Systems Planning & Selection Project identification & selection Project initiation & planning.

Systems Planning & Selection

Project identification & selection

Project initiation & planning

System Request

Project sponsor

Business Need

Functionality

Expected Value

Identifying and Selecting Projects

Sources of project development requests:

1. Management and business units

2. Managers who want to make a system more efficient

3. Formal planning groups

Identifying and Selecting Projects

1. Project identification Bottom Up Identification

Business unit or IS group Top Down Identification

Senior management or steering committee

2. Classify and rank projects

Characteristics of project Selection Methods

Top management Greater strategic focus Largest project size Longest project duration

Steering committee Cross-functional focus Greater organizational change Formal cost –benefit analysis Larger and riskier projects

User department Narrow focus Faster development Fewer management layers & business functions

Development group Integration with existing system focus Less concern with cost-benefit analysis

Identifying and Selecting Projects

3. Select development projects Factors:

Perceived needs of the organization Existing systems and ongoing projects Resources available Evaluation criteria Current business conditions Perspectives of the decision makers

Project Evaluation Criteria

Value chain analysis

Strategic alignment

Potential benefits

Resource availability

Project size/duration

Technical difficulties

Decision Outcome

Accept project

Reject project

Delay project

Re-focus project

End-user development

Purchase system

Modify and re-submit

Project Initiation Activities

Establishing the project initiation team

Establish a relationship with the customer

Establish a project initiation plan

Establish management procedures & environment

Establish the project workbook

Project Planning Activities

Describe the project scope & feasibilityDivide the project into manageable tasksEstimate resources and create a resource planDevelop a preliminary scheduleDevelop a communication planDetermine project standards and proceduresIdentify and assess riskCreating a preliminary budget

Project Planning Objectives

Deliverables and Outcomes Baseline Project Plan (BPP)

Scope Benefits Costs Risks Resources

Statement of Work (SOW) Describes deliverables Outlines work needed to be performed

Business Case Outlines justification for the system

Assessing Project Feasibility

Six Categories Economic Operational Technical Schedule Legal and contractual Political

Assessing Economic Feasibility

Cost – Benefit Analysis

Determine Benefits Tangible Benefits

Can be measured in $ and with certainty Intangible Benefits

Cannot be easily measured in $ or with certainty

Assessing Economic Feasibility

Determine Costs Tangible/Intangible Costs

Can/Cannot easily be measured in $ and/or with certainty

One-Time vs. Recurring Costs Associated with startup & development vs. on-going use

of the system Fixed vs. Variable Costs

Billed at regular intervals and at fixed rates vs. cost items that vary in relation to usage

Examples of IS costsProcurement Consulting costs, Equipment purchase/lease & installation,

Site preparation, Capital costs, Personnel searches

Start-up Operating system software, Communications equipment,

Personnel hiring, Disruption

Project-related Application software & modifications, Personnel & overhead

from in-house development, User training, Documentation

Operating System maintenance, Space & equipment rental, Asset

depreciation, Personnel

Cost-benefit Analysis Techniques

Time value of money (TVM) The process of comparing present cash outlays

to future expected returns.

Net Present Value

Return on Investment

Break Even Analysis

Assessing Other Project Feasibility Concerns

Operational Feasibility Assessment of how a proposed system

solves business problems or takes advantage of opportunities

Political Feasibility Assessment of view of key stakeholders in

organization toward proposed system

Stakeholders

Project Champion

System Users

Organizational Management

Assessing Other Project Feasibility Concerns

Schedule Feasibility Assessment of timeframe and project

completion dates with respect to organization constraints for affecting change

Legal and Contractual Feasibility Assessment of legal and contractual

ramifications of new system

Technical FeasibilityProject size Duration, Number of project team members, Number of

organizational departments involved

Project structure Resultant organizational, procedural or personnel changes,

Amount of user involvement, Management commitment

Development group Familiarity with hardware, software development tools,

operating system and application area

User group Familiarity with systems development process and proposed

application area

Building the Baseline Project Plan

Objectives Assures that customer and development

group have a complete understanding of the proposed system and requirements

Provides sponsoring organization with a clear idea of scope,benefits and duration of project.

Building the Baseline Project Plan

Introduction Brief overview Recommended course of action Project scope defined

Units affected Interaction with other systems Range of system capabilities

Building the Baseline Project Plan

System Description Outline of possible alternative solutions Narrative format

Feasibility Assessment Project costs and benefits Technical difficulties High-level project schedule

Building the Baseline Project Plan

Management Issues Outlines concerns that management may

have about the project Team composition Communication plan Project standards and procedures

Reviewing the Baseline Project Plan

Objectives Assure conformity to organizational

standards All parties agree to continue with project

Walkthrough

Peer group review Participants

Coordinator Presenter User Secretary Standards Bearer Maintenance Oracle

Activities Walkthrough review form Individuals polled Walkthrough action list

Electronic Commerce Applications

Internet Transactions between individuals and business

Intranet Internet-based communication to support business

activities within a single organization

Extranet Internet-based communication to support

business-to-business activities

Internet Development

Electronic Data Interchange (EDI) The use of telecommunications

technologies to transfer business documents directly between organizations

Internet vs. Intranet/Extranet Apps Intranet/Extranet – Developer knows how

application will be run and used Internet – Developer faces various

unknowns

Web based System costs

Platform costs Web server, Server software, Software plug-ins,

Firewall server, Router, Internet connection

Content & service Web project manager, Technical site manager,

Content staff, Graphics staff, Support staff, fees to license outside content, Programming & research

Marketing Launch & public relations, Paid links to other web

sites, Promotions, Marketing & Sales staff

Unknowns in Developing Internet Applications

User Who? Where? What expertise/education/expectations?

Connection Speed Modem? Cable? Satellite? Cellular?

Access Method Browser? Cell phone? PDA? Web TV?