System Planning Strategic Planning Information Systems Projects Mr

System Planning (Strategic Planning & Information Systems Projects) - Mr. Ahmad Al-Ghoul

Chapter Objectives n n n List the reasons for information systems projects and the factors that affect such projects Describe risks and risk management features Explain the initial review of systems requests and the role of the systems review committee Avicenna System Analysis and Design System Planning 2

Introduction n n Why Projects Fail Lack of business wide understanding of and commitment to the project; Lack of clearly defined objectives, deliverables and success criteria; Lack of ownership or sponsorship within the business; Problems establishing the right project team; Plans that are too optimistic and lack contingency; Poor day-to-day management of issues and control of project tasks; Lack of awareness of change management and business impact issues; Lack of focus on project goals and milestones; Poor understanding of risks and project dependencies. Avicenna System Analysis and Design System Planning 3

Information Systems Projects n Factors that Affect Systems Projects n Internal and external factors affect every business decision that a company makes, and IT systems projects are no exception [1] Avicenna System Analysis and Design System Planning 4

Information Systems Projects n Internal Factors n n n Avicenna Strategic plan Top managers User requests Information technology department Existing systems System Analysis and Design System Planning 5

Information Systems Projects n § § § Strategic plan A company’s strategic plan sets the overall direction for the firm and has an important impact on IT projects. Company goals and objectives that need IT support will generate system requests and influence IT priorities. A strategic plan that stresses technology offer better climate for new IS projects. Avicenna System Analysis and Design System Planning 6

Information Systems Projects n § § Top managers Directives from top managers are prime source of large-scale system projects. Top managers whose support IT take decisions that require new IT systems, more information for decision making, or better support for mission-critical information systems. Avicenna System Analysis and Design System Planning 7

Information Systems Projects n § § § User requests As user rely more heavily on IS, they are likely to request even more IT services and support Users satisfactory with the current system. New business requirement that did not even exist when system was developed Avicenna System Analysis and Design System Planning 8

Information Systems Projects n § § Information technology department Recommendations based on IT team knowledge of business operations and technology trends IT proposals might be strictly technical matters, or business oriented Avicenna System Analysis and Design System Planning 9

Information Systems Projects n § Existing systems Errors or problems in existing systems can trigger requests for systems projects. Avicenna System Analysis and Design System Planning 10

Information Systems Projects n External Factors n Technology § changing technology is a major force affecting business. § Telecommunication open new ways for business § Internet change many business bases, virtual company’s, online universities, internet banking § New programming languages, and applications, make it easy to everyone to use computers n Customers n n Competitors n Avicenna Customer are vitally important to any business Information systems that interact with customers takes the highest priority, customers needs and requests take a high concern from managers and IT department to update and build a new systems Integrated customers systems like marketing, sales, and customer service activities, is a real challenging for IT department. Competitors prices, services, and quality affect rapidly company’s decisions and plans, drives many information systems decisions. System Analysis and Design System Planning 11

Information Systems Projects n External Factors n Economy n n n Government n n n Federal, state, and local government regulations affect the design of corporate information systems Tax rules for sales products, income, and internet sales, affect company’s systems Suppliers n Avicenna Economic activities and changing have a powerful influence on corporate information management Economic expansion needs scalable systems that can handle additional volume and growth. Relationship with suppliers are critically important issue for any company, new technology, new markets, needs new inventory control system to minimize unnecessary inventory, the aim is to provide the right product at the right place at the right time. System Analysis and Design System Planning 12

Information Systems Projects n Risk Management Every IT project involves risks that system analysts and IT project managers must address n Risk management is the process of identifying, evaluating, tracking and controlling risks to minimize their impact. n Avicenna System Analysis and Design System Planning 13

Information Systems Projects n n Risk management Information that the analyst should take into consideration for each risk: n n n Avicenna Probability, which represents the probability that the risk will happen. Impact, which indicates the degree of adverse effects of the risk occur. Cost, which indicates the potential financial impact of the risk. Category, which specifies the risk type. Description, which specifies the risk nature. Mitigation plan, which identifies plans to control or limit the risk. System Analysis and Design System Planning 14

Evaluation of Systems Requests n n n System request A document describing business reasons for project and system’s expected value. Many organizations use a special form for systems requests Systems Requests Forms n n A properly designed form streamlines the request process and ensures consistency Request form must be easy to understand include clear instructions. [1] Avicenna System Analysis and Design System Planning 15

Evaluation of Systems Requests n n Systems review committee or a computer resources committee evaluate systems projects Systems Review Committees n n n Avicenna Most large companies use a systems review committee to evaluate systems requests Many smaller companies rely on one person to evaluate system requests instead of a committee The goal is to evaluate the requests and set priorities System Analysis and Design System Planning 16

Evaluation of Systems Requests § To set priorities the review committee must take into consideration the request history and project selection criteria § History of the project request § § Avicenna Who requested it? When did they request it? What did they expect? Who were the client (i. e. person or group who funds the project) ? System Analysis and Design System Planning 17

Evaluation of Systems Requests n n Project Selection Five specific criteria for project selection n n Avicenna Backed by management Timed appropriately for commitment of resources It moves the business toward attainment of its goals Practicable Important enough to be considered over other projects System Analysis and Design System Planning 18

Evaluation of Systems Requests n Once the number of requests has been narrowed according to the selection criteria discussed previously, it is still necessary to determine if the selected projects feasible or not, review committee must assess the feasibility of each systems request. Avicenna System Analysis and Design System Planning 19

Sequence Summary n n Various internal and external factors affect systems projects, such as user requests, top management directives, existing systems, the IT department, software and hardware vendors, technology, customers, competitors, the economy, and government Risk management is the process of identifying, evaluating, tracking and controlling project risks to minimize their impact. Systems review committee evaluate systems projects To set priorities the review committee must take into consideration the request history and project selection criteria Avicenna System Analysis and Design System Planning 20

Sequence Summary n In this Sequence we have n n n n Avicenna Described Why Projects Fail Described the internal and external Factors that Affect Systems Projects Distinguished between internal and external factors that affect system projects Described risks and risk management features Defined system review committee and system request Discussed how to set priorities by taking into consideration the request history and project selection criteria Described the five specific criteria for project selection System Analysis and Design System Planning 21

Reference [1] System Analysis and Design, Sixth Edition (Chapter 2 ) Authors: Gary B. Shelly, Thomas J. Cashman and Harry J. Rosenblatt , Publisher: SHELLY CASHMAN SEWIES. [2] Modern Systems Analysis and Design fourth Edition (Chapter 5 ) Authors: Jeffrey A. Hoffer , Joey F. George, Joseph S. Valacich Publisher: prentice hall [3] System Analysis and Design, 3 rd Edition ( Chapter 2 ) Authors: Dennis, Wixom, & Roth Publisher: John Wiley & sons Avicenna System Analysis and Design System Planning 22