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Questions and Answers
What is the primary purpose of a business case in an IT project?
What is the primary purpose of a business case in an IT project?
Which of the following factors is NOT typically included in a SWOT analysis?
Which of the following factors is NOT typically included in a SWOT analysis?
What is the first step in the strategic planning process?
What is the first step in the strategic planning process?
What does SDLC stand for in the context of systems development?
What does SDLC stand for in the context of systems development?
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Which of the following best describes operational feasibility?
Which of the following best describes operational feasibility?
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What is the role of the systems review committee?
What is the role of the systems review committee?
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What is considered a critical success factor in strategic planning?
What is considered a critical success factor in strategic planning?
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Which of the following is a component of the preliminary investigation in systems development?
Which of the following is a component of the preliminary investigation in systems development?
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What is the primary consideration of schedule feasibility?
What is the primary consideration of schedule feasibility?
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Which of the following questions is NOT relevant when assessing schedule feasibility?
Which of the following questions is NOT relevant when assessing schedule feasibility?
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What is a factor that might increase priority for a proposed system?
What is a factor that might increase priority for a proposed system?
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Which scenario indicates that a system request is currently not feasible?
Which scenario indicates that a system request is currently not feasible?
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Which of the following statements is most accurate regarding requests that are not feasible?
Which of the following statements is most accurate regarding requests that are not feasible?
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What is the consequence of having insufficient capacity in a proposed platform?
What is the consequence of having insufficient capacity in a proposed platform?
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What should be evaluated to determine if a system will serve the organization better?
What should be evaluated to determine if a system will serve the organization better?
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Which factor is least likely to influence the feasibility of a proposed project?
Which factor is least likely to influence the feasibility of a proposed project?
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What does a SWOT analysis help a firm to evaluate?
What does a SWOT analysis help a firm to evaluate?
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Which statement best describes the purpose of careful planning for IT projects?
Which statement best describes the purpose of careful planning for IT projects?
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What is a primary feature of the Visible Analyst CASE tool?
What is a primary feature of the Visible Analyst CASE tool?
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Which element is essential for defining project goals in IT project planning?
Which element is essential for defining project goals in IT project planning?
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Which of the following is NOT commonly considered in a SWOT analysis?
Which of the following is NOT commonly considered in a SWOT analysis?
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What aspect of project planning aims to achieve clarity?
What aspect of project planning aims to achieve clarity?
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How does a SWOT analysis categorize information?
How does a SWOT analysis categorize information?
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Which tool mentioned is commonly used for strategic planning in IT projects?
Which tool mentioned is commonly used for strategic planning in IT projects?
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Which type of feasibility evaluates whether the project meets operational needs?
Which type of feasibility evaluates whether the project meets operational needs?
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What is the first phase of the systems development life cycle?
What is the first phase of the systems development life cycle?
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What should a business case provide to justify proceeding with a project?
What should a business case provide to justify proceeding with a project?
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Which of the following is NOT included in the format of a report for presenting results?
Which of the following is NOT included in the format of a report for presenting results?
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Which of the following factors does NOT affect systems projects?
Which of the following factors does NOT affect systems projects?
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What aspect does economic feasibility primarily evaluate?
What aspect does economic feasibility primarily evaluate?
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Which characteristic defines discretionary projects?
Which characteristic defines discretionary projects?
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Which section of the report includes an overview of the systems request?
Which section of the report includes an overview of the systems request?
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In planning the preliminary investigation, which step comes after evaluating feasibility?
In planning the preliminary investigation, which step comes after evaluating feasibility?
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What is a key focus during the preliminary investigation phase?
What is a key focus during the preliminary investigation phase?
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What is typically NOT a characteristic of nondiscretionary projects?
What is typically NOT a characteristic of nondiscretionary projects?
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Which is the first step in planning a preliminary investigation?
Which is the first step in planning a preliminary investigation?
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What do fishbone diagrams help to identify during the planning phase?
What do fishbone diagrams help to identify during the planning phase?
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What is an example of a nondiscretionary project?
What is an example of a nondiscretionary project?
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Why is interaction with managers and users important during the preliminary investigation?
Why is interaction with managers and users important during the preliminary investigation?
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What role do annual tax percentage changes typically play in project management?
What role do annual tax percentage changes typically play in project management?
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What is the purpose of a fishbone diagram in a preliminary investigation?
What is the purpose of a fishbone diagram in a preliminary investigation?
