Initiating and Planning Systems Development Projects

Information Systems System Analysis 421 Class Five

6.2

Learning Objectives

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Describe steps involved in the project initiation and planning process



Explain the need for and the contents of a Statement of Work and Baseline Project Plan



List and describe various methods for accessing project feasibility

6.3

Learning Objectives

   

Describe the differences between intangible and tangible costs and benefits and between recurring and one-time benefits and costs Detail various methods of cost/benefit analysis Describe the general rules for evaluating the technical risks associated with a systems development project Describe the activities and participant roles within a structured walkthrough

6.4

Initiating and Planning System Development Projects

• Project Initiation – Establishment of project team – Development of relationship with customer – Project Initiation Plan – Establishment of Management Procedures – Establishment of Project Workbook and Project

Management Environment

• Project Planning – Defining clear, discrete activities and the work needed to

complete each activity

6.5

Initiating and Planning System Development Projects

• Deliverables and Outcomes – Baseline Project Plan (BPP) • Scope • Benefits • Costs • Risks • Resources – Statement of Work (SOW) • Describes deliverables • Outlines work needed to be performed

6.6

Assessing Project Feasibility

• Six Categories – Economic – Technical – Operational – Schedule – Legal and contractual – Political

6.7

Assessing Economic Feasibility

• Cost – Benefit Analysis • Determine Benefits – Tangible Benefits • Can be measured easily – Examples » Cost reduction and avoidance » Error reduction » Increased flexibility » Increased speed of activity » Improved management planning and control » Opening new markets and increasing sales

opportunities

6.8

Assessing Economic Feasibility

– Intangible Benefits • Cannot be measured easily • Examples – Increased employee morale – Competitive necessity – More timely information – Promotion of organizational learning and understanding • Determine Costs – Tangible Costs • Can easily be measured in dollars – Example: Hardware

6.9

Assessing Economic Feasibility

• Determine Costs (Continued) – Intangible Costs • Cannot be easily measured in dollars • Examples: – Loss of customer goodwill – Loss of employee morale

6.10

Assessing Economic Feasibility

– One-Time Costs • Associated with project startup, initiation and

development

• Includes – System Development – New hardware and software purchases – User training – Site preparation – Data or system conversion

6.11

Assessing Economic Feasibility

– Recurring Costs • Associated with ongoing use of the system • Includes: – Application software maintenance – Incremental data storage expense – New software and hardware releases – Consumable supplies – Incremental communications – Time value of money (TVM) • The process of comparing present cash outlays to future

expected returns

6.12

Assessing Technical Feasibility

• Technical Feasibility • Assessment of the development organization’s ability to

construct a proposed system

• Project risk can be assessed based upon: – Project size – Project structure – Development group’s experience with the application – User group’s experience with development projects and

the application area

Technical Feasibility

– Technical feasibility addresses three major issues: • Is the proposed technology or solution practical?

• Do we currently possess the necessary technology?

• Do we possess the necessary technical expertise, and is the schedule reasonable?

Technical Feasibility

• Can we actually build this system?

• What happens if: – We don’t get the benefits we project?

– Our cost estimates are high? – Our time lines estimates are short?

Y2K?

– Fail to integrate new with old?

(Conversion problems)

• Easiest feasibility criterion • MIS is knowledgeable about the capabilities available

Operational Feasibility

– Operational feasibility criteria measure the urgency of the problem (survey and study phases) or the acceptability of a solution (definition, selection, acquisition, and design phases). – There are two aspects of operational feasibility to be considered: • Is the problem worth solving, or will the solution to the problem work?

• How do the end-users and management feel about the problem (solution)?

Operational Feasibility

– Is the Problem Worth Solving, or Will the Solution to the Problem Work?

• The following is a list of the questions that address these issues: – Performance. Does the system provide adequate throughput and response time?

– Information. Does the system provide end-users and formatted information?

– Economy. Does the system offer adequate service level and profits of the business?

Operational Feasibility

– Is the Problem Worth Solving, or Will the Solution to the Problem Work?

– Control. Does the system offer adequate controls to protect against fraud and embezzlement and to guarantee the – Efficiency. Does the system make maximum use of available resources including people, time, flow of forms, minimum service to those who need it? Is the system flexible and

Operational Feasibility

• How likely is it that this project will solve the real ROOT problems?

Titanic

• How will this system impact the organization?

Surprise impact of our Navy Intelligence system

Political Feasibility

– How do End-Users and Managers Feel about the Problem (Solution)?

• It's not only important to evaluate whether a system can work but also evaluate whether a system will work.

• A workable solution might fail because of end-user or management resistance. The following questions address this concern: – Does management support the system?

– How do the end-users feel about their role in the new system?

– What end-users or managers may resist or not use the system? People tend to resist change. Can this problem be overcome? If so, will end-users and management adapt to the change?

Political Feasibility

• How do the end users and management feel about the problem • How will the working environment of the end user change • If the users are not ready than no project is worth pursuing!

• Usability Analysis - ease of learning ,use and satisfaction

Schedule Feasibility

– Given our technical expertise, are the project deadlines reasonable? • Some projects are initiated with specific deadlines. – You need to determine whether the deadlines are mandatory or desirable. – If the deadlines are desirable rather than mandatory, the analyst can propose alternative schedules.

• It is preferable (unless the deadline is absolutely mandatory) to deliver a properly functioning information system two months late than to deliver an error-prone, useless information system on time! – Missed schedules are bad. – Inadequate systems are worse!

6.22

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

6.23

Building the Baseline Project Plan • Four Sections – Introduction – System Description – Feasibility Assessment – Management Issues

6.24

Building the Baseline Project Plan • Executive Summary • Project Description – Brief overview – Recommended course of action – Project scope defined • Units affected • Who inside and outside the organization would be

involved

• Interaction with other systems • Range of system capabilities

6.25

Building the Baseline Project Plan • System Description – Outline of possible alternative solutions – Narrative format • Feasibility Assessment – Project costs and benefits – Technical difficulties – High-level project schedules

6.26

Building the Baseline Project Plan

• Management Issues – Outlines concerns that management may have about

the project

– Team composition – Communication plan – Project standards and procedures • Objectives – Assure conformity to organizational standards – All parties agree to continue with project

6.27

Reviewing the Baseline Project Plan

• Walkthrough – Peer group review – Participants • Coordinator • Presenter • User • Secretary • Standards Bearer • Maintenance Oracle

6.28

Reviewing the Baseline Project Plan

• Walkthrough (continued) – Activities • Walkthrough Review Form • Individuals polled • Walkthrough Action List – Advantages • Assures that review occurs during project

6.29

Summary

• Project Initiation – Forming project initiation team – Establishing customer relationships – Developing a plan to get the project started – Setting management procedures – Creating an overall project management environment • Baseline Project Plan (BPP) – Created during project initiation and planning

6.30

Summary

– Contains: • Introduction • High-level description of system • Outline of feasibility • Overview of management issues • Statement of Work (SOW) – Describes what project will deliver – Lists all work to be performed

6.31

Summary

• Feasibility – Economic – Operational – Technical – Schedule – Legal – Contractual – Political

6.32

Summary

• Benefits – Tangible vs. Intangible • Costs – Tangible vs. Intangible – One-time vs. Recurring