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

Chapter © 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.

Chapter © 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.

Chapter © Prentice Hall, 2007

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

Chapter © Prentice Hall, 2007

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

Chapter © Prentice Hall, 2007

Chapter © Prentice Hall, 2007

Chapter © Prentice Hall, 2007

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

Chapter © 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

Chapter © 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

Chapter © 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

Chapter © 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.

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

Chapter © 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

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

Chapter © 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.

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

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

Chapter © Prentice Hall, 2007

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

Chapter © 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?

Chapter © 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.

Chapter © 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.

Chapter © 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

Chapter © Prentice Hall, 2007 Structured walkthrough form