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Which of the following best defines project creep?
Which of the following best defines project creep?
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In defining project scope, which section is NOT typically included?
In defining project scope, which section is NOT typically included?
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What are constraints in the context of a preliminary investigation?
What are constraints in the context of a preliminary investigation?
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Why is it important to define the boundaries of a project?
Why is it important to define the boundaries of a project?
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Which section in project scope planning addresses tasks that can be included if time permits?
Which section in project scope planning addresses tasks that can be included if time permits?
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What is one of the key benefits of avoiding project creep?
What is one of the key benefits of avoiding project creep?
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In project management, what does the term 'must do' refer to?
In project management, what does the term 'must do' refer to?
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Study Notes
Chapter 2: Analyzing the Business Case
- Systems Analysis and Design 11th Edition, Chapter 2
- This chapter focuses on analyzing the business case for IT projects.
Chapter Objectives
- Explain the concept of a business case and how it affects IT projects
- Describe the strategic planning processes and their importance to the IT team
- Explain the purpose of a mission statement
- Conduct a SWOT analysis and describe the four factors involved (Strengths, Weaknesses, Opportunities, and Threats)
- Explain how the Systems Development Life Cycle (SDLC) serves as a framework for systems development
- List reasons for systems projects and factors affecting them
- Describe systems requests and the role of the systems review committee
- Define operational, technical, economic, and schedule feasibility
- Explain factors affecting project priorities
- Describe steps and outcome of a preliminary investigation
Introduction
- Business case: Justification for a proposal
- Considers the organization's overall mission, objectives, and IT needs
- Systems development process
- Systems request, Preliminary investigation, and Management submission of findings
A Framework for IT Systems Development
- Strategic Planning Overview
- Strategic planning: Process of identifying long-term organizational goals, strategies, and resources
- Starts with a mission statement
- Reflects the firm's vision, purpose, and values
- Critical success factor: High-priority objective
- What is SWOT Analysis?
- Examines a firm's technical, human, and financial resources
- Identifies Strengths, Weaknesses, Opportunities, and Threats
A Framework for IT Systems Development (Cont.)
- Strengths, weaknesses, opportunities, and threats (SWOT) analysis example for a corporate patent
- Strengths: Valuable technology covered by a patent usable in popular products
- Weaknesses: Patent has a limited life; technology becomes unprotected when the patent expires
- Opportunities: Technology can be used in more products, licensed to others, or patented more
- Threats: Competitors may develop similar technology that doesn't infringe on the patent
A Framework for IT Systems Development (Cont.)
- Strategic planning for IT projects
- Careful planning ensures the project supports overall business strategy and operational needs
- Project scope is clearly defined and stated
- Project goals are realistic and tied to statements, assumptions, constraints, factors, and other inputs
- Planning tools: Microsoft Word, Excel, CASE tools (like Visible Analyst)
A Framework for IT Systems Development (Cont.)
- Strategic planning overview: Planning and requirements identification often initial phases of an enterprise engineering project
- Development of a comprehensive strategic business plan to meet identified mission and purpose of the organization
- Linking these statements to other objects in a repository allows tracking of software development
- Development of a comprehensive strategic business plan to meet identified mission and purpose of the organization
- Visible Analyst CASE tool supports strategic planning and allows a user to enter different types of planning statements
- SWOT categories are supported by the tool.
The Changing Role of the IT Department
- Management and IT departments are closely linked
- Systems development is more team-oriented
- IT department responsible for screening and evaluating systems requests
- Larger firms may use an evaluation team or systems review committee.
What is a Business Case?
- Comprehensive and easy to understand
- Clearly describe the project, justify it, and estimate its financial impact
- Answers questions like:
- Why are we doing this project?
- How much will it cost and how long will it take?
- Are there any risks involved?
- How will we measure success?
- What alternatives exist?
Information Systems Projects
- Six main reasons for systems requests: Stronger controls, more support, improved service, better performance, reduced cost, and more information
Information Systems Projects (Cont.)
- Internal and external factors affecting IT projects
- Internal: Technology, User Requests, IT Department, Existing Systems and Data, Company Finances, Competitors
- External: Government, Strategic Plan, Top Managers, The Economy, Customers, Suppliers
Evaluation of Systems Requirements
- Systems requests evaluated by a systems review committee or a computer resources committee
- Systems Request Forms
- Streamline the request process
- Ensure consistency
- Easy to understand
- Include clear instructions
- Indicate required supporting documents
- Submitted electronically
Evaluation of Systems Requirements (Cont.)
