1. 4-1 © Prentice Hall, 2007 Chapter 4: Selecting and Planning Projects Object-Oriented Systems Analysis and Design Joey F. George, Dinesh Batra, Joseph S. Valacich, Jeffrey A. Hoffer

2. Chapter 4 4-2 © Prentice Hall, 2007 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.

3. Chapter 4 4-3 © Prentice Hall, 2007 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.

4. Chapter 4 4-4 © Prentice Hall, 2007

5. Chapter 4 4-5 © Prentice Hall, 2007 Identifying and Selecting OOSAD Projects Top-down approaches – Top management – Steering committees Bottom-up approaches – User departments – Development group

6. Chapter 4 4-6 © Prentice Hall, 2007

7. Chapter 4 4-7 © Prentice Hall, 2007 Each stakeholder group brings their own perspective and motivation to the IS decision

8. Chapter 4 4-8 © Prentice Hall, 2007

9. Chapter 4 4-9 © Prentice Hall, 2007

10. Chapter 4 4-10 © Prentice Hall, 2007

11. Chapter 4 4-11 © Prentice Hall, 2007 The project charter is a short document that formally announces project and briefly describes its objectives, assumptions, and stakeholders

12. Chapter 4 4-12 © Prentice Hall, 2007 Managing the Project: Initiation Tasks 1. Establishing the project initiation team 2. Establishing a relationship with the customer 3. Establishing the project initiation plan 4. Establishing management procedures 5. Establishing the project management environment and the project workbook 6. Developing the project charter

13. Chapter 4 4-13 © Prentice Hall, 2007 Managing the Project: Planning Tasks 1. Describing project scope, alternatives, and feasibility 2. Dividing the project into manageable tasks 3. Estimating resources and creating a resource plan 4. Developing a preliminary schedule 5. Developing a communication plan

14. Chapter 4 4-14 © Prentice Hall, 2007 Managing the Project: Planning Tasks (cont.) 6. Determining project standards and procedures 7. Identifying and assessing risk 8. Creating a preliminary budget 9. Developing a project scope statement 10. Setting a baseline project plan

15. Chapter 4 4-15 © Prentice Hall, 2007 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.

16. Chapter 4 4-16 © Prentice Hall, 2007 Feasibility Assessment Economic feasibility Technical feasibility Operational feasibility Schedule feasibility Legal and contractual feasibility Political feasibility

17. Chapter 4 4-17 © Prentice Hall, 2007 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

18. Chapter 4 4-18 © Prentice Hall, 2007 Three financial measures for cost-benefit analysis

19. Chapter 4 4-19 © Prentice Hall, 2007 Net Present Value PV n = 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.

20. Chapter 4 4-20 © Prentice Hall, 2007 BEA determines the time at which benefits begin to exceed costs

21. Chapter 4 4-21 © Prentice Hall, 2007 Technical Feasibility Assessing the organization’s ability to construct the proposed system Takes into account various project risk factors

22. Chapter 4 4-22 © Prentice Hall, 2007

23. Chapter 4 4-23 © Prentice Hall, 2007 High technical familiarity mitigates risk due to project size and structure. Low familiarity increases risk.

24. Chapter 4 4-24 © Prentice Hall, 2007 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?

25. Chapter 4 4-25 © Prentice Hall, 2007 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.

26. Chapter 4 4-26 © Prentice Hall, 2007 Project Scope statement is part of the BPP, and identifies the problem or opportunity, the project objectives, description, benefits, deliverables, and expected duration.

27. Chapter 4 4-27 © Prentice Hall, 2007 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

28. Chapter 4 4-28 © Prentice Hall, 2007 Structured walkthrough form