Chapter 4:
Business and Systems
Planning
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Planning
• Systems planning related to planning business.
Systems must accomplish business goals.
• Business Planning:
- Top-down (Top management, Steering committee)
- Bottom-up approaches (User departments, Development
group)
• There may be competing projects (upgrades, new ones,
priorities…)
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• System Planning:
•the first stage in waterfall SDC.
•an iterative step (workflow) in OO-based SDC,
repeats across OO phases and possibly within them.
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• Main tasks in planning of a system:
•Write business case (economic
implications, feasibility assessment)
•Write Baseline Project Plan (BPP)
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• Business Case = Assessment of systems economic
implications and of feasibility of IS development project.
• Economic Implications:
•List of Benefits and Costs -> next
•Capital Budgeting Models (NPV, Break-Even…)
•Support to Value Chain
•Portfolio Analysis (compare risks with benefits; risks
assessed as technical feasibility)
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Reduced execution time
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One-time tangible costs
Recurring tangible costs
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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.
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NPV
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• Feasibility Assessment:
• Economic feasibility (result of analysis of economic
implications)
• Technical feasibility (development capability &
risks)  most important!
• Operational feasibility (support to business)
• Schedule feasibility
• Legal feasibility
• Political feasibility
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Technical Feasibility
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Technical Feasibility
High technical familiarity mitigates risk due to project size and
structure. Low familiarity increases risk.
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Baseline Project Plan (BPP); see Fig. 4-14
Content:
•Project Name (usually system’s name)
•Introduction
•Project Scope (what organizational parts it affects)
•System Description
•Economic implications
•Feasibility
•Management (workers, lines of reporting…)
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