- Online systems request form example (Figure 2-10)
- Fields for first name, last name, telephone, email, description of the problem (with character limit), critical date, submit call ticket.
Systems Review Committee
- Broader viewpoint for effective priority establishment
- Advantages: Lessens individual bias
- Disadvantages: Committee meetings, potential favoritism by members, and internal political differences can delay decisions
Overview of Feasibility
- Feasibility studies vary in complexity
- Initial fact-finding involves:
- Studying organizational charts
- Performing interviews
- Reviewing current documentation
- Observing operations
- Surveying users
- A feasibility study examines operational, technical, economic, and schedule factors
Overview of Feasibility (Cont.)
- Operational feasibility: System usability and learning ease
- Schedule Feasibility: Time frame for implementation, managing factors affecting schedule, management timetable for the project, conditions for system development during the process, potential risks in accelerating schedule
- Technical Feasibility: Sufficient hardware, software, and network resources, and expertise
- Economic Feasibility: Benefits outweigh the total cost of ownership (TCO)
- TCO aspects: People (staff and users), hardware and equipment, software, formal and informal training, licenses and fees, consulting expenses, facility costs
Overview of Feasibility (Cont.)
- Tangible costs are measured in dollars
- Intangible costs significantly affect organizational performance
- Tangible benefits result from expenses decrease or revenue increase
- Intangible benefits are important despite lacking dollar measurement
Overview of Feasibility (Cont.)
- Technical feasibility: Technical resources needed to acquire and use the system
- Company's hardware, software, network resources, and expertise assessment
- Proposed platform capacity for future needs (important)
- If needed, prototype requirement consideration
Setting Priorities
- Factors affecting project priority: Cost reduction, revenue generation, better information and results, improved customer and organizational service, reasonable time for implementation, and sufficient resources
Setting Priorities (Cont.)
- Discretionary projects: Management has a choice in implementation
- Nondiscretionary projects: Management has no choice, often predictable
- Examples: Annual payroll updates, tax percentages, and quarterly regulatory changes.
Preliminary Investigation Overview
- Interaction with managers and users
- Meet with key managers, users, and IT staff to describe the project, explain responsibilities, answer questions, and invite comments
- Focus on improvements, enhancements, not problems
Preliminary Investigation Overview (Cont.)
- Six-step model for preliminary investigation:
- Understanding the problem or opportunity
- Defining project scope and constraints
- Performing fact-finding (organizational charts, documents, interviews, observations, user surveys)
- Studying usability, cost, benefits, and schedule data
- Evaluating feasibility (operational, technical, economic, and schedule)
- Presenting findings and recommendations to management
Preliminary Investigation Overview (Cont.)
- Steps for planning preliminary investigation:
- Understanding the problem or opportunity
- Developing a business profile
- Understanding business process modifications and how they impact information systems
- Identifying departments, users, and business processes
- Using a fishbone diagram
- Defining scope and constraints (must do, should do, could do, won't do)
- Identifying project creep and avoiding it
- Identifying constraints
Preliminary Investigation Overview (Cont.)
- Analyzing project usability, cost, benefit, and schedule data: Detailing required information, methods of gathering and analyzing it, conducting interviews, surveys, analyzing the data (using Pareto and XY charts)
Preliminary Investigation Overview (Cont.)
- Evaluating project feasibility (operational, technical, economic, and schedule), preparing a report covering systems request, cost-benefit estimate, and a case for action
Preliminary Investigation Overview (Cont.)
- Report format for preliminary investigation: Introduction, systems request summary, findings, recommendations, project roles, time/cost estimates, expected benefits, appendix
Chapter Summary
- Systems planning in systems development life cycle
- Business case description, justification, and financial impact estimation
- Factors that affect systems projects: User requests, top management, existing systems, IT, software/hardware vendors, competitors, the economy, government, and technology
- Analyst evaluates systems request feasibility from multiple standpoints and presents results to management.
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Description
This quiz covers Chapter 2 of Systems Analysis and Design, focusing on the essential aspects of analyzing a business case for IT projects. Students will explore the concept of a business case, strategic planning processes, SWOT analysis, and the Systems Development Life Cycle (SDLC). Additionally, the quiz will touch upon project feasibility and systems requests.
