CIS 360 – Lecture Three
Ch. 4: Identifying and Selecting Projects
Ch. 5: Project Initiation and Planning
Objectives

Project Identification and Selection
– General Approaches and Outcomes
– Integration between Strategic and IS
Planning for Project ID and Selection

Project Initiation and Planning
– Basic Activities in Initiation and Planning
– Deliverables and Outcomes
Where are we in SDLC?
Project Identification and Selection
1. Identifying Projects
2. Ranking Projects
3. Selecting a Project
Proj. Identification
& Selection
Proj. Initiation & Planning
Analysis
Logical Design
Physical Design
Implementation
Where are we in SDLC?
Initiation and Planning
Project ID and Selection
1. Initiating the Project
2. Studying the Project
3. Generating BPP and
SOW
Project Initiation
& Planning
Analysis
Logical Design
Physical Design
Implementation
Identify and Selecting IS Projects
Identifying and Selecting
IS Development Projects

Deliverables and Outcomes
– Primary Deliverable
• Schedule of specific IS development projects
– Outcomes
• Assurance that careful consideration was given
to project selection
• Clear understanding of project’s relation to
organizational objectives
General Approaches
Sources of
Potential Projects
Project Identification
and Selection
Schedule of
Projects
Top Down:
1. Top Mgmt
2. Steering comm
Bottom Up:
3. User Dept
4. Develop. Group
Project Initiation
and Planning
Evaluate,
Prioritize, and
Select
Projects
1. Initiating
2. Feasibility Study
3. Cost/Benefits
4. BPP
5. ...
Who Makes The Identification and
Selection ... It really matters!
Top-down:
– by top management and steering committee
– gain a broad understanding of the information
system needs of the entire organization
– greater strategic focus, cross functional, larger
size & duration, riskier
Bottom-Up:
– by user-department and development group
– solving operational business problems or taking
advantage of some business opportunities
– narrow, non-strategic focus, integration with
existing systems, smaller project
Possible Evaluation Criteria






Value Chain Analysis - ident. value-added activities
Strategic Alignment - compatible w/ org obj./goals
Potential Benefits - any improvements and profits
Resource Availability - $$ and resources??
Project Size / Duration - complexity and time
Technical Difficulty / Risks - can we make it?
Corporate Strategic Planning
An ongoing process that defines the
mission, objectives, and strategies of
an organization
Step 1:
Step 2:
Current
Enterprise
Future
Enterprise
(where you are)
(where you want to be)
Gap is
identified
Step 3:
Strategic Plan
(How to get there?)
Results of Corporate Strategic Planning
Mission, Objective & Strategic Plan

Mission Statement:
– A statement that makes it clear what business a
company is in

Objective Statements:
– A series of statements that express an
organization’s goals for reaching a desired future
position

Strategic Plan:
– The method by which an organization attempts to
achieve its mission and objectives
An Example - Pine Valley Furniture
Mission Statement
We are in the business of designing,
fabricating, and selling to retail stores highquality wood furniture for household, office,
and institutional use. We value quality in our
products, and in our relationships with
customers and suppliers. We consider our
employees our most critical resource.
An Example - Pine Valley Furniture
Objective Statements
1. PVF will strive to increase market share and
profitability (prime objective).
2. PVF will be considered a market leader in customer
service.
3. PVF will be innovative in the use of technology to help
bring new products to market faster than our
competition.
4. PVF will employ the fewest number of the highestquality people necessary to accomplish our prime
objective. (efficient)
5. PVF will create an environment that values diversity in
gender, race, values, and culture among employees,
suppliers, and customers. (fair)
Information Systems Planning
An orderly means of assessing the information
needs of an organization, and defining the
systems, databases, and technologies that will
best satisfy those needs.
Step 1:
Step 2:
Step 3:
Pinpoint
Current System
Identify
Future IS Needs
Schedule
IS Plan
(what you have)
(what you want)
(How to get there?)
Gap is
identified
Information Systems Planning

Current situation
–
–
–
–

Listing of manual & automated processes
Listing of manual & automated data
Technology inventory
Human resources inventory
Future Situation
–
–
–
–
Blueprints of manual & automated processes
Blueprints of manual & automated data
Technology blueprints
Human resources blueprints
A Match between CSP and ISP
Step 1:
Step 2:
Current
Enterprise
Future
Enterprise
(where you are)
(where you want to be)
Step 1:
Step 2:
Step 3:
Strategic Plan
(How to get there?)
Step 3:
Pinpoint
Current System
Identify
Future IS Needs
Schedule
IS Plan
(what you have)
(what you want)
(How to get there?)
Project Initiation and Planning
Project Initiation and Planning

Deliverables and Outcomes
– Baseline Project Plan (BPP)
•
•
•
•
•
Scope
Benefits
Costs
Risks
Resources
– Statement of Work (SOW)
• Describes deliverables
• Outlines work needed to be performed
Elements of Project Initiation
– Establishment of project team
– Development of relationship with customer
– Project Initiation Plan
– Establishment of Management Procedures
– Establishment of Project Workbook
Elements of Project Planning
– Describe the 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
– Determining Project standards and procedures
– Identifying and assessing risk
– Creating a preliminary budget
– Developing a statement of work (Figure 6-2, p.167)
– Setting a baseline project plan (Figure 6-10, p.182)
Project Planning

Assessing Project Feasibility
– Economic - benefits outweigh costs
– Technical - know-how versus risks
– Operational - consistent with IS plan
– Schedule - time and duration OK
– Legal - ownership / licensing issues
– Political - potential power shift / resistance
Cost-Benefit Analysis
(Figure 6-7, p.175)
A process used to assess economic
feasibility by attempting to quantify
benefits and costs associated with
proposed information system projects
– Net present value (NPV)
– Break even analysis
– Return on investment (ROI)
Benefits of an IS

Tangible benefits:
– easily measured in dollars and certainty
• e.g., Cost reduction and avoidance, Error reduction,
Increased flexibility, Increased speed of activity,
Improved management planning and control, Opening
new markets and increasing sales opportunities

Intangible benefits
– cannot be easily measured in dollars or certainty
• e.g., Increased employee morale, Competitive
necessity, More timely information, Promotion of
organizational learning and understanding, Improved
asset utilization, Improved resource control, Positive
impacts on society
Types of IS Costs

Tangible Cost
– easily measured in dollars and certainty; e.g., Hardware

Intangible Cost
– cannot be easily measured in dollars and certainty
• e.g., Loss of customer goodwill, Loss of employee
morale

One-Time Costs
– Costs associated with project initiation and development
• e.g., equipment purchase, site preparation and
modifications

Recurring Costs
– costs resulting from ongoing evolution and use of the system
• e.g., system maintenance, employee costs
Project Planning

Assessing Project Risk
– Large projects are riskier than small
– Structured problems are less risky than the
messy, ill structured, ill defined ones which are
subject to the judgment of an individual
– Using standard technology is less risky than
using nonstandard / new technology
– User group with knowledge in development
process / application area is less risky
IS Planning Deliverable

Outline for Baseline Project Plan (Figure 610, p.182)
– Introduction
• Overview
• Recommendation
– System Description
• Project Scope, Objectives, Functions
– Feasibility Study
• Cost/Benefits Analysis
– Management Issues
• Team Organization, Communication procedure, Preliminary
Plan Schedule