chapter 3 systems planning and selection. organizations must set priorities and a direction for...

Chapter 3 Systems Planning and Selection


•Organizations must set priorities and a direction for systems development that will yield development projects with the greatest net benefits.

•The reason for any new or improved information system is to add value to the organization.

•Business value comes from supporting the most critical business goals and helping the organization deliver on its business strategy.


•Corporate and Information Systems Planning

•資訊系統的成本穩定成長 – 目前有些公司已達全公司支出的 40%

•許多系統無法提供跨部門的資訊應用，與解決企業整體關鍵問題的方法，也不支援策略上的應用系統

•資料重複儲存的嚴重與資料品質的問題

•舊系統長需改寫，系統維護成本增加失去控制

•需求系統無法即時開發，使用者部門被迫自行開發程式

Careful Planning and Selection Projects (Systematic Planning Process)


•Three key sources for information systems projects

Replace or extend and existing system in orderto gain needed information or to provide a newservice to customer

Make a system more efficient, less costly to operate, or want tomove a system to a new operating environment

Improve an existing system in order to helporganization meet its operate objects


•Identification Potential Development Projects

高階主管 (Top manager)

Greater strategic focusLargest project sizeLongest project duration

指導委員會 (Steering committee)

Cross-functional focusGreater organizational changeFormal cost-benefit analysisLarger and riskier projects

Top Down


•Identification Potential Development Projects

使用者部門Narrow, tactical focusFaster developmentFewer users, management layers,and business functions

系統發展團隊

Integration with existing systems focusFewer development delaysLess concern on cost-benefit analysis

Bottom Up


•Classification and Ranking IS Development Projects

評估準則

1. Value Chain Analysis ( 價值鏈分析 ) – Porter, 1985

Analyzing an organization’s activities to determine where value is added to products and/or services and the costs incurred for doing so; usually also includes a comparison with the activities , added value, and costs of other organizations for the purpose of making improvements in the organization’s operations and performance.


•Organizational Value Chain


2. Strategic Alignment Extend to which the project is viewed as helping the organization achieve its strategic objectives and long-term goals

3. Potential Benefits

Extends to which the projects is viewed as improving profits, customer services, etc. and the duration of these benefits

4. Resource Availability Amount and type of resources the project requires and their availability


5. Project Size/Duration

Number of individuals and the length of time needed to complete the project

6. Technical Difficulty/Risks

Level of technical difficulty to successfully complete the project within given time and resource constraints


•Corporate Strategic Planning ( 具體的策略規劃 )

-An ongoing process that defines the mission, objectives, and strategies of an organization

Current

EnterpriseFuture

EnterpriseStrategy

Plan

Step 1 Step 2 Step 3


•Misson Statement – A statement that makes it clear what business a company is in ( 希望是怎麼樣的公司 )

•Objective Statements – A series of statements that express an organization’s qualitative and quantitative goals for reaching a desired future position (broad and timeless, 不需要太精確 )

•Competitive Strategy – The method by which an organization attempts to achieve its mission and objectives (Rolls Royce and GEO)

Michael Porter1980


•Selecting IS Development Projects


•Deliverables and Outcomes for the First SDLC Phase

IncrementalCommitment

Working System

reassess

Incremental commitment:Continuous reassessment of project after each phase


An orderly means of assessing the information needs of an organization and defining the systems, databases, andtechnologies that will best satisfy those needs

•Information Systems Planning (ISP)


•Information Systems Planning (ISP)


•Describing the Current Situation - 評估現有資訊系統

Human Resource( 人力資源 )

Process Technologies

Data



Selecting a Planning Team

Review corporatedocuments

Interviewmanagersexecutivescustomers

Reviews ofcompetitors,marketsproducts, and finance

Representcurrent situation

•Organization Locations•Units (a list of people, business)•Functions•Processes•Data•Information System


Functions - Cross-organization locations of activities used to perform day-to-day business operations. Ex: R&D, Purchasing, Sales, Manufacturing

Processes - A list of manual or automated procedures designed to support business functions. Ex: payroll processing, product shipping

Data Entities - A list of the information items generated, updated, deleted, or used within business processes.

Information Systems - Automated and non-automated systems used to transform data into information to support business processes.


•Organization Locations•Units (a list of people, business)•Functions•Processes•Data•Information System

List

Matrix


Upper CASE•Matrix Construction•Matrix Analysis

Data List

Function List

X

X


•Describing the Target Situation, Trends, and Constraintsblueprints -- an Information architecture

Edit initial list and record the desired locations, units,functions, processes, data, and information systemswithin the constraints and trends of the organizationenvironment

Update matrices


•Initiating and Planning Systems Development Projects

Deliverables and Outcomes

Baseline Project Plan (BPP) - internal document

Statement of Work (SOW) - Outlines objectives and constraints of the project to the customer

描述專案範圍 (Scope), 專案執行完成可帶來的收益 (benefit),專案執行所需花費的成本 (Cost) ，專案執行的風險 (Risk) 和資源 (Resource) 的需求- 可用於 project selection committee

給客戶的文件，內容包含專案的產出為何，並描述專案要完成所需的各種工作


•Initiating and Planning Systems Development Projects

How much effort should the expended on the project initiation and planning process? ( 需花費多少的努力在此步驟 ) 總投入的 10%~20% ( 時間與成本的花費將在未來回收 - Project Scope 和 feasibility analysis)

