Module 2 Slide Show

8/18/2019 Module 2 Slide Show

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CRICOS QLD00244B NSW 02225M TEQSA:PRF12081

CIS2000

Systems Analysis and Design

Module Two

Analyzing the Business Case

Note:

Students need to read Chapter 2 o Systems Analysis and Design !0th

"dition #y $arry %& 'osen#latt 20!(


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Chapter )#*e+ti,es

• Explain the concept of a business case and how a

business case affects an IT project

• Describe the strategic planning process and why it is

important to the IT team• Explain the purpose of a mission statement

• Conduct a SWOT analysis and describe the four

factors inoled

• Explain how the SD!C seres as a framewor" for

systems deelopment


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Chapter )#*e+ti,es -Cont&.

• !ist reasons for systems projects and factors

that affect such projects

• Describe systems re#uests and the role of the

systems reiew committee

• Define operational$ technical$ economic$ and

schedule feasibility

• Describe the steps and the end product of a

preliminary inestigation


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Introdu+tion

• %nalysts must consider company&s mission$

objecties$ and IT needs

• 'rocess starts with a systems re#uest

• 'reliminary inestigation follows to ealuate(

• )easibility study

• )act finding techni#ues

• *eporting to management


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% )ramewor" for IT Systems

Deelopment

• Strategi+ /lanning ),er,iew – Starts with a mission statement

– Continues with goals and objecties

– !ong and short+term goals identified

• hat Is S)T Analysis

– %n enterprise SWOT analysis usually begins with these #uestions(

• What are our strengths$ and how can we use them to achiee our business

goals,

• What are our wea"nesses$ and how can we reduce or eliminate them,• What are our opportunities$ and how do we plan to ta"e adantage of them,

• What are our threats$ and how can we assess$ manage$ and respond to the

possible ris"s,


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Deelopment -Cont./

1I3'" 245 Strategic planning is a dynamic process

that starts with a mission statement$ which is shaped

by the firm&s purpose$ ision$ and alues. The mission

generates goals and objecties that produce business

results -*osenblatt 0123/.

1I3'" 24( % SWOT

analysis might produce similar

results to those shown here

-*osenblatt 0123/.


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Deelopment -Cont./

1I3'" 246 This SWOT analysis example focuses on a specific

asset$ such as a company patent -*osenblatt 0123/.


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Deelopment -Cont./

Strategi+ /lanning or IT /ro*e+ts

• Careful planning can help assure that(

– The project supports oerall business strategy and

operational needs

– The project scope is well+defined and clearly stated

– The project goals are realistic$ achieable$ and tied

to specific statements$ assumptions$ constraints$factors$ and other inputs


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Deelopment -Cont./

• 'lanning Tools

– Some analysts use traditional text+based methods

li"e 4icrosoft Word

– Some analysts prefer a spreadsheet method li"e4icrosoft Excel

– The most effectie approach is to use a C%SE tool

such as 5isible %nalyst


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Deelopment -Cont./

1I3'" 247 The 5isible %nalyst C%SE tool supports strategic planning and allows a user to enter many

"inds of planning statements. 6otice the four SWOT categories highlighted in the list -*osenblatt 0123/.


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Deelopment -Cont./

• % 6ew *ole for the IT Department

– 4anagement and IT are lin"ed closely$ and

remar"able changes hae occurred in both areas

– Today$ systems deelopment is much more team+oriented

– %lthough team+oriented deelopment is the norm$

some companies see the role of the IT department

being screening and ealuating systems re#uests – !arger firms are more li"ely to use an ealuation team

or systems reiew committee


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What Is a 7usiness Case,

• % #usiness +ase refers to the reasons$ or

justification$ for a proposal

– Should be comprehensie$ yet easy to understand

– Should describe the project clearly$ proide the

justification to proceed$ and estimate the project&s

financial impact


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What Is a 7usiness Case, -Cont./

• % business case should answer the following

#uestions( – Why are we doing this project,

– What is the project about, – 8ow does this solution address "ey business issues,

– 8ow much will it cost,

– 8ow long will it ta"e,

– Will we suffer a productiity loss during the transition,


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What Is a 7usiness Case, -Cont./

