Date post: | 20-Dec-2015 |
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Identifying and Selecting Projects
Sources of project development requests:
1. Management and business units
2. Managers who want to make a system more efficient
3. Formal planning groups
Identifying and Selecting Projects
1. Project identification Bottom Up Identification
Business unit or IS group Top Down Identification
Senior management or steering committee
2. Classify and rank projects
Characteristics of project Selection Methods
Top management Greater strategic focus Largest project size Longest project duration
Steering committee Cross-functional focus Greater organizational change Formal cost –benefit analysis Larger and riskier projects
User department Narrow focus Faster development Fewer management layers & business functions
Development group Integration with existing system focus Less concern with cost-benefit analysis
Identifying and Selecting Projects
3. Select development projects Factors:
Perceived needs of the organization Existing systems and ongoing projects Resources available Evaluation criteria Current business conditions Perspectives of the decision makers
Project Evaluation Criteria
Value chain analysis
Strategic alignment
Potential benefits
Resource availability
Project size/duration
Technical difficulties
Decision Outcome
Accept project
Reject project
Delay project
Re-focus project
End-user development
Purchase system
Modify and re-submit
Project Initiation Activities
Establishing the project initiation team
Establish a relationship with the customer
Establish a project initiation plan
Establish management procedures & environment
Establish the project workbook
Project Planning Activities
Describe the project scope & feasibilityDivide the project into manageable tasksEstimate resources and create a resource planDevelop a preliminary scheduleDevelop a communication planDetermine project standards and proceduresIdentify and assess riskCreating a preliminary budget
Project Planning Objectives
Deliverables and Outcomes Baseline Project Plan (BPP)
Scope Benefits Costs Risks Resources
Statement of Work (SOW) Describes deliverables Outlines work needed to be performed
Business Case Outlines justification for the system
Assessing Project Feasibility
Six Categories Economic Operational Technical Schedule Legal and contractual Political
Assessing Economic Feasibility
Cost – Benefit Analysis
Determine Benefits Tangible Benefits
Can be measured in $ and with certainty Intangible Benefits
Cannot be easily measured in $ or with certainty
Assessing Economic Feasibility
Determine Costs Tangible/Intangible Costs
Can/Cannot easily be measured in $ and/or with certainty
One-Time vs. Recurring Costs Associated with startup & development vs. on-going use
of the system Fixed vs. Variable Costs
Billed at regular intervals and at fixed rates vs. cost items that vary in relation to usage
Examples of IS costsProcurement Consulting costs, Equipment purchase/lease & installation,
Site preparation, Capital costs, Personnel searches
Start-up Operating system software, Communications equipment,
Personnel hiring, Disruption
Project-related Application software & modifications, Personnel & overhead
from in-house development, User training, Documentation
Operating System maintenance, Space & equipment rental, Asset
depreciation, Personnel
Cost-benefit Analysis Techniques
Time value of money (TVM) The process of comparing present cash outlays
to future expected returns.
Net Present Value
Return on Investment
Break Even Analysis
Assessing Other Project Feasibility Concerns
Operational Feasibility Assessment of how a proposed system
solves business problems or takes advantage of opportunities
Political Feasibility Assessment of view of key stakeholders in
organization toward proposed system
Assessing Other Project Feasibility Concerns
Schedule Feasibility Assessment of timeframe and project
completion dates with respect to organization constraints for affecting change
Legal and Contractual Feasibility Assessment of legal and contractual
ramifications of new system
Technical FeasibilityProject size Duration, Number of project team members, Number of
organizational departments involved
Project structure Resultant organizational, procedural or personnel changes,
Amount of user involvement, Management commitment
Development group Familiarity with hardware, software development tools,
operating system and application area
User group Familiarity with systems development process and proposed
application area
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.
Building the Baseline Project Plan
Introduction Brief overview Recommended course of action Project scope defined
Units affected Interaction with other systems Range of system capabilities
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 schedule
Building the Baseline Project Plan
Management Issues Outlines concerns that management may
have about the project Team composition Communication plan Project standards and procedures
Reviewing the Baseline Project Plan
Objectives Assure conformity to organizational
standards All parties agree to continue with project
Walkthrough
Peer group review Participants
Coordinator Presenter User Secretary Standards Bearer Maintenance Oracle
Activities Walkthrough review form Individuals polled Walkthrough action list
Electronic Commerce Applications
Internet Transactions between individuals and business
Intranet Internet-based communication to support business
activities within a single organization
Extranet Internet-based communication to support
business-to-business activities
Internet Development
Electronic Data Interchange (EDI) The use of telecommunications
technologies to transfer business documents directly between organizations
Internet vs. Intranet/Extranet Apps Intranet/Extranet – Developer knows how
application will be run and used Internet – Developer faces various
unknowns
Web based System costs
Platform costs Web server, Server software, Software plug-ins,
Firewall server, Router, Internet connection
Content & service Web project manager, Technical site manager,
Content staff, Graphics staff, Support staff, fees to license outside content, Programming & research
Marketing Launch & public relations, Paid links to other web
sites, Promotions, Marketing & Sales staff