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Lecture 4

Analysing the Business Case (1)System Users and their needs

Systems Analysis & DesignAcademic Year 2008/9

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Lecture Objectives

By the end of this lecture you will be able to:

Explain the concept of a Business Case (and how it affects an IT Project)

Describe the strategic planning process Explain the purpose of a mission statement Give reasons for information systems

projects and the factors that affect them.

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Systems Planning Phase

This lecture explains further the first phase in the Systems Development Life Cycle.

It explains why it is important to understand Business operations and requirements.

It examines how IT projects support a Company’s overall strategic plan and how systems projects get started.

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Six of the main reasons for Systems requests

P51 Shelley et al

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Systems requests and the business case

It is important that the system request takes into account the purpose of the Organisation.

It should aim to improve service or provide better performance.

It should recommend changes that are in the company’s best interests.

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The Business Case

During the systems planning phase the IT team reviews a proposal to determine if it presents a strong business case

The term ‘business case’ refers to the reasons for or justification for a proposal.

A strong business case means the proposals are in the company’s best interest.

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Systems requests can be the result of both internal and external factors

Page 51 Shelley et al

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Problem Identification

This important work is done by Systems Analysts and other IT professionals.

A clear set of objectives need to be defined

These objectives should reflect the Organisation’s “Mission statement”.

The aim is to discover options from which the Organisation can choose.

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System Users

A hierarchy still exists in most companies A systems analyst must understand the company’s organisation model in order to:

Recognise who is responsible for specific processes and decisions

What information is required by whom.

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Systems Users continued

Large organisations have Organisational levels

Each level has a different business function. Each category has differing information needs

and responsibilities

The following slide illustrates this

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P15 Shelley et al

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User Groups

User groups fall into 4 main categories:

Top Managers1. Middle Managers & Knowledge workers2. Supervisors and team leaders3. Operational employees

Another way to represent this is by Anthony’s triangle on the next slide:

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Tactical

Operational

Operational Activity

Strategic Planning

Management Control

Strategic Level

Management Control level

Middle Managers and knowledge workers

Operational Control

Operational employees

Top managers

Adaptation of Anthony’s triangle – showing organisational levels

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Activity time

In order to understand the structure of business operations further we will now do a short exercise.

You will be given an ID – you are either an A student, a B student or a C student.

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Activity time

Think about a Car Production plant –

A group be the Strategic Level B group be the Tactical LevelC group be the Operational level

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Activity time

Think about a Car Production plant –Working in twos - answer the following: 1. What activities would your group be

involved in? 2. What decisions would they have to

make, 3. what day to day activities would they

perform?

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Feedback time

Now its up to you to talk to your

Lecturer and other group members to fill in the gaps.

Remember time is precious – you may have to complete this after the lecture.

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System categories

We can divide systems into categories –

1. Decision support systems / Executive Information systems (top managers)

2. Office systems, (Admin) (Middle Managers and knowledge workers)

3. Operations systems (Transaction processing)

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User group 1 -Top Managers

Top Managers develop long-range plans called strategic plans,.

They need information from both inside and outside the company (e.g. economic forecasts, technology trends, competitive threats and governmental issues)

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User Group 2 -Middle Managers and Knowledge workers

Middle managers provide supervisors and team leaders with:

Direction Performance feedback Necessary resourcesIn addition every company needs

knowledge workers (Analysts, programmers, accountants etc)

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User group 3 - Supervisors and Team leaders

These employees:

Oversee operational employees Carry out day to day functions Need decision support information and

knowledge management systems in order to carry out their responsibilities

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User group 4 -Operational Employees

Rely upon Transaction processing systems

Their work is often to enter and receive data

They need information to handle specific tasks.

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Strategic planning risks

The greatest risk occurs when a company tries to decide how the system will be implemented before determining what the system is supposed to do.

To avoid this we have to begin by outlining a company’s user requirements, (and business needs) to identify possibilities or solutions.

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Strategic planning

Strategic planning is the process of identifying long term organisational goals, strategies and resources.

Strategic planning looks beyond the day to day activities and focuses on a horizon that is 5 to 10 years in the future.

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Mission Statements Objectives and IT needs

“To analyse the business case for a specific proposal, the Analyst must consider the company’s overall mission, objectives and IT needs.”

Ch.2 Shelley et al. Page 44.

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Preliminary investigation stage

As we learned in Lecture 3, systems development begins with:

1. A systems request

2. A preliminary investigation/feasibility study)

3. Fact finding

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Fact finding planning tools

Managers often do a SWOT analysis when planning for the future. This identifies the following:

STRENGTHS WEAKNESSES OPPORTUNITIES THREATSEach of these areas may lead to an IT related issue which in

turn requires, review, analysis and planning

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Strategic decision making is crucial for the future of a business as decisions made affect all levels of employees.

Example of a SWOT analysis result

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In conclusion:You should now be able to

Recognise that IT needs differ with user groups

Identify the organizational levels.

Explain the early stages of Systems development.

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Recommended Reading

Chapter 1 up to pages 20-25 of the recommended text

‘Systems Analysis & Design’, Shelley Cashman Series, Thomson Course Technology