Modern Systems Analysis and Design PDF

Modern Systems Analysis and Design Eighth Edition, Global Edition Joseph S. Valacich Joey F. George Identifying and Selecting Systems Development Projects Chapter 4 Copyright © 2017 Pearson Education, Ltd....

Modern Systems Analysis and Design Eighth Edition, Global Edition Joseph S. Valacich Joey F. George Identifying and Selecting Systems Development Projects Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-1 Learning Objectives ✓ Describe the project identification and selection process. ✓ Describe corporate strategic planning and information systems planning process. ✓ Describe the three classes of Internet electronic commerce applications: business-to-consumer, business-to-employee, and business-to- business. Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-2  Identifying and Selecting Systems Development Projects FIGURE 4-1 Systems development life cycle with project identification and selection highlighted Three main steps: 1. Identifying potential development projects 2. Classifying and ranking IS development projects 3. Selecting IS development projects Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-3 The Process of Identifying and Selecting IS Development Projects 1. Identifying potential development projects  Identification from a stakeholder group ◼ Each stakeholder group brings their own perspective and motivation to the IS decision. Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-4 The Process of Identifying and Selecting IS Development Projects (Cont.)  Top-down source are projects identified by top management or by a diverse steering committee.  Bottom-up source are project initiatives stemming from managers, business units, or the development group.  The process varies substantially across organizations. Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-5  The Process of Identifying and Selecting IS Development Projects (Cont.) Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-6 The Process of Identifying and Selecting IS Development Projects (Cont.) 2. Classifying and ranking IS development projects  Using value chain analysis or other evaluation criteria ◼ Value chain analysis: Analyzing an organization’s activities to determine where value is added to products and/or services and the costs incurred for doing so; usually also includes a comparison with the activities, added value, and costs of other organizations for the purpose of making improvements in the organization’s operations and performance Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-7 The Process of Identifying and Selecting IS Development Projects (Cont.) FIGURE 4-2 Organizations can be thought of as a value chain, transforming raw materials into products for customers Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-8 The Process of Identifying and Selecting IS Development Projects (Cont.) Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-9 The Process of Identifying and Selecting IS Development Projects (Cont.) 3. Selecting IS development projects  Based on various factors  Both short- and long-term projects considered  Most likely to achieve business objectives selected  A very important and ongoing activity Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-10 The Process of Identifying and Selecting IS Development Projects (Cont.) FIGURE 4-3 Project selection decisions must consider numerous factors and can have numerous outcomes Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-11 The Process of Identifying and Selecting IS Development Projects (Cont.) ◼ One method for deciding among different projects or alternative designs:  For each requirement or constraint: Score = weight X rating  Each alternative: sum scores across requirements/constraints  Alternative with highest score wins Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-12 The Process of Identifying and Selecting IS Development Projects (Cont.) FIGURE 4-4 Alternative projects and system design decisions can be assisted using weighted multicriteria analysis Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-13 Deliverables and Outcomes ◼ Primary deliverable from the first part of the planning phase is a schedule of specific IS development projects. ◼ Outcome of the next part of the planning phase—project initiation and planning—is the assurance that careful consideration was given to project selection and each project can help the organization reach its goals. Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-14 Deliverables and Outcomes (Cont.) ◼ Incremental commitment: a strategy in systems analysis and design in which the project is reviewed after each phase and continuation of the project is rejustified Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-15 Deliverables and Outcomes (Cont.) Figure 4-5 Information systems development projects come from both top-down and bottom-up initiatives. Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-16 Corporate and Information Systems Planning ◼ To benefit from a planning-based approach for identifying and selecting projects, an organization must:  Analyze its information needs thoroughly.  Plan its projects carefully. Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-17 Reasons for Importance of Improved Planning ◼ Increasing cost of information systems (40% of organizational expense) ◼ Lack of cross-organizational applications and systems ◼ Systems don’t address critical strategic problems ◼ Too much data redundancy, lack of data quality ◼ High system maintenance costs ◼ Long application backlogs Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-18  Corporate Strategic Planning ◼ Ongoing process that defines mission, objectives, and strategies of an organization ◼ Corporate strategy involves:  Mission statement  Objective statements Figure 4-6  Description of competitive Corporate strategic planning is a three step strategy Process. Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-19 Corporate Strategic Planning (Cont.) ◼ Mission statement: a statement that makes it clear what business a company is in Figure 4-7 Mission statement (Pine Valley Furniture) Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-20 Corporate Strategic Planning (Cont.) ◼ Objective statement: a series of statements that express an organization’s qualitative and quantitative goals for reaching a desired future position ◼ Sometimes called “critical success factors” Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-21 Corporate Strategic Planning (Cont.) FIGURE 4-8 Statement of Corporate Objectives (Pine Valley Furniture) Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-22 Corporate Strategic Planning (Cont.) ◼ Competitive strategy: the method by which an organization attempts to achieve its mission and objectives ◼ Main types:  Low-cost producer  Product differentiation  Product focus or niche Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-23 Corporate Strategic Planning (Cont.) Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-24 Information Systems Planning (ISP) ◼ An orderly means of assessing the information needs of an organization and defining the systems, databases, and technologies that will best meet those needs ◼ ISP must be done in accordance with the organization’s mission, objectives, and competitive strategy. Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-25 Information Systems Planning (Cont.) FIGURE 4-10 Parallel activities of corporate strategic planning and information systems planning Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-26 Information Systems Planning (Cont.) ◼ Top-down planning attempts to gain a broad understanding of information system needs of the entire organization and offers:  Broader perspective.  Improved integration.  Improved management support.  Better understanding. Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-27 Information Systems Planning (Cont.) ◼ Bottom-up planning identifies IS development projects based on solving specific operational business problems or taking advantage of specific opportunities.  Can be faster and less costly, so may be beneficial in certain circumstances. Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-28 Information Systems Planning (Cont.) FIGURE 4-11 Information systems planning information (Pine Valley Furniture) Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-29 Information Systems Planning (Cont.) ◼ Functional Decomposition: breaking high-level abstract information into smaller units for more detailed planning Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-30 Information Systems Planning (Cont.) FIGURE 4-12 Functional decomposition of information systems planning information (Pine Valley Furniture) (Source: Microsoft Corporation.) Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-31 Information Systems Planning (Cont.) ◼ IS planning matrices describe relationships between pairs of organizational elements (location, function, business unit, objective, process, data, information system). Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-32  Types of Planning Matrices ◼ Location-to-Function ◼ Process-to-Data ◼ Location-to-Unit Entity ◼ Unit-to-Function ◼ Process-to- ◼ Function-to-Objective Information System ◼ Data Entity-to- ◼ Function-to-Process Information System ◼ Function-to-Data ◼ Information System- Entity to-Objective Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-33 Information Systems Planning (Cont.) FIGURE 4-13 Data Entity-to-Function matrix (Pine Valley Furniture) Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-34 Making Sense of the Matrices ◼ IS planning takes place prior to project identification and selection ◼ “Behind the scenes” analysis ◼ Matrices: as-is (current) and to-be (future, target) ◼ CASE tools help via:  Managing information  Matrix construction  Matrix analysis (affinity clustering) Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-35 Affinity Clustering ◼ Arranging planning matrix information so that clusters of information with a predetermined level or type of affinity are placed next to each other on a matrix report ◼ Affinity – the extent to which information holds things in common ◼ Example: Function – to – Data entity matrix  Functions using similar data entities placed in adjacent rows  Data entities used in common by processes in adjacent columns Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-36 Information Systems (IS) Plan FIGURE 4-16 Systems development projects flow from the information systems plan. Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-37 IS Plan Components ◼ Organizational Mission, Objectives, and Strategy  Brief description of mission, objectives, and strategy of the organization ◼ Information Inventory  Summary of processes, functions, data entities, and information needs of the enterprise Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-38 IS Plan Components (Cont.) ◼ Mission and Objectives of IS  Primary role IS will play in the organization to transform enterprise from current to future state ◼ Constraints on IS Development  Limitations imposed by technology and current levels of financial, technical, and personnel resources Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-39 IS Plan Components (Cont.) ◼ Systems Needs and IS Strategy  Summarize overall information systems needs in the company and set long-term (2-5 year) strategies for filling the needs ◼ Short Term Plan  Detailed inventory of present projects and systems and detailed plan for the current year Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-40 IS Plan Components (Cont.) ◼ Conclusions  Unknown but likely events that can affect the plan, presently known business change elements and their impact on the plan Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-41 Electronic Commerce: Identifying and Selecting Projects Figure 4-17 Three possible modes of electronic commerce Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-42 Electronic Commerce Applications and Internet Basics (Cont.) ◼ Business-to-consumer (B2C): electronic commerce between businesses and consumers ◼ Business-to-business (B2B): electronic commerce between business partners, such as suppliers and intermediaries ◼ Business-to-employee (B2E): electronic commerce between businesses and their employees Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-43 Electronic Commerce Applications and Internet Basics ◼ Internet: a large worldwide network of networks that use a common protocol to communicate with each other ◼ Electronic Commerce (EC): Internet-based communication to support day-to-day business activities ◼ Electronic data interchange (EDI): the use of telecommunications technologies to directly transfer business documents between organizations Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-44 Electronic Commerce Applications and Internet Basics (Cont.) Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-45 Summary ◼ In this chapter you learned how to: ✓ Describe the project identification and selection process. ✓ Describe corporate strategic planning and information systems planning process. ✓ Describe the three classes of Internet electronic commerce applications: business- to-consumer, business-to-employee, and business-to-business. Chapter 4 Copyright © 2017 Pearson Education, Ltd. 4-46