Systems Analysis and
Design with UML Version
2.0
Chapter 3: Project Initiation
Slide 1
Key Ideas
Projects being when someone
sees an opportunity to create
business value from using
information technology.
Feasibility analysis is used to
aid in the decision of whether or
not to proceed with the IS
project.
Slide 2
Key Ideas
The project sponsor is a key person
proposing development or adoption
of the new information technology .
The approval committee reviews
proposals from various groups and
units in the organization and
decides which to commit to
developing.
Slide 3
System Request
A system request is a document that
describes the business reasons for
building a system and the value that the
system is expected to provide.
The completed system request is
submitted to the approval committee for
consideration.
Slide 4
System Request
Most system requests include
five elements:
Project sponsor
Business need
Functionality
Expected value
Special issues or constraints
Slide 5
Applying the Concepts at
CD Selections
CD Selections is a chain of fifty music stores located in
California, with headquarters in Los Angeles.
Margaret Mooney, Vice President of Marketing, has
recently become both excited by and concerned with the
rise of Internet sites selling CDs.
The Internet has great potential, but Margaret wants to
use it in the right way. Rushing into e-commerce without
considering things like its effect on existing brick-andmortar stores and the implications on existing systems at
CD Selections could cause more harm than good.
CD Selections currently has a Web site that provides basic
information about the company and about each of its
stores. (See page 63).
Slide 7
FEASIBILITY ANALYSIS
Slide 9
Feasibility Analysis
Feasibility analysis guides the
organization in determining
whether to proceed with a project.
Feasibility analysis also identifies
the important risks associated
with the project that must be
addressed if the project is
approved.
Slide 10
Feasibility Analysis
Detailing Expected Costs and
Benefits
Technical feasibility
Economic feasibility
Organizational feasibility
Slide 11
Technical Feasibility:
Can We Build It?
The extent to which the system can
be successfully designed,
developed, and installed by the IT
group.
Technical feasibility analysis is in
essence a technical risk analysis
that strives to answer the question:
“Can we build it?”
Slide 12
Technical Feasibility
Factors:
Familiarity with application
Knowledge of business domain.
Familiarity with technology
Extension of existing firm technologies.
Project size
Number of people, time, and features.
Compatibility:
The harder it is to integrate the system with
the company’s existing technology.
Slide 13
Economic Feasibility
Should We Build It?
An economic feasibility analysis (also called a
cost–benefit analysis) identifies the financial
risk associated with the project.
Economic feasibility is determined by identifying
costs and benefits associated with the system,
assigning values to them, and then calculating
the cash flow and return on investment for the
project.
This attempts to answer the question: “Should
we build the system?”
Slide 14
Economic Feasibility
Factors:
Development costs
Annual operational costs
Annual benefits
Intangible costs and benefit
Slide 15
Example Costs and Benefits
Assign Values to Costs and
Benefits
Cash Flow Method for
Cost Benefit Analysis
Slide 18
Organizational Feasibility
If we build it, will they come?
Organizational feasibility of the
system determining how well
the system ultimately will be
accepted by its users and
incorporated into the ongoing
operations of the organization.
Slide 19
Organizational Feasibility
If we build it, will they come?
Project champion(s)
The champion is a high-level non-IS
executive who is usually but not always the
person who created the system request.
Organizational management
management should encourage people to use
the system and to accept the changes that
the system will likely create.
System users
Slide 20
Applying the Concepts at
CD Selections
A senior systems analyst, Alec Adams,
was assigned to help Margaret conduct a
feasibility analysis because of his
familiarity with CD Selections’ sales and
distribution systems.
Alec and Margaret worked closely
together over the next few weeks on the
feasibility analysis. (See page 75)
Slide 21
Summary
Project initiation involves creating and
assessing goals and expectations for a new
system
The system request describes an overview of
the proposed system.
The feasibility study is concerned with
insuring that technical, economic, and
organizational benefits outweigh costs and
risks
Slide 22