Chapter06-feasibility

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Modern Systems Analysis and Design Third Edition

Jeffrey A. Hoffer Joey F. George Joseph S. Valacich

Chapter 6 Initiating and Planning Systems Development Projects

6.1

Copyright 2002 Prentice-Hall, Inc.

Learning Objectives Describe steps involved in the project initiation and planning process Explain the need for and the contents of a Statement of Work and Baseline Project Plan List and describe various methods for accessing project feasibility 6.2

Learning Objectives  Describe the differences between intangible

and tangible costs and benefits and between recurring and one-time benefits and costs  Detail various methods of cost/benefit analysis  Describe the general rules for evaluating the technical risks associated with a systems development project  Describe the activities and participant roles within a structured walkthrough 6.3

Initiating and Planning System Development Projects Project Initiation     

Establishment of project team Development of relationship with customer Project Initiation Plan Establishment of Management Procedures Establishment of Project Workbook and Project Management Environment

Project Planning 

6.4

Defining clear, discrete activities and the work needed to complete each activity

Initiating and Planning System Development Projects Deliverables and Outcomes 

Baseline Project Plan (BPP)  Scope  Benefits  Costs  Risks  Resources



Statement of Work (SOW)  Describes deliverables  Outlines work needed to be performed

6.5

Assessing Project Feasibility Six Categories      

6.6

Economic Technical Operational Schedule Legal and contractual Political

Assessing Economic Feasibility Cost – Benefit Analysis Determine Benefits 

Tangible Benefits  Can be measured easily 

6.7

Examples  Cost reduction and avoidance  Error reduction  Increased flexibility  Increased speed of activity  Improved management planning and control  Opening new markets and increasing sales opportunities

Assessing Economic Feasibility 

Intangible Benefits  Cannot be measured easily  Examples    

Increased employee morale Competitive necessity More timely information Promotion of organizational learning and understanding

Determine Costs 

Tangible Costs  Can easily be measured in dollars 

6.8

Example: Hardware

Assessing Economic Feasibility Determine Costs (Continued) 

Intangible Costs  Cannot be easily measured in dollars  Examples:  

6.9

Loss of customer goodwill Loss of employee morale

Assessing Economic Feasibility 

One-Time Costs  Associated with project startup, initiation and

development  Includes     

6.10

System Development New hardware and software purchases User training Site preparation Data or system conversion

Assessing Economic Feasibility 

Recurring Costs  Associated with ongoing use of the system  Includes:     



Application software maintenance Incremental data storage expense New software and hardware releases Consumable supplies Incremental communications

Time value of money (TVM)  The process of comparing present cash outlays to future

expected returns 6.11

Assessing Technical Feasibility Technical Feasibility  Assessment of the development organization’s

ability to construct a proposed system  Project risk can be assessed based upon:    

6.12

Project size Project structure Development group’s experience with the application User group’s experience with development projects and the application area

Assessing Other Project Feasibility Concerns Operational Feasibility 

Assessment of how a proposed system solves business problems or takes advantage of opportunities

Schedule Feasibility 

Assessment of time frame and project completion dates with respect to organization constraints for affecting change

Legal and Contractual Feasibility 

6.13

Assessment of legal and contractual ramifications of new system

Assessing Other Project Feasibility Concerns Political Feasibility 

6.14

Assessment of key stakeholders in organization’s view toward proposed system

Building the Baseline Project Plan Objectives 



6.15

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 Four Sections    

6.16

Introduction System Description Feasibility Assessment Management Issues

Building the Baseline Project Plan Introduction   

Brief overview Recommended course of action Project scope defined  Units affected  Who inside and outside the organization would

be involved  Interaction with other systems  Range of system capabilities 6.17

Building the Baseline Project Plan System Description  

Outline of possible alternative solutions Narrative format

Feasibility Assessment   

6.18

Project costs and benefits Technical difficulties High-level project schedules

Building the Baseline Project Plan Management Issues 

  

6.19

Outlines concerns that management may have about the project Team composition Communication plan Project standards and procedures

Reviewing the Baseline Project Plan Objectives 



6.20

Assure conformity to organizational standards All parties agree to continue with project

Reviewing the Baseline Project Plan Walkthrough  

6.21

Peer group review Participants  Coordinator  Presenter  User  Secretary  Standards Bearer  Maintenance Oracle

Reviewing the Baseline Project Plan Walkthrough (continued) 



6.22

Activities  Walkthrough Review Form  Individuals polled  Walkthrough Action List Advantages  Assures that review occurs during project

Summary Project Initiation     

Forming project initiation team Establishing customer relationships Developing a plan to get the project started Setting management procedures Creating an overall project management environment

Baseline Project Plan (BPP) 

6.23

Created during project initiation and planning

Summary 

Contains:  Introduction  High-level description of system  Outline of feasibility  Overview of management issues

Statement of Work (SOW)  

6.24

Describes what project will deliver Lists all work to be performed

Summary Feasibility       

6.25

Economic Operational Technical Schedule Legal Contractual Political

Summary Benefits 

Tangible vs. Intangible

Costs  

6.26

Tangible vs. Intangible One-time vs. Recurring