System Analysis & Design Lecture 6 PDF

# System Analysis & Design ## Chapter 3 Agenda - Project Initiation - Introduction - System Request - Feasibility Analysis ## Chapter (3) Project Initiation ### Introduction and Project Identification The first step in any new development project is for someone to see an opportunity to improve t...

# System Analysis & Design ## Chapter 3 Agenda - Project Initiation - Introduction - System Request - Feasibility Analysis ## Chapter (3) Project Initiation ### Introduction and Project Identification The first step in any new development project is for someone to see an opportunity to improve the business. New systems start first and foremost from a Business Need or Opportunity. Many ideas for New Systems or improvements to existing ones arise from the application of a new technology. However, understanding the technology is usually secondary to a solid understanding of the business and its objectives. Many projects are started without a clear understanding of how the system will improve the business. The IS Field is filled with thousands of buzzwords, fads, and trends (e.g., Customer Relationship Management (CRM), Mobile Computing, and Data Mining). The promise of these innovations can appear so attractive that organizations begin projects even before they are sure what value they offer. Projects are based upon real business objectives, such as increasing sales, improving customer service, and decreasing operating expenses. Ultimately, Information Systems need to affect the organization's bottom line in a positive way. In general, a Project is a set of activities with a starting point and an ending point meant to create a system that brings value to the business. Project Initiation begins when someone in the organization identifies some business value that can be gained from using information technology. The Proposed Project is described briefly using a technique called the System Request, which is submitted to an approval committee for consideration. The Approval Committee reviews the System Request and makes an initial determination, based on the information provided, of whether to investigate the proposal or not. If so, the feasibility analysis is the next step. The Approval committee plays an important role in deciding whether to proceed with an information systems development project. It examines the technical, economic, and organizational pros and cons of developing the system. The committee gives the organization a slightly more detailed picture of the advantages of investing in the system as well as any obstacles that could arise. In most cases, the project sponsor works with an analyst (or analyst team) to develop the Feasibility Analysis for the approval committee. Once the Feasibility Analysis has been completed, it is submitted to the approval committee, along with a revised System Request. The committee then decides whether to approve the project, decline the project, or table for further investigation. Projects are selected by weighing risks and returns and by making trade-offs at the organizational level. ### Project Identification A Project is identified when someone in the organization identifies a Business Needs to build a system. Or there is an emerging technology to be used. Sometimes, needs arise from some kind of "pain" within the organization, such as a drop in market share, poor customer service levels, or increased competition. Examples of Business Needs include supporting a new marketing campaign, reaching out to a new type of customer, or improving interactions with suppliers. ### Project Sponsor The project sponsor is someone who recognizes the strong business need for a system and has an interest in seeing the system succeed. He or she 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 system. Usually, the sponsor of the project is from a business function, such as marketing, accounting, or finance. Typically, members of the IT area also can sponsor or cosponsor a project. The size and scope of a project determines the kind of sponsor needed: - A small, departmental system may require sponsorship from only a single manager. - A large, organizational initiative may need support from the entire senior management team and even the CEO. If a project is purely technical in nature (e.g., improvements to the existing IT infrastructure or research into the viability of an emerging technology), sponsorship from IT is appropriate. When projects have great importance to the business yet are technically complex, joint sponsorship by both the business and IT may be necessary. #### Requirements Requirements are what the information system will do, or the functionality it will contain. They need to be explained at a high level so that the approval committee, and the project team, understand what the business expects from the final product. #### Business Requirements Business requirements are the features and capabilities the information system will have to include. For example: - The ability to collect customer orders online - The ability for suppliers to receive inventory information as orders are placed and sales are made. Once the project sponsor identifies a project that meets an important business need and he or she can identify the system's business requirements and value, it is time to formally initiate the project. In most organizations, project initiation begins with a technique called a system request. ### System Request A system request is a document that describes the business reasons for building a system and the value that the system is expected to provide. The project sponsor usually completes this form as part of a formal system project selection process within the organization. Most system requests include five elements: - Project Sponsor - Business Need - Business Requirements - Business Value - Special Issues #### System Request Components - The sponsor describes the person who will serve as the primary contact for the project. - The business need presents the reasons prompting the project. - The business requirements of the project refer to the business capabilities that the system will need to have. - The business value describes the benefits that the organization should expect from the system. - Special issues are included on the document as a catch-all for other information that should be considered in assessing the project. For example: - The project needs a specific deadline. - Project teams need to be aware of any special circumstances that could affect the outcome of the system. The completed system request is submitted to the approval committee for consideration. This approval committee could be a company steering committee, a senior executive, or any other decision-making body that governs the use of business investments. The committee reviews the system request and makes an initial determination, based on the information provided, of whether to investigate the proposal or not. If so, the next step is to conduct a feasibility analysis. ## Feasibility Analysis Once the need for the system and its business requirements have been defined, it is time to create a more detailed business case. Feasibility analysis guides the organization in determining whether to proceed with a project. Also, feasibility analysis identifies the important risks associated with the project that must be addressed if the project approved. As with the system request, each organization has its own process and format for the feasibility analysis, but most include three techniques: - Technical Feasibility - Economic Feasibility - Organizational Feasibility. The results of these techniques are combined into a feasibility study deliverable, which is given to the approval committee at the end of project initiation. Most project teams will revise their feasibility study throughout the SDLC and revisit its contents at various checkpoints during the project. If at any point the project's risks and limitations outweigh its benefits, the project team may decide to cancel the project or make necessary improvements. ## Summary - Introduction - System Request - Feasibility Analysis ## Thank You