Systems Analysis And

Design
CS 0124
Information System
Project Initiation
Business case Analysis
Introduction

 During the systems planning phase, the IT team reviews

a proposal to determine if it presents a strong business
case. The term business case refers to the reasons, or
justification, for a proposal. To analyze the business case
for a specific proposal, the analyst must consider the
company’s overall mission, objectives, and IT
needs. IT team must understand, support, and help plan
long-term strategic goals. Along with financial,
marketing, and human resources, companies need
information technology to achieve growth and success.
 Strategic Planning — a
framework for IT systems
development
Companies develop and maintain IT systems to
support their current and future business operations.
Some IT needs are immediate, such as fixing a logic
problem in a payroll system. Other needs might be on
the horizon, such as planning IT support for a new
factory, a future merger, or a corporate restructuring.
In most companies, the IT team reviews each IT-
related proposal, project, and systems request to
determine if it presents a strong business case, or
justification.
Cont..

 Most successful IT managers engage in long-range

planning, even as they handle day-to- day
maintenance and support. To carry out this task
effectively, they must understand and participate in
the firm’s strategic planning process. Strategic
planning is the process of identifying long-term
organizational goals, strategies, and resources.
Strategic planning looks beyond day-to-day activities
and focuses on a horizon that is 3, 5, 10, or more
years in the future.
SWOT

 Strategic planning starts with a management review

called a SWOT analysis. The letters stand for
strengths, weaknesses, opportunities, and threats. A
SWOT analysis usually starts with a broad overview.
The first step is for top management to respond to
questions like these:
i. What are our strengths, and how can we use them to
achieve our business goals?
ii. What are our weaknesses, and how can we reduce or
eliminate them?
Cont..
iii.What are our opportunities, and how do we plan to
take advantage of them?
iv. What are our threats, and how can we assess,
manage, and respond to the possible risks?
Cont..

 A SWOT analysis is a solid foundation for the

strategic planning process, because it examines a
firm’s technical, human, and financial resources. In
the previous figure, the bulleted lists show samples of
typical strengths, weaknesses, opportunities, and
threats.
What is a Business Case?

 The term business case refers to the reasons, or

justification, for a proposal. A business case should be
comprehensive, yet easy to understand. It should
describe the project clearly, provide the justification to
proceed, and estimate the project’s financial impact. the
business case should answer questions such as the
following:
 Why are we doing this project?
 What is the project about?
 How does this solution address key business issues?
…Cont.

 How much will it cost and how long will it take?

 Will we suffer a productivity loss during the transition?
 What is the return on investment and payback period?
 What are the risks of doing the project? What are the
risks of not doing the project?
 How will we measure success?
 What alternatives exist?
Information Systems Projects

 The starting point for most projects is called a

systems request, which is a formal way of asking for
IT support. A systems request might propose
enhancements for an existing system, the
correction of problems, the replacement of an
older system, or the development of an entirely
new information system that is needed to
support a company’s current and future
business needs.
…Cont.
 As the figure below shows, the main reasons for
systems requests are improved service to
customers, better performance, support for new
products and services, more information,
stronger controls, and reduced cost.
Factors that Affect
Information Systems Projects
 There are several Internal and external factors affect
every business decision that a company makes, as
well as Information Systems Projects.
 Internal Factors
Internal factors include the strategic plan, top
managers, user requests, information technology
department, and existing systems and data.
 External Factors
External factors include technology, suppliers,
customers, competitors, the economy, and government.
…Cont.
Evaluation of Systems
Requests
 In most organizations, the IT department receives
more systems requests than it can handle. Many
organizations assign responsibility for evaluating
systems requests to a group of key managers and
users. Many companies call this group a systems
review committee or a computer resources
committee. Regardless of the name, the objective is
to use the combined judgment and experience of
several managers to evaluate systems projects.
Systems Request Forms

 Many organizations use a special form for systems

requests, similar to the online sample shown in the
next figure. A properly designed form streamlines the
request process and ensures consistency. The form
must be easy to understand and include clear
instructions. It should include enough space for all
required information and should indicate what
supporting documents are needed. Many companies
use online systems request forms that can be filled in
and submitted electronically.
…Cont.
Systems Review Committee

 Most large companies use a systems review

committee to evaluate systems requests. Instead of
relying on a single individual, a committee approach
provides a variety of experience and knowledge. With
a broader viewpoint, a committee can establish
priorities more effectively than an individual, and one
person’s bias is less likely to affect the decisions. A
typical committee consists of the IT director and
several managers from other departments. The IT
director usually serves as a technical consultant to
ensure that committee members are aware of crucial
issues, problems, and opportunities
Overview of feasibility

 Suppose four requests must be reviewed: the

marketing group wants to analyze current customer
spending habits and forecast future trends; the
technical support group wants a cellular link so
service representatives can download technical data
instantly; the accounting department wants to
redesign customer statements and allow Internet
access; and the production staff wants an inventory
control system that can exchange data with major
suppliers.
….

 Which projects should the firm pursue? What criteria

should be applied? How should priorities be
determined? To answer those questions, the
individual or the committee must assess the
feasibility of each request.
…Cont.

 A systems request must pass several tests, called a

feasibility study, to see whether it is worthwhile to
proceed further. The feasibility study uses four main
yardsticks to measure a proposal:
 operational feasibility,
 technical feasibility,
 Economic feasibility, and
 Schedule feasibility
Feasibility Study should
answer these questions.
 For example, if a department wants an existing report
sorted in a different order, the analyst can decide
quickly whether the request is feasible. On the other
hand, a proposal by the marketing department for a
new market research system to predict sales trends
requires more effort. In both cases, the systems
analyst asks these important questions:
 Is the proposal technically feasible? Are the
necessary technical resources and people available
for the project?
…Cont.

 Is the proposal desirable in an operational sense? Is it

a practical approach that will solve a problem or take
advantage of an opportunity to achieve company
goals?
 Is the proposal economically desirable? What are the
projected savings and costs? Are other intangible
factors involved, such as customer satisfaction or
company image? 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?
…Cont.

 To obtain more information about a systems request,

you might perform initial fact-finding by studying
organization charts, performing interviews, reviewing
current documentation, observing operations, and
surveying users. If the systems request is approved,
more intensive fact-finding will continue during the
systems analysis phase.
Preliminary Investigation
Overview
 A systems analyst conducts a preliminary
investigation to study the systems request and
recommend specific action. After obtaining an
authorization to proceed, the analyst interacts with
managers and users, gathers facts about the
problem or opportunity, project scope and
constraints, project benefits, and estimated
development time and costs. The end product of
the preliminary investigation is a report to
management.
…Cont.
Interaction with Managers
and Users
 Before beginning a preliminary investigation, a memo
or an e-mail message should let people know about
the investigation and explain your role. You should
meet with key managers, users, and IT staff to
describe the project, explain your responsibilities,
answer questions, and invite comments. This starts
an important dialogue with users that will continue
throughout the entire development process.
 A systems project often produces significant changes
in company operations. Employees may be curious,
concerned, or even opposed to those changes.
…Cont.

 It is not surprising to encounter some user resistance

during a preliminary investigation. Employee
attitudes and reactions are important and must be
considered.
 When you ask users about problems, some will stress
current system limitations rather than desirable new
features or enhancements. Instead of focusing on
difficulties, you should question users about
additional capability they would like to have. Using
this approach, you highlight ways to improve the
user’s job, you get a better understanding of
operations, and you build better, more positive
Planning the Preliminary
Investigation
 During a preliminary investigation, a systems analyst
typically follows a series of steps, as shown in the
next figure. The exact procedure depends on the
nature of the request, the size of the project, and the
degree of urgency.
Assignment2: To be presented
next week during tutorial session.
Think about an information system project of your
choice, and write a business case that justifies your
idea and that will answer the following questions:
 Why are you doing that project?
 What is the project about?
 How does this solution address key business issues?
 How much will it cost and how long will it take?
…Cont.

 Will we suffer a productivity loss during the

transition?
 What is the return on investment and payback
period?
 What are the risks of doing the project? What are the
risks of not doing the project?
 How will we measure success?
 What alternatives exist?