1. Chapter 6 Initiating and Planning Systems Development Projects
Modern Systems Analysis and Design Third Edition Jeffrey A. Hoffer Joey F. George Joseph S. Valacich
Chapter 6
Initiating and Planning Systems Development Projects
6.1
Copyright 2002 Prentice-Hall, Inc.

2. Learning Objectives
Describe steps involved in the project initiation and planning process
Explain the need for and the contents of a Statement of Work and Baseline Project Plan
List and describe various methods for accessing project feasibility
6.2

3. Learning Objectives
Describe the differences between intangible and tangible costs and benefits and between recurring and one-time benefits and costs
Detail various methods of cost/benefit analysis
Describe the general rules for evaluating the technical risks associated with a systems development project
Describe the activities and participant roles within a structured walkthrough
6.3

4. Initiating and Planning System Development Projects
Project Initiation
Establishment of project team
Development of relationship with customer
Project Initiation Plan
Establishment of Management Procedures
Establishment of Project Workbook and Project Management Environment
Project Planning
Defining clear, discrete activities and the work needed to complete each activity
6.4

5. Initiating and Planning System Development Projects
Deliverables and Outcomes
Baseline Project Plan (BPP)
Scope
Benefits
Costs
Risks
Resources
Statement of Work (SOW)
Describes deliverables
Outlines work needed to be performed
6.5

6. Assessing Project Feasibility
Six Categories
Economic
Technical
Operational
Schedule
Legal and contractual
Political
6.6

7. Assessing Economic Feasibility
Cost – Benefit Analysis
Determine Benefits
Tangible Benefits
Can be measured easily
Examples
Cost reduction and avoidance
Error reduction
Increased flexibility
Increased speed of activity
Improved management planning and control
Opening new markets and increasing sales opportunities
6.7

8. Assessing Economic Feasibility
Intangible Benefits
Cannot be measured easily
Examples
Increased employee morale
Competitive necessity
More timely information
Promotion of organizational learning and understanding
Determine Costs
Tangible Costs
Can easily be measured in dollars
Example: Hardware
6.8

9. Assessing Economic Feasibility
Determine Costs (Continued)
Intangible Costs
Cannot be easily measured in dollars
Examples:
Loss of customer goodwill
Loss of employee morale
6.9

10. Assessing Economic Feasibility
One-Time Costs
Associated with project startup, initiation and development
Includes
System Development
New hardware and software purchases
User training
Site preparation
Data or system conversion
6.10

11. Assessing Economic Feasibility
Recurring Costs
Associated with ongoing use of the system
Includes:
Application software maintenance
Incremental data storage expense
New software and hardware releases
Consumable supplies
Incremental communications
Time value of money (TVM)
The process of comparing present cash outlays to future expected returns
6.11

12. Assessing Technical Feasibility
Assessment of the development organization’s ability to construct a proposed system
Project risk can be assessed based upon:
Project size
Project structure
Development group’s experience with the application
User group’s experience with development projects and the application area
6.12

13. Assessing Other Project Feasibility Concerns
Operational Feasibility
Assessment of how a proposed system solves business problems or takes advantage of opportunities
Schedule Feasibility
Assessment of time frame and project completion dates with respect to organization constraints for affecting change
Legal and Contractual Feasibility
Assessment of legal and contractual ramifications of new system
6.13

14. Assessing Other Project Feasibility Concerns
Political Feasibility
Assessment of key stakeholders in organization’s view toward proposed system
6.14

15. Building the Baseline Project Plan
Objectives
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
6.15

16. Building the Baseline Project Plan
Four Sections
Introduction
System Description
Feasibility Assessment
Management Issues
6.16

17. Building the Baseline Project Plan
Introduction
Brief overview
Recommended course of action
Project scope defined
Units affected
Who inside and outside the organization would be involved
Interaction with other systems
Range of system capabilities
6.17

18. Building the Baseline Project Plan
System Description
Outline of possible alternative solutions
Narrative format
Feasibility Assessment
Project costs and benefits
Technical difficulties
High-level project schedules
6.18

19. Building the Baseline Project Plan
Management Issues
Outlines concerns that management may have about the project
Team composition
Communication plan
Project standards and procedures
6.19

20. Reviewing the Baseline Project Plan
Objectives
Assure conformity to organizational standards
All parties agree to continue with project
6.20

21. Reviewing the Baseline Project Plan
Walkthrough
Peer group review
Participants
Coordinator
Presenter
User
Secretary
Standards Bearer
Maintenance Oracle
6.21

22. Reviewing the Baseline Project Plan
Walkthrough (continued)
Activities
Walkthrough Review Form
Individuals polled
Walkthrough Action List
Advantages
Assures that review occurs during project
6.22

23. Summary Project Initiation Baseline Project Plan (BPP)
Forming project initiation team
Establishing customer relationships
Developing a plan to get the project started
Setting management procedures
Creating an overall project management environment
Baseline Project Plan (BPP)
Created during project initiation and planning
6.23

24. Summary Statement of Work (SOW) Contains:
Introduction
High-level description of system
Outline of feasibility
Overview of management issues
Statement of Work (SOW)
Describes what project will deliver
Lists all work to be performed
6.24

25. Summary Feasibility Economic Operational Technical Schedule Legal
Contractual
Political
6.25

26. Summary Benefits Costs Tangible vs. Intangible One-time vs. Recurring
6.26