Systems Analysis and Design in a Changing World

Systems Analysis and Design in a Changing World, Fourth Edition 3

3 Learning Objectives u Explain the elements of project management and the responsibilities of a project manager u Explain project initiation and the activities in the project planning phase of the SDLC u Describe how the scope of the new system is determined Systems Analysis and Design in a Changing World, 4 th Edition 2

3 Learning Objectives (continued) u Develop a project schedule using PERT and Gantt charts u Develop a cost/benefit analysis and assess the feasibility of a proposed project u Discuss how to staff and launch a project Systems Analysis and Design in a Changing World, 4 th Edition 3

3 Overview u Fundamental principles of project management l Project success factors l Role of project manager l Project management knowledge areas u How information system projects initiated l Part of overall strategic plan l Respond to immediate business need u The project planning phase of SDLC u Project planning examples for RMO Systems Analysis and Design in a Changing World, 4 th Edition 4

3 Project Success Factors u Project management important for success of system development project u 2000 Standish Group Study l Only 28% of system development projects successful l 72% of projects canceled, completed late, completed over budget, and/or limited in functionality u Thus, project requires careful planning, control, and execution Systems Analysis and Design in a Changing World, 4 th Edition 5

3 Reasons for Project Failure u Incomplete u Limited or changing requirements user involvement u Lack of executive support u Lack of technical support u Poor project planning u Unclear u Lack objectives of required resources Systems Analysis and Design in a Changing World, 4 th Edition 6

3 Reasons for Project Success u Clear system requirement definitions u Substantial u Support user involvement from upper management u Thorough u Realistic and detailed project plans work schedules and milestones Systems Analysis and Design in a Changing World, 4 th Edition 7

3 Role of the Project Manager u Project management – organizing and directing people to achieve a planned result within budget and on schedule u Success or failure of project depends on skills of the project manager l Beginning of project – plan and organize l During project – monitor and control u Responsibilities are both internal and external Systems Analysis and Design in a Changing World, 4 th Edition 8

3 Internal Responsibilities u Identify project tasks and build a work breakdown structure u Develop the project schedule u Recruit and train team members u Assign team members to tasks u Coordinate activities of team members and subteams u Assess project risks u Monitor and control project deliverables and milestones u Verify the quality of project deliverables Systems Analysis and Design in a Changing World, 4 th Edition 9

3 External Responsibilities u Report the project’s status and progress u Establish good working relationships with those who identify the needed system requirements l The people who will use the system u Work directly with the client (the project’s sponsor) and other stakeholders u Identify resource needs and obtain resources Systems Analysis and Design in a Changing World, 4 th Edition 10

Various Titles/Roles of Project Managers 3 (Figure 3 -1) Systems Analysis and Design in a Changing World, 4 th Edition 11

Participants in a System Development Project (Figure 3 -2) Systems Analysis and Design in a Changing World, 4 th Edition 3 12

3 Project Management Tasks u Beginning of project l u u Overall project planning During project l Project execution management l Project control management l Project closeout Project management approach differs for l Predictive SDLC l Adaptive SDLC Systems Analysis and Design in a Changing World, 4 th Edition 13

Project Management and SDLC Tasks for a Predictive Project (Figure 3 -3) Systems Analysis and Design in a Changing World, 4 th Edition 3 14

Project Management and SDLC Tasks for an Adaptive Project (Figure 3 -4) Systems Analysis and Design in a Changing World, 4 th Edition 3 15

Project Management Body of Knowledge 3 (PMBOK) u u u Scope management l Control functions included in system l Control scope of work done by team Time management l Build detailed schedule of all project tasks l Monitor progress of project against milestones Cost management l Calculate initial cost/benefit analysis l Monitor expenses Systems Analysis and Design in a Changing World, 4 th Edition 16

Project Management Body of Knowledge (continued) u Quality l 3 management Establish quality plan and control activities for each project phase u Human resource management l Recruit and hire project team members l Train, motivate, team build u Communications management l Identify stakeholders and their communications l Establish team communications Systems Analysis and Design in a Changing World, 4 th Edition 17

Project Management Body of Knowledge (continued) u Risk 3 management l Identify and review risks for failure l Develop plans to reduce these risks u Procurement management l Develop requests for proposals (RFPs) l Evaluate bids, write contracts, monitor performance u Integration management Systems Analysis and Design in a Changing World, 4 th Edition 18

3 Project Initiation and the Project Planning Phase u u Driving forces to start project l Respond to opportunity l Resolve problem l Conform to directive Project initiation comes from l Long-term IS strategic plan (top-down) prioritized by weighted scoring l Department managers or process managers (bottom-up) l Response to outside forces (HIPAA) Systems Analysis and Design in a Changing World, 4 th Edition 19

3 Initiating Customer Support System RMO u Strategic priorities IS plan directs IS development’s project u Customer support system (CSS) selected l John Mac. Murty – creates project charter l Barbara Halifax – project manager l Steven Deerfield – senior systems analyst l Goal is to support multiple types of customer services (ordering, returns, online catalogs) u Project charter describes key participants Systems Analysis and Design in a Changing World, 4 th Edition 20

3 RMO Project Charter (Figure 3 -5) Systems Analysis and Design in a Changing World, 4 th Edition 21

3 Activities of the Project Planning Phase Systems Analysis and Design in a Changing World, 4 th Edition 22

Activities of the Project Planning Phase and Their Key Questions (Figure 3 -7) Systems Analysis and Design in a Changing World, 4 th Edition 3 23

3 Defining the Problem u Review business needs l Use strategic plan documents l Consult key users l Develop list of expected business benefits u Identify l expected system capabilities Define scope in terms of requirements u Create u Build system scope document proof of concept prototype u Create context diagram Systems Analysis and Design in a Changing World, 4 th Edition 24

