Systems Planning & Selection
Project identification &
selection
Project initiation &
planning
System Request
Project sponsor
Business Need
Functionality
Expected Value
Identifying and Selecting
Projects
Sources of project development
requests:
1. Management and business units
2. Managers who want to make a system
more efficient
3. Formal planning groups
Identifying and Selecting
Projects
1. Project identification
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Bottom Up Identification
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Business unit or IS group
Top Down Identification
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Senior management or steering committee
2. Classify and rank projects
Characteristics of project
Selection Methods
Top management
 Greater strategic focus
 Largest project size
 Longest project duration
Steering committee
 Cross-functional focus
 Greater organizational change
 Formal cost –benefit analysis
 Larger and riskier projects
User department
 Narrow focus
 Faster development
 Fewer management layers & business functions
Development group
 Integration with existing system focus
 Less concern with cost-benefit analysis
Identifying and Selecting
Projects
3. Select development projects
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Factors:
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Perceived needs of the organization
Existing systems and ongoing projects
Resources available
Evaluation criteria
Current business conditions
Perspectives of the decision makers
Project Evaluation Criteria
Value chain analysis
Strategic alignment
Potential benefits
Resource availability
Project size/duration
Technical difficulties
Decision Outcome
Accept project
Reject project
Delay project
Re-focus project
End-user development
Purchase system
Modify and re-submit
Project Initiation Activities
Establishing the project initiation team
Establish a relationship with the
customer
Establish a project initiation plan
Establish management procedures &
environment
Establish the project workbook
Project Planning Activities
Describe the project scope & feasibility
Divide the project into manageable tasks
Estimate resources and create a resource
plan
Develop a preliminary schedule
Develop a communication plan
Determine project standards and procedures
Identify and assess risk
Creating a preliminary budget
Project Planning Objectives
Deliverables and Outcomes
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Baseline Project Plan (BPP)
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Scope
Benefits
Costs
Risks
Resources
Statement of Work (SOW)
 Describes deliverables
 Outlines work needed to be performed
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Business Case
 Outlines justification for the system
Assessing Project Feasibility
Six Categories
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Economic
Operational
Technical
Schedule
Legal and contractual
Political
Assessing Economic
Feasibility
Cost – Benefit Analysis
Determine Benefits

Tangible Benefits
 Can be measured in $ and with certainty
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Intangible Benefits
 Cannot be easily measured in $ or with
certainty
Assessing Economic
Feasibility
Determine Costs

Tangible/Intangible Costs
 Can/Cannot easily be measured in $ and/or with
certainty
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One-Time vs. Recurring Costs
 Associated with startup & development vs. on-going use
of the system
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Fixed vs. Variable Costs
 Billed at regular intervals and at fixed rates vs. cost items
that vary in relation to usage
Examples of IS costs
Procurement
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Consulting costs, Equipment purchase/lease &
installation, Site preparation, Capital costs,
Personnel searches
Start-up
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Operating system software, Communications
equipment, Personnel hiring, Disruption
Project-related
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Application software & modifications, Personnel &
overhead from in-house development, User
training, Documentation
Operating
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System maintenance, Space & equipment rental,
Asset depreciation, Personnel
Cost-benefit Analysis
Techniques

Time value of money (TVM)
 The process of comparing present cash outlays
to future expected returns.
Net Present Value
Return on Investment
Break Even Analysis
Assessing Other Project
Feasibility Concerns
Operational Feasibility

Assessment of how a proposed system
solves business problems or takes
advantage of opportunities
Political Feasibility
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Assessment of view of key stakeholders in
organization toward proposed system
Stakeholders
Project Champion
System Users
Organizational Management
Assessing Other Project
Feasibility Concerns
Schedule Feasibility
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Assessment of timeframe and project
completion dates with respect to
organization constraints for affecting
change
Legal and Contractual Feasibility
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Assessment of legal and contractual
ramifications of new system
Technical Feasibility
Project size
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Duration, Number of project team members,
Number of organizational departments involved
Project structure
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Resultant organizational, procedural or personnel
changes, Amount of user involvement,
Management commitment
Development group
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Familiarity with hardware, software development
tools, operating system and application area
User group
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Familiarity with systems development process and
proposed application area
Building the Baseline Project
Plan
Objectives
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Assures that customer and development
group have a complete understanding of
the proposed system and requirements
Provides sponsoring organization with a
clear idea of scope,benefits and duration of
project.
Building the Baseline Project
Plan
Introduction
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Brief overview
Recommended course of action
Project scope defined
 Units affected
 Interaction with other systems
 Range of system capabilities
Building the Baseline Project
Plan
System Description
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Outline of possible alternative solutions
Narrative format
Feasibility Assessment
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Project costs and benefits
Technical difficulties
High-level project schedule
Building the Baseline Project
Plan
Management Issues
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Outlines concerns that management may
have about the project
Team composition
Communication plan
Project standards and procedures
Reviewing the Baseline
Project Plan
Objectives
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Assure conformity to organizational
standards
All parties agree to continue with project
Walkthrough
Peer group review
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Participants
 Coordinator
 Presenter
 User
 Secretary
 Standards Bearer
 Maintenance Oracle
Activities
 Walkthrough review form
 Individuals polled
 Walkthrough action list
Electronic Commerce
Applications
Internet
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Transactions between individuals and business
Intranet
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Internet-based communication to support business
activities within a single organization
Extranet
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Internet-based communication to support
business-to-business activities
Internet Development
Electronic Data Interchange (EDI)
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The use of telecommunications
technologies to transfer business
documents directly between organizations
Internet vs. Intranet/Extranet Apps
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Intranet/Extranet – Developer knows how
application will be run and used
Internet – Developer faces various
unknowns
Web based System costs
Platform costs
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Web server, Server software, Software plug-ins,
Firewall server, Router, Internet connection
Content & service
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Web project manager, Technical site manager,
Content staff, Graphics staff, Support staff, fees to
license outside content, Programming & research
Marketing
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Launch & public relations, Paid links to other web
sites, Promotions, Marketing & Sales staff
Unknowns in Developing
Internet Applications
User
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Who? Where?
What expertise/education/expectations?
Connection Speed
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Modem? Cable? Satellite? Cellular?
Access Method
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Browser? Cell phone? PDA? Web TV?