Systems Planning

Systems PlanningReview an IT/system request to determine if it presents a strong business caseConsideration of strategic plans, mission, goals, objectives, and IT plans.Conduct of preliminary investigationThe Business CaseReasons,justifications for an IT/IS proposalA strong business case suggests that the company should pursue the alternative, above other options because it would be the firms best interest to do so.The Business CaseThe analysis of a business case for a specific proposal must consider the companys mission, objectives, and IT needs.

Business CaseShould answer the questions:Why are we doing this project?What is the project about?How does this solution address key business issues?How much wil it cost and how long will it take?Will we suffer a productivity loss during the transition?What is the return of investment and payback period?

Business CaseShould answer the questions:What are the risks of doing the project? What are the risks of not doing the project?How will we measure success?What alternatives do we have?Strategic Plans-Framework for IT Systems DevelopmentStrategic planning is the process of identifying long-term(3, 5, 10 years) organizational goals, strategies, and resources.

Why do systems analysts need to know about strategic plans?Systems analysts should focus on the larger, strategic role of IT. SWOT Analysis in Strategic PlanningDuring strategic planning, top managers ask series of questions that is called SWOT analysis.

SWOT analysis contributes to the strategic planning by identifying technical, human, and financial resources.SWOT( S ) STRENGTHS - manager questions include: what are our major strengths, and how can we maximize them in the future? What must we do to strengthen our IT function, including our people and technology infrastructure?( W ) WEAKNESSES - manager questions include: what are our major weaknesses, and how can we overcome them? How should we address weaknesses in IT resources and capability?( O ) OPPORTUNITIES - manager questions include: what are our major opportunities, and how can we take full advantage of them, What IT plans do we have to support business opportunities?( T ) THREATS - manager questions include: what major threats do we face, and what can we do about them? What can we do to deal with potential threats to IT success?

Sample SWOT Analysis for a Companys IT ResourcesSTRENGTHS-excellent web design staff-low systems analyst turnover-recently upgraded network

WEAKNESSES-still using several legacy systems-budget increase was turned down-documentation needs updatingOPPORTUNITIES-well positioned for expansion-can be first with new software-high potential for B2B growthTHREATS-aggressive new Web competition-Impact of new FCC rules-Other firms offer better benefitsFrom Strategic Plans to Business ResultsMission statementStakeholdersGoalsObjectives

AvicennaSystem Analysis and Design System Planning

Mission StatementA mission statement is developed based on the firms purpose, vision, and values.

A mission statement describes a company for its stakeholders and briefly states the companys purpose, products, services, and values.

Mission StatementThe Central Luzon State University shall develop socially responsible and empowered human resources and knowledge for poverty alleviation, environmental protection and global competitiveness towards sustainable development.To refresh the world...To inspire moments of optimism and happiness...To create value and make a difference.-coca colaStakeholdersStakeholder include anyone affected by the companys operations, such as customers, employees, suppliers, stockholders, and members of the community.

GoalsThe company identifies set of goals to accomplish the companys stated mission long termObjectivesTo achieve its goals, the company develops a list of shorter-term objectives.Objectives might include tactical plans.Objectives translate into day-to-day business operations, supported by IT and other corporate resources.The outcome is a set of business results that affect company stakeholders.

The Role of the IT Dept in Project EvaluationManagement leadership and information technology are linked closely, and remarkable changes have occurred in both areasToday, systems development is much more team oriented(involves users, managers, and IT staff working right from the start) Although team-oriented development is the norm, some companies see the role of the IT department as a gatekeeper

Information Systems Projects- Project Initiation1. Projects may be initiated as part of the long-term strategic plan (top-down)based on mission or objective statement, come up with some competitive business strategyOpportunities for improvement throughUpgrading systemsAltering systemsInstalling new systems

AvicennaSystem Analysis and Design System PlanningInformation Systems Projects- Project Initiation2. Projects may proceed bottom upTo fill some immediate need that comes upcorrection of problems(organizational problems)

3. Projects may also be initiated due to some outside forceE.g. change in tax structure may affect billing systemInformation Systems Projects- Organizational ProblemsSituations in which goals have never been met or no longer being met.Evident gap between actual and intended performance.Performance measures are not being met.Do not meet baseline performance goals.

AvicennaSystem Analysis and Design System PlanningInformation Systems Projects- Organizational ProblemsAnalyst can identify problems by checking outputs against performance criteria:Too many errorsWork completed slowlyWork done incorrectlyWork done incompletelyWork not done at allAvicennaSystem Analysis and Design System PlanningInformation Systems Projects- Organizational ProblemsAnalyst can identify problems by checking outputs against performance criteria:

Too many errorsWork completed slowlyWork done incorrectlyWork done incompletelyWork not done at allAvicennaSystem Analysis and Design System PlanningInformation Systems Projects- Organizational Problems Managers may be alerted for problems by observing the behavior of employees:High absenteeismHigh job dissatisfactionHigh job turnover

AvicennaSystem Analysis and Design System PlanningInformation Systems Projects- Organizational ProblemsListen to feedback from vendors, customers, and suppliersComplaintsSuggestions for improvementLoss of salesLower sales

AvicennaSystem Analysis and Design System PlanningInformation Systems ProjectsFactors that Affect Systems ProjectsInternal and external factors affect every business decision that a company makes, and IT systems projects are no exception

AvicennaSystem Analysis and Design System Planning

Information Systems ProjectsInternal FactorsStrategic planTop managersUser requestsInformation technology departmentExisting systems and data

AvicennaSystem Analysis and Design System PlanningInformation Systems ProjectsStrategic planA companys strategic plan sets the overall direction for the firm and has an important impact on IT projects.Company goals and objectives that need IT support will generate system requests and influence IT priorities.A strategic plan that stresses technology offer better climate for new IS projects.AvicennaSystem Analysis and Design System PlanningInformation Systems ProjectsTop managersDirectives from top managers are prime source of large-scale system projects.Those directives are results of strategic business decisions which require new IT systems, more information for decision making, or better support for mission-critical information systems.AvicennaSystem Analysis and Design System PlanningInformation Systems ProjectsUser requests As user rely more heavily on IS, they are likely to request even more IT services and supportUsers satisfaction with the current systemNew business requirement that did not even exist when the existing system was developed

AvicennaSystem Analysis and Design System PlanningInformation Systems ProjectsInformation technology departmentRecommendations based on IT team knowledge of business operations and technology trendsIT proposals might be strictly technical matters, or business oriented AvicennaSystem Analysis and Design System PlanningInformation Systems ProjectsExisting systems and dataErrors or problems in existing systems can trigger requests for systems projectsDealing with legacy systemsAvicennaSystem Analysis and Design System PlanningInformation Systems ProjectsExternal Factors Technology changing technology is a major force affecting businessTelecommunications opened new ways for business Internet changed many business bases, virtual companys, online universities, internet banking, etc.New programming languages, and applications, make it easy for everyone to use computers CustomersCustomer are vitally important to any businessInformation systems that interact with customers takes the highest priorityIntegrated customers systems like marketing, sales, and customer service activities, is the real challenge for IT departments. (CRMs)CompetitorsCompetitors prices, services, and quality affect a companys decisions and plansDrives many information systems decisions

AvicennaSystem Analysis and Design System PlanningInformation Systems ProjectsExternal FactorsEconomyEconomic activity has a powerful influence on corporate information managementEconomic expansion needs scalable systems that can handle additional volume and growthGovernmentFederal, state, and local government regulations affect the design of corporate information systemsTax rules for sales products, income, and internet sales, affect companys systemsSuppliersRelationship with suppliers became critically importante.g. the use of EDI and JIT inventory systems

AvicennaSystem Analysis and Design System Planning32Information Systems ProjectsRisk ManagementEvery IT project involves risks(panganib) that system analysts and IT project managers must addressRisk management is the process of identifying, evaluating, tracking and controlling risks to minimize their impact.

AvicennaSystem Analysis and Design System Planning33Information Systems ProjectsRisk managementInformation that the analyst should take into consideration for each risk:Probability, which represents the probability that the risk will happen(expressed as percentage).Impact, which indicates the degree of adverse effect should the risk occur(may use scale of 1-10) .Cost, which indicates the potential financial impact of the risk.Category, which specifies the risk type.Description, which specifies the nature of the risk.Mitigation plan, which identifies plans to control or limit the risk. Contingency plan, which specifies actions to be taken if the risk occurs.Trigger, which identifies a condition that would initiate the contingency plan

AvicennaSystem Analysis and Design System Planning34Information System Projects- Systems RequestsA system request is a formal way of asking for IT SupportA system request is a document describing justifications for a project and the systems expected value.Many organizations use a special form for systems requests - Systems Request FormsA properly designed form streamlines the request process and ensures consistencyRequest form must be easy to understand and include clear instructions.

Information Systems Projects- Systems RequestsThe main reasons for systems requests areImproved serviceSupport for new products and servicesBetter performanceMore informationStronger controls: Encryption and biometric devicesReduced cost

AvicennaSystem Analysis and Design System Planning

36A systems analyst or IT Manager or a Review Committee(for large companies) reviews system requests from groups throughout the organization and selects projects for the benefit of the business. Projects are reviewed and selected based on business needs and project risks (prioritization).AvicennaSystem Analysis and Design System PlanningInformation Systems ProjectsInformation Systems ProjectsBusiness needs should drive projects.Business needs determine the systems functionality (what it will do).The projects business value should be clear.

AvicennaSystem Analysis and Design System PlanningEvaluation of Systems RequestsTo set priorities the review committee must take into consideration the request history and project selection criteria History of the project requestWho requested it?When did they request it?What do they expect?Source of funds(i.e. person or group who will fund the project) ?

AvicennaSystem Analysis and Design System Planning39Evaluation of Systems RequestsProject SelectionFive specific criteria for project selectionBacked by managementTimed appropriately for commitment of resourcesIt moves the business toward attainment of its goalsPracticableImportant enough to be considered over other projects

AvicennaSystem Analysis and Design System Planning40Evaluation of Systems RequestsOnce the number of requests has been narrowed according to the selection criteria, it is still necessary to determine if the selected projects are feasible or not, review committee must assess the feasibility of each systems request.AvicennaSystem Analysis and Design System Planning41Overview of FeasibilityA systems request must pass several tests, called a feasibility study, to see whether it is worthwhile to proceed further. Feasibility Study determines the probability of success of the proposed systems development projectFeasibility analysis is used to aid in the decision of whether or not to proceed with the project.

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[1] 42Overview of FeasibilityFour CategoriesOperationalTechnicalEconomicSchedule

AvicennaSystem Analysis and Design System Planning43Overview of FeasibilityOperational FeasibilityProposed system will be used effectively after it has been developedOperational feasibility determines if the human resources are available to operate the system once it has been installedUsers that do not want a new system may prevent it from becoming operationally feasible

AvicennaSystem Analysis and Design System Planning44Overview of FeasibilityOperational feasibility vital issuesDoes management support the project?Users support (is the proposed system well-liked, do users see the need for change?)Workforce reduction: if new system will affect workforce, what will happen to the affected employees?Users training Users involved in the development of new systemWill the new system place any new demands on users or require any operating expenses?Will customers experience adverse effects in any way, either temporarily or permanently? Is there any risk to the companys imageDoes the development schedule does not conflict with other company priorities?Do legal and ethical issues need to be considered? AvicennaSystem Analysis and Design System Planning45Overview of FeasibilityTechnical FeasibilityTechnical feasibility refers to technical resources needed to develop, purchase, install, or operate the system. Users and analysts familiarity with the business application areaFamiliarity with technologyHave we used it before? How new is it?Project sizeNumber of people, time, and featuresCompatibility with existing systemsAvicennaSystem Analysis and Design System Planning46Overview of FeasibilityPoints to be considered when assessing technical feasibilityDoes the company have necessary hardware, software, and network resources? If not, can these resources be acquired?Does the company have needed technical experience? If not, can it be acquired?Does the proposed platform have sufficient capacity for future needs? If not, can it be acquired?Will a prototype be required?Will the hardware and software environment be reliable? Will it integrate with other company information systems, both now and the future? Will it interface properly with external systems operated by customers and suppliers?Will the combination of hardware and software supply adequate performance?Will the system be able to handle future transaction volume and company growth?

AvicennaSystem Analysis and Design System Planning47Overview of FeasibilityEconomic FeasibilityMeans that the projected benefits of the proposed system outweigh the estimated costs (TCO Total Cost of Ownership).TCO is estimated in the folllowing areas:People, including IT staff and usersHardware and equipmentSoftware, including in-house development as well as purchase from vendorsFormal and informal trainingLicenses and feesConsulting expensesFacility costsThe estimated cost of not developing the system or postponing the project

AvicennaSystem Analysis and Design System Planning48ECONOMIC FEASIBILITYAnalyst need to assess tangible and intangible benefits and costs.Tangible benefitsCan be measured easilyExamplesCost reduction and avoidanceError reductionIncreased flexibilityIncreased speed of activityImproved management planning and controlOpening new markets and increasing sales opportunitiesReducing staff (due to automation)Maintaining constant staffDecreasing operating expensesReducing error rates (due to automation)

Overview of FeasibilityOverview of FeasibilityEnsuring quicker processing and turnaboutCapturing lost discountsReducing bad accounts or bad credit lossesReducing inventory or merchandise lossCollecting accounts receivable more quicklyCapturing income lost due to stock outsReducing the cost of goods with volume discountsReducing paperwork costs

AvicennaSystem Analysis and Design System Planning50Overview of FeasibilityIntangible benefitsAdvantages that are difficult to measure but are important to the companyExamplesIncreased employee moraleUser-friendly system that improves employee job satisfactionCompetitive necessityMore timely informationPromotion of organizational learning and understandingA new website that enhances the companys image

AvicennaSystem Analysis and Design System Planning51Overview of FeasibilityDetermine CostsTangible CostsCan easily be measured in dollarsExample: HardwareIntangible CostsCannot be easily measured in dollarsExamples:Loss of customer goodwillLoss of employee morale

AvicennaSystem Analysis and Design System Planning52Overview of FeasibilityOne-Time CostsAssociated with project startup, initiation and developmentIncludesSystem DevelopmentNew hardware and software purchasesUser trainingSite preparationData or system conversionAvicennaSystem Analysis and Design System Planning53Overview of FeasibilityRecurring CostsAssociated with ongoing use of the systemIncludes:Application software maintenanceIncremental data storage expenseNew software and hardware releasesConsumable suppliesIncremental communications

AvicennaSystem Analysis and Design System Planning54Overview of FeasibilityAssign Cost and Benefit ValuesDifficult, but essential to estimateWork with people who are most familiar with the area to develop estimatesIntangibles should also be quantifiedIf intangibles cannot be quantified, list and include as part of supporting material

AvicennaSystem Analysis and Design System Planning55Overview of FeasibilitySchedule FeasibilityAssessment of time frame and project completion dates with respect to organization constraints.A system analyst must consider the interaction between time and costsIssues that relate to schedule feasibility includes:Can the company or the IT team control the factors that affect schedule feasibility?Has management established a firm timetable for the project?What conditions must be satisfied during the development of the system ?Will an accelerated schedule pose any risks? If so, are the risks acceptable?Will project management techniques be available to coordinate and control the project?Will a project manager be appointed?

AvicennaSystem Analysis and Design System Planning56Evaluating FeasibilityThe first step in evaluating feasibility is to identify and weed out systems requests that are not feasibleEven if the request is feasible, it might not be necessarySystems requests that are not currently feasible can be feasible later due to technology improvementAn initially feasible project can be rejected later.Feasibility analysis is an ongoing task that must be performed throughout the systems development process

AvicennaSystem Analysis and Design System Planning57Evaluating FeasibilityProjects that meet the project selection criteria, as well as the feasibility criteria, should be chosen for further study to specify priority. AvicennaSystem Analysis and Design System Planning58Setting PrioritiesFactors that Affect PriorityWill the proposed system reduce costs? Where? When? How? How much?Will the system increase revenue for the company? Where? When? How? How much?

AvicennaSystem Analysis and Design System Planning59Setting PrioritiesFactors that Affect PriorityWill the systems project result in more information or produce better results? How? Are the results measurable?Will the system serve customers better?Will the system serve the organization better?

AvicennaSystem Analysis and Design System Planning60Setting PrioritiesFactors that Affect PriorityCan the project be implemented in a reasonable time period? How long will the results last?Are the necessary financial, human, and technical resources available? Whenever possible, the analyst should evaluate a proposed project based on tangible costs and benefits that represent actual (or approximate) dollar values.

AvicennaSystem Analysis and Design System Planning61Setting PrioritiesDiscretionary and Nondiscretionary ProjectsProjects where management has a choice in implementing them are called discretionary projectsProjects where no choice exists are called nondiscretionary projects

AvicennaSystem Analysis and Design System Planning62Project Management ToolsProject Management ToolsAll IT projects, large and small, must be managed and controlledProject management begins with a systems request, and continues until the project is completed or terminatedTwo tools for project planning and control are Gantt charts and PERT diagrams

AvicennaSystem Analysis and Design System Planning63Project Management ToolsGantt ChartsEasy to construct and useShows activities over a period of timeIt is a chart on which bars represent each task or activityThe length of each bar represents the relative length of the taskX axes indicates time and y axes indicates a description of activitiesActivities can overlap part of time

AvicennaSystem Analysis and Design System Planning64Project Management ToolsPERT DiagramPERT - Program Evaluation and Review TechniquePERT diagram represented by a network of nodes and arrows that are then evaluated to determine the critical activities, improve the schedule, and review progressPERT is useful when activities can be done in parallel rather than in sequencePERT diagrams show precedence, activities that must be completed before the next activities may be startedUsed to calculate the critical path, the longest path through the activitiesDetermines the shortest time to complete the project

AvicennaSystem Analysis and Design System Planning65Project Management ToolsPERT Diagram Example

AvicennaSystem Analysis and Design System Planning66Project Management Tools PERT Diagram

Preliminary Investigation OverviewPreliminary investigation used to study the system request and recommend specific actionAnalyst through interacting with managers and users gathers facts about the problem or opportunity, project scope and constraints, project benefits, and estimated development time and costsThe output of the preliminary investigation is a report to managementAvicennaSystem Analysis and Design System Planning68

Preliminary Investigation OverviewPreliminary investigationInteraction with Managers and UsersLet people know about the investigation and explain your roleEmployee attitudes and reactions are important and must be consideredBe careful in your use of the word problemAsk users about additional capability they would like to have

AvicennaSystem Analysis and Design System Planning69Preliminary Investigation OverviewPlanning the Preliminary InvestigationDuring a preliminary investigation, a systems analyst typically follows a series of stepsThe exact procedure depends on the nature of the request, the size of the project, and the degree of urgency

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Preliminary Investigation OverviewStep 1: Understand the Problem or OpportunityDetermine which departments, users, and business processes are involvedSystem request in general does not reveal the underlying problem, but only symptoms A popular technique for investigating causes and effects is called a fishbone diagram

AvicennaSystem Analysis and Design System Planning71Preliminary Investigation OverviewStep 1: Understand the Problem or Opportunityfishbone diagramAn analysis tool that represents the possible causes of a problemFirst states the problem as main boneSub-bones represent possible causes of the problemIn each sub-bone analyst identifies possible causes, draws them as horizontal sub-bonesAvicennaSystem Analysis and Design System Planning72

Preliminary Investigation OverviewStep 2: Define the Project Scope and ConstraintsProject scope defining project boundaries, or extentProject creep - projects with very general scope are at risk of expanding gradually without specific authorizationConstraint requirement or condition that the system must satisfy or an outcome that the system must achieve

AvicennaSystem Analysis and Design System Planning73Preliminary Investigation OverviewStep 2: Define the Project Scope and ConstraintsDetermining the project scope means defining the specific boundaries, or extent, of the projectDefine project scope by creating a list with sections called must do, should do, could do, and wont doProjects with very general scope may cause project creepA constraint is a requirement or condition that the system must satisfy or an outcome that the system must achieveSystem constraints also define project scope

AvicennaSystem Analysis and Design System Planning74Preliminary Investigation OverviewStep 2: Define the Project Scope and ConstraintsWhen examining constraints, analyst should identify their characteristicsPresent versus futureInternal versus externalMandatory versus desirableRegardless of the type, all constraints should be identified as early as possible to avoid future problems and surprisesAvicennaSystem Analysis and Design System Planning75

Preliminary Investigation OverviewStep 3: Perform Fact-FindingFact-finding involves various techniquesDepending on what information is needed to investigate the systems request, fact-finding might consume several hours, days, or weeksAnalyze Organization ChartsObtain organization charts to understand how the department functionsOrganization charts show formal reporting relationship but not the informal alignment of a group

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Preliminary Investigation OverviewStep 3: Perform Fact-FindingConduct interviewsDetermine the people to interview.Establish objectives for the interview.Develop interview questions.Prepare for the interview.Conduct the interview.Document the interview.Evaluate the interview.The purpose of the interview, is to uncover facts, not convince others that the project is justifiedIn an interview ask effective questionsInclude open ended questionsYou should interview managers and supervisors who have a broad knowledge of the systemYou might talk to operational personal to learn how the system functions on day-to-day basis

AvicennaSystem Analysis and Design System Planning77Preliminary Investigation OverviewStep 3: Perform Fact-FindingReview documentationTo learn more about the current systemObserve operationsTo see how workers carry out typical tasksTo follow the actual paths taken by input source documents or output reportsConduct a user surveyTo get information from a larger group Design a form that users complete It is not flexible as interviewLess expensive, less time, and can involve a broad cross-section of people

AvicennaSystem Analysis and Design System Planning78Preliminary Investigation OverviewStep 4: Evaluate FeasibilityEvaluate the projects operational, technical, economic, and schedule feasibility

AvicennaSystem Analysis and Design System Planning79Preliminary Investigation OverviewStep 5: Estimate Project Development Time and CostWhat information must you obtain, and how will you gather and analyze the information?What sources of information will you use, and what difficulties will you encounter in obtaining information?

AvicennaSystem Analysis and Design System Planning80Preliminary Investigation OverviewStep 5: Estimate Project Development Time and CostWill you conduct interviews? How many people will you interview, and how much time will you need to meet with the people and summarize their responses?Will you conduct a survey? Who will be involved? How much time will it take people to complete it? How much time will it take to prepare it and tabulate the results?

AvicennaSystem Analysis and Design System Planning81Preliminary Investigation OverviewStep 5: Estimate Project Development Time and CostHow much will it cost to analyze the information gathered and to prepare a report with findings and recommendations? You should provide an estimate for the overall project, so managers can understand the full cost impact and timetable

AvicennaSystem Analysis and Design System Planning82Preliminary Investigation OverviewStep 6: Present Results and Recommendations to ManagementThe final task in the preliminary investigation is to prepare a report to managementThe format of the preliminary investigation report varies from one company to anotherThe report includes an evaluation of system request, an estimate of costs and benefits, and your recommendation

AvicennaSystem Analysis and Design System Planning83Preliminary Investigation OverviewStep 6: Present Results and Recommendations to ManagementIntroductionIt contains a brief description of the system, the name of the person or group who performed the investigation, and the name of the person or group who initiated the investigationSystems request summaryIt describes the basis of the system requestFindingsIt contains the results of the preliminary investigationRecommendationsRecommendations for further action, with specific reasons and justification

AvicennaSystem Analysis and Design System Planning84Preliminary Investigation OverviewStep 6: Present Results and Recommendations to ManagementProject RolesLists the people who will participate in the project, and describes each persons roleTime & cost estimatesThis section describes the cost of acquiring and installing the system, and the total cost of ownership during the systems useful lifeExpected benefitsAnticipated tangible and intangible benefits and a timetable that shows when they are to occur AppendixIt includes in the report for supporting informationAvicennaSystem Analysis and Design System Planning85END OF PRESENTATION