Module 2 - Project Selection and Management PDF

1/27/25, 11:13 PM Module 2 - Project Selection and Management: Systems Analysis and Design Module 2 - Project Selection and Management PROJECT IDENTIFICATION AND INITIATION A project is identified when someone in the organization identifies a bus...

1/27/25, 11:13 PM Module 2 - Project Selection and Management: Systems Analysis and Design Module 2 - Project Selection and Management PROJECT IDENTIFICATION AND INITIATION A project is identified when someone in the organization identifies a business need (opportunity or a problem) to build a system. Examples: a new marketing campaign, targeting new customer/market, improving interaction with stakeholders, drop in market share or profit, production problems, mergers, among others. A need may surface when an organization identifies unique and competitive ways of using IT. To leverage the capabilities of emerging technologies such as cloud computing, RFID, Web 2.0 Business Process Management (BPM) Nowadays many new IS projects grow out of BPM. - a methodology used by organizations to continuously improve end-to-end business processes; Follows a continuous cycle of systematically creating, assessing and altering business processes. BPM Process 1. Defining and mapping the steps in a business process. 2. Creating ways to improve on the steps in the process that add value 3. Finding ways to eliminate or consolidate steps in the process that do not add value 4. Creating and adjusting electronic workflows to match the improved process maps. Business process automation (BPA) – technology components are used to complement or substitute manual process. Business process improvement (BPI) – creating new, re-designed processes to improve the workflows, and/or utilizing new technologies enabling new process structures. Business process reengineering (BPR) – changing the fundamental way in which the organization operate. https://hau.instructure.com/courses/28055/pages/module-2-project-selection-and-management?module_item_id=1897397 1/5 1/27/25, 11:13 PM Module 2 - Project Selection and Management: Systems Analysis and Design Project Sponsor The project sponsor is a person (or group) who has an interest in the system’s success The project sponsor will work throughout the SDLC to make sure that the project is moving in the right direction from the perspective of the business. The project sponsor serves as the primary point of contact for the project team. The size or scope of the project determines by the kind of sponsor that is involved. The project sponsor has the insights needed to determine the business value that will be gained from the system. Tangible value can be quantified and measured easily (e.g. reduction in operating costs, increased productivity). An intangible value results from an intuitive belief that the system provides important, but hard-to-measure benefits to the organization. System Request The document that describes the business reasons for building a system and the value that system is expected to provide. Usually has five elements: 1. The project sponsor usually completes this form as part of a formal system selection process within the organization. 2. The business need presents the reasons for prompting the project. 3. The business requirements of the project refer to the business capabilities that the system will need to have. 4. The business value describes the benefits that the organization should expect from the system. 5. Special issues are included on the document as a catchall category for other information that should be considered in assessing the project. The completed system request is submitted to the approval committee for consideration. The committee reviews the system request and makes an initial determination of whether to investigate the proposed project or not. If so, the next step is to conduct a feasibility analysis. https://hau.instructure.com/courses/28055/pages/module-2-project-selection-and-management?module_item_id=1897397 2/5 1/27/25, 11:13 PM Module 2 - Project Selection and Management: Systems Analysis and Design FEASIBILITY ANALYSIS Feasibility analysis guides the organization in determining whether to proceed with a project. Feasibility analysis also identifies the important risks associated with the project that must be managed if the project is approved. https://hau.instructure.com/courses/28055/pages/module-2-project-selection-and-management?module_item_id=1897397 3/5 1/27/25, 11:13 PM Module 2 - Project Selection and Management: Systems Analysis and Design As with the system request, each organization has its own process and format for the feasibility analysis, but most include techniques to assess three areas: Technical feasibility Economic feasibility Organizational feasibility The results of evaluating these three feasibility factors are combined into a feasibility study deliverable that is submitted to the approval committee at the end of project initiation. Technical Feasibility Is the extent to which the system can be successfully designed, developed, and installed by the IT group. It is, in essence, a technical risk analysis that strives to answer the question: “Can we build it?” Risks can endanger the successful completion of a project. The following aspects should be considered: Users’ and analysts’ familiarity with the application. Users’ and analysts’ familiarity with the technology Project size Compatibility of the new system with the technology that already exists Economic Feasibility Is also called a cost-benefit analysis, that identifies the costs and benefits associated with the system. This attempts to answer the question: “Should we build the system?” Cash Flow Analysis and Measures IT projects involve an initial investment that produces a steam of benefits over time, along with some on-going support costs. Cash flows, both inflows and outflows, are estimated over some future period. Simple Cash Flow Projection https://hau.instructure.com/courses/28055/pages/module-2-project-selection-and-management?module_item_id=1897397 4/5 1/27/25, 11:13 PM Module 2 - Project Selection and Management: Systems Analysis and Design https://hau.instructure.com/courses/28055/pages/module-2-project-selection-and-management?module_item_id=1897397 5/5