Chapter 2-3_Analyzing the Business Case+Introduction to Project Management_1.3.pptx

Systems Analysis and Design 11th Edition Chapter 2 Analyzing the Business Case Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. What Is a Bus...

Systems Analysis and Design 11th Edition Chapter 2 Analyzing the Business Case Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. What Is a Business Case?  A business case should: ◦ Be comprehensive and easy to understand ◦ Describe the project clearly, provide the justification to proceed, and estimate the project’s financial impact  Questions answered by a business case ◦ 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? Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Case Example https://onlinelibrary.wiley.com/doi/pdf/10.1002/9781119198758.app1 3 Information Systems Projects FIGURE 2-4 Six main reasons for systems requests. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4 Information Systems Projects (Cont.) FIGURE 2-6 Internal and external factors that affect IT projects. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Evaluation of Systems Requirements  Systems requests are 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 the required supporting documents ◦ Submitted electronically Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6 Evaluation of Systems Requirements (Cont. 1) FIGURE 2-10 Example of an online systems request form. Source: Florida Institute of Technology Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7 Evaluation of Systems Requirements (Cont. 2)  Systems Review Committee ◦ A broader viewpoint enables a committee to establish priorities more effectively than an individual  One person’s bias is less likely to affect decisions ◦ Disadvantages  Action on requests must wait until the committee meets  Members might favor projects requested by their own departments  Internal political differences could delay important decisions Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Overview of Feasibility  Feasibility studies can be simple or exhaustive  Effort required depends on the nature of the request  Initial fact-finding involves: ◦ Studying organizational charts ◦ Performing interviews ◦ Reviewing current documentation ◦ Observing operations ◦ Surveying users Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9 Overview of Feasibility (Cont. 1) FIGURE 2-11 A feasibility study examines operational, technical, economic, and schedule factors. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10 Overview of Feasibility (Cont. 2)  Operational Feasibility ◦ A proposed system will be used effectively after it has been developed ◦ Can be affected by organizational culture ◦ Cannot be accurately measured but requires careful study ◦ Questions that can help predict a system’s operational feasibility  Is the project supported by management and users?  Will the new system result in a workforce reduction?  Do legal or ethical issues need to be considered? Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11 Overview of Feasibility (Cont. 3)  Economic Feasibility ◦ Projected benefits of a proposed system out-weigh total cost of ownership (TCO) ◦ Determination of TCO requires cost analysis of:  People, including IT staff and users  Hardware and equipment  Software  Formal and informal training  Licenses and fees  Consulting expenses  Facility costs Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12  Overview of Feasibility (Cont. 4) ◦ Tangible costs are measured in dollars ◦ Intangible costs can significantly affect organizational performance  Example -low employee morale -Damage to company image ◦ Tangible benefits can result from a decrease in expenses or an increase in revenues  Example -System that cuts overtime -Online package tracking system , reduce employee numbers ◦ Intangible benefits are important to the company despite the inability to measure them in dollars - User friendly system, that improve employee's satisfaction - A New website for company image Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13 Overview of Feasibility (Cont. 5)  Technical Feasibility ◦ Technical resources required to acquire and use the system ◦ Questions analysts should ask  Does the company have the necessary hardware, software, and network resources?  Does the company have the required technical expertise?  Does the proposed platform have sufficient capacity for future needs?  Will a prototype be required? Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14 Overview of Feasibility (Cont. 6)  Schedule Feasibility ◦ A project can be implemented in an acceptable time frame ◦ Issues that can affect schedule feasibility  Interaction between time and costs  Can the company or the IT team control the factors that affect schedule feasibility?  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? Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15  CH 3 Managing Systems Projects 16 Overview of Project Management  Project Management: Planning, scheduling, monitoring and controlling, and reporting on information system development  What Shapes a Project? ◦ Successful projects must be completed on time, within budget, meet requirements, and satisfy users  What Is a Project Triangle? ◦ Challenge – To find optimal balance among the factors  Any change in one leg of the triangle FIGURE 3-2 A typical project will affect the other legs triangle includes cost, scope, and time. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17 Overview of Project Management (Cont.)  What Does a Project Manager Do? ◦ Project planning: Identifying all project tasks and estimating the completion time and cost of each ◦ Project scheduling: Creating a specific timetable showing tasks, task dependencies, and critical tasks that might delay the project ◦ Project monitoring: Guiding, supervising, and coordinating the project team’s workload ◦ Project reporting: Creating regular progress reports for management, users, and the project team itself Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 18 Creating a Work Breakdown Structure  Work breakdown structure (WBS): Breaking down a project into a series of smaller tasks  Identifying Tasks in a Work Breakdown Structure (WBS) ◦ Listing the tasks ◦ Estimating task duration - Can be hours, days, or weeks  Time estimates made by project managers  Best case-estimate (B), probable-case estimate (P), and worst-case estimate (W)  After making estimates, the manager assigns a weight to each estimate and calculates the task duration Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 19 Creating a Work Breakdown Structure(Cont. 6) FIGURE 3-7 In this table, columns have been added for task number, description, duration, and predecessor tasks, which must be completed before another task can start. FIGURE 3-6 The three versions show how to transform a task statement into a list of specific tasks for a work breakdown structure. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 20 Creating a Work Breakdown Structure (Cont. 7)  Factors Affecting Duration 1. Project size  Identify all project tasks and the time required for each  Consider time taken for events affecting productivity 2. Human resources  Assemble and guide a development team that has the skill and experience to handle the project  Deal with factors that could affect the project’s timeline Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 21 Creating a Work Breakdown Structure (Cont. 8)  Factors Affecting Duration 3. Experience with similar projects  Develop time and cost estimates based on the resources used for similar, previously developed information systems 4. Constraints  Define system requirements that can be achieved realistically within the required constraints  Calculate resources needed in the absence of constraints Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 22  Creating a Work Breakdown Structure (Cont. 9) FIGURE 3-8 Task durations have been added, and the WBS is complete except for predecessor task information. The predecessor tasks will determine task patterns and sequence of performance. FIGURE 3-9 This Microsoft Project screen displays the same WBS, including task number, task name, duration, and predecessor tasks. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 23