1. 4-1 © Prentice Hall, 2004 Chapter 4: Project Management and Planning Object-Oriented Systems Analysis and Design Joey F. George, Dinesh Batra, Joseph S. Valacich, Jeffrey A. Hoffer

2. Chapter 4 4-2 © Prentice Hall, 2004 Chapter Objectives Af ter studying this chapter you should be able to: – Describe the steps involved for identifying and selecting, initiating, planning, and executing projects. – Explain Statement of Work (SOW) and Baseline Project Plan (BPP).

3. Chapter 4 4-3 © Prentice Hall, 2004 Chapter Objectives (Continued) Af ter studying this chapter you should be able to: – Describe several methods for feasibility assessment. – Describe tangible vs. intangible benefits and costs, and one-time vs. recurring costs.

4. Chapter 4 4-4 © Prentice Hall, 2004 Chapter Objectives (Continued) Af ter studying this chapter you should be able to: – Perform cost-benefit analysis by performing net present value (NPV), return on investment (ROI), and breakeven analysis. – Describe the activities and roles in a structured walkthrough.

5. Chapter 4 4-5 © Prentice Hall, 2004

6. Chapter 4 4-6 © Prentice Hall, 2004 Identifying and Selecting OOSAD Projects Top-down approaches – Top management – Steering committees Bottom-up approaches – User departments – Development group

7. Chapter 4 4-7 © Prentice Hall, 2004

8. Chapter 4 4-8 © Prentice Hall, 2004 Each stakeholder group brings their own perspective and motivation to the IS decision

9. Chapter 4 4-9 © Prentice Hall, 2004

10. Chapter 4 4-10 © Prentice Hall, 2004

11. Chapter 4 4-11 © Prentice Hall, 2004 Managing the Project: Initiation Tasks

12. Chapter 4 4-12 © Prentice Hall, 2004 Managing the Project: Planning Tasks

13. Chapter 4 4-13 © Prentice Hall, 2004

14. Chapter 4 4-14 © Prentice Hall, 2004 Statement of Work (SOW) is a “contract” between the IS staff and the customer regarding deliverables and time estimates for a system development project

15. Chapter 4 4-15 © Prentice Hall, 2004 System Service Request (SSR) is a form requesting development or maintenance of an information system. It includes the contact person, a problem statement, a service request statement, and liaison contact information.

16. Chapter 4 4-16 © Prentice Hall, 2004 Feasibility Assessment Economic feasibility Technical feasibility Operational feasibility Schedule feasibility Legal and contractual feasibility Political feasibility

17. Chapter 4 4-17 © Prentice Hall, 2004 Economic Feasibility Cost-benefit analysis – identify all the financial benefits and costs associated with a project Tangible vs. intangible benefits Tangible vs. intangible costs One-time vs. recurring costs

18. Chapter 4 4-18 © Prentice Hall, 2004 Tangible benefits:

19. Chapter 4 4-19 © Prentice Hall, 2004 One-time tangible costs Recurring tangible costs

20. Chapter 4 4-20 © Prentice Hall, 2004 Three financial measures for cost-benefit analysis

21. Chapter 4 4-21 © Prentice Hall, 2004 Net Present Value PV n = present value of Y dollars n years from now based on a discount rate of i. NPV = sum of PVs across years. Calculates time value of money.

22. Chapter 4 4-22 © Prentice Hall, 2004

23. Chapter 4 4-23 © Prentice Hall, 2004 Technical Feasibility Assessing the organization’s ability to construct the proposed system Takes into account various project risk factors

24. Chapter 4 4-24 © Prentice Hall, 2004

25. Chapter 4 4-25 © Prentice Hall, 2004 High technical familiarity mitigates risk due to project size and structure. Low familiarity increases risk.

26. Chapter 4 4-26 © Prentice Hall, 2004 Baseline Project Plan (BPP) is a document intended primarily to guide the development team, containing an overview of the project, a detailed description of the system, a complete feasibility assessment, and a list of management issues.

27. Chapter 4 4-27 © Prentice Hall, 2004 Other Feasibility Concerns Operational – Will the system achieve the objectives of the project? Schedule – Can the project be accomplished in a reasonable time frame? – Project management critical path scheduling can help answer this concern. Legal/Contractual – Are there regulations or legal obligations that affect the success of the project? Political – Will the project have user and management support? – Will there be resistance?

28. Chapter 4 4-28 © Prentice Hall, 2004 Project Scope statement is part of the BPP, and identifies the problem or opportunity, the project objectives, description, benefits, deliverables, and expected duration.

29. Chapter 4 4-29 © Prentice Hall, 2004 What is a Structured Walkthrough? A peer-group review of any product created during the system development process - Individuals attending can have the following roles: coordinator, presenter, user, secretary, standard-bearer, maintenance oracle - Can be applied to BPP, system specifications, logical and physical designs, program code, test procedures, manuals and documentation

30. Chapter 4 4-30 © Prentice Hall, 2004 Structured walkthrough form

31. Chapter 4 4-31 © Prentice Hall, 2004 Recap After studying this chapter we learned to: – Select, initiate, plan, and execute projects. – Understand SSR, SOW, and BPP documents. – Perform feasibility assessment. – Perform cost-benefit analysis. – Perform structured walkthroughs.