BUSI 3402 CU Information Systems Can Help with An Organization Mission Question

Systems Analysis and Design Winter 2022
Assignment 2- Planning
.
Q1: Explain how information systems planning can help with an organization?s mission,
objectives, and competitive strategy
Q2: Economic feasibility analysis:
A. Consider the benefits of developing an information system at $55,000 per year, onetime costs of $40,000, recurring costs of $30,000 for first four years and recurring costs
of $35,000 for years 5th to 8th, a discount rate of 8 percent, and an 8- years? time
horizon, calculate the net present value of these costs and benefits of an information
system. Also calculate the overall return on investment of the project and then present
a break-even analysis. At what point does breakeven occur?
B. Change the discount rate to 10 percent, the recurring costs to $35,000 for all years and
redo the analysis.
) All calculations of annually variables are included in the answer & Preferably Excel format(
Please submit your file in pdf or docx format on Brightspace by specified due date, otherwise,
there will be 25% penalty. Use Times New Roman font, size 12 and minimum line spacing (1.0),
and the number of pages with questions should not exceed Three.
Econmic feasibility Analysis
Year of project
Build New System
Discunt Rate (12%)=1/power((1+.12),Year n)
PV of benefits
0
$0
1
$50,000
2
$50,000
3
$50,000
($28,500)
($28,500)
($28,500)
1
2
3
NPV of all benefits
one-time COSTS
($42,500)
Continue Maintaining Existing System
Recuring Costs
Discubt Rate (12%)
PV of Recurring Costs
NFV of All COSTS
Overall NFV
ROI=Overall NPV /NPV of Costs
Year ofproject
Break-Even Analyis
Yearly NPV Cash low
Overall NPV Cash Flow
0
Project break-even occursbetween years _ and _ :
break-even ratio = (yearly NPV cash flow – general PV cash flow) / yearly NPVcash flow
Break-Even occurs in ? years
Note All dollar values have been rounded to the nearest dollar.
4
$50,000
5 TOTALS
$50,000
$0
($28,500)
($28,500)
$0
$0
#DIV/0!
4
5
BUSI 3402A
Systems Analysis and Design
Chapter 4
Identifying and Selecting Systems
Development Projects
Learning Objectives
? Describe the project identification and selection process.
? Describe corporate strategic planning and information
systems planning process.
? Explain the relationship between corporate strategic
planning and information systems planning.
? Describe how information systems planning can be used to
assist in identifying and selecting systems development
projects.
? Describe the three classes of Internet electronic commerce
applications: business-to-consumer, business-to-employee,
and business-to- business.
BUSI 3402A – Systems Analysis and Design – Chapter 4
2
Project identification and selection
? Based on organizational benefit, available
resources
? Identifying and assessing all possible
systems development projects
? Selection based on a very formal process
(big companies) or informal (small
companies)
Some sources of IS development requests:
? Managers and business units for
replacing or extending an existing system
? IS managers who want to make a new
system more efficient and less costly
? A formal planning group for helping the
organization meet its corporate objectives
Figure 4-1
Systems development life cycle with project
identification and selection highlighted
3
BUSI 3402A – Systems Analysis and Design
The Process of Identifying and Selecting
Three steps to complete the process:
1. Identifying potential development projects
Performed by top management (CEO or a senior executive), a steering committee, user
departments, or the development group or a senior IS manager
Characteristics of alternative Methods for Making Decisions
Decision maker
Characteristics
Top Management
Greater strategic focus
Largest project size
Longest project duration
Enterprise-wide consideration
Steering Committee
Cross-functional focus
Greater organizational change
Formal cost?benefit analysis
Larger and riskier projects
user departments
(Functional Area)
Narrow, nonstrategic focus
Faster development
Fewer users, management layers, and business functions involved
IS Development Group
Integration with existing systems focus
Fewer development delays Less concern with cost?benefit analysis
4
BUSI 3402A – Systems Analysis and Design
The Process of Identifying and Selecting ? Cont.
2. Classifying and ranking IS development projects through
assessing the relative merit of potential projects, perform by four
decision makers, and evaluate by the below methods:
5
BUSI 3402A – Systems Analysis and Design
The Process of Identifying and Selecting ? Cont.
e.g., Value Chain Analysis
think about an organization as a big input/output process
In value chain analysis:
– understand each activity, function, and process where value is or should
be added.
– determine the costs (and the factors that drive costs or cause them to
fluctuate) within each of the areas.
– To identify priorities for applying information systems projects, compare
your value chain and associated costs with those of other organizations,
preferably your competitors.
6
BUSI 3402A – Systems Analysis and Design
The Process of Identifying and Selecting ? Cont.
3. Selecting IS development projects: Project selection is an ongoing process
of considering numerous factors and both short- and long-term projects and
selecting those most likely to achieve business objectives.
Fig: Project selection decisions must
consider numerous factors and can have
numerous outcomes
7
BUSI 3402A – Systems Analysis and Design
The Process of Identifying and Selecting ? Cont.
One method for deciding among different projects
Figure 4-4: Alternative projects and system design decisions
can be assisted using weighted multicriteria analysis
8
BUSI 3402A – Systems Analysis and Design
The Process of Identifying and Selecting ? Cont.
Deliverables and outcomes:
To move into the next part of the planning phase?project initiation and
planning, the first part of the planning deliverable is a schedule of specific IS
development projects.
Incremental commitment
A strategy in systems analysis
and design in which the project
is reviewed after each phase
and continuation of the project
is re-justified.
Figure 4-5: Information systems development projects come
from both top-down and bottom-up initiatives
9
BUSI 3402A – Systems Analysis and Design
Corporate and Information Systems Planning
To benefit from a planning-based approach for identifying and
selecting projects, an organization must:
?
Analyze its information needs thoroughly.
?
Plan its projects carefully.
Reasons for Importance of Improved Planning:
?
Increasing cost of information systems (40% of
organizational expense)
?
Lack of cross-organizational applications and systems
?
Systems don?t address critical strategic problems
?
Too much data redundancy, lack of data quality
?
High system maintenance costs
?
Long application backlogs
10
BUSI 3402A – Systems Analysis and Design
Corporate Strategic Planning
?
?
Ongoing process that defines
mission, objectives, and
strategies of an organization.
Corporate strategy involves:
? Mission
statement
? Objective
statements
? Description
strategy
of competitive
11
BUSI 3402A – Systems Analysis and Design
Figure 4-6: Corporate
strategic planning is a
three step Process
Corporate Strategic Planning ? Cont.
Mission statement:
a statement that
makes it clear what
business a company
is in.
Figure 4-7: Mission statement
(Pine Valley Furniture)
12
BUSI 3402A – Systems Analysis and Design
Corporate Strategic Planning ? Cont.
Objective statements: a series of statements that express
an organization?s qualitative and quantitative goals for
reaching a desired future position.
e.g., Statement of corporate objectives
(Pine Valley Furniture)
1. PVF will strive to increase market share and profitability (prime objective).
2. PVF will be considered a market leader in customer service.
3. PVF will be innovative in the use of technology to help bring new products
to market faster than our competition.
4. PVF will employ the fewest number of the highest-quality people necessary
to accomplish our prime objective.
5. PVF will create an environment that values diversity in gender, race, values,
and culture among employees, suppliers, and customers.
13
BUSI 3402A – Systems Analysis and Design
Corporate Strategic Planning ? Cont.
Description of competitive strategy: the method by which an organization
attempts to achieve its mission and objectives
Three main strategies defined by Michael Porter (1980) for reaching corporate
objectives:
?
Low-cost producer
?
Product differentiation
?
Product focus or niche
Table 4-3: Generic Competitive Strategies
(Source: Based on The Free Press, a Division of Simon & Schuster Adult Publishing Group, from Porter, 1980. Copyright ? 1980,
1998 by The Free Press. All rights reserved.)
14
BUSI 3402A – Systems Analysis and Design
Information Systems Planning (ISP)
?
?
An orderly means of
assessing the
information needs of
an organization and
defining the systems,
databases, and
technologies that will
best meet those needs
ISP must be done in
accordance with the
organization?s mission,
objectives, and
competitive strategy.
Figure 4-9: Information systems
planning is a three- step process
15
BUSI 3402A – Systems Analysis and Design
Information Systems Planning (ISP) ? Cont.
Figure 4-10: Parallel activities of
corporate strategic planning and
information systems planning
16
BUSI 3402A – Systems Analysis and Design
Information Systems Planning (ISP) ? Cont.
?
?
Top-down planning attempts to gain a broad
understanding of information system needs of the
entire organization and offers (advantages):
?
Broader perspective.
?
Improved integration.
?
Improved management support.
?
Better understanding.
Bottom-up planning identifies IS development projects
based on solving specific operational business
problems or taking advantage of specific opportunities.
?
Can be faster and less costly, so may be beneficial in certain
circumstances.
17
BUSI 3402A – Systems Analysis and Design
Information Systems Planning (ISP) ? Cont.
The portions of the business functions, data entities, and
information systems of PVF
18
BUSI 3402A – Systems Analysis and Design
Information Systems Planning (ISP) ? Cont.
Functional
Decomposition:
breaking high-level
abstract information
into smaller units for
more detailed planning
Figure 4-12: Functional
decomposition of information
systems planning information
(Pine Valley Furniture) (Source:
Microsoft Corporation.)
19
BUSI 3402A – Systems Analysis and Design
Information Systems Planning (ISP) ? Cont.
? IS planning matrices describe relationships between pairs
of organizational elements (location, function, business unit,
objective, process, data, information system).
? Types of Planning Matrices:
? Location-to-Function
? Location-to-Unit
? Unit-to-Function
? Function-to-Objective
? Function-to-Process
? Function-to-Data Entity
? Process-to-Data Entity
? Process-to-Information System
? Data Entity-to-Information System
? Information System-to-Objective
20
BUSI 3402A – Systems Analysis and Design
Information Systems Planning (ISP) ? Cont.
Data Entity-to-Business Function matrix (Pine Valley Furniture)
21
BUSI 3402A – Systems Analysis and Design
IS Plan Components
?Organizational Mission, Objectives, and Strategy
? Brief description of mission, objectives, and
strategy of the organization
?Information Inventory
? Summary of processes, functions, data entities,
and information needs of the enterprise
?Mission and Objectives of IS
? Primary role IS will play in the organization to
transform enterprise from current to future state
?Constraints on IS Development
? Limitations imposed by technology and current
levels of financial, technical, and personnel
resources
22
BUSI 3402A – Systems Analysis and Design
IS Plan Components ? Cont.
?Systems Needs and IS Strategy
? Summarize overall information systems needs in
the company and set long-term (2-5 year)
strategies for filling the needs
?Short Term Plan
? Detailed inventory of present projects and systems
and detailed plan for the current year
?Conclusions
? Unknown but likely events that can affect the plan,
presently known business change elements and
their impact on the plan
23
BUSI 3402A – Systems Analysis and Design
Information Systems Plan
Figure 4-16
Systems development projects flow from
the information systems plan
24
BUSI 3402A – Systems Analysis and Design
Electronic Commerce Applications and Internet Basics
?Internet: a large worldwide network of
networks that use a common protocol to
communicate with each other
?Electronic Commerce (EC): Internet-based
communication to support day-to-day
business activities
?Electronic data interchange (EDI): the use
of telecommunications technologies to
directly transfer business documents
between organizations
25
BUSI 3402A – Systems Analysis and Design
Electronic Commerce Applications and Internet Basics ? Cont.
?Business-to-consumer (B2C): electronic commerce
between businesses and consumers
?Business-to-business (B2B): electronic commerce
between business partners, such as suppliers and
intermediaries
?Business-to-employee (B2E): electronic commerce
between businesses and their employees
26
BUSI 3402A – Systems Analysis and Design
Electronic Commerce Applications and Internet Basics ? Cont.
User
? Concern: Who is the user?
? Example: Where is the user located? What is the user?s expertise or
education? What are the user?s expectations?
Connection Speed:
? Concern: What is the speed of the connection and what information can be
effectively displayed?
? Example: Wireless Modem, Cable Modem, Satellite, Broadband,
Cellular(Mobile)
Access Method:
? Concern: What is the method of accessing the net?
? Example: Web Browser, Android or iOS Apps, Tablet, Web-enabled TV
Table 4-5: Unknowns That Must be Dealt with When Designing and
building Internet applications
27
BUSI 3402A – Systems Analysis and Design
Summary
In this chapter you learned how to:
? Describe the project identification and selection process.
? Describe corporate strategic planning and information
systems planning.
? Explain the relationship between corporate strategic
planning and IS planning.
? Describe how IS planning can assist in system development
project identification and selection.
? Analyze IS planning matrices.
? Describe three classes of E-Commerce applications.
28
BUSI 3402A – Systems Analysis and Design
BUSI 3402A
Systems Analysis and Design
Chapter 5
Initiating and Planning Systems
Development Projects
Learning Objectives
? Describe the steps involved in the project
initiation and planning process.
? Explain the need for and the contents of a
Project Scope Statement and Baseline Project
Plan.
? List and describe various methods for
assessing project feasibility.
? Describe the differences between tangible and
intangible benefits and costs, and between
one-time vs. recurring benefits and costs.
30
BUSI 3402A – Systems Analysis and Design
Learning Objectives (Cont.)
? Perform cost-benefit analysis and describe
what is meant by the time value of money,
present value, discount rate, net present value,
return on investment, and break-even analysis.
? Describe the general rules for evaluating
technical risks associated with a systems
development project.
? Describe the activities and participant roles
within a structured walkthrough.
31
BUSI 3402A – Systems Analysis and Design
Initiating and Planning Systems Development Projects
What must be considered when making the
decision on the division between project
initiation and planning (PIP) and analysis?
? How
much effort should be expended on the
PIP process?
? Who is responsible for performing the PIP
process?
? Why is PIP such a challenging activity?
32
BUSI 3402A – Systems Analysis and Design
The Process of Initiating and Planning IS Development Projects
FIGURE 5-1
Systems development life cycle
with project initiation and
planning highlighted
33
BUSI 3402A – Systems Analysis and Design
The Process of Initiating and Planning IS Development Projects – (Cont.)
?
Project initiation focuses on activities designed
to assist in organizing a team to conduct project
planning.
? Establishing
the Project Initiation Team
? Establishing a Relationship with the Customer
? Establishing the Project Initiation Plan
? Establishing Management Procedures
? Establishing the Project Management Environment
and Project Workbook
? Developing the Project Charter (see Ch 3)
34
BUSI 3402A – Systems Analysis and Design
The Process of Initiating and Planning IS Development Projects (Cont.)
?
Project planning
? The
key activity of project planning is the
process of defining clear, discrete activities
and the work needed to complete each
activity within a single project.
? The
objective (outcomes and deliverables) of
the project planning process is the
development of a Baseline Project Plan (BPP)
and the Project Scope Statement (PSS).
35
BUSI 3402A – Systems Analysis and Design
The Process of Initiating and Planning IS Development Projects (Cont.)
?
Business Case
? Justification
for an information system
? Presented in terms of the tangible and
intangible economic benefits and costs
? The technical and organizational feasibility of
the proposed system
36
BUSI 3402A – Systems Analysis and Design
Elements of Project Planning
? Describe
project scope, alternatives,
feasibility.
? Divide project into tasks.
? Estimate resource requirements and
create resource plan.
? Develop preliminary schedule.
? Develop communication plan.
37
BUSI 3402A – Systems Analysis and Design
Elements of Project Planning (Cont.)
? Determine
standards and
procedures.
? Identify and assess risk.
? Create primary budget.
? Develop a statement of work.
? Set baseline project plan.
38
BUSI 3402A – Systems Analysis and Design
Deliverables and Outcomes
?
?
Baseline Project Plan (BPP)
? A major outcome and deliverable from the PIP
phase
? Contains the best estimate of a project?s
scope, benefits, costs, risks, and resource
requirements
Project Scope Statement (PSS)
? A document prepared for the customer
? Describes what the project will deliver
? Outlines at a high level all work required to
complete the project
39
BUSI 3402A – Systems Analysis and Design
Assessing Project Feasibility
Most feasibility factors are:
? Economic
? Technical
? Operational
? Scheduling
? Legal and contractual
? Political
40
BUSI 3402A – Systems Analysis and Design
Assessing Project Feasibility (Cont.)
FIGURE 5-2
System Service Request for Customer
Tracking System (Pine Valley Furniture)
41
BUSI 3402A – Systems Analysis and Design
Assessing Project Feasibility (Cont.)
?
Economic feasibility: a process of
identifying the financial benefits and costs
associated with a development project
?Often referred to as a cost-benefit
analysis
?Project is reviewed after each SDLC
phase in order to decide whether to
continue, redirect, or kill a project
42
BUSI 3402A – Systems Analysis and Design
Determining Project Benefits
How to determine project benefits?
? Tangible benefits refer to items that can
be measured in dollars and with certainty.
? Examples include:
? reduced
personnel expenses
? lower transaction costs, or
? higher profit margins.
43
BUSI 3402A – Systems Analysis and Design
Determining Project Benefits (Cont.)
?
Most tangible benefits will fit within the following
categories:
? Cost
reduction and avoidance
? Error reduction
? Increased flexibility
? Increased speed of activity
? Improvement of management planning and control
? Opening new markets and increasing sales
opportunities
44
BUSI 3402A – Systems Analysis and Design
Determining Project Benefits (Cont.)
Figure 5-3
Tangible benefits for Customer Tracking
System (Pine Valley Furniture)
45
BUSI 3402A – Systems Analysis and Design
Determining Project Benefits (Cont.)
?
Intangible benefits are benefits derived
from the creation of an information system
that cannot be easily measured in dollars
or with certainty.
?
May have direct organizational benefits, such
as the improvement of employee morale
? May have broader societal implications, such
as the reduction of waste creation or
resource consumption
46
BUSI 3402A – Systems Analysis and Design
Determining Project Benefits (Cont.)
47
BUSI 3402A – Systems Analysis and Design
Determining Project Costs
How to determine project costs?
? Tangible cost: a cost associated with an
information system that can be measured
in dollars and with certainty
? IS development tangible costs including:
?
Hardware costs
? Labor costs, or
? Operational costs, including employee
training and building renovations.
48
BUSI 3402A – Systems Analysis and Design
Determining Project Costs (Cont.)
Intangible cost: a cost associated with an
information system that cannot be easily
measured in terms of dollars or with
certainty
? Intangible costs can include:
?
?
Loss of customer goodwill,
? Employee morale, or
? Operational inefficiency.
49
BUSI 3402A – Systems Analysis and Design
Determining Project Costs (Cont.)
?
?
One-time cost: a cost associated with project
start-up and development or system start-up
These costs encompass activities such as:
? Systems
development,
? New hardware and software purchases,
? User training,
? Site preparation, and
? Data or system conversion.
50
BUSI 3402A – Systems Analysis and Design
Determining Project Costs (Cont.)
?
?
Recurring cost: a cost resulting from the
ongoing evolution and use of a system
Examples of these costs include:
? Application
software maintenance
? Incremental data storage expenses
? Incremental communications
? New software and hardware leases, and
? Supplies and other expenses (i.e., paper, forms, data
center personnel).
51
BUSI 3402A – Systems Analysis and Design
Determining Project Costs (Cont.)
Figure 5-4
One-time costs for Customer Tracking System (Pine Valley Furniture)
52
BUSI 3402A – Systems Analysis and Design
Determining Project Costs (Cont.)
Figure 5-5
Recurring costs for Customer Tracking System (Pine Valley Furniture)
53
BUSI 3402A – Systems Analysis and Design
Determining Project Costs (Cont.)
Both one-time and recurring costs can
consist of items that are fixed or variable in
nature.
? Fixed costs are billed or incurred at a
regular interval and usually at a fixed rate.
?
? Example:
?
facility lease payment
Variable costs are items that vary in
relation to usage.
? Example:
long-distance charges
54
BUSI 3402A – Systems Analysis and Design
Determining Project Costs (Cont.)
A summary of common costs associated with the development and operation of
an information system.
55
BUSI 3402A – Systems Analysis and Design
Determining Project Costs (Cont.)
What can be done to have a better cost estimate?
1. Have clear guidelines for creating estimates.
2. Use experienced developers and/or project managers for
making estimates.
3. Develop a culture where all project participants are
responsible for defining accurate estimates.
4. Use historical data to help in establishing better
estimates of costs, risks, schedules, and resources.
5. Update estimates as the project progresses.
6. Monitor progress and record discrepancies to improve
future estimates.
)Source: Based on Lederer and Prasad, 1992; Hubbard, 2007; Sonje, 2008.)
56
BUSI 3402A – Systems Analysis and Design
Economic Feasibility Analysis ? PVF WebStore project
57
BUSI 3402A – Systems Analysis and Design
The Time Value of Money
Relationship between time and money:
? Time value of money (TVM): the concept
that money available today is worth more
than the same amount tomorrow
? Discount rate: the rate of return used to
compute the present value of future cash
flows (the cost of capital)
? Present value: the current value of a
future cash flow
58
BUSI 3402A – Systems Analysis and Design
The Time Value of Money
?
Net Present Value (NPV)
? Use
discount rate to determine present
value of cash outlays and receipts
?
Return on Investment (ROI)
? Ratio
?
of cash receipts to cash outlays
Break-Even Analysis (BEA)
? Amount
of time required for cumulative
cash flow to equal initial and ongoing
investment
59
BUSI 3402A – Systems Analysis and Design
The Time Value of Money (Cont.)
?
Net Present Value
? PVn
= present value of Y dollars n years from
now based on a discount rate of i.
? NPV = sum of PVs across years.
? Calculates time value of money
60
BUSI 3402A – Systems Analysis and Design
The Time Value of Money (Cont.)
?
Break-even analysis: a type of costbenefit analysis to identify at what point (if
ever) benefits equal costs
61
BUSI 3402A – Systems Analysis and Design
The Time Value of Money (Cont.)
Figure 5-7
Break-even analysis for Customer Tracking System (Pine Valley Furniture)
62
BUSI 3402A – Systems Analysis and Design
Assessing Technical Feasibility
?
Technical feasibility: a
process of assessing
the development organization?s ability to
construct a proposed system
?
The potential consequences of not assessing
and managing risks can include:
? Failure
to attain expected benefits from the project
? Inaccurate project cost estimates.
? Inaccurate project duration estimates.
? Failure to achieve adequate system performance
levels.
? Failure to adequately integrate the new system with
existing hardware, software, or organizational
procedures.
63
BUSI 3402A – Systems Analysis and Design
Project Risk Factors
?
Project size
?
?
Project structure
?
?
New vs. renovated system, resulting organizational changes,
management commitment, user perceptions
Development group
?
?
Team size, organizational departments, project duration,
programming effort
Familiarity with platform, software, development method,
application area, development of similar systems
User group
?
Familiarity with IS development process, application area, use
of similar systems
64
BUSI 3402A – Systems Analysis and Design
Assessing Technical Feasibility (Cont.)
?
Four general rules emerged as technical
risk assessments:
? Larger
projects are riskier than smaller
projects.
? A system in which the requirements are easily
obtained and highly structured will be less
risky than one in which requirements are
messy, ill structured, ill defined, or subject to
the judgment of an individual.
65
BUSI 3402A – Systems Analysis and Design
Assessing Technical Feasibility (Cont.)
? The
development of a system employing
commonly used or standard technology will
be less risky than one employing novel or
nonstandard technology.
? A project is less risky when the user group is
familiar with the systems development
process and application area than if
unfamiliar.
66
BUSI 3402A – Systems Analysis and Design
Assessing Technical Feasibility (Cont.)
FIGURE 5-8
Effects of degree of project structure, project size, and familiarity with
application area on project implementation risk (Source: Based on 7th Applegate, Austin,
and McFarlan. 2007; Tech Republic, 2005.)
67
BUSI 3402A – Systems Analysis and Design
Assessing Other Feasibility Concerns
?
Operational
? Does
the proposed system solve problems or take
advantage of opportunities?
?
Scheduling
? Can
the project time frame and completion dates
meet organizational deadlines?
?
Legal and Contractual
? What
are the legal and contractual ramifications of
the proposed system development project?
?
Political
? How
do key stakeholders view the proposed
system?
68
BUSI 3402A – Systems Analysis and Design
Building the Baseline Project Plan
?
?
A Baseline Project Plan (BPP) is a
document intended primarily to guide the
development team.
Sections:
?
?
?
?
Introduction
System description
Feasibility assessment
Management issues
69
BUSI 3402A – Systems Analysis and Design
Building the Baseline Project Plan (Cont.)
?
?
Project Scope statement is part of the BPP
introduction.
Sections:
?
?
?
?
?
?
Problem statement
Project objectives
Project description
Business benefits
Deliverables
Expected duration
70
BUSI 3402A – Systems Analysis and Design
Factors in Determining Scope
Organizational units affected by new
system
? Current systems that will interact with or
change because of new system
? People who are affected by new system
? Range of potential system capabilities
?
71
BUSI 3402A – Systems Analysis and Design
Diagram Depiction of Project Scope
FIGURE 5-11
Context-level data flow diagram showing project scope for Purchasing
Fulfillment System (Pine Valley Furniture)
72
BUSI 3402A – Systems Analysis and Design
Building the Baseline Project Plan (Cont.)
?
?
?
System description section outlines possible
alternative solutions.
Feasibility assessment section outlines issues
related to project costs and benefits, technical
difficulties, and other such concerns.
Management issues section outlines a number
of managerial concerns related to the project.
73
BUSI 3402A – Systems Analysis and Design
Reviewing the Baseline Project Plan
?
?
?
Structured Walkthroughs: a peer-group
review of any product created during the
system development process
Roles: coordinator, presenter, user,
secretary, standard-bearer, maintenance
oracle
Can be applied to BPP, system
specifications, logical and physical designs,
program code, test procedures, manuals and
documentation
74
BUSI 3402A – Systems Analysis and Design
Summary
In this chapter you learned how to:
?
?
?
?
Describe steps involved in project initiation and
planning.
Explain the need for and contents of Statement of Work
and Baseline Project Plan.
List and describe methods for assessing project
feasibility.
Describe tangible vs. intangible costs and benefits, and
one-time vs. recurring costs and benefits.
75
BUSI 3402A – Systems Analysis and Design
Summary (Cont.)
? Perform
cost-benefit analysis, and understand
time value of money, present value, discount
rate, return on investment, and break-even
analysis.
? Describe rules for evaluating technical risk of
systems development projects.
? Describe activities and roles of structured
walkthroughs.
76
BUSI 3402A – Systems Analysis and Design

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