• % business case should answer the following

#uestions -Cont./( – What is the return on inestment and paybac" period,

– What are the ris"s of doing the project, – What are the ris"s of not doing the project,

– 8ow will we measure success,

– What alternaties exist,


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Information Systems 'rojects

Main 'easons or Systems 'e8uests:

– Impro,ed Ser,i+e• Improing serice to customers or users within the company

– Support or New /rodu+ts and Ser,i+es• 6ew products and serices often re#uire new types or

leels of IT support

– Better /erorman+e

• Current system might not meet performance

re#uirements


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Information Systems 'rojects -Cont./

• 1a+tors That Ae+t Systems /ro*e+ts – Internal 1a+tors

• Strategic 'lan

• Top 4anagers

• 9ser *e#uests

• Information Technology Department

• Existing Systems and Data

– "9ternal a+tors• Technology

• Suppliers

• Customers

• Competitors

• The Economy

• :oernment


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Information Systems 'rojects -Cont./

1a+tors That Ae+t Systems /ro*e+ts

1I3'" 24!0 Internal and external factors that

affect IT projects -*osenblatt 0123/.


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Ealuation of Systems *e#uests

Systems *e#uest )orms

• Streamlines the re#uest process

• Ensures consistency

• Easy to understand• Includes clear instructions

• Indicates what supporting documents are needed

• Submitted electron


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Ealuation of Systems *e#uests -Cont./

1I3'" 24!5 Example of an online systems re#uest

form -*osenblatt 0123/.


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Ealuation of Systems *e#uests -Cont./

• Systems 'e,iew Committee

– With a broader iewpoint$ a committee can establish

priorities more effectiely than an indiidual

– One person&s bias is less li"ely to affect the decisions

– Disadantages(

• %ction on re#uests must wait until the committee meets

• 4embers might faor projects re#uested by their own

departments

• Internal political differences could delay important

decisions


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Oeriew of )easibility

• Is the proposal desirable in an operational sense, – Is it a practical approach that will sole a problem or ta"e adantage of an

opportunity to achiee company goals,

• Is the proposal technically feasible,

– %re the necessary technical resources and people aailable for the project,

• Is the proposal economically desirable,

– What are the projected saings and costs,

• %re other intangible factors inoled$ such as customer satisfaction

or company image,

– Is the problem worth soling$ and will the re#uest result in a sound business inestment,

• Can the proposal be accomplished within an acceptable time frame,


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Oeriew of )easibility -Cont./

1I3'" 24!( % feasibility study examines

operational$ technical$ economic$ and schedule

factors -*osenblatt 0123/.


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• )perational 1easi#ility

– Does management support the project,

• Do users support the project,

• Is the current system well li"ed and effectiely used,

• Do users see the need for change, – Will the new system result in a wor"force reduction,

• If so$ what will happen to affected employees,

– Will the new system re#uire training for users,

•If so$ is the company prepared to proide the necessary resourcesfor training current employees,

– Will users be inoled in planning the new system right from the

start,


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• )perational 1easi#ility -Cont&.

– Will the new system place any new demands on users or re#uire any

operating changes,

• )or example(

– Will any information be less accessible or produced less fre#uently,

– Will performance decline in any way, If so$ will an oerall gain to

the organi;ation outweigh indiidual losses,

– Will customers experience aderse effects in any way$ either temporarily

or permanently,

– Will any ris" to the company&s image or goodwill result,

– Does the deelopment schedule conflict with other company priorities,

– Do legal or ethical issues need to be considered,


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• Te+hni+al 1easi#ility

– Does the company hae the necessary hardware$ software$

and networ" resources,

• If not$ can those resources be ac#uired without difficulty,

– Does the company hae the needed technical expertise,

• If not$ can it be ac#uired,

– Does the proposed platform hae sufficient capacity for

future needs,

• If not$ can it be expanded,


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• Te+hni+al 1easi#ility -Cont&.

– Will a prototype be re#uired,

– Will the hardware and software enironment be reliable,

– Will it integrate with other company information systems$ both now

and in the future, – Will it interface properly with external systems operated by

customers and suppliers,

– Will the combination of hardware and software supply ade#uate

performance,

– Do clear expectations and performance specifications exist,

– Will the system be able to handle future transaction olume and

company growth,


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• "+onomi+ 1easi#ility – Costs for people$ including IT staff and users

– Costs for hardware and e#uipment

– Cost of software$ including in+house deelopment as well as

purchases from endors – Cost for formal and informal training$ including peer+to+peer

support

– Cost of licenses and fees

– Cost of consulting expenses

– )acility costs

– The estimated cost of not deeloping the system or postponing the

project


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• Tangi#le Beneits – % new scheduling system that reduces

oertime

– %n online pac"age trac"ing system thatimproes serice and decreases the need

for clerical staff

– % sophisticated inentory control system

that cuts excess inentory and eliminates

production delays


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• Intangi#le Beneits – % user+friendly system that improes employee

job satisfaction

– % sales trac"ing system that supplies betterinformation for mar"eting decisions

– % new Web site that enhances the company&s

image


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• S+hedule 1easi#ility – Can the company or the IT team control the factors that

affect schedule feasibility,

– 8as management established a firm timetable for the project,

– What conditions must be satisfied during the deelopment of

the system,

– Will an accelerated schedule pose any ris"s,

• If so$ are the ris"s acceptable,

– Will project management techni#ues be aailable tocoordinate and control the project,

– Will a project manager be appointed,


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Ealuating )easibility

• Identify and weed out systems re#uests that are

not feasible

• Een if the re#uest is feasible$ it might not be

necessary

• *e#uests that are not currently feasible can be

resubmitted as new hardware$ software$ or

expertise becomes aailable


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Setting 'riorities

• 1a+tors That Ae+t /riority – Will the proposed system reduce costs,

• Where, When, 8ow, 8ow much,

– Will the system increase reenue for the company,

• Where, When, 8ow, 8ow much,

– Will the systems project result in more information or produce better

results,

• 8ow, %re the results measurable,

– Will the system sere customers better,

–Will the system sere the organi;ation better,

– Can the project be implemented in a reasonable time period,

• 8ow long will the results last,

– %re the necessary financial$ human$ and technical resources aailable,


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Setting 'riorities -Cont./

• Dis+retionary /ro*e+ts – 'rojects where management has a choice in

implementing them

• Creating a new report for a user


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Setting 'riorities -Cont./

• Nondis+retionary /ro*e+ts – 'rojects where management has must implement

them

•%dding a report re#uired by federal law

• 4ost of these projects are predictable

– %nnual updates to payroll

– Tax percentages

–


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'reliminary Inestigation Oeriew

• Intera+tion with Managers and 3sers

– 4eet with "ey managers$ users$ and IT staff to

describe the project$ explain responsibilities$

answer #uestions$ and inite comments – )ocus on improements and enhancements$ not

problems


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'reliminary Inestigation Oeriew -Cont./

1I3'" 24!6 4odel of a preliminary

inestigation. 6otice the importance of

fact+finding in each of the four areas

-*osenblatt 0123/.

1I3'" 24!7 Six main steps in a typical

preliminary inestigation -*osenblatt0123/.


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• Step !: 3nderstand the /ro#lem or

)pportunity – Deelop a business profile that describes business processes and

functions

– 9nderstand how modifications will affect business operations

and other information systems

– Determine which departments$ users$ and business processes are

inoled

– Systems re#uest may not reeal an underlying problem

– Consider using a fishbone diagram


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1I3'" 24! % fishbone diagram displays the causes of a problem. Typically$ you

must dig deeper to identify actual causes rather than just symptoms -*osenblatt 0123/.


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• Step 2: Deine the /ro*e+t S+ope and Constraints – Define the specific boundaries$ or extent$ of the project

– Define project scope by creating a list with sections called 4ust

Do$ Should Do$ Could Do$ and Won&t Do

– Define project scope as clearly as possible to aoid project creep

– Identify Constraints• % constraint is a re#uirement or condition that the system must satisfy

or an outcome that the system must achiee


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1I3'" 24!; Examples of arious types of constraints -*osenblatt 0123/.


