<style> :root{ --r-main-font-size:30px; } </style> ## INFO SYSTEMS ANALYSIS & DESIGN (F22)<br/>MSIT-3050---Chapter-02 --- # :face_with_raised_eyebrow: ## Waleed Abdul-Kader ### Senior Application Architect ---  Title: Systems Analysis and Design, 12th Edition ISBN-13: 9780357117811 ISBN-10: 0357117816 Author: Scott Tilley Edition: 012 --- # Chapter 02 ## Analyzing the Business Case --- ### Learning Objectives (1) * After this chapter, you will be able to: * Describe the strategic planning process * Conduct a SWOT analysis * Explain how tools can support strategic planning * Explain the concept of a business case * Summarize the six main reasons for systems requests * Describe the two factors affecting systems projects * Explain how systems requests are processed * Explain how systems request feasibility is assessed * Explain how systems requests are prioritized * Conduct a preliminary investigation --- ### Strategic Planning (1) - Process of identifying long-term organizational goals, strategies, and resources - Starts with a mission statement - Reflects the vision, purpose, and values - Critical success factor: high-priority objective - SWOT analysis - Strengths, weaknesses, opportunities, and threats - Examines technical, human, and financial resources --- ### Strategic Planning (2)  ##### FIGURE 2-1 A SWOT analysis might produce results similar to those shown here. --- ### Strategic Planning (3)  #### FIGURE 2-2 This SWOT analysis example focuses on a specific asset, such as a company patent. --- ### Strategic Planning (4) * The role of the IT department * Careful project planning * Supports overall business strategy and operational needs * Scope is well-defined and clearly stated * Goals are realistic, and tied to specific statements, assumptions, constraints, factors, and other inputs --- ### Strategic Planning Tools * Approaches vary * Microsoft Word and Excel * CASE tools * Mind maps * Balanced scorecards * Gap analysis --- #### The Business Case * Justification for a proposal * Comprehensive and easy to understand * Describe the project clearly, provide justification to proceed, and estimate financial impact * Many questions answered * Why are we doing this project? * How much will it cost and how long will it take? * Are there any risks involved? * How will we measure success? * What alternatives exist? --- ### Systems Requests (1) * Starting point for most information systems projects * Formal way of asking for IT support * Stronger controls * More information * Better performance * Improved service * More support for new products and services --- ### Systems Requests (2)  ##### FIGURE 2-4 Six main reasons for systems requests. --- ### Factors Affecting Systems Projects  ##### FIGURE 2-6 Internal and external factors that affect IT projects. --- ### Processing Systems Request (1) * Systems review committee or a computer resources committee * Evaluated systems requests * Systems request forms * Streamline the request process * Ensure consistency * Easy to understand * Include clear instructions * Indicate required supporting documents * Submitted electronically --- ### Processing Systems Request (2)  ##### FIGURE 2-10 Example of an online systems request form. >Source: Florida Institute of Technology --- ### Processing Systems Request (3) * Systems request tools * Used to help manage workflow * Systems review committee * Broader viewpoint enables a committee to establish priorities more effectively * One person’s bias is less likely to affect decisions * Disadvantages * Action on requests must wait until committee meets * Members might favor projects requested by their own departments --- ### Assessing Request Feasibility (1) * Feasibility studies can be simple or exhaustive * Effort required depends on nature of request * Initial fact-finding * Studying organizational charts * Performing interviews * Reviewing current documentation * Observing operations * Surveying users --- ### Assessing Request Feasibility (2)  ##### FIGURE 2-11 A feasibility study examines operational, technical, economic, and schedule factors. --- ### Assessing Request Feasibility (3) * Operational feasibility * Proposed system will be used effectively after it has been developed * Can be affected by organizational culture * Cannot be accurately measured but requires careful study * Questions that can help predict feasibility * Is the project supported by management and users? * Will the new system result in a workforce reduction? * Do legal or ethical issues need to be considered? --- ### Assessing Request Feasibility (4) * Economic feasibility * Projected benefits of a proposed system out-weigh total cost of ownership (TCO) * Determination of TCO requires cost analysis * People, including IT staff and users * Hardware and equipment * Software * Formal and informal training * Licenses and fees * Consulting expenses and facility costs * Estimated cost of not developing or postponing --- ### Assessing Request Feasibility (5) * Costs and benefits * Tangible costs are measured in dollars * Intangible costs can significantly affect organizational performance * Tangible benefits can result from a decrease in expenses or an increase in revenues * Intangible benefits are important to the company despite the inability to measure them in dollars --- ### Assessing Request Feasibility (6) * Technical feasibility * Technical resources required to develop and operate the system * Questions analysts should ask * Does the company have the necessary hardware, software, and network resources? * Does the company have the required technical expertise? * Does the proposed platform have sufficient capacity for future needs? * Will a prototype be required? --- ### Assessing Request Feasibility (7) * Schedule feasibility * Project implemented in an acceptable time frame * Issue: interaction between time and costs * Additional schedule feasibility issues * Can the company or the IT team control the factors that affect schedule feasibility? * Has management established a firm timetable? * What conditions must be satisfied? * Will an accelerated schedule pose any risks? * Will project management techniques be available? --- ### Setting Priorities (1) * Dynamic priorities * Changes can cause request priorities to change * Factors that affect priority * Will the proposed system reduce costs? * Will the system increase revenue? * Will the systems project result in more information or produce better results? * Will the system serve customers better? * Will the system serve the organization better? --- ### Setting Priorities (2) * Can the project be implemented in a reasonable time period? * Are the necessary financial, human, and technical resources available? --- ### Setting Priorities (3) * Discretionary projects * Projects where management has a choice in implementing them * Nondiscretionary projects * No choice * Many are predictable * Annual updates to payroll * Tax percentages * Quarterly changes --- ### The Preliminary Investigation (1) * Planning the preliminary investigation * Meet with key managers, users, and IT staff to describe the project, explain responsibilities, answer questions, and invite comments * Focus on improvements and enhancements, not problems --- ### The Preliminary Investigation (2)  ##### FIGURE 2-13 Model of a preliminary investigation. Notice the importance of fact-finding in each of the four areas. --- ### The Preliminary Investigation (3)  ##### FIGURE 2-14 Six main steps in a typical preliminary investigation. --- ### The Preliminary Investigation (4) * Planning the preliminary investigation * Step 1: understand the problem or opportunity * Develop a business profile that describes current business processes and functions * Understand how modifications will affect business operations and other information systems * Identify the departments, users, and business processes involved * Consider using a fishbone diagram --- ### The Preliminary Investigation (5) * Planning the preliminary investigation * Step 2: define the project scope and constraints * Define specific boundaries, or extent, of the project * Create a list with must do, should do, could do, and won’t do sections * Avoid project creep * Identify constraints --- ### The Preliminary Investigation (6)  ##### FIGURE 2-16 Examples of various types of constraints. --- ### The Preliminary Investigation (7) * Planning the preliminary investigation * Step 3: perform fact-finding * Gather data about project usability, costs, benefits, and schedules * Analyze organization charts * Conduct interviews * Review documentation * Observe operations * Conduct a user survey * Analyze the data --- ### The Preliminary Investigation (8) * Planning the preliminary investigation * Step 4: analyze project usability, cost, benefit, and schedule data * What information must be obtained, and how will it be gathered and analyzed? * Who will conduct the interviews? How many people will be interviewed? * Will a survey be conducted? Who will be involved? How much time will it take to tabulate the results? * How much will it cost to analyze the information and prepare a report with findings and recommendations? --- The Preliminary Investigation (9) * Planning the preliminary investigation * Step 5: evaluate feasibility * Operational feasibility * Technical feasibility * Economic feasibility * Schedule feasibility --- ### The Preliminary Investigation (10) * Summarizing the preliminary investigation * Format of a report * Introduction * Systems request summary * Findings * Recommendations * Project roles * Time and costs estimates * Expected benefits * Appendix --- ### Summary (1) * Systems planning * First phase of systems development life cycle * A business case is the reason for a proposed system * Describes the project clearly * Provides justification to proceed * Estimates project’s financial impact --- ### Summary (2) * Systems projects * Initiated to improve performance, provide more information, reduce costs, strengthen controls, or provide better service * Affected by various internal and external factors --- ### Summary (3) * Analysts evaluate the systems request * Determine whether the project is feasible * Steps in the preliminary investigation * Understand the problem or opportunity * Define the project scope and constraints * Perform fact-finding and analyze project usability, cost, benefit, and schedule data * Evaluate feasibility * Prepare a report to management --- # End of Chapter 02 --- ```text B2B: Business to Business B2C: Business to Customer SWOT: Strengths, Weaknesses, Opportunities, and Threats TCO: Total Cost of Ownership ```