1. Chapter 5 Initiating and Planning Systems Development Projects Modern Systems Analysis and Design Sixth Edition Jeffrey A. Hoffer Joey F. George Joseph S. Valacich

2. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 2 Chapter 5 Learning Objectives Describe the steps involved in the project initiation and planning process. Explain the need for and the contents of a Project Scope Statement and Baseline Project Plan.

3. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 3 Chapter 5 Learning Objectives (Cont.) Perform cost-benefit analysis and describe what is meant by the time value of money, present value, discount rate, net present value, return on investment, and break- even analysis. Describe the general rules for evaluating technical risks associated with a systems development project.

4. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 Chapter 5 Initiating and Planning Systems Development Projects What must be considered when making the decision on the division between project initiation and planning (PIP) and analysis? How much effort should be expended on the PIP process? Who is responsible for performing the PIP process? Why is PIP such a challenging activity?

5. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 5 Chapter 5 The Process of Initiating and Planning IS Development Projects FIGURE 5-1 Systems development life cycle with project initiation and planning highlighted

6. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 6 Chapter 5 The Process of Initiating and Planning IS Development Projects (Cont.) Project initiation  focuses on activities  designed to assist in organizing a team to conduct project planning.

7. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 7 Chapter 5 The Process of Initiating and Planning IS Development Projects (Cont.) 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 Project Workbook. Developing the Project Charter.

8. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 Chapter 5 The Process of Initiating and Planning IS Development Projects (Cont.) The key activity of project initiation is the development of the project charter.  A short document that is prepared for both internal and external stakeholders Provides a high-level overview of the project  Useful communication tool that helps to assure that the organizations and other stakeholders understand the initiation of a project

9. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9 Chapter 5 The Process of Initiating and Planning IS Development Projects (Cont.) A project charter typically contains:  Project title and date of authorization  Project manager name and contact information  Customer name and contact information  Projected start and completion dates  Key stakeholders, project role, and responsibilities  Project objectives and description  Key assumptions or approach  Signature section for key stakeholders

10. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 10 Chapter 5 The Process of Initiating and Planning IS Development Projects (Cont.) The key activity of project planning  the process of defining clear, discrete activities and the work needed to complete each activity within a single project. The objective of the project planning process  the development of a Baseline Project Plan (BPP) Contains the best estimate of a project’s scope, benefits, costs, risks, and resource requirements  and the Project Scope Statement (PSS). A document prepared for the customer Describes what the project will deliver

11. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11 Chapter 5 Elements of Project Planning Describe  project scope, alternatives, feasibility. Divide  project into tasks. Estimate  resource requirements and create resource plan. Develop  preliminary schedule. Develop  communication plan.

12. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 12 Chapter 5 Elements of Project Planning (Cont.) Determine  standards and procedures. Identify and assess  risk. Create  preliminary budget. Develop  a statement of work. Set baseline project plan.

13. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 13 Chapter 5 Determining Project Costs Tangible cost:  a cost associated with an information system that can be measured in dollars and with certainty IS development tangible costs include:  Hardware costs,  Labor costs, or  Operational costs including employee training and building renovations.

14. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 14 Chapter 5 Determining Project Costs (Cont.) Intangible cost:  a cost associated with an information system that cannot be easily measured in terms of dollars or with certainty Intangible costs can include:  Loss of customer goodwill,  Employee morale, or  Operational inefficiency.

15. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15 Chapter 5 Determining Project Costs (Cont.) One-time cost:  a cost associated with project start-up and development or system start-up These costs encompass activities such as:  Systems development,  New hardware and software purchases,  User training,  Site preparation, and  Data or system conversion.

16. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16 Chapter 5 Determining Project Costs (Cont.) Recurring cost:  a cost resulting from the ongoing evolution and use of a system Examples of these costs include:  Application software maintenance,  Incremental data storage expenses,  Incremental communications,  New software and hardware leases, and  Supplies and other expenses (i.e. paper, forms, data center personnel).

17. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 17 Chapter 5 Project Cost: The Time Value of Money Time value of money (TVM):  the concept that money available today is worth more than the same amount tomorrow Discount rate:  the rate of return used to compute the present value of future cash flows (the cost of capital) Present value:  the current value of a future cash flow

18. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 18 Chapter 5 Project Risk Factors Project size  Team size, organizational departments, project duration, programming effort Project structure  New vs. renovated system, resulting organizational changes, management commitment, user perceptions Development group  Familiarity with platform, software, development method, application area, development of similar systems User group  Familiarity with IS development process, application area, use of similar systems

19. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 19 Chapter 5 Project Risk Factors (Cont.) Four general rules emerged as technical risk assessments:  Larger projects are riskier than smaller projects.  A system in which the requirements are easily obtained and highly structured will be less risky

20. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20 Chapter 5 Project Risk Factors (Cont.)  The development of a system employing commonly used or standard technology will be less risky than one employing novel or nonstandard technology.  A project is less risky when the user group is familiar with the systems development process and application area than if unfamiliar.

21. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 21 Chapter 5 Project Risk Factors (Cont.) FIGURE 5-8 Effects of degree of project structure, project size, and familiarity with application area on project implementation risk (Source: Based on 7th Applegate, Austin, and McFarlan. 2007; Tech Republic, 2005.)

22. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Building the Baseline Project Plan Baseline Project Plan (BPP) is a document intended primarily to guide the development team. Sections:  Introduction  System description  Feasibility assessment  Management issues 22 Chapter 5

23. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Building the Baseline Project Plan (Cont.) Introduction:  Project Scope Statement (PSS) is part of the BPP introduction. Sections:  Problem statement  Project objectives  Project description  Business benefits  Deliverables  Expected duration 23 Chapter 5

24. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Building the Baseline Project Plan (Cont.) System description section  outlines possible alternative solutions. Feasibility assessment section  outlines issues related to project costs and benefits, technical difficulties, and other such concerns. Management issues section  outlines a number of managerial concerns related to the project. 24 Chapter 5

25. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 25 Chapter 5 Summary In this chapter you learned how to: Describe steps involved in project initiation and planning. Explain the need for and contents of Statement of Work and Baseline Project Plan. List and describe methods for assessing project feasibility.

26. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 26 Chapter 5 Summary (Cont.) Perform cost-benefit analysis, and understand time value of money, present value, discount rate, return on investment, and break-even analysis. Describe rules for evaluating technical risk of systems development projects. Describe activities and roles of structured walkthroughs.

27. Chapter 6 Determining System Requirements Modern Systems Analysis and Design Sixth Edition Jeffrey A. Hoffer Joey F. George Joseph S. Valacich

28. Learning Objectives Describe options for designing and conducting interviews and develop a plan for conducting an interview to determine system requirements. Explain the advantages and pitfalls of observing workers and analyzing business documents to determine system requirements. Use prototyping during requirements determination. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 28 Chapter 6

29. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 29 Chapter 6 Performing Requirements Determination FIGURE 6-1 Systems development life cycle with analysis phase highlighted

30. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 30 Chapter 6 The Process of Determining Requirements Good Systems Analyst Characteristics:  Impertinence—question everything  Impartiality—consider all issues to find the best organizational solution  Relaxing constraints—assume anything is possible  Attention to details—every fact must fit  Reframing—challenge yourself to new ways

31. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 31 Chapter 6 Deliverables and Outcomes Deliverables for Requirements Determination:  From interviews and observations interview transcripts, observation notes, meeting minutes  From existing written documents mission and strategy statements, business forms, procedure manuals, job descriptions, training manuals, system documentation, flowcharts  From computerized sources reports from existing systems, displays and reports from system prototype

32. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 32 Chapter 6 Traditional Methods for Determining Requirements Interviewing individuals Interviewing groups Observing workers Studying business documents

33. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 33 Chapter 6 Guidelines for Effective Interviewing Plan the interview.  Prepare interviewee: appointment, priming questions.  Prepare agenda, checklist, questions. Listen carefully and take notes (tape record if permitted). Review notes within 48 hours. Be neutral. Seek diverse views.

34. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Interviewing and Listening (Cont.) 34 Chapter 6 FIGURE 6-2 Typical interview guide

35. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Choosing Interview Questions  Open-ended questions: questions that have no prespecified answers  Closed-ended questions: questions that ask those responding to choose from among a set of specified responses 35 Chapter 6

36. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 36 Chapter 6 Interviewing Groups Drawbacks to individual interviews:  Contradictions and inconsistencies between interviewees  Follow-up discussions are time consuming  New interviews may reveal new questions that require additional interviews with those interviewed earlier

37. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 37 Chapter 6 Interviewing Groups (Cont.) Interviewing several key people together  Advantages More effective use of time Can hear agreements and disagreements at once Opportunity for synergies  Disadvantages More difficult to schedule than individual interviews

38. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 38 Chapter 6 Nominal Group Technique (NGT) A facilitated process that supports idea generation by groups Process  Members come together as a group, but initially work separately.  Each person writes ideas.  Facilitator reads ideas out loud, and they are written on a blackboard or flipchart.  Group openly discusses the ideas for clarification.  Ideas are prioritized, combined, selected, reduced. NGT exercise used to complement group meetings.

39. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 39 Chapter 6 Directly Observing Users Direct Observation  Watching users do their jobs  Obtaining more firsthand and objective measures of employee interaction with information systems  Can cause people to change their normal operating behavior

40. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 40 Chapter 6 Analyzing Procedures and Other Documents Document Analysis  Review of existing business documents  Can give a historical and “formal” view of system requirements Types of information to be discovered:  Problems with existing system  Opportunity to meet new need  Organizational direction  Names of key individuals  Values of organization  Special information processing circumstances  Reasons for current system design  Rules for processing data

41. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 41 Chapter 6 Analyzing Procedures and Other Documents (Cont.) Useful document: Written work procedure  For an individual or work group  Describes how a particular job or task is performed  Includes data and information used and created in the process

42. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Analyzing Procedures and Other Documents (Cont.) Useful document: Business form  Used for all types of business functions  Explicitly indicate what data flow in and out of a system and data necessary for the system to function  Gives crucial information about the nature of the organization Useful document: Report  Primary output of current system  Enables you to work backwards from the report to the data needed to generate it Useful document: Description of current information system 42 Chapter 6

43. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 43 Chapter 6 Contemporary Methods for Determining System Requirements Group Support Systems  Facilitate sharing of ideas and voicing of opinions about system requirements CASE tools  Used to analyze existing systems  Help discover requirements to meet changing business conditions

44. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 44 Chapter 6 Using Prototyping During Requirements Determination Quickly converts requirements to working version of system Once the user sees requirements converted to system, will ask for modifications or will generate additional requests Most useful when:  User requests are not clear.  Few users are involved in the system.  Designs are complex and require concrete form.  There is a history of communication problems between analysts and users.  Tools are readily available to build prototype.

45. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 45 Chapter 6 Using Prototyping During Requirements Determination (Cont.) Drawbacks  Tendency to avoid formal documentation  Difficult to adapt to more general user audience  Sharing data with other systems is often not considered  Systems Development Life Cycle (SDLC) checks are often bypassed

46. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 46 Chapter 6 Summary In this chapter you learned how to: Describe interviewing options and develop interview plan. Explain advantages and pitfalls of worker observation and document analysis.

47. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 47 Chapter 6 Summary (Cont.) Participate in and help plan Joint Application Design sessions. Use prototyping during requirements determination. Describe contemporary approaches to requirements determination. Understand how requirements determination techniques apply to the development of electronic commerce applications.

48. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2011 Pearson Education, Inc. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall