1. Moving from Analysis to Design
Chapter 8
Moving from Analysis to Design

2. Learning Objectives
Understand the process of moving from the logical design stages of the SDLC to the physical phases
Discuss the various components of making the decision to adopt a particular design strategy
Describe the concept of a feasible solution
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3. Learning Objectives
Understand the role of facts, faith, and fear in the development of a system proposal
Describe the various categories of feasibility assessment
Identify and describe the four general categories of project risk
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4. Figure 8-1. Project Flow Model – From “What” to “How”
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5. Selection of the Design Strategy
Key issues
Method of acquisition
System functionality
Software development
Implementations schedule
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6. Do Nothing
One possible alternative among available solutions to the problem is doing nothing
We must assess the cost and consequences associated with not implementing the proposed solution
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7. Non-Automated solutions
Develop better policies and procedures
Redesign of paper-based data capture forms
Improve or eliminate some procedures
Education and training of personnel
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8. Buy versus Make Buy a commercial off-the-shelf (COTS) solution
Develop a customer software application in-house
Outsource the project to external application service provides (ASP)
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9. COTS
Provide software that is well-tested, proven, and readily available
Integrating the COTS solution with other existing software application could be a problem
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10. Table 8-1. Guidelines for Evaluating a proposed COTS Solution
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11. Customer Software Development
Build the software application from scratch
Have complete control over the look, feel, and functionality of the new system
Provide flexibility and contingency for future needs
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12. Outsourcing
Pro:
Technical expertise, development tools, and resources from outsourced firms
Con:
Risk associated with putting a mission-critical project in the hands of a third party
Can actually increase the responsibility of the organization
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13. Table 8-2. General Guidelines and Activities for Evaluating Outsourcing Design Strategies
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14. Outsourcing Application Service Provider
Operates a sophisticated computer facility that houses several specialized software application
Applications could reside on the Web and organizations pay a fee to use them
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15. Hardware Design Strategy
Organization’s existing hardware platform and its support for the new applications
Upgrade to a platform that allow for both current and future functionality
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16. Three Perspectives for Making a Business Case
Facts
Faith
Fear
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17. Facts
Faith
Fear
“The system will have a net present value of $753,000.”
“The system will yield a minimum reduction in operating cost of $193,000 annually.”
“The estimated increase in market share is 14.7%.” within the first 24 months of operation.”
“IT is part of the infrastructure, we can’t cost justify it like a new fleet of trucks.”
“It seems reasonable to assume that this new system will reduce our costs of servicing this market sector.”
“Trust me. This is why you hired me as the IT Director.”
“Our competitors are doing this even as we speak.”
“Our shareholders will view us as technologically behind if we don’t do this now.”
“We have a small window of opportunity here and we are wasting precious time trying to decide.”
Figure The Three Perspectives for Making a Business Case
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18. System Feasibility Technical Operational Human factors
Legal and political
Economic
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19. Technical Feasibility
The practicality of a specific technical solution and the availability of the technology necessary to implement it
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20. Technical Feasibility
Is the technology necessary for the proposed solution practical to obtain?
Do we currently possess the technology necessary to implement the proposed solution?
Is the technology necessary to implement the proposed solution available now and has it been tested and proven?
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21. Operational Feasibility
How well the proposed solution works within the organization
How the end users feel about the new system
Organizational IS plan
Implementation schedule
Impact on organization
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22. Human Factor Feasibility
Ease of use
Perceived usefulness
Overall satisfaction
End-user training
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23. Legal and Political Feasibility
Possible legal issues
Violations of patent or copyright, infringement of nondisclosure agreements, antitrust and labor-related laws, etc.
Political issues
Change management
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24. Economic Feasibility
Identifies the financial and net economic impacts to the organization of the proposed system
Performed last
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25. Identifying the Cost and Benefits
Tangible Benefits
Benefits that can be identified with certainty and an be expressed in dollars and cents
Intangible Benefits
Cannot be identified with certainty
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26. Table 8-4. Typical Tangible Benefits Associated With a New Information System
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27. Table 8-5. Typical Intangible Benefits Associated With a New Information System
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28. Table 8-6. Typical Costs Associated With a New Information System
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29. Figure 8-4a. Example of Tangible Costs Analysis
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30. Figure 8-4b. Example of Intangible Costs Analysis
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31. Figure 8-4c. Example of Tangible Benefits Analysis
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32. Figure 8-4d. Example of Intangible Benefits Analysis
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33. Economic Feasibility Measures
Net Present Value (NPV)
Internal Rate of Return (IRR)
Return on Investment (ROI)
Break-even Analysis
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34. Net Present Value
Calculates the present value of a series of cash outflows and expected future cash inflows
If the cost of capital or rate of return (discount rate) is positive, then the investment is a good one.
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35. Figure 8-5. Typical NPV Project Analysis
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36. Net Present Value
Present Value
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37. Net Present Value
The present value of a dollar three years from now, assuming a discount rate of 10 percent, is:
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38. Figure 8-6. Example of Graphical Break-even Analysis
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39. Table 8-7. Partial Table of Values for the Present Value of a Dollar
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40. Internal Rate of Return
Largest number d that satisfies the equation:
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41. Return on Investment
Example:
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42. Pay-Back Period NPV Cash Flow
Break-even Analysis
Pay-Back Period NPV Cash Flow — Overall NPV Cash Flow
——————————————————————————
Pay-Back Period NPV Cash Flow
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43. Risk Assessment Project Risk Project Size Project Structure Analysts
End-users
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44. Table 8-8. Categories and Examples of Project Risk
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45. Chapter Summary
The development and adoption of a successful design strategy is predicated on the outcome of a detailed feasibility and risk assessment process.
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46. Chapter 8
End of Chapter