1. Information Systems System Analysis 421 Class Three Initiating and Planning Systems Development Projects

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

4. 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 6.4

5. 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 6.5

6. Assessing Project Feasibility Six Categories –Economic –Technical –Operational –Schedule –Legal and contractual –Political 6.6

7. Assessing Economic Feasibility 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 6.7

8. 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 6.8

9. Assessing Economic Feasibility Determine Costs (Continued) –Intangible Costs Cannot be easily measured in dollars Examples: –Loss of customer goodwill –Loss of employee morale 6.9

10. 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 6.10

11. Assessing Economic Feasibility –Recurring Costs Associated with ongoing use of the system Includes: –Application software maintenance –Incremental data storage expense –New software and hardware releases –Consumable supplies –Incremental communications –Time value of money (TVM) The process of comparing present cash outlays to future expected returns 6.11

12. 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 6.12

13. Technical Feasibility –Technical feasibility addresses three major issues: Is the proposed technology or solution practical? Do we currently possess the necessary technology? Do we possess the necessary technical expertise, and is the schedule reasonable? –Technical feasibility can only fully be evaluated after those phases during which technical issues are resolved — namely, after the evaluation and design phases of our life cycle have been completed.

14. Technical Feasibility Can we actually build this system? What happens if: –We don’t get the benefits we project? –Our cost estimates are high? –Our time lines estimates are short? Y2K? –Fail to integrate new with old? (Conversion problems) Easiest feasibility criterion MIS is knowledgeable about the capabilities available

15. Operational Feasibility –Operational feasibility criteria measure the urgency of the problem (survey and study phases) or the acceptability of a solution (definition, selection, acquisition, and design phases). –There are two aspects of operational feasibility to be considered: Is the problem worth solving, or will the solution to the problem work? How do the end-users and management feel about the problem (solution)?

16. Operational Feasibility –Is the Problem Worth Solving, or Will the Solution to the Problem Work? The following is a list of the questions that address these issues: –Performance. Does the system provide adequate throughput and response time? –Information. Does the system provide end-users and managers with timely, pertinent, accurate, and usefully formatted information? –Economy. Does the system offer adequate service level and capacity to reduce the costs of the business or increase the profits of the business?

17. Operational Feasibility –Is the Problem Worth Solving, or Will the Solution to the Problem Work? –Control. Does the system offer adequate controls to protect against fraud and embezzlement and to guarantee the accuracy and security of data and information? –Efficiency. Does the system make maximum use of available resources including people, time, flow of forms, minimum processing delays, and the like? –Services. Does the system provide desirable and reliable service to those who need it? Is the system flexible and expandable?

18. Operational Feasibility How likely is it that this project will solve the real ROOT problems? Titanic How will this system impact the organization? Surprise impact of our Navy Intelligence system

19. Political Feasibility –How do End-Users and Managers Feel about the Problem (Solution)? It's not only important to evaluate whether a system can work but also evaluate whether a system will work. A workable solution might fail because of end-user or management resistance. The following questions address this concern: –Does management support the system? –How do the end-users feel about their role in the new system? –What end-users or managers may resist or not use the system? People tend to resist change. Can this problem be overcome? If so, how? –How will the working environment of the end-users change? Can or will end-users and management adapt to the change?

20. Political Feasibility How do the end users and management feel about the problem How will the working environment of the end user change If the users are not ready than no project is worth pursuing! Usability Analysis - ease of learning,use and satisfaction

21. Schedule Feasibility –Given our technical expertise, are the project deadlines reasonable? Some projects are initiated with specific deadlines. –You need to determine whether the deadlines are mandatory or desirable. –If the deadlines are desirable rather than mandatory, the analyst can propose alternative schedules. It is preferable (unless the deadline is absolutely mandatory) to deliver a properly functioning information system two months late than to deliver an error-prone, useless information system on time! –Missed schedules are bad. –Inadequate systems are worse!

22. 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 6.22

23. Building the Baseline Project Plan Four Sections –Introduction –System Description –Feasibility Assessment –Management Issues 6.23

24. Building the Baseline Project Plan Executive Summary Project Description –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 6.24

25. Building the Baseline Project Plan System Description –Outline of possible alternative solutions –Narrative format 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 Objectives –Assure conformity to organizational standards –All parties agree to continue with project 6.26

27. Reviewing the Baseline Project Plan Walkthrough –Peer group review –Participants Coordinator Presenter User Secretary Standards Bearer Maintenance Oracle 6.27

28. Reviewing the Baseline Project Plan Walkthrough (continued) –Activities Walkthrough Review Form Individuals polled Walkthrough Action List –Advantages Assures that review occurs during project 6.28

29. 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 6.29

30. 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 6.30

31. Summary Feasibility –Economic –Operational –Technical –Schedule –Legal –Contractual –Political 6.31

32. Summary Benefits –Tangible vs. Intangible Costs –Tangible vs. Intangible –One-time vs. Recurring 6.32