Phase 1: Systems Planning

1. Phase 1: Systems Planning Chapter 2 Analyzing the Business case

2. Phase Description • Systems planning is the first of five phases in the systems development life cycle (SDLC) • In this phase, you will learn how IT projects get started and how a systems analyst evaluates a proposed project and determines its feasibility

3. Introduction • The term business case refers to the reasons, or justification, for a proposal • To analyze the business case, the analyst must consider: • Company’s overall mission • Objectives • IT needs

4. Strategic Planning • IT team must understand, support, and help plan strategic goals • Strategic planning is the process of identifying long-term organizational goals, strategies, and resources • Strategic Planning Overview • SWOT analysis Figure2-2

5. Strategic Planning • From Strategic Plans to Business Results • Mission statement • Stakeholders • Goals • Objectives Figure2-3

6. Information Systems Projects • Reasons for Systems Projects • Systems request • Improved service • Better performance • More information • Stronger controls • Reduced cost

7. Information Systems Projects • Factors that Affect Systems Projects • Internal and external factors affect every business decision that a company makes, and IT systems projects are no exception Figure2-8

8. Information Systems Projects • Project Management Tools • All IT projects, large and small, must be managed and controlled • E.g. MS Project • Define tasks activities, participants, work sequence, etc • Project management begins with a systems request, and continues until the project is completed or terminated

9. Evaluation of Systems Requests • Systems review committee or a computer resources committee evaluate systems projects • Systems Requests Forms • A properly designed form streamlines the request process and ensures consistency Figure2-12

10. Evaluation of Systems Requests • Systems Review Committees • Most large companies use a systems review committee to evaluate systems requests • Many smaller companies rely on one person to evaluate system requests instead of a committee • The goal is to evaluate the requests and set priorities

11. 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 • Operational feasibility • Technical feasibility • Economic Feasibility • Schedule Feasibility Figure2-13

12. 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

13. 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

14. Preliminary Investigation Overview • Preliminary investigation • Interaction with Managers and Users

15. Preliminary Investigation Overview • Planning the Preliminary Investigation

16. Preliminary Investigation Overview • Step 1: Understand the Problem or Opportunity • Determine which departments, users, and business processes are involved • A popular technique for investigating causes and effects is called a fishbone diagram, or Ishikawa diagram Figure2-17

17. Preliminary Investigation Overview • Step 2: Define the Project Scope and Constraints • Project scope • Payroll is not produced accurately • Payroll is not calculated correctly for production workers on the 2nd shift at Yorktown plant • Avoid Project creep • Constraint • Present vs. future • Internal vs. external • Mandatory vs. desireable Figure2-18

18. Preliminary Investigation Overview • Step 3: Perform Fact-Finding • Fact-finding involves various techniques • Depending on what information is needed to investigate the systems request, fact-finding might consume several hours, days, or weeks • Analyze Organization Charts • Obtain organization charts to understand how the department functions Figure2-19

19. Preliminary Investigation Overview • Step 3: Perform Fact-Finding • Conduct interviews • Determine the people to interview. • Establish objectives for the interview. • Develop interview questions. • Prepare for the interview. • Conduct the interview. • Document the interview. • Evaluate the interview.

20. Preliminary Investigation Overview • Step 3: Perform Fact-Finding • Review documentation • Observe operations • Conduct a user survey

21. Preliminary Investigation Overview • Step 4: Evaluate Feasibility • Evaluate the project’s operational, technical, economic, and schedule feasibility

22. Preliminary Investigation Overview • Step 5: Estimate Project Development Time and Cost • What information must you obtain, and how will you gather and analyze the information? • What sources of information will you use, and what difficulties will you encounter in obtaining information?

23. Preliminary Investigation Overview • Step 5: Estimate Project Development Time and Cost • Will you conduct interviews? How many people will you interview, and how much time will you need to meet with the people and summarize their responses? • Will you conduct a survey? Who will be involved? How much time will it take people to complete it? How much time will it take to prepare it and tabulate the results?

24. Preliminary Investigation Overview • Step 5: Estimate Project Development Time and Cost • How much will it cost to analyze the information gathered and to prepare a report with findings and recommendations? • You should provide an estimate for the overall project, so managers can understand the full cost impact and timetable

25. Preliminary Investigation Overview • Step 6: 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

26. Preliminary Investigation Overview • Step 6: Present Results and Recommendations to Management • Introduction • Systems request summary • Findings • Recommendations • Time & cost estimates • Expected benefits • Appendix Figure2-21

27. Test Yourself • The series of questions that top managers ask during strategic planning is called _______?

28. Test Yourself • The series of questions that top managers ask during strategic planning is called _______? SWOT Analysis S = Strengths W= Weaknesses O= Opportunities T= Threats

29. Test Yourself • Goals are exactly the same as objectives (T/F)?

30. Test Yourself • Goals are exactly the same as objectives (T/F)? False

31. Test Yourself • Management leadership and information technology are linked closely together (T/F).

32. Test Yourself • Management leadership and information technology are linked closely together (T/F). True

33. Test Yourself • Name 3 (of 5) reasons why a new systems project may be initiated.

34. Test Yourself • Name 3 (of 5) reasons why a new systems project may be initiated. Improved service Better performance More information Stronger controls Reduced cost

35. Test Yourself • There are many internal and external factors that can affect systems projects. Name 2 internal factors and 3 external factors.

36. Test Yourself • There are many internal and external factors that can affect systems projects. Name 2 internal factors and 3 external factors. Internal: top management, user requests, IT department, and existing systems External: software/hardware vendors, technology, suppliers, customers, competitors, the economy, government

37. Test Yourself • A systems review committee • tests for operational, technical, and economic feasibility. • produces the company’s strategic plan by using SWOT analysis. • is a group of key managers and users who evaluate systems requests.

38. Test Yourself • A systems review committee • tests for operational, technical, and economic feasibility. • produces the company’s strategic plan by using SWOT analysis. • is a group of key managers and users who evaluate systems requests.

39. Test Yourself • What 3 measures, used in a feasibility study, help predict a systems success?

40. Test Yourself • What 3 measures, used in a feasibility study, help predict a systems success? Operational feasibility Technical feasibility Economic feasibility

41. Test Yourself • A new Web site that enhances the company’s image is an example of a tangible/intangible benefit to the company.

42. Test Yourself • A new Web site that enhances the company’s image is an example of a tangible/intangible benefit to the company.

43. Test Yourself • Name all 4 of the 6 steps in the preliminary investigation.

44. Test Yourself • Name 4 of the 6 steps in the preliminary investigation. • Understand the problem • Define the scope and constraints • Perform fact-finding • Estimate project’s benefits • Estimate development time/cost • Present results and recommendations

45. Test Yourself • Match the type of constraints in the left column to the proper example in the right column. • The order entry system • must run in a UNIX environment • b. The inventory system must be • operational by next week • The human resources system • interface with the current • accounting system • present • Internal • mandatory

46. Test Yourself • Match the type of constraints in the left column to the proper example in the right column. • The order entry system • must run in a UNIX environment • b. The inventory system must be • operational by next week • The human resources system • interface with the current • accounting system • present • internal • mandatory

47. End Chapter 2