3 Context Diagram for Customer Support Systems Analysis and Design in a Changing World, 4 th Edition 25

3 Defining the Problem at RMO u Barbara – Completed problem definition statement u Steve – Conducted preliminary research on alternative solutions u Barbara, Steve, and William Mc. Dougal – Proceeded with analysis before making solution decisions u Barbara and Steve – Began schedule, budget, feasibility statement for new system Systems Analysis and Design in a Changing World, 4 th Edition 26

3 Producing the Project Schedule u Develop work breakdown structure (WBS) l List of tasks and duration required for project l Similar to outline for research paper l WBS is foundation for project schedule u Build a PERT/CPM chart l Assists in assigning tasks l Critical path method l Gantt chart and tracking GANTT chart Systems Analysis and Design in a Changing World, 4 th Edition 27

3 Partial PERT/CPM Chart Systems Analysis and Design in a Changing World, 4 th Edition 28

Gantt Chart for Entire Project (with overlapping phases) Systems Analysis and Design in a Changing World, 4 th Edition 3 29

Gantt Chart for Iterative Project Systems Analysis and Design in a Changing World, 4 th Edition 3 (Figure 3 -14) 30

3 Confirming Project Feasibility u Risk management u Economic feasibility l Cost/benefit analysis l Sources of funds (cash flow, long-term capital) u Organizational u Technological and cultural feasibility u Schedule feasibility u Resource feasibility Systems Analysis and Design in a Changing World, 4 th Edition 31

3 Risk Management Systems Analysis and Design in a Changing World, 4 th Edition 32

3 Economic Feasibility u Cost/benefit analysis l Estimate project development costs l Estimate operational costs after project l Estimate financial benefits based on annual savings and increased revenues l Calculate using table of costs and benefits u Uses net present value (NPV), payback period, return on investment (ROI) techniques Systems Analysis and Design in a Changing World, 4 th Edition 33

Supporting Detail for Salaries and Wages for RMO (Figure 3 -16) Systems Analysis and Design in a Changing World, 4 th Edition 3 34

Summary of Development Costs for RMO 3 (Figure 3 -17) Systems Analysis and Design in a Changing World, 4 th Edition 35

Summary of Annual Operating Costs for RMO (Figure 3 -18) Systems Analysis and Design in a Changing World, 4 th Edition 3 36

3 Sample Benefits for RMO (Figure 3 -19) Systems Analysis and Design in a Changing World, 4 th Edition 37

3 RMO Cost Benefit Analysis (Figure 3 -20) Systems Analysis and Design in a Changing World, 4 th Edition 38

3 Intangibles in Economic Feasibility u Intangible benefits cannot be measured in dollars l Increased levels of service l Customer satisfaction l Survival l Need to develop in-house expertise u Intangible costs cannot be measured in dollars l Reduced employee morale l Lost productivity l Lost customers or sales Systems Analysis and Design in a Changing World, 4 th Edition 39

3 Organizational and Cultural Feasibility u Each l company has own culture New system must fit into culture u Evaluate related issues for potential risks l Low level of computer competency l Computer phobia l Perceived loss of control l Shift in power l Fear of job change or employment loss l Reversal of established work procedures Systems Analysis and Design in a Changing World, 4 th Edition 40

3 Technological Feasibility u Does system stretch state-of-the-art technology? u Does in-house expertise presently exist for development? u Does an outside vendor need to be involved? u Solutions include l Training or hiring more experienced employees l Hiring consultants l Changing scope and project approach Systems Analysis and Design in a Changing World, 4 th Edition 41

3 Schedule Feasibility u Estimates needed without complete information u Management u Project deadlines may not be realistic managers l Drive realistic assumptions and estimates l Recommend completion date flexibility l Assign interim milestones to periodically reassess completion dates l Involve experienced personnel l Manage proper allocation of resources Systems Analysis and Design in a Changing World, 4 th Edition 42

3 Resource Feasibility u Team member availability u Team skill levels u Computers, equipment, and supplies u Support staff time and availability u Physical facilities Systems Analysis and Design in a Changing World, 4 th Edition 43

3 Staffing and Launching the Project u Develop resource plan for the project u Identify and request specific technical staff u Identify and request specific user staff u Organize the project team into workgroups u Conduct preliminary training and team building exercises u Key staffing question: “Are the resources available, trained, and ready to start? ” Systems Analysis and Design in a Changing World, 4 th Edition 44

3 Launching Project u Scope defined, risks identified, project is feasible, schedule developed, team members identified and ready u Oversight committee finalized, meet to give goahead, and release funds u Formal announcement made to all involved parties within organization u Key launch question: “Are we ready to start? ” Systems Analysis and Design in a Changing World, 4 th Edition 45

3 Recap of Project Planning for RMO u Created schedule and plans for CSS u Addressed all aspects of project management (project planning and scope) u Included project communication and quality u Identified desired team members l Refined internal working procedures l Taught tools and techniques used on project u Planned kickoff meeting to officially launch Systems Analysis and Design in a Changing World, 4 th Edition 46

3 Summary u Project management tasks l Start at SDLC project planning phase l Continue throughout each SDLC phase u Organizing and directing other people l Achieve planned result l Use predetermined schedule and budget u Knowledge l areas needed Scope, time, cost, quality, human resources, communications, risk, procurement Systems Analysis and Design in a Changing World, 4 th Edition 47

3 Summary (continued) u Project l initiation Information system needs are identified and prioritized in strategic plans u Project planning phase l Define problem (investigation and scope) l Produce project schedule (WBS) l Confirm project feasibility (evaluate risks) l Staff project (know people’s skills) l Launch project (executive formal approval) Systems Analysis and Design in a Changing World, 4 th Edition 48