Who is responsible for performing the project initiation and planning process? ( 誰負責執行 ) 有經驗的系統分析師，或系統分析師團隊 Why is project initiation and planning such a challenging activity?( 為什麼此一步驟是具挑戰性的活動 ) Vague system request document Tangible Project Description 讓所有部門均同意一個 Project 的方向是很困難的


•Project Initiation

•建立專案團隊 ( 包含 IS, Users, Manager)

•建立強的與客戶關係 ( 好的溝通窗口 )

•建立專案啟始的計劃 - 如何組織此新的專案團隊執行專案範圍定義的工作 a. 角色定義 b. 聯絡溝通方式與時間 c. 定義專案執行步驟，時程及交付成品 •建立管理流程 ( 行政作業程序 )

- 溝通會議流程，工作指派流程，專案變更流程專案資金管理流程

•建立專案工作說明書 (Project Workbook) 及準備相關管理工具


•Project Planning

Project planning is the process of defining clear, discrete activitiesand work needed to complete each activity within a single project.

Project Planning Process

Baseline Project Plan

Statement of Work•Describing the project scope, alternatives, and feasibility•Dividing the project into manageable tasks•Estimating resources and creating a resource plan•Developing a preliminary schedule...


•Project Feasibility

Project

Time Resource

限制條件

Economic, Technical, Operational, Schedule, Legal &Contractual, Political

每個 Project 的限制因素與其重要性並不一定相同


•Economic Feasibility

- A process of identifying the financial benefits and costs associated with a development project

Determining Project Benefits

•Tangible Benefit

•Intangible Benefit

A benefit derived from the creation of an information system that can be measured in dollars and with certainty

A benefit derived from the creation of an information system that cannot be easily measured in dollars or with certainty


•Cost reduction and avoidance•Error reduction•Increased flexibility•Increased speed of activity•Improvement of management planning and control•Opening new markets and increasing sales opportunities

•Increased employee morale

•Competitive necessity

•More timely information

•Promotion of organizational learning and understanding

Examples


•Determine Project Cost

Tangible cost: A cost associated with an information system that can be measured in terms of dollars and with certainty

Intangible cost: A cost associated with an information system that cannot be easily measured in terms of dollars or with certainty

One-time cost: A cost associated with project start-up and development , or system start-up

Recurring cost: A cost resulting from the ongoing evolution and use of a system

Fixed costs and Variable costs


The Time Value of Money


•The Time Value of Money (TVM)

錢是有時間價值的 - Cost of Capital

ni

YPV)1(

1 Value)(Present

NPV (Net present value) : PV 的累計

Y dollars n years from now i : Discount Rate


Break-Even Analysis


404.015303

9139-15303

FlowCash NPVYearly

FlowCash NPV general-FlowCash NPVYearly RatioEven -Break

One unit time

General NPV cash flow

Yearly NPV cash flow

Break-Even Ratio


• Operational Feasibility– Assessment of how a proposed system solves

business problems or takes advantage of opportunities

• Technical Feasibility• Assessment of the development organization’s

ability to construct a proposed system


• 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 systemEx: Copyright, antitrust legislation, financial reporting standards, license agreement for using hardware and software, …

* 若公司過去使用其他供應商的系統或服務，而目前想自行控制此系統時此因素更應加以考量


• Political Feasibility– Assessment of view of key stakeholders in

organization toward proposed system


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.


1. Introduction

2. System Description

3. Feasibility Assessment

4. Management Issues




- Introduction

Project Overview – project scope, feasibility, justification, resource requirement, and schedule, problem, environment, constraint

determining factors of scope

•公司中有那些單位會受到影響•目前有那些系統會被影響•有那些公司的內部人員或其他人員會受到影響•新開發系統的功能為何

Recommendation

textual or diagram



- System Description

Alternatives – very high-level, most narrative in form

Ex: Mainframe with central database ,…

System Description – provides a description of the selected configuration and a narrative of input information, tasks performed, and resultant information



- Feasibility Assessment

•Economic Analysis

•Technical Analysis

•Operational Analysis

•Legal and Contractual Analysis

•Political Analysis

•Schedules, Timeline, and Resource Analysis

Resource Schedule

Human Resource

PERT


- Management Issue

•Team Configuration and Management

•Communication Plan – team members 之間及 user 與發展團隊之間

•Project Standards and Procedure – Procedures for submitting and approving the project change. How deliverables will be evaluated and accepted by the customer.

•Other Project-Specific Topics

Progress 確認Idea 分享



•Reviewing the Baseline Project Plan

Baseline ProjectPlan

Workthrough

Project Approval Body

A peer group reviewof any product createdduring the systemsdevelopment process

並不一定是Formal 的過程


• Walkthrough– Peer group review– Participants

• Coordinator• Presenter• User• Secretary• Standards Bearer• Maintenance Oracle

– Activities• Walkthrough review form• Individuals polled• Walkthrough action list

– Advantages• Assures that review occurs during project


Internet Development

• Development process for Internet projects is no different than other projects

• Special issues need to be taken into account• Electronic Commerce (EC)

– Internet based communication designed to support business activities


• Internet

– Worldwide network of networks used for electronic commerce

• Intranet

– Internet-based communication to support business activities within a single organization

• Extranet

– Internet-based communication to support business-to-business activities


• 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

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