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Explore the value chain and feasibility analysis in evaluating information systems for organizations. Understand the key questions, categories of feasibility, and criteria for determining project worthiness. ROI considerations and examples provided.
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Value Chain, Evaluating Information System Chapter 1 Object-Oriented Analysis and Design Stumpf, Teague
Objectives, p22 - 31 • Organizations and Information System • What is an Organization • Value Chain • The value chain of a Manufacturing Company • Organizational change • User Satisfaction and Technology Acceptance • Technology diffusion • Technology infusion • Evaluating IS
Evaluating Information System • Feasibility Analysis • Not every desire for system implementation or change is WORTH pursuing • The effort involved in developing an Information System is considerable • Before this effort is undertaken, the stakeholders in the project ought to be sure that the venture is wortwhile.
Questions: • What benefits is the system expected to provide for its users and major stakeholders? • What specific objectives is the proposed system to achieve? • What are some promising alternatives for an architecture of the new system? • What is it likely to cost to develop the new system?
Categories of Feasibility • Technical: whether the construction of the proposed system is within the state of the art • Resource: whether the resources required to construct and deploy the system are available when they are needed • Organizational: whether the system can work in the culture and power structures of the organization
Cont.: • Economical: whether the investment in the system is a worthwhile use of the organization’s resources. • Benefits of the new system are greater than the cost of developing and operating it. • The ROI in a new system should exceed the return on other uses of the company’s capital • Schedule: would the system be employed in time to meet the business needs.