Modern Systems Analysis and Design Lecture 3 Initiating

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Modern Systems Analysis and Design Lecture 3 Initiating and Planning Systems Development Projects By

Modern Systems Analysis and Design Lecture 3 Initiating and Planning Systems Development Projects By Eman Alsagour

Learning Objectives ü ü Describe the steps involved in the project initiation and planning

Learning Objectives ü ü Describe the steps involved in the project initiation and planning process. Explain the need for and the contents of a Project Scope Statement and Baseline Project Plan. List and describe various methods for assessing project feasibility. Describe the differences between tangible and intangible benefits and costs and between onetime vs. recurring benefits and costs. Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 2

Learning Objectives (Cont. ) ü ü ü Perform cost-benefit analysis and describe what is

Learning Objectives (Cont. ) ü ü ü Perform cost-benefit analysis and describe what is meant by the time value of money, present value, discount rate, net present value, return on investment, and break-even analysis. Describe the general rules for evaluating technical risks associated with a systems development project. Describe the activities and participant roles within a structured walkthrough. Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 3

The Process of Initiating and Planning IS Development Projects FIGURE 5 -1 Systems development

The Process of Initiating and Planning IS Development Projects FIGURE 5 -1 Systems development life cycle with project initiation and planning highlighted Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4

The Process of Initiating and Planning IS Development Projects n Project initiation focuses on

The Process of Initiating and Planning IS Development Projects n Project initiation focuses on activities designed to assist in organizing a team to conduct project planning. Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 5

The Process of Initiating and Planning IS Development Projects (Cont. ) n n n

The Process of Initiating and Planning IS Development Projects (Cont. ) n n n Establishing the Project Initiation Team. Establishing a Relationship with the Customer. Establishing the Project Initiation Plan. Establishing Management Procedures. Establishing the Project Management Environment and Project Workbook. Developing the Project Charter. Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 6

The Process of Initiating and Planning IS Development Projects (Cont. ) n The key

The Process of Initiating and Planning IS Development Projects (Cont. ) n The key activity of project initiation is the development of the project charter. ¨A short document that is prepared for both internal and external stakeholders ¨ Provides a high-level overview of the project ¨ Useful communication tool that helps to assure that the organizations and other stakeholders understand the initiation of a project Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 7

The Process of Initiating and Planning IS Development Projects (Cont. ) n A project

The Process of Initiating and Planning IS Development Projects (Cont. ) n A project charter typically contains: 1. 2. 3. 4. 5. 6. 7. 8. Chapter 5 Project title and date of authorization Project manager name and contact information Customer name and contact information Projected start and completion dates Key stakeholders, project role, and responsibilities Project objectives and description Key assumptions or approach Signature section for key stakeholders Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8

1/2/2022 Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9

1/2/2022 Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9

The Process of Initiating and Planning IS Development Projects (Cont. ) The key activity

The Process of Initiating and Planning IS Development Projects (Cont. ) The key activity of project planning is the process of defining clear, discrete activities and the work needed to complete each activity within a single project. n The objective of the project planning process is the development of a Baseline Project Plan (BPP) and the Project Scope Statement (PSS). n Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 10

Elements of Project Planning n Describe project scope, alternatives, feasibility. n Divide project into

Elements of Project Planning n Describe project scope, alternatives, feasibility. n Divide project into tasks. n Estimate resource requirements and create resource plan. n Develop preliminary schedule. n Develop communication plan. Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11

Elements of Project Planning (Cont. ) n Determine standards and procedures. n Identify and

Elements of Project Planning (Cont. ) n Determine standards and procedures. n Identify and assess risk. n Create preliminary budget. Develop a Project Scope Statement(BSS). n Set Baseline Project Plan(BPP). n Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 12

Deliverables and Outcomes (Cont. ) n Baseline Project Plan (BPP) ¨ is a document

Deliverables and Outcomes (Cont. ) n Baseline Project Plan (BPP) ¨ is a document intended primarily to guide the development team. n Sections: Introduction ¨ System description ¨ Feasibility assessment ¨ Management issues ¨ Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 13

1/2/2022 Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 14

1/2/2022 Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 14

Deliverables and Outcomes (Cont. ) n Project Scope Statement (PSS) ¨A document prepared for

Deliverables and Outcomes (Cont. ) n Project Scope Statement (PSS) ¨A document prepared for the customer ¨ Describes what the project will deliver ¨ Outlines at a high level all work required to complete the project Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15

Building the Baseline Project Plan (Cont. ) n n Project Scope statement is part

Building the Baseline Project Plan (Cont. ) n n Project Scope statement is part of the BPP introduction. Sections: ¨ ¨ ¨ Chapter 5 Problem statement Project objectives Project description Business benefits Deliverables Expected duration Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16

1/2/2022 Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 17

1/2/2022 Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 17

Deliverables and Outcomes n Business Case ¨ Justification for an information system ¨ Presented

Deliverables and Outcomes n Business Case ¨ Justification for an information system ¨ Presented in terms of the tangible and intangible economic benefits and costs ¨ The technical and organizational feasibility of the proposed system Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 18

Assessing Project Feasibility 1. 2. 3. 4. 5. 6. Economic Technical Operational Scheduling Legal

Assessing Project Feasibility 1. 2. 3. 4. 5. 6. Economic Technical Operational Scheduling Legal and contractual Political Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 19

Assessing Project Feasibility (Cont. ) FIGURE 5 -2 System Service Request for Customer Tracking

Assessing Project Feasibility (Cont. ) FIGURE 5 -2 System Service Request for Customer Tracking System (Pine Valley Furniture). Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20

Assessing Project Feasibility (Cont. ) n Economic feasibility: a process of identifying the financial

Assessing Project Feasibility (Cont. ) n Economic feasibility: a process of identifying the financial benefits and costs associated with a development project ¨ Often referred to as a cost-benefit analysis ¨ Project is reviewed after each SDLC phase in order to decide whether to continue, redirect, or kill a project Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 21

Economic feasibility- Determining Project Benefits Tangible benefits: benefits which can be measured in dollars

Economic feasibility- Determining Project Benefits Tangible benefits: benefits which can be measured in dollars and with certainty. n Examples include: 1. ¨ reduced personnel expenses, ¨ Cost reduction and avoidance ¨ Error reduction ¨ Increased flexibility ¨ Increased speed of activity Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 22

Economic feasibility- Determining Project Benefits (Cont. ) 2. Intangible benefits are benefits derived from

Economic feasibility- Determining Project Benefits (Cont. ) 2. Intangible benefits are benefits derived from the creation of an information system that cannot be easily measured in dollars or with certainty. ¨ May have direct organizational benefits, such as the improvement of employee morale. ¨ May have broader societal implications, such as the reduction of waste creation or resource consumption. Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 23

Economic feasibility- Determining Project Cost 1. Tangible cost: a cost associated with an information

Economic feasibility- Determining Project Cost 1. Tangible cost: a cost associated with an information system that can be measured in dollars and with certainty n IS development tangible costs include: ¨ Hardware costs, ¨ Labor costs, or ¨ Operational costs including employee training and building renovations. Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 24

Economic feasibility- Determining Project Cost(Cont. ) 2. Intangible cost: a cost associated with an

Economic feasibility- Determining Project Cost(Cont. ) 2. Intangible cost: a cost associated with an information system that cannot be easily measured in terms of dollars or with certainty n Intangible costs can include: ¨ Loss of customer goodwill, ¨ Employee morale, or ¨ Operational inefficiency. Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 25

Economic feasibility- Determining Project Cost(Cont. ) 3. One-time cost: a cost associated with project

Economic feasibility- Determining Project Cost(Cont. ) 3. One-time cost: a cost associated with project start-up and development or system start-up n These costs encompass activities such as: ¨ Systems development, ¨ New hardware and software purchases, ¨ User training, ¨ Site preparation, and ¨ Data or system conversion. Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 26

Economic feasibility- Determining Project Cost(Cont. ) 4. Recurring cost: a cost resulting from the

Economic feasibility- Determining Project Cost(Cont. ) 4. Recurring cost: a cost resulting from the ongoing evolution and use of a system n Examples of these costs include: ¨ Application software maintenance, ¨ Incremental data storage expenses, ¨ Incremental communications, ¨ New software and hardware leases, and ¨ Supplies and other expenses (i. e. paper, forms, data center personnel). Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 27

Assessing Technical Feasibility n Technical feasibility: a process of assessing the development organization’s ability

Assessing Technical Feasibility n Technical feasibility: a process of assessing the development organization’s ability to construct a proposed system Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 28

Assessing Technical Feasibility n The potential consequences of not assessing and managing risks can

Assessing Technical Feasibility n The potential consequences of not assessing and managing risks can include the following: ¨ Failure to attain expected benefits from the project, ¨ Inaccurate project cost estimates, ¨ Inaccurate project duration estimates, ¨ Failure to achieve adequate system performance levels. ¨ Failure to adequately integrate the new system with existing hardware, software, or organizational procedures. Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 29

Project Risk Factors n The four primary factors associated with the amount of technical

Project Risk Factors n The four primary factors associated with the amount of technical risk on a given project are: Project size, 2. Project structure, 3. The development group’s experience with the application and technology area. 4. The user group’s experience with systems development projects and the application area. 1. Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 30

Assessing Technical Feasibility (Cont. ) n Four general rules emerged as technical risk assessments:

Assessing Technical Feasibility (Cont. ) n Four general rules emerged as technical risk assessments: ¨ Larger projects are riskier than smaller projects. ¨ A system in which the requirements are easily obtained and highly structured will be less risky than one in which requirements are messy, ill structured, ill defined, or subject to the judgment of an individual. Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 31

Assessing Technical Feasibility (Cont. ) ¨ The development of a system employing commonly used

Assessing Technical Feasibility (Cont. ) ¨ The development of a system employing commonly used or standard technology will be less risky than one employing novel or nonstandard technology. ¨ A project is less risky when the user group is familiar with the systems development process and application area than if unfamiliar. Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 32

Assessing Other Feasibility Concerns n Operational ¨ Does the proposed system solve problems or

Assessing Other Feasibility Concerns n Operational ¨ Does the proposed system solve problems or take advantage of opportunities? n Scheduling ¨ Can the project time frame and completion dates meet organizational deadlines? n Legal and Contractual ¨ What are legal and contractual ramifications of the proposed system development project? n Political ¨ How do key stakeholders view the proposed system? Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 33

1/2/2022 Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 34

1/2/2022 Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 34

Management issue 1. 2. 3. Task responsibility matrix Project communication matrix Project standards and

Management issue 1. 2. 3. Task responsibility matrix Project communication matrix Project standards and procedures : just write what programs you will use in the project. Chapter 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall