SYSTEMS ANALYSIS DESIGN PHASE 1 SYSTEMS PLANNING Preliminary

SYSTEMS ANALYSIS & DESIGN PHASE 1 SYSTEMS PLANNING Preliminary Investigation

SDLC Phases Phase 1: Systems Planning SYSTEMS ANALYSIS & DESIGN 3 E PHASE 1 2

SDLC Phases Phase 1: Systems Planning Objectives à Learn how projects get started à Learn how projects are evaluated initially SYSTEMS ANALYSIS & DESIGN 3 E PHASE 1 3

Chapter 2 Preliminary Investigation SYSTEMS ANALYSIS & DESIGN 3 E PHASE 1 4

Objectives PHASE 1 5 à Describe the strategic planning process, and why it is important to IS managers à Explain the purpose of a mission statement à Explain why and how systems projects are initiated à Explain how systems projects are evaluated SYSTEMS ANALYSIS & DESIGN 3 E

Objectives PHASE 1 6 à List the objectives of the preliminary investigation à Describe what activities occur during the preliminary investigation à Carry out fact-finding procedures to evaluate the systems request à Describe what takes place at the completion of the preliminary investigation SYSTEMS ANALYSIS & DESIGN 3 E

Introduction PHASE 1 7 à Systems planning tasks à Examine the systems request à Conduct a preliminary investigation à Determine whether further development is warranted SYSTEMS ANALYSIS & DESIGN 3 E

Introduction PHASE 1 8 à Systems planning topics à Why and how systems projects originate à Objectives and scope of the preliminary investigation à Fact-finding tasks à Activities that complete the systems planning phase SYSTEMS ANALYSIS & DESIGN 3 E

The Strategic Planning Process PHASE 1 9 à Describes a company’s reason for existing and plan for the future à Begins with a mission statement that sets forth an overall purpose and direction for stakeholders à Examples of mission statements à Federal Express à Toshiba International Corporation à Keyport Life Insurance Company SYSTEMS ANALYSIS & DESIGN 3 E Click to see Figure 2 -1

The Strategic Planning Process à Stakeholders are people affected by the company’s performance à Stakeholders include: à Customers à Employees à Suppliers à Stockholders à Members of the community SYSTEMS ANALYSIS & DESIGN 3 E Click to see Figure 2 -2 PHASE 1 10

The Strategic Planning Process PHASE 1 11 à The impact of technology à Rapid expansion of information technology is creating entirely new industries, such as à E-commerce SYSTEMS ANALYSIS & DESIGN 3 E Click to see Figure 2 -3

The Strategic Planning Process PHASE 1 12 à The impact of technology à Rapid expansion of information technology is creating entirely new industries, such as à E-commerce à Online stock trading SYSTEMS ANALYSIS & DESIGN 3 E Click to see Figure 2 -4

The Strategic Planning Process PHASE 1 13 à The impact of technology à Rapid expansion of information technology is creating entirely new industries, such as à E-commerce à Online stock trading SYSTEMS ANALYSIS & DESIGN 3 E Click to see Figure 2 -5

The Strategic Planning Process PHASE 1 14 à The impact of technology à Rapid expansion of information technology is creating entirely new industries, such as à E-commerce à Online stock trading à Change will be constant à Global competition à Rapidly changing markets à Explosive growth of information technology SYSTEMS ANALYSIS & DESIGN 3 E

Information Systems Projects à Starting point is a systems request SYSTEMS ANALYSIS & DESIGN 3 E PHASE 1 15

Information Systems Projects à Reasons for systems projects à Improved service à Better performance à More information à Stronger controls à Reduced cost SYSTEMS ANALYSIS & DESIGN 3 E Click to see Figure 2 -6 PHASE 1 16

Information Systems Projects à Reasons for systems projects à Improved service à Better performance à More information à Stronger controls à Reduced cost SYSTEMS ANALYSIS & DESIGN 3 E Click to see Figure 2 -7 PHASE 1 17

Information Systems Projects à Sources of systems projects à User requests à Top-management directives à Existing systems à Information systems department à External factors SYSTEMS ANALYSIS & DESIGN 3 E Click to see Figure 2 -8 PHASE 1 18

Information Systems Projects à Sources of systems projects à User requests à Top-management directives à Existing systems à Information systems department à External factors SYSTEMS ANALYSIS & DESIGN 3 E Click to see Figure 2 -9 PHASE 1 19

Information Systems Projects PHASE 1 20 à Request form and procedure à Streamlines the process à Ensures consistency à Must be easy to understand use à Must include clear instructions SYSTEMS ANALYSIS & DESIGN 3 E Click to see Figure 2 -10

Evaluation of Systems Requests à Responsibility for evaluating systems requests à A group of key managers and users à Systems review committee à Steering committee à Computer resources committee à Computer policy committee à A single individual à Typical in smaller companies à Must consult with users & managers SYSTEMS ANALYSIS & DESIGN 3 E PHASE 1 21

TRADEOFF PHASE 1 22 à A single individual versus a systems review committee — pros and cons à A committee can rely on the IS director as a technical consultant à Compared to an individual, a committee: à Provides a variety of experience and knowledge à Has a broader viewpoint and less bias à Might take longer to handle systems requests à Sometimes has internal political differences SYSTEMS ANALYSIS & DESIGN 3 E

A KEY QUESTION PHASE 1 23 à You are the IS director at Attaway Airlines à You chair the systems review committee à There is strong disagreement about two projects and the committee meets tomorrow à How will you prepare for the meeting? à What questions and issues should be discussed? SYSTEMS ANALYSIS & DESIGN 3 E

Evaluation of Systems Requests à Evaluation of projects à Systems review committee tasks: à Evaluate requests à Set priorities à Assess feasibility SYSTEMS ANALYSIS & DESIGN 3 E PHASE 1 24

Evaluation of Systems Requests PHASE 1 25 à Overview of feasibility à Feasibility study uses three main yardsticks: à Operational feasibility à Technical feasibility à Economic feasibility SYSTEMS ANALYSIS & DESIGN 3 E Click to see Figure 2 -11

Evaluation of Systems Requests PHASE 1 26 à Operational feasibility à Is the system a practical and effective approach? à Operational feasibility depends on: à Management and user support à User involvement in planning à Impact on performance, customers, and company image à Reasonable schedules SYSTEMS ANALYSIS & DESIGN 3 E

Evaluation of Systems Requests PHASE 1 27 à Technical feasibility à Does the organization have resources to develop/purchase and operate the system? à Technical feasibility depends on: à Technical expertise within the organization à Availability of necessary equipment à Hardware and software reliability à Adequate performance that will meet specifications à Capacity for future needs/projected growth SYSTEMS ANALYSIS & DESIGN 3 E

Evaluation of Systems Requests PHASE 1 28 à Economic feasibility à Do the projected benefits outweigh the estimated costs of development, installation, and operation? à Economic feasibility depends on: à Costs — one time and continuing costs à Benefits — tangible and intangible benefits à Timing of various costs and benefits à Cost of not developing the system SYSTEMS ANALYSIS & DESIGN 3 E

Evaluation of Systems Requests PHASE 1 29 à Determining feasibility à First step is a determination of feasibility à Goal is to identify nonfeasible projects as soon as possible à Feasibility can change over time à Nonfeasible projects can be resubmitted à Initially feasible projects can be rejected later SYSTEMS ANALYSIS & DESIGN 3 E

Evaluation of Systems Requests PHASE 1 30 à Criteria used to evaluate systems requests à Reduce costs à Increase revenue à Produce more information or better results à Serve customers and the organization better à Reasonable time frame and lasting results à Resources available à Necessary or discretionary à Tangible or intangible factors SYSTEMS ANALYSIS & DESIGN 3 E

TRADEOFF PHASE 1 31 à Must nondiscretionary projects be reviewed à Pros à Improve communication à Set priorities for limited resources à Enable better scheduling à Cons à Unnecessary waste of time à Potential delays in project SYSTEMS ANALYSIS & DESIGN 3 E

A KEY QUESTION PHASE 1 32 à You are the IS director at Attaway Airlines à Disagreement involves the priority of a proposed new accounting system à New government requirements cannot be handled by current system à Can part of a project be nondiscretionary? à What issues should be discussed at your next meeting? SYSTEMS ANALYSIS & DESIGN 3 E

PHASE 1 33 Preliminary Investigation Objectives à Purpose à To decide whether to continue the project à Objectives for a preliminary investigation 1. Understand the problem 2. Define the project scope and constraints 3. Identify the benefits 4. Estimate the time and costs 5. Report to management SYSTEMS ANALYSIS & DESIGN 3 E Click to see Figure 2 -12

PHASE 1 34 Preliminary Investigation Objectives à Understand the problem à Identify the true nature of the problem and the reason for the systems request à Stated problem may not be the real problem à Clear statement defines the investigation scope SYSTEMS ANALYSIS & DESIGN 3 E

PHASE 1 35 Preliminary Investigation Objectives à Define the project scope and constraints à Project scope à Define the range or extent of the project à Set project boundaries à Constraints à Identify conditions, restrictions, or requirements à Present vs. future à Internal vs. external à Mandatory vs. desirable SYSTEMS ANALYSIS & DESIGN 3 E

PHASE 1 36 Preliminary Investigation Objectives à Identify the benefits à Tangible benefits à Can be stated in dollars à Based on increased revenue or reduced cost à Intangible benefits à Difficult to measure in dollars à Can involve job satisfaction or company image SYSTEMS ANALYSIS & DESIGN 3 E

PHASE 1 37 Preliminary Investigation Objectives à Estimate the time and costs à Determine what information is needed à Identify the sources of information à Decide whether to use interviews, if so how many, and what time needed à Decide whether to use surveys, if so who to complete it, and what time needed à Estimate the cost of gathering, analyzing, and reporting the information to management SYSTEMS ANALYSIS & DESIGN 3 E

PHASE 1 38 Preliminary Investigation Objectives à Report to management à Final task in the preliminary investigation à Key elements à Evaluation of systems request à Estimate of costs and benefits à Recommendations SYSTEMS ANALYSIS & DESIGN 3 E

Preliminary Investigation Steps PHASE 1 39 à Steps in a preliminary investigation 1. Obtain authorization to proceed 2. Identify the necessary information 3. Perform fact-finding to gather the required information 4. Analyze the information 5. Present results and recommendations to management SYSTEMS ANALYSIS & DESIGN 3 E Click to see Figure 2 -13

Preliminary Investigation Steps PHASE 1 40 à Obtain authorization to proceed à Projects can create concern or opposition à Need clear authorization from management à Good communication is important à Initial meeting with managers and users à Explain the project à Describe your responsibilities à Invite questions SYSTEMS ANALYSIS & DESIGN 3 E

Preliminary Investigation Steps PHASE 1 41 à Identify the necessary information à Review the preliminary investigation objectives à List all information needed for these objectives à Prepare a schedule of activities for this phase SYSTEMS ANALYSIS & DESIGN 3 E

Preliminary Investigation Steps PHASE 1 42 à Perform fact-finding to gather the required information à Analyze organization charts à Conduct interviews à Review current documentation à Observe current operations to obtain information à Conduct a brief survey of people who use the system SYSTEMS ANALYSIS & DESIGN 3 E Click to see Figure 2 -14

Preliminary Investigation Steps PHASE 1 43 à Analyze the information à Identify alternatives à Include costs and benefits à Recommend an action à Possible actions à Take no further action à Apply some other solution à Proceed to systems implementation phase à Proceed to next SDLC phase — systems analysis SYSTEMS ANALYSIS & DESIGN 3 E

Preliminary Investigation Steps PHASE 1 44 à Present your results and recommendations to management à Typical report sections à Introduction à Systems request summary à Findings à Recommendations à Time & cost estimates à Expected benefits à Appendix à Oral presentation also might be required SYSTEMS ANALYSIS & DESIGN 3 E Click to see Figure 2 -15

SOFTWEAR, LIMITED PHASE 1 45 à Background à SWL uses outside firm (BIS) for payroll processing à Payroll deductions permitted for credit union and SWL stock purchase à Recent reports of problems à Errors in employee deductions à Overtime necessary to correct à Future Employee Savings Investment Plan (ESIP) is possible SYSTEMS ANALYSIS & DESIGN 3 E

SOFTWEAR, LIMITED PHASE 1 46 à The request for information systems services à Systems request submitted by Michael Jeremy à Describes problem generally à Does not identify cause or propose solution SYSTEMS ANALYSIS & DESIGN 3 E Click to see Figure 2 -16

SOFTWEAR, LIMITED PHASE 1 47 à The request for information systems services à Systems request submitted by Michael Jeremy à Describes problem generally à Does not identify cause or propose solution à IS department response à SWL does not have systems review committee à Rick Williams assigned to preliminary investigation SYSTEMS ANALYSIS & DESIGN 3 E Click to see Figure 2 -17

SOFTWEAR, LIMITED PHASE 1 48 à The request for information systems services à Systems request submitted by Michael Jeremy à Describes problem generally à Does not identify cause or propose solution à IS department response à SWL does not have systems review committee à Rick Williams assigned to preliminary investigation à Michael Jeremy issues authorization memo SYSTEMS ANALYSIS & DESIGN 3 E Click to see Figure 2 -18

SOFTWEAR, LIMITED PHASE 1 49 à Organization charts à Current organization charts not available à Rick obtains job descriptions and draws charts SYSTEMS ANALYSIS & DESIGN 3 E Click to see Figure 2 -19

SOFTWEAR, LIMITED PHASE 1 50 à Interviews à Michael Jeremy, vice president of finance à Mike Feiner, director of human resources à Amy Calico, director of payroll SYSTEMS ANALYSIS & DESIGN 3 E

PHASE 1 51 SOFTWEAR, LIMITED à Review current documentation à Results and findings à Specific procedures are being followed by the payroll department à Written descriptions for these procedures are outdated à Payroll department has never seen the stock plan deduction form SYSTEMS ANALYSIS & DESIGN 3 E Click to see Figure 2 -20

SOFTWEAR, LIMITED PHASE 1 52 à Presentation of findings and management decisions à IS department tasks à Prepared a preliminary investigation report à Attached a cover memo à Scheduled a presentation à Management decisions à Analyze the payroll system as requested à Scope to include whether current BIS can handle new ESIP options SYSTEMS ANALYSIS & DESIGN 3 E Click to see Figure 2 -21

SOFTWEAR, LIMITED PHASE 1 53 à Presentation of findings and management decisions à IS department tasks à Prepared a preliminary investigation report à Attached a cover memo à Scheduled a presentation à Management decisions à Analyze the payroll system as requested à Scope to include whether current BIS can handle new ESIP options SYSTEMS ANALYSIS & DESIGN 3 E Click to see Figure 2 -22