Z556 Systems Analysis & Design Session 11 ILS Z556 1.

Z556 Systems Analysis & DesignSession 11

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Announcement

• Teamwork Presentation next week

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Evaluating Alternative Designs

Provide clients with some alternatives:

Expensive …. Inexpensive

Short-term …. Long-term


Consistent with Strategic Plan

Available Funds

Schedule and Resources

TechnologyRequired

Organizational Culture

Cost-Benefit Analysis

• 1. Identify the problem clearly• 2. Explicitly define the set of objectives

to be accomplished• 3. Generate alternatives that satisfy

the stated objectives• 4. Identify clearly the constraints (e.g.,

technological, political, legal, social, financial

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• 5. Determine and list the benefits and costs associated with each alternative

• 6. Calculate the benefit/cost ratios and other indicators (e.g., present value, payback period) for each alternatives

• 7. Prepare the final report, comparing the results

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Title Budget (Million)

Domestic BO (M)

World BO (M)

The Lord of the Rings: The fellowship of the ring

$109 $313.8 $860.7

The Two Towers $94 $340.5 $920.5

The Return of the king

$94 $377 $1129.2

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http://www.the-movie-times.com/thrsdir/alltime.mv?domestic+ByDG



Title Budget (Million)

Domestic BO (M)

World BO (M)

The Lord of the Rings: The fellowship of the ring

$109 $313.8 $860.7

The Two Towers $94 $340.5 $920.5

The Return of the king

$94 $377 $1129.2

Star Wars $11 $460.9 $797.9

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Shortcomings of the B/C Methodology• Doesn’t identify the scale of the

projects (ratio only)• Do not assess unquantifiable items in

financial terms• Introduce biases in the approaches to a

problem

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Cost-Effectiveness

• Effectiveness:• Value• Worth• Benefit• Utility• Gain• Performance

• Establish criteria & use weight (see Shtub, et al., 1994, Figure 3-3)

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Selecting Alternatives (Satzinger, et al., 2009)

• Identifying criteria:• General requirements (Fig. 8-7, p. 308)• Functional requirements (Fig. 8-8, p. 309)• Technical requirements (Fig. 8-9, p. 310)

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Requirements Weight (1-5) Option #1 Option #2 Option #2

Raw Extended Raw Extended Raw Extended

Requirements

as determined

by client or

thru analysis

Imp

orta

nce

of

requ

irem

ent

1= lo

w,

5= h

igh

Raw Score = How well option meets requirement. 0-not at all, 1-partially, 2-fully

Extended = Weight X Raw score


Requirements Weight (1-5) Option #1 Option #2 Option #2

Raw Extended Raw Extended Raw Extended

Total

Staff Comfort

External Support

Quick Release

Expandable

4

2

5

3

1

0

2

0

2

2

1

1

0

2

2

2

4

0

10

0

8

4

5

3

0

4

10

6

14 20 20



Positives• Objective – Surprise

Results

• Easy to read & understand

• Can be shared with client

• Modifiable based on client input

Negatives• Subjective weighting

• Must know all requirements

• Lengthy process if one solution is obvious

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Risk-payoff Analysis (Yen & Davis, 1999)

• Area 3: advance immediately

• Area 4: do nothing until resources or the expected payoff increases

• Area 1: wait until additional analysis reduces the risk

• Area 2: stop immediately

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payoffs

risks

Area 1high payoffhigh risk

Area 3high payofflow risk

Area 2low payoffhigh risk

Area 4low payofflow risk

Risk-Benefit Analysis (Shtub, et al., 1994, p. 134)

• Formulations• Problem (or risk) definition• Value system design• System synthesis

• Analysis• Forecast failures• Optimization and refinement of alternatives

• Interpretation• Decision making• Planning for action• Implementation

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Analyzing Forces: Force Field Analysis

• Is a method used to get a whole view of all the forces for or against a plan, so that

• Helps decision making which takes into account all interests.

• Is a specialized method of weighing pros and cons

• Where a plan has been decided on, • FFA allows you to look at all the forces

for or against the plan. • It helps you to plan or reduce the impact

of the opposing forces, and strengthen and reinforce the supporting forces.

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Force Field Analysis

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forces

opposing

forces

supporting Project Implementation

Analyzing Forces

• List all forces for change in one column, and all forces against change in another column.

• Assign a score to each force, from 1 (weak) to 5 (strong).

• Draw a diagram showing the forces for and against, and the size of the forces

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Force Field Analysis

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Information available more quickly

Accuracy and consistency of information

Free up people’s time to do more interesting tasks

Cost of technology

Staff dislike automated processes

Disruption during change

Complicated to implement

TOTAL: 13 TOTAL: 12

Plan: Upgrade company wide

information gathering

process from manual to automated

5

4

4

4

4

2

2

Forces for Change Forces against Change

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Information available more quickly

Accuracy and consistency of information

Free up people’s time to do more interesting tasks

Cost of technology

Staff dislike automated processes

Disruption during change

Complicated to implement

TOTAL: 13 TOTAL: 8

Plan: Upgrade company wide

information gathering

process from manual to automated

5

4

4

3

2

1

2

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Eliminates re-keying errors

Online documentation eliminates paper

Reduces need for clerical staff

Managers unhappy with “clerical work

Cost of eliminating clerical staff

Start-up costs

TOTAL: 10 TOTAL: 8

INITIATIVE

Implement a Self-Service HR System

Enables employees to self-manage their personal information,

such as vacation time,

payroll deductions,

benefit participation,

etc.

1

4

3

2

1

1


Faster execution of administrative work

1

Increases control/auditing capabilities

1

Requires training of more people

2

Some activity costs shift to high-paid staff

2

Rel

ativ

e F

orc

e S

tren

gth

Relative F

orce S

treng

th

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Eliminates re-keying errors

Online documentation eliminates paper

Reduces need for clerical staff

Managers unhappy with “clerical work

Cost of eliminating clerical staff

Start-up costs

TOTAL: 15 TOTAL: 7

INITIATIVE

Implement a Self-Service HR System

Enables employees to self-manage their personal information,

such as vacation time,

payroll deductions,

benefit participation,

etc.

3

4

3

2

1

1


Faster execution of administrative work

3

Increases control/auditing capabilities

2

Requires training of more people

1

Some activity costs shift to high-paid staff

2

Rel

ativ

e F

orc

e S

tren

gth

Relative F

orce S

treng

th

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Z556 Systems Analysis & Design Session 11 ILS Z556 1.

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Transcript of Z556 Systems Analysis & Design Session 11 ILS Z556 1.