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• Step 5: /erorm 1a+t41inding – :ather data about project usability$ costs$ benefits$ and

schedules

– %naly;e organi;ation charts

• 9nderstand the functions and identify people you want

to interiew


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Step 5: /erorm 1a+t41inding -Cont&. – Condu+t Inter,iews

• Determine the people to interiew

•Establish objecties for the interiew

• Deelop interiew #uestions

• 'repare for the interiew

• Conduct the interiew

• Document the interiew

• Ealuate the interiew


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• Step 5: /erorm 1a+t41inding -Cont&. – 'e,iew Do+umentation

• Inestigate the current system documentation

• Chec" with users to confirm that you are receiing accurate

and complete information

– )#ser,e )perations

• See how wor"ers carry out typical tas"s

• Sample inputs and outputs of the system

1I3'" 2420 Sometimes$ an analyst can get

a better understanding of a system by

watching actual operations -*osenblatt 0123/.


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• Step 5: /erorm 1a+t41inding -Cont&. – Condu+t a 3ser Sur,ey

• % surey is not as flexible as a series of interiews$ but it is

less expensie$ generally ta"es less time$ and can inole a

broad cross+section of people

– Analyze the Data

• Systems analyst might use a 'areto chart

• %nalysts may use an => chart to identify if there is a

correlation of ariables


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1I3'" 242! % 'areto chart displays the causes of a

problem$ in priority order$ so an analyst can tac"le the most

important causes first. In this example$ the part number issue

would be the obious starting point -*osenblatt 0123/.

1I3'" 2422 %n => chart shows

correlation between ariables$ which is ery

important in problem soling. Conersely$ a

lack of correlation suggests that the ariables

are independent$ and that you should loo"

elsewhere for the cause -*osenblatt 0123/.


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CRICOS QLD00244B NSW 02225M TEQSA:PRF12081 4


• Step (: Analyze /ro*e+t 3sa#ility< Cost< Beneit<and S+hedule Data – What information must you obtain$ and how will you gather and

analy;e the information,

– Will you conduct interiews, 8ow many people will you interiew$and how much time will you need to meet with the people and

summari;e their responses,

– Will you conduct a surey, Who will be inoled, 8ow much time

will it ta"e people to complete it, 8ow much time will it ta"e to

tabulate the results,

– 8ow much will it cost to analy;e the information and prepare a

report with findings and recommendations,


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• Step 6: ",aluate 1easi#ility

– )/"'ATI)NA= 1"ASIBI=IT>

• *eiew of user needs$ re#uirements$ and expectations

• !oo" for areas that might present problems for system usersand how they might be resoled

– T"C$NICA= 1"ASIBI=IT>

• Identify the hardware$ software$ and networ" resources needed

to deelop$ install$ and operate the system

• Deelop a chec"list that will highlight technical costs and concerns


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• Step 6: ",aluate 1easi#ility -Cont&.

– "C)N)MIC 1"ASIBI=IT>

• %pply the financial analysis tools

• The cost+benefit data will be important

– SC$"D3=" 1"ASIBI=IT>

• Include sta"eholder expectations regarding acceptable timing and

completion dates


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• Step 7: /resent 'esults and 'e+ommendations toManagement – Typical *eport Includes(

• Introduction

• Systems *e#uest Summary

• )indings

• Case for %ction

• 'roject *oles

• Time and Costs Estimates

• Expected 7enefits

• %ppendix


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Chapter Summary

• Systems planning is the first phase of the systemsdeelopment life cycle

• % business case should describe the project clearly$ proide

the justification to proceed$ and estimate the project&s

financial impact

• 5arious internal and external factors affect systems projects$

such as user re#uests$ top management directies$ existing

systems$ the IT department$ software and hardware endors$technology$ customers$ competitors$ the economy$ and

goernment


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Chapter Summary -Cont./

• %nalysts ealuate the systems re#uest and determinewhether the project is feasible from an operational$

technical$ economic$ and schedule standpoint

• Steps in the preliminary inestigation are(

– 9nderstand the problem or opportunity

– Define the project scope and constraints

– 'erform fact+finding

– %naly;e project usability$ cost$ benefit$ and schedule data – Ealuate feasibility

– 'resent results and recommendations to management

* f


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*eference

• *osenblatt$ 8. ?. 0123$ System analysis and design$ 21th edn$

Cengage !earning$ 7oston$ 9S%.

Module 2 Slide Show

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