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System Planning (Overview of Feasibility)

System Analysis and Design. System Planning (Overview of Feasibility). - Mr. Ahmad Al-Ghoul. Chapter Objectives. Discuss the economic feasibility Discuss the schedule feasibility

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System Planning (Overview of Feasibility)

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

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

  3. Overview of Feasibility • 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. • 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 • Reducing staff (due to automation) • Maintaining constant staff • Decreasing operating expenses • Reducing error rates (due to automation) System Analysis and Design System Planning

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

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

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

  7. Overview of 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 System Analysis and Design System Planning

  8. Overview of 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 System Analysis and Design System Planning

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

  10. Overview of Feasibility • Schedule Feasibility • 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 • Issues that relate to schedule feasibility includes: • Has management established a firm timetable for the project? • What conditions must be satisfied during the development of the system ? • Will an accelerated schedule pose any risks? • Will project management techniques be available to coordinate and control the project? System Analysis and Design System Planning

  11. Sequence Summary • 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. • Tangible means can 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 System Analysis and Design System Planning

  12. Sequence Summary • In this Sequence we have • 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 • Defined schedule feasibility • Described the issues that relate to schedule feasibility System Analysis and Design System Planning

  13. Reference [1]System Analysis and Design, Sixth Edition (Chapter 2 ) 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 Publisher: prentice hall [3] System Analysis and Design, 3rd 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 System Analysis and Design System Planning

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