential trouble spots that could jeopardize the success of the project. The core team members should be the primary participant in this session using brainstorming technique. The Ideas flow freely before judging and eliminating the bad ones.

38. Economic Feasibility Systems Analysis and Design in a Changing World, 3rd Edition 38 Consists of two test: Is the anticipated value of the benefits greater than projected costs of the development. Does the organization have an adequate cash flow to fund the project during the development period.

39. Economic Feasibility 39 Cost/benefit analysis (CBA) Estimate project development costs Estimate operational costs after project Estimate financial benefits based on annual savings and increased revenues Calculate CBA using complete list of costs and benefits CBA uses net present value (NPV), payback period, return on investment (ROI) techniques

40. Economic Feasibility-continued Systems Analysis and Design in a Changing World, 3rd Edition 40 Development cost: Salaries and Wages. Equipment and installation. Software and licenses. Consulting fees and payment to third parties. Training. Facilities. Utilities and tools. Support staff. Travel and miscellaneous

41. Economic Feasibility-continued Systems Analysis and Design in a Changing World, 3rd Edition 41 Ongoing costs of operations: Connectivity Equipment and maintenance. Costs of upgrade software licenses. Programming support Amortization of equipment. Training and ongoing assistance ( help desk). Supplies.

42. Intangibles in Economic Feasibility Systems Analysis and Design in a Changing World, 3rd Edition 42 Intangible benefits cannot be measured in dollars Increased levels of service Customer satisfaction Survival Need to develop in-house expertise Intangible costs cannot be measured in dollars Reduced employee morale Lost productivity Lost customers or sales

43. Economic Feasibility-continued Systems Analysis and Design in a Changing World, 3rd Edition 43 Financial calculations: NPV: the present value of dollar benefits and costs for an investment such as new systems. Payback period: the time period in which the dollar benefits have offset the dollar costs. Breakeven point: the point in time at which the dollar benefits have offset the dollar costs. Return on investment: a measure of the percentage gain from an investment as a new system.

44. Supporting Detail for Salaries and Wages for RMO 44

45. Summary of Development Costs for RMO Systems Analysis and Design in a Changing World, 3rd Edition 45

46. Summary of Annual Operating Costs for RMO Systems Analysis and Design in a Changing World, 3rd Edition 46

47. Sample Benefits for RMO Systems Analysis and Design in a Changing World, 3rd Edition 47

48. RMO Cost Benefit Analysis Systems Analysis and Design in a Changing World, 3rd Edition 48

49. Organizational and Cultural Feasibility Systems Analysis and Design in a Changing World, 3rd Edition 49 Each company has own culture New system must fit into culture Evaluate related issues for potential risks Low level of computer competency Computer phobia Perceived loss of control Shift in power Fear of job change or employment loss Reversal of established work procedures

50. Technological Feasibility Systems Analysis and Design in a Changing World, 3rd Edition 50 Does system stretch state-of-the-art technology? (is the highest level of development, as of a device, technique, or scientific field, achieved at a particular time). Does in-house expertise presently exist for development? Does an outside vendor need to be involved? Solutions include: Training or hiring more experienced employees Hiring consultants Changing scope and project approach

51. Schedule Feasibility Systems Analysis and Design in a Changing World, 3rd Edition 51 Estimates needed without complete information Management deadlines may not be realistic Project managers: Drive to realistic assumptions and estimates Recommend completion date flexibility Assign interim milestones to periodically reassess completion dates Involve experienced personnel Manage proper allocation of resources

52. Resource Feasibility Systems Analysis and Design in a Changing World, 3rd Edition 52 Team member availability Team skill levels Computers, equipment, and supplies Support staff time and availability Physical facilities

53. Staffing and Launching the Project Systems Analysis and Design in a Changing World, 3rd Edition 53 Develop resource plan for the project Identify and request specific technical staff Identify and request specific user staff Organize the project team into workgroups Conduct preliminary training and team building exercises Key staffing question: “Are the resources available, trained, and ready to start?”

54. Launching Project Systems Analysis and Design in a Changing World, 3rd Edition 54 Scope defined, risks identified, project is feasible, schedule developed, team members identified and ready Oversight committee finalized, meet to give go-ahead, and release funds Formal announcement made to all involved parties within organization Key launch question: “Are we ready to start?”

55. Recap of Project Planning for RMO Systems Analysis and Design in a Changing World, 3rd Edition 55 Created schedule and plans for CSS Addressed all aspects of project management (project planning and scope) Included project communication and quality Identified desired team members Refine internal working procedures Taught tools and techniques used on project Planned kickoff meeting to officially launch

56. Summary Systems Analysis and Design in a Changing World, 3rd Edition 56 Project management tasks Start at SDLC project planning phase Continue throughout each SDLC phase Organizing and directing other people Achieve planned result Use predetermined schedule and budget Knowledge areas needed Scope, time, cost, quality, human resources, communications, risk, procurement

57. Summary ( continued ) Systems Analysis and Design in a Changing World, 3rd Edition 57 Project initiation Information system needs are identified and prioritized in strategic plans Project planning phase Define problem (investigation and scope) Produce project schedule (WBS) Confirm project feasibility (evaluate risks) Staff project (know people’s skills) Launch project (executive formal approval)