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Systems Analysis and Systems Analysis and Design with UML Version Design with UML Version 2.02.0

Chapter 3: Project Initiation

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Key Ideas

Projects being when someone sees an opportunity to create business value from using information technology.Feasibility analysis is used to aid in the decision of whether or not to proceed with the IS project.

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Key Ideas

The project sponsor is a key person proposing development or adoption of the new information technology .The approval committee reviews proposals from various groups and units in the organization and decides which to commit to developing.

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System Request

A system request is a document that describes the business reasons for building a system and the value that the system is expected to provide.The completed system request is submitted to the approval committee for consideration.

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System Request

Most system requests include five elements:

Project sponsorBusiness needFunctionalityExpected valueSpecial issues or constraints

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Applying the Concepts at CD Selections

CD Selections is a chain of fifty music stores located in California, with headquarters in Los Angeles.Margaret Mooney, Vice President of Marketing, has recently become both excited by and concerned with the rise of Internet sites selling CDs. The Internet has great potential, but Margaret wants to use it in the right way. Rushing into e-commerce without considering things like its effect on existing brick-and-mortar stores and the implications on existing systems at CD Selections could cause more harm than good.CD Selections currently has a Web site that provides basic information about the company and about each of its stores. (See page 63).

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FEASIBILITY ANALYSIS

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Feasibility Analysis

Feasibility analysis guides the organization in determining whether to proceed with a project.Feasibility analysis also identifies the important risks associated with the project that must be addressed if the project is approved.

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Feasibility Analysis

Detailing Expected Costs and Benefits

Technical feasibilityEconomic feasibilityOrganizational feasibility

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Technical Feasibility:Can We Build It?

The extent to which the system can be successfully designed, developed, and installed by the IT group. Technical feasibility analysis is in essence a technical risk analysis that strives to answer the question: “Can we build it?”

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Technical Feasibility Factors:

Familiarity with applicationKnowledge of business domain.

Familiarity with technologyExtension of existing firm technologies.

Project sizeNumber of people, time, and features.

Compatibility: The harder it is to integrate the system with the company’s existing technology.

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Economic FeasibilityShould We Build It?

An economic feasibility analysis (also called a cost–benefit analysis) identifies the financial risk associated with the project. Economic feasibility is determined by identifying costs and benefits associated with the system, assigning values to them, and then calculating the cash flow and return on investment for the project. This attempts to answer the question: “Should we build the system?”

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Economic Feasibility Factors:

Development costsAnnual operational costsAnnual benefitsIntangible costs and benefit

Example Costs and Benefits

Assign Values to Costs and Benefits

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Cash Flow Method for Cost Benefit Analysis

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Organizational FeasibilityIf we build it, will they come?

Organizational feasibility of the system determining how well the system ultimately will be accepted by its users and incorporated into the ongoing operations of the organization.

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Organizational FeasibilityIf we build it, will they come?

Project champion(s)The champion is a high-level non-IS executive who is usually but not always the person who created the system request.

Organizational managementmanagement should encourage people to use the system and to accept the changes that the system will likely create.

System users

Applying the Concepts at CD Selections

A senior systems analyst, Alec Adams, was assigned to help Margaret conduct a feasibility analysis because of his familiarity with CD Selections’ sales and distribution systems.Alec and Margaret worked closely together over the next few weeks on the feasibility analysis. (See page 75)

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SummaryProject initiation involves creating and assessing goals and expectations for a new system

The system request describes an overview of the proposed system.The feasibility study is concerned with insuring that technical, economic, and organizational benefits outweigh costs and risks