Chapter 4 :Chapter 4 :Identifying and Selecting Systems Identifying and Selecting Systems Development ProjectsDevelopment Projects

Identifying and Selecting IS Identifying and Selecting IS Development ProjectsDevelopment Projects

Sources of projectsSources of projectsManagement and business unitsManagement and business unitsManagers who want to make a system Managers who want to make a system more efficient or less costlymore efficient or less costlyFormal planning groupsFormal planning groups

Identifying Potential IS Identifying Potential IS Development ProjectsDevelopment Projects

Projects are identified byProjects are identified byTop managementTop managementSteering committeeSteering committeeUser departmentsUser departmentsDevelopment group or senior IS staffDevelopment group or senior IS staff

TopTop--Down IdentificationDown IdentificationSenior management or steering committeeSenior management or steering committeeFocus is on global needs of organizationFocus is on global needs of organization

Identifying Potential IS Identifying Potential IS Development ProjectsDevelopment Projects

BottomBottom--up Identificationup IdentificationBusiness unit or IS groupBusiness unit or IS groupDonDon’’t reflect overall goals of the t reflect overall goals of the organizationorganization

Classifying and Ranking IS Classifying and Ranking IS Development ProjectsDevelopment Projects

Performed by top management, Performed by top management, steering committee, business units of IS steering committee, business units of IS development groupdevelopment group

Selecting IS Development Selecting IS Development ProjectsProjects

Process of considering short and longProcess of considering short and long--term projectsterm projectsProjects most likely to achieve business Projects most likely to achieve business objectives are selectedobjectives are selected

Project Selection DecisionProject Selection Decision

Deliverables and OutcomesDeliverables and OutcomesPrimary DeliverablePrimary Deliverable

Schedule of specific IS development Schedule of specific IS development projectsprojects

OutcomesOutcomesAssurance that careful consideration was Assurance that careful consideration was given to project selectiongiven to project selectionClear understanding of projectClear understanding of project’’s relation to s relation to organizational objectivesorganizational objectives

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Chapter 5 :Chapter 5 :Initiating and Planning Initiating and Planning Systems Development ProjectsSystems Development Projects

Initiating and Planning System Initiating and Planning System Development ProjectsDevelopment Projects

Project InitiationProject InitiationEstablishment of project teamEstablishment of project teamDevelopment of relationship with customerDevelopment of relationship with customerProject Initiation PlanProject Initiation PlanEstablishment of Management ProceduresEstablishment of Management ProceduresEstablishment of Project Workbook and Establishment of Project Workbook and Project Management EnvironmentProject Management Environment

Initiating and Planning System Initiating and Planning System Development ProjectsDevelopment Projects

Project PlanningProject PlanningDefining clear, discrete activities and the Defining clear, discrete activities and the work needed to complete each activitywork needed to complete each activityDividing the project into manageable tasksDividing the project into manageable tasksEstimating resources and creating a Estimating resources and creating a resource planresource planDeveloping a preliminary scheduleDeveloping a preliminary scheduleDeveloping a communication planDeveloping a communication plan

Initiating and Planning System Initiating and Planning System Development ProjectsDevelopment Projects

Project PlanningProject PlanningDetermining project standards and Determining project standards and proceduresproceduresIdentifying and assessing riskIdentifying and assessing riskCreating a preliminary budgetCreating a preliminary budgetDeveloping a statement of workDeveloping a statement of workSetting a baseline project planSetting a baseline project plan

Initiating and Planning System Initiating and Planning System Development ProjectsDevelopment Projects

Deliverables and OutcomesDeliverables and OutcomesBaseline Project Plan (BPP)Baseline Project Plan (BPP)

ScopeScopeBenefitsBenefitsCostsCostsRisksRisksResourcesResources

Statement of Work (SOW)Statement of Work (SOW)Describes deliverablesDescribes deliverablesOutlines work needed to be performedOutlines work needed to be performed

Statement of Work

Assessing Project FeasibilityAssessing Project Feasibility

Six CategoriesSix CategoriesEconomicEconomicTechnicalTechnicalOperationalOperationalScheduleScheduleLegal and contractualLegal and contractualPoliticalPolitical

Cost Cost –– Benefit AnalysisBenefit AnalysisDetermine BenefitsDetermine Benefits

Tangible BenefitsTangible BenefitsCan be measured easilyCan be measured easily

ExamplesExamplesCost reductionCost reductionError reductionError reductionIncreased flexibilityIncreased flexibilityIncreased speed of activityIncreased speed of activityImproved management planning and controlImproved management planning and controlOpening new markets and increasing sales Opening new markets and increasing sales opportunitiesopportunities

Cost Cost –– Benefit AnalysisBenefit Analysis

Intangible BenefitsIntangible BenefitsCannot be measured easilyCannot be measured easilyExamplesExamples

Increased employee moraleIncreased employee moraleCompetitive necessityCompetitive necessityMore timely informationMore timely informationPromotion of organizational learning and Promotion of organizational learning and understandingunderstanding

Cost Cost –– Benefit AnalysisBenefit AnalysisDetermine CostsDetermine Costs

Tangible CostsTangible CostsCan easily be measured in dollarsCan easily be measured in dollars

Example: HardwareExample: Hardware

Intangible CostsIntangible CostsCannot be easily measured in dollarsCannot be easily measured in dollarsExamples:Examples:

Loss of customer goodwillLoss of customer goodwillLoss of employee moraleLoss of employee morale

Cost Cost –– Benefit AnalysisBenefit AnalysisOneOne--Time CostsTime Costs

Associated with project startup, initiation and Associated with project startup, initiation and developmentdevelopmentIncludesIncludes

System DevelopmentSystem DevelopmentNew hardware and software purchasesNew hardware and software purchasesUser trainingUser trainingSite preparationSite preparation

Data or system conversionData or system conversion

Cost Cost –– Benefit AnalysisBenefit AnalysisRecurring CostsRecurring Costs

Associated with ongoing use of the systemAssociated with ongoing use of the systemIncludes:Includes:

Application software maintenanceApplication software maintenanceIncremental data storage expenseIncremental data storage expenseNew software and hardware releasesNew software and hardware releasesConsumable suppliesConsumable supplies

Assessing Technical Assessing Technical FeasibilityFeasibility

Technical FeasibilityTechnical FeasibilityAssessment of the development organizationAssessment of the development organization’’s s ability to construct a proposed systemability to construct a proposed systemProject risk can be assessed based upon:Project risk can be assessed based upon:

Project sizeProject sizeProject structureProject structureDevelopment groupDevelopment group’’s experience with the applications experience with the applicationUser groupUser group’’s experience with development projects s experience with development projects and the application areaand the application area

Assessing Other Project Assessing Other Project Feasibility ConcernsFeasibility Concerns

Operational FeasibilityOperational FeasibilityAssessment of how a proposed system solves Assessment of how a proposed system solves business problems or takes advantage of business problems or takes advantage of opportunitiesopportunities

Schedule FeasibilitySchedule FeasibilityAssessment of time frame and project completion Assessment of time frame and project completion dates with respect to organization constraints for dates with respect to organization constraints for affecting changeaffecting change

Legal and Contractual FeasibilityLegal and Contractual FeasibilityAssessment of legal and contractual ramifications Assessment of legal and contractual ramifications of new systemof new system

Assessing Other Project Assessing Other Project Feasibility ConcernsFeasibility Concerns

Political FeasibilityPolitical FeasibilityAssessment of key stakeholders in organizationAssessment of key stakeholders in organization’’s s view toward proposed systemview toward proposed system

Building the Baseline Project PlanBuilding the Baseline Project Plan

Baseline is a document collected all Baseline is a document collected all information during project initiation and information during project initiation and planningplanningObjectivesObjectives

Assures that customer and development Assures that customer and development group have a complete understanding of group have a complete understanding of the proposed system and requirementsthe proposed system and requirementsProvides sponsoring organization with a Provides sponsoring organization with a clear idea of scope, benefits and duration clear idea of scope, benefits and duration of projectof project

Building the Baseline Project Building the Baseline Project PlanPlan

Four SectionsFour SectionsIntroductionIntroductionSystem DescriptionSystem DescriptionFeasibility AssessmentFeasibility AssessmentManagement IssuesManagement Issues

Estimating Time Required

• Expert judgement

• Historical Data

• Mathematic Models

Project Scheduling

• Grantt Chart

• PERT Diagram

Quiz !!!!!!!

การวิเคราะหความเปนไปไดที่โครงการในการพัฒนาระบบสารสนเทศของเราจะสําเร็จไดนั้นประกอบไปดวยปจจัยทั้ง 6 ปจจัย คิดวาปจจัยใดที่มีความสําคัญมากที่สุดเพราะเหตุใดจึงเปนเชนนั้น ????

The End