1. System Planning (Overview of Feasibility) System Planning (Overview of Feasibility) - Mr. Ahmad Al-Ghoul System Analysis and Design

2. Avicenna System Analysis and Design System Planning2 Chapter Objectives Discuss the economic feasibility Discuss the economic feasibility Discuss the schedule feasibility Discuss the schedule feasibility Describe the differences between tangible and intangible benefits and costs and between one time and recurring benefits and costs Describe the differences between tangible and intangible benefits and costs and between one time and recurring benefits and costs

3. Avicenna System Analysis and Design System Planning3 Overview of Feasibility Economic Feasibility Economic Feasibility Economic Feasibility Economic Feasibility Means that the projected benefits of the proposed system outweigh the estimated costs. Means that the projected benefits of the proposed system outweigh the estimated costs. Analyst need to assess tangible and intangible benefits and costs. Analyst need to assess tangible and intangible benefits and costs. Tangible benefits Tangible benefits Tangible benefits Tangible benefits Can be measured easily Can be measured easily Examples Examples Cost reduction and avoidance Cost reduction and avoidance Error reduction Error reduction Increased flexibility Increased flexibility Increased speed of activity Increased speed of activity Improved management planning and control Improved management planning and control Opening new markets and increasing sales opportunities Opening new markets and increasing sales opportunities Reducing staff (due to automation) Reducing staff (due to automation) Maintaining constant staff Maintaining constant staff Decreasing operating expenses Decreasing operating expenses Reducing error rates (due to automation) Reducing error rates (due to automation)

4. Avicenna System Analysis and Design System Planning4 Overview of Feasibility Ensuring quicker processing and turnabout Ensuring quicker processing and turnabout Capturing lost discounts Capturing lost discounts Reducing bad accounts or bad credit losses Reducing bad accounts or bad credit losses Reducing inventory or merchandise loss Reducing inventory or merchandise loss Collecting accounts receivable more quickly Collecting accounts receivable more quickly Capturing income lost due to “stock outs” Capturing income lost due to “stock outs” Reducing the cost of goods with volume discounts Reducing the cost of goods with volume discounts Reducing paperwork costs Reducing paperwork costs

5. Avicenna System Analysis and Design System Planning5 Overview of Feasibility Intangible benefits Intangible benefits Intangible benefits Intangible benefits Cannot be measured easily Cannot be measured easily Examples Examples Increased employee morale Increased employee morale Competitive necessity Competitive necessity More timely information More timely information Promotion of organizational learning and understanding Promotion of organizational learning and understanding

6. Avicenna System Analysis and Design System Planning6 Overview of Feasibility Determine Costs Determine Costs Tangible Costs Tangible Costs Can easily be measured in dollars Can easily be measured in dollars Example: Hardware Example: Hardware Intangible Costs Intangible Costs Cannot be easily measured in dollars Cannot be easily measured in dollars Examples: Examples: Loss of customer goodwill Loss of customer goodwill Loss of employee morale Loss of employee morale

7. Avicenna System Analysis and Design System Planning7 Overview of Feasibility One-Time Costs One-Time Costs Associated with project startup, initiation and development Associated with project startup, initiation and development Includes Includes System Development System Development New hardware and software purchases New hardware and software purchases User training User training Site preparation Site preparation Data or system conversion Data or system conversion

8. Avicenna System Analysis and Design System Planning8 Overview of Feasibility Recurring Costs Recurring Costs Associated with ongoing use of the system Associated with ongoing use of the system Includes: Includes: Application software maintenance Application software maintenance Incremental data storage expense Incremental data storage expense New software and hardware releases New software and hardware releases Consumable supplies Consumable supplies Incremental communications Incremental communications

9. Avicenna System Analysis and Design System Planning9 Overview of Feasibility Assign Cost and Benefit Values Assign Cost and Benefit Values Difficult, but essential to estimate Difficult, but essential to estimate Work with people who are most familiar with the area to develop estimates Work with people who are most familiar with the area to develop estimates Intangibles should also be quantified Intangibles should also be quantified If intangibles cannot be quantified, list and include as part of supporting material If intangibles cannot be quantified, list and include as part of supporting material

10. Avicenna System Analysis and Design System Planning10 Overview of Feasibility Schedule Feasibility Schedule Feasibility Schedule Feasibility Schedule Feasibility Assessment of time frame and project completion dates with respect to organization constraints for affecting change Assessment of time frame and project completion dates with respect to organization constraints for affecting change A system analyst must consider the interaction between time and costs A system analyst must consider the interaction between time and costs Issues that relate to schedule feasibility includes: Issues that relate to schedule feasibility includes: Has management established a firm timetable for the project? Has management established a firm timetable for the project? What conditions must be satisfied during the development of the system ? What conditions must be satisfied during the development of the system ? Will an accelerated schedule pose any risks? Will an accelerated schedule pose any risks? Will project management techniques be available to coordinate and control the project? Will project management techniques be available to coordinate and control the project?

11. Avicenna System Analysis and Design System Planning11 Sequence Summary Economic feasibility means that the projected benefits of the proposed system outweigh the estimated costs. Economic feasibility means that the projected benefits of the proposed system outweigh the estimated costs. Analyst need to assess tangible and intangible benefits and costs. Analyst need to assess tangible and intangible benefits and costs. Tangible means can be measured easily Tangible means can be measured easily Intangible means cannot be measured easily Intangible means cannot be measured easily Schedule feasibility is the assessment of time frame and project completion dates with respect to organization constraints for affecting change Schedule feasibility is the assessment of time frame and project completion dates with respect to organization constraints for affecting change

12. Avicenna System Analysis and Design System Planning12 Sequence Summary In this Sequence we have In this Sequence we have Defined and described the economic feasibility Defined and described the economic feasibility Describe the differences between tangible and intangible benefits and costs and between one time and recurring benefits and costs Describe the differences between tangible and intangible benefits and costs and between one time and recurring benefits and costs Defined schedule feasibility Defined schedule feasibility Described the issues that relate to schedule feasibility Described the issues that relate to schedule feasibility

13. Avicenna System Analysis and Design System Planning13 Reference [1]System Analysis and Design, Sixth Edition (Chapter 2 ) Authors: Gary B. Shelly, Thomas J. Cashman and Harry J. Rosenblatt, Authors: Gary B. Shelly, Thomas J. Cashman and Harry J. Rosenblatt, Publisher: SHELLY CASHMAN SEWIES. [2] Modern Systems Analysis and Design fourth Edition (Chapter 5 ) Authors: Jeffrey A. Hoffer, Joey F. George, Joseph S. Valacich Authors: Jeffrey A. Hoffer, Joey F. George, Joseph S. Valacich Publisher: prentice hall Publisher: prentice hall [3] System Analysis and Design, 3 rd Edition ( Chapter 2 ) Authors: Dennis, Wixom, & Roth Publisher: John Wiley & sons [4] SYSTEM ANALYSIS AND DESIGN, sixth edition ( Chapter 3 ) Authors: Kenneth E. Kandall and Julie E. Kendall Publisher: prentice hall