Chapter 4:
Selecting and Planning
Projects
Object-Oriented Systems Analysis and
Design
Joey F. George, Dinesh Batra,
Joseph S. Valacich, Jeffrey A. Hoffer
© Prentice Hall, 2007
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Chapter Objectives
– Describe the steps involved for
identifying and selecting, initiating,
planning, and executing projects.
– Describe several methods for feasibility
assessment.
– Describe tangible vs. intangible benefits
and costs, and one-time vs. recurring
costs.
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Chapter Objectives
(Continued)
– Perform cost-benefit analysis by
performing net present value (NPV),
return on investment (ROI), and
breakeven analysis.
– Explain Project Scope Statement and
Baseline Project Plan (BPP).
– Describe the activities and roles in a
structured walkthrough.
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Identifying and Selecting
OOSAD Projects
 Top-down
approaches
– Top management
– Steering committees
 Bottom-up
approaches
– User departments
– Development group
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Each stakeholder group brings their own perspective
and motivation to the IS decision
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The project charter is a
short document that
formally announces
project and briefly
describes its objectives,
assumptions, and
stakeholders
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Managing the Project:
Initiation Tasks
1.
2.
3.
4.
5.
6.
Establishing the project initiation team
Establishing a relationship with the
customer
Establishing the project initiation plan
Establishing management procedures
Establishing the project management
environment and the project workbook
Developing the project charter
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Managing the Project:
Planning Tasks
1.
2.
3.
4.
5.
Describing project scope, alternatives, and
feasibility
Dividing the project into manageable tasks
Estimating resources and creating a
resource plan
Developing a preliminary schedule
Developing a communication plan
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Managing the Project:
Planning Tasks (cont.)
6.
7.
8.
9.
10.
Determining project standards and
procedures
Identifying and assessing risk
Creating a preliminary budget
Developing a project scope statement
Setting a baseline project plan
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System Service Request
(SSR) is a form requesting
development or
maintenance of an
information system. It
includes the contact
person, a problem
statement, a service
request statement, and
liaison contact
information.
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Feasibility Assessment

Economic feasibility
 Technical feasibility
 Operational feasibility
 Schedule feasibility
 Legal and contractual feasibility
 Political feasibility
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Economic Feasibility

Cost-benefit analysis – identify all the
financial benefits and costs associated with
a project

Tangible vs. intangible benefits
 Tangible vs. intangible costs
 One-time vs. recurring costs
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Three financial measures for cost-benefit analysis
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Net Present Value
PVn = present value of Y dollars n years from now
based on a discount rate of i.
NPV = sum of PVs across years.
Calculates time value of money.
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BEA determines the
time at which benefits
begin to exceed costs
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Technical Feasibility

Assessing the organization’s ability to
construct the proposed system

Takes into account various project risk
factors
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High technical familiarity mitigates risk due to project
size and structure. Low familiarity increases risk.
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Other Feasibility Concerns

Operational
– Will the system achieve the objectives of the project?

Schedule
– Can the project be accomplished in a reasonable time frame?
– Project management critical path scheduling can help answer
this concern.

Legal/Contractual
– Are there regulations or legal obligations that affect the
success of the project?

Political
– Will the project have user and management support?
– Will there be resistance?
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Baseline Project Plan
(BPP) is a document
intended primarily to
guide the development
team, containing an
overview of the project, a
detailed description of
the system, a complete
feasibility assessment,
and a list of management
issues.
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Project Scope
statement is part of
the BPP, and
identifies the
problem or
opportunity, the
project objectives,
description, benefits,
deliverables, and
expected duration.
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What is a Structured Walkthrough?

A peer-group review of any product created
during the system development process

- Individuals attending can have the following
 roles: coordinator, presenter, user, secretary,
 standard-bearer, maintenance oracle

- Can be applied to BPP, system specifications,

logical and physical designs, program code, test

procedures, manuals and documentation
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Structured
walkthrough form
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