Module 2:
Identifying and Selecting IS
projects
Major objectives of systems
analysis
To find answers for each business process:
What is being done?
How is it being done?
Who is doing it?
When is he doing it?
Why is it being done?
How can it be improved?
It attempts to give birth to a new efficient
system that satisfies the current needs of the
user and has scope for future growth within
the organizational constraints.
System Design
Based on the user requirements and the
detailed analysis of the existing system
Classic Management Pyramid
Top-level
Strategic
managers
Middle-level
managers Tactical
Low-level
managers Operational
Flattened Management
Pyramid
Top-level
Strategic
managers
Low and
Middle-level Tactical
managers
Workers Operational
Flattening Organizations &
Information Systems
Redesigned Work Flow For
Insurance Underwriting
Project Initiation
Projects are initiated for two broad
reasons:
Problems that lend themselves to systems
solutions
Opportunities for improvement through
Upgrading systems
Altering systems
Installing new systems
Organizational Problems
Identify problems by
Check output against performance criteria
Too many errors
Work completed slowly
Work done incorrectly
Work done incompletely
Work not done at all
Organizational Problems
Observe behavior of employees
High absenteeism
High job dissatisfaction
High job turnover
Organizational Problems
Listen to feedback from vendors,
customers, and suppliers
Complaints
Suggestions for improvement
Loss of sales
Lower sales
Checking Output, Observing Employee Behavior, and
Listening to Feedback Are all Ways to Help the Analyst
Pinpoint Systems Problems and Opportunities
Selection Of Projects
Backing from management
Appropriate timing of project commitment
Possibility of improving attainment of
organizational goals
Practical in terms of resources for the system
analyst and organization
Worthwhile project compared with other ways
the organization could invest resources
Selection of Projects: Improving
Attainment of Organizational Goals
Improving corporate profits
Supporting the competitive strategy of the
organization
Improving cooperation with vendors and
partners
Improving internal operations support
Improving internal decision support so that
decisions are more effective
Improving customer service
Increasing employee morale
Possibilities for Improvement
Many possible objectives exist including
Speeding up a process
Streamlining a process
Combining processes
Reducing errors in input
Reducing redundant storage
Reducing redundant output
Improving system and subsystem
integration
Determining Feasibility and
Managing Analysis and
Design Activities
Feasibility Study
Guides the organization in determining
whether to proceed with a project or not
Identifies the important risks associated
with the project that must be addressed
if the project is approved
Feasibility Study
Is it a practical approach that will solve
a problem or take advantage of an
opportunity to achieve company goals?
Are the necessary technical resources
and people available for the project?
Feasibility Study
Is the problem worth solving, and will
the request result in a sound business
investment?
Can the proposal be accomplished
within an acceptable time frame?
Feasibility
A feasibility study assesses the
operational, technical, and economic
merits of the proposed project
There are three types of feasibility:
Technical feasibility
Economic feasibility
Operational feasibility
Technical Feasibility
Technical feasibility assesses whether
the current technical resources are
sufficient for the new system
If they are not available, can they be
upgraded to provide the level of
technology necessary for the new
system
Economic Feasibility
Economic feasibility determines whether
the time and money are available to
develop the system
Includes the purchase of
New equipment
Hardware
Software
Operational Feasibility
Operational feasibility determines if the
human resources are available to
operate the system once it has been
installed
Users that do not want a new system
may prevent it from becoming
operationally feasible
Operational Feasibility
Means that the proposed system will be
used effectively after it has been
developed
A measure of the user’s attitude
towards the system and how well the
solution will work in the organization
Operational Feasibility
If users have a difficulty with a system, it
will not produce the expected benefits
Operational Feasibility
Is the problem worth solving
or will the solution to the
problem work?
Operational Feasibility
Does management support the project?
Do users see the need for change?
Will the new system result in a
workforce reduction?
Will the new system place any new
demands on users or require any
operating changes?
Operational Feasibility
Will any information be less accessible
or produced less frequently?
Will customers experience adverse
effects in any way?
Do legal or ethical issues need to be
considered?
Technical Feasibility
Refers to the technical resources
needed to develop, purchase, install, or
operate the system
Analysis of technical risks like familiarity
with the application or technology,
project size, and compatibility
Technical Feasibility
Do we have the
technical abilities and
resources to be able to build
the system?
Technical Feasibility
Can the company acquire the
necessary hardware, software, and
network resources without difficulty?
Does the company have the needed
technical expertise?
Does the proposed platform have
sufficient capacity for future needs?
Technical Feasibility
Will the hardware and software
environment interface properly with
external systems operated by
customers and suppliers?
Do clear expectations and performance
specifications exist?
Economic Feasibility
Means that the projected benefits of the
proposed system outweigh the
estimated costs, which includes ongoing
support and maintenance costs, as well
as acquisition costs
Economic Feasibility
Can we support the
system’s development and
operational costs?
Economic Feasibility
Development Costs
Development team salaries
Consultant fees
Development training
Hardware and software
Vendor installation
Office space and equipment
Data conversion costs
Economic Feasibility
Operational Costs
Software upgrades
Software licensing fees
Hardware repairs
Hardware upgrades
Operational team salaries
Communications charges
User training
Economic Feasibility
Tangible Benefits
Increased sales
Reductions in staff
Reductions in inventory and elimination of
production delays
Reductions in IT costs
Better supplier prices
Economic Feasibility
Intangible Benefits
Increased market share
Increased brand recognition
Enhanced company image
Higher quality products
Improved employee job satisfaction
Improved customer service
Better supplier relations
Schedule Feasibility
Can the system be finished
on time?
Schedule Feasibility
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?
Schedule Feasibility
Will an accelerated schedule pose any
risks?
Will project management techniques be
available to coordinate and control the
project?
Will a project manager be appointed?
Evaluating Feasibility
Even if the request is
feasible, it might not
be necessary
Determining Feasibility
Defining objectives
Determining resources
Operationally
Technically
Economically
The Three Key Elements of Feasibility Include
Technical, Economic, and Operational
Feasibility
Technical Feasibility
Can current technical resources be
upgraded or added to in a manner that
fulfills the request under consideration?
If not, is there technology in existence
that meets the specifications?
Economic Feasibility
Economic feasibility determines whether
value of the investment exceeds the time and
cost.
Includes:
Analyst and analyst team time
Business employee time
Hardware
Software
Software development
Operational Feasibility
Operational feasibility determines if the
human resources are available to
operate the system once it has been
installed.
Users that do not want a new system
may prevent it from becoming
operationally feasible.
Activity Planning and Control
Planning includes:
Selecting a systems analysis team
Estimating time required to complete each task
Scheduling the project
Control includes:
Comparing the plan for the project with its actual
evolution
Taking appropriate action to expedite or
reschedule activities
Estimating Time
Project is broken down into phases.
Further project is broken down into tasks or
activities.
Finally project is broken down into steps or
even smaller units.
Time is estimated for each task or activity.
Most likely, pessimistic and optimistic
estimates for time may be used.
