1. info1409 De Montfort University1 Lecture 4 Analysing the Business Case (1) System Users and their needs Systems Analysis & Design Academic Year 2008/9

2. info1409 De Montfort University2 Lecture Objectives By the end of this lecture you will be able to: Explain the concept of a Business Case (and how it affects an IT Project) Describe the strategic planning process Explain the purpose of a mission statement Give reasons for information systems projects and the factors that affect them.

3. info1409 De Montfort University3 Systems Planning Phase This lecture explains further the first phase in the Systems Development Life Cycle. It explains why it is important to understand Business operations and requirements. It examines how IT projects support a Company’s overall strategic plan and how systems projects get started.

4. info1409 De Montfort University4 Six of the main reasons for Systems requests P51 Shelley et al

5. info1409 De Montfort University5 Systems requests and the business case It is important that the system request takes into account the purpose of the Organisation. It should aim to improve service or provide better performance. It should recommend changes that are in the company’s best interests.

6. info1409 De Montfort University6 The Business Case During the systems planning phase the IT team reviews a proposal to determine if it presents a strong business case The term ‘business case’ refers to the reasons for or justification for a proposal. A strong business case means the proposals are in the company’s best interest.

7. info1409 De Montfort University7 Systems requests can be the result of both internal and external factors Page 51 Shelley et al

8. info1409 De Montfort University8 Problem Identification This important work is done by Systems Analysts and other IT professionals. A clear set of objectives need to be defined These objectives should reflect the Organisation’s “Mission statement”. The aim is to discover options from which the Organisation can choose.

9. info1409 De Montfort University9 System Users A hierarchy still exists in most companies A systems analyst must understand the company’s organisation model in order to: Recognise who is responsible for specific processes and decisions What information is required by whom.

10. info1409 De Montfort University10 Systems Users continued Large organisations have Organisational levels Each level has a different business function. Each category has differing information needs and responsibilities The following slide illustrates this

11. info1409 De Montfort University11 P15 Shelley et al

12. info1409 De Montfort University12 User Groups User groups fall into 4 main categories: Top Managers 1. Middle Managers & Knowledge workers 2. Supervisors and team leaders 3. Operational employees Another way to represent this is by Anthony’s triangle on the next slide:

13. info1409 De Montfort University13 Tactical Operational Operational Activity Strategic Planning Management Control Strategic Level Management Control level Middle Managers and knowledge workers Operational Control Operational employees Top managers Adaptation of Anthony’s triangle – showing organisational levels

14. info1409 De Montfort University14 Activity time In order to understand the structure of business operations further we will now do a short exercise. You will be given an ID – you are either an A student, a B student or a C student.

15. info1409 De Montfort University15 Activity time Think about a Car Production plant – A group be the Strategic Level B group be the Tactical Level C group be the Operational level

16. info1409 De Montfort University16 Activity time Think about a Car Production plant – Working in twos - answer the following : 1. What activities would your group be involved in? 2. What decisions would they have to make, 3. what day to day activities would they perform?

17. info1409 De Montfort University17 Feedback time Now its up to you to talk to your Lecturer and other group members to fill in the gaps. Remember time is precious – you may have to complete this after the lecture.

18. info1409 De Montfort University18 System categories We can divide systems into categories – 1.Decision support systems / Executive Information systems (top managers) 2.Office systems, (Admin) (Middle Managers and knowledge workers) 3.Operations systems (Transaction processing)

19. