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OVERVIEW

CHAPTER 2
SYSTEMS ANALYSIS AND DESIGN This chapter also explains why it is important
to understand business operations and
ANALYZING THE BUSINESS CASE requirements, how IT projects support a
company's overall strategic plan, how systems
projects get started, and how systems
analysts conduct a preliminary investigation
and feasibility study.

STRATEGIC PLANNING – A FRAMEWORK FOR IT

INTRODUCTION
SYSTEMS DEVELOPMENT

• The term business case refers to the reasons, or Strategic Planning Overview
justification, for a proposal
• A strong business case suggests that the company SWOT analysis
should pursue the alternative, above other options,
because it would be in the firm’s best interest to do
so
• Systems development typically starts with a systems
request, followed by a preliminary investigation,
which includes a feasibility study 3 4
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STRATEGIC PLANNING – A FRAMEWORK FOR IT STRATEGIC PLANNING – A FRAMEWORK FOR IT

SYSTEMS DEVELOPMENT SYSTEMS DEVELOPMENT

From Strategic Plans to Business Results A CASE Tool Example

Mission statement You are a systems analyst
Stakeholders You research the Visible Analyst CASE tool
Goals Planning statements can include assumptions,
Objectives goals, objectives, and critical success factors, and
many other types of statements

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STRATEGIC PLANNING – A FRAMEWORK FOR IT STRATEGIC PLANNING – A FRAMEWORK FOR IT

SYSTEMS DEVELOPMENT SYSTEMS DEVELOPMENT
The Role of the IT Department in Project
The Future
Evaluation
If you could look into the future, here is what you
– Management leadership and information technology
might see: new industries, products, and services
are linked closely, and remarkable changes have
emerging from amazing advances in information
occurred in both areas
technology, customers who expect world-class IT
– Today, systems development is much more team support, a surge in Internet-based commerce, and a
oriented global business environment that is dynamic and
– Although team-oriented development is the norm, incredibly challenging
some companies see the role of the IT department
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as a gatekeeper
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WHAT IS A BUSINESS CASE? INFORMATION SYSTEMS PROJECTS

Should be comprehensive, yet easy to understand Main Reasons for Systems Projects
Should describe the project clearly, provide the
justification to proceed, and estimate the project’s
financial impact

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INFORMATION SYSTEMS PROJECTS INFORMATION SYSTEMS PROJECTS

Factors that Affect Systems Projects Project Management

If the project is approved, it can be planned,
scheduled, monitored and controlled, and
reported upon
Individual analysts or IT staff members often
handle small projects, but companies usually
designate a project manager to coordinate the
overall effort for complex projects
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EVALUATION OF SYSTEMS REQUESTS EVALUATION OF SYSTEMS REQUESTS

Systems review committee or a computer Systems Review Committees

resources committee evaluate systems ₋ Most large companies use a systems review
requests committee to evaluate systems requests

Systems Requests Forms ₋ Many smaller companies rely on one person to

evaluate systems requests instead of a committee
₋ A properly designed form streamlines the request
process and ensures consistency ₋ The goal is to evaluate the requests and set
priorities
₋ Occasionally a situation will arise that requires an
immediate response 13 14

OVERVIEW OF FEASIBILITY OVERVIEW OF FEASIBILITY

A systems request must pass several tests, called Technical Feasibility

a feasibility study, to see whether it is worthwhile
to proceed further Economic Feasibility
₋ Total cost of ownership (TCO)
Operational Feasibility
₋ Tangible benefits
₋ Depends on
several vital issues ₋ Intangible benefits
Schedule Feasibility
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EVALUATING FEASIBILITY SETTING PRIORITIES

The first step in evaluating feasibility is to identify Factors that Affect Priority
and weed out systems requests that are not feasible Will the proposed system reduce costs? Where?
Even if the request is feasible, it might not be When? How? How much?
necessary Will the system increase revenue for the
Feasibility analysis is an ongoing task that must be company? Where? When? How? How much?
performed throughout the systems development
process

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SETTING PRIORITIES SETTING PRIORITIES

Factors that Affect Priority Factors that Affect Priority

Will the systems project result in more Can the project be implemented in a reasonable
information or produce better results? How? Are time period? How long will the results last?
the results measurable? Are the necessary financial, human, and technical
Will the system serve customers better? resources available?
Will the system serve the organization better? Whenever possible, the analyst should evaluate a
proposed project based on tangible costs and
benefits that represent actual (or approximate)
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dollar values 20
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SETTING PRIORITIES PRELIMINARY INVESTIGATION OVERVIEW

Preliminary investigation
Discretionary and Nondiscretionary Projects
Projects where management has a choice in
Interaction with Managers and Users
implementing them are called discretionary ₋ Let people know about the investigation and explain
projects your role
Projects where no choice exists are called ₋ Employee attitudes and reactions are important and
nondiscretionary projects must be considered
₋ Be careful in your use of the word problem
21
₋ Question users about additional capability they 22

would like to have

PRELIMINARY INVESTIGATION OVERVIEW PRELIMINARY INVESTIGATION OVERVIEW

Planning the Preliminary Investigation Step 1: Understand the Problem or

During a preliminary investigation, a systems Opportunity
analyst typically follows a series of steps A popular technique for investigating causes and
The exact procedure depends on the nature of the effects is called a fishbone diagram, or Ishikawa
request, the size of the project, and the degree of diagram
urgency

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PRELIMINARY INVESTIGATION OVERVIEW PRELIMINARY INVESTIGATION OVERVIEW

Step 2: Define the Project Scope and

Step 2: Define the Project Scope and
Constraints
Constraints
Present versus future
Project scope
Internal versus external
Project creep
Mandatory versus desirable
Constraint
Regardless of the type, all constraints should be
identified as early as possible to avoid future
problems and surprises
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PRELIMINARY INVESTIGATION OVERVIEW PRELIMINARY INVESTIGATION OVERVIEW

Step 3: Perform Fact-Finding Step 3: Perform Fact-Finding

Fact-finding involves various techniques Conduct interviews
Depending on what information is needed to Review documentation
investigate the systems request, fact-finding might Observe operations
consume several hours, days, or weeks
Conduct a user survey
Analyze Organization Charts
Obtain organization charts to understand how the
department functions and identify individuals you might
want to interview 27 28
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PRELIMINARY INVESTIGATION OVERVIEW PRELIMINARY INVESTIGATION OVERVIEW

Step 4: Analyze Project Usability, Cost, Benefit, Step 4: Analyze Project Usability, Cost, Benefit,
and Schedule Data and Schedule Data
Before you can evaluate feasibility, you must – Will you conduct interviews? How many people
analyze this data carefully will you interview, and how much time will you
need to meet with the people and summarize
What information must you obtain, and how will
their responses?
you gather and analyze the information?
– Will you conduct a survey? Who will be involved?
What sources of information will you use, and How much time will it take people to complete
what difficulties will you encounter in obtaining it? How much time will it take to prepare it and
information? 29
tabulate the results? 30

PRELIMINARY INVESTIGATION OVERVIEW PRELIMINARY INVESTIGATION OVERVIEW

Step 4: Analyze Project Usability, Cost, Benefit, Step 5: Evaluate Feasibility

and Schedule Data Start by reviewing the answers to the questions
How much will it cost to analyze the information you asked
gathered and to prepare a report with findings Operational feasibility
and recommendations?
Technical feasibility
Economic feasibility
Schedule feasibility
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PRELIMINARY INVESTIGATION OVERVIEW PRELIMINARY INVESTIGATION OVERVIEW

Step 6: Present Results and Recommendations Step 6: Present Results

and Recommendations to
to Management Management
The final task in the preliminary investigation is to
prepare a report to management
Introduction
The format of the preliminary investigation report Systems request
varies from one company to another summary
Findings
33
Case for action 34

PRELIMINARY INVESTIGATION OVERVIEW Q &A

Step 6: Present Results and

Recommendations to Management
Project Roles
Time & cost estimates End of Chapter
Expected benefits
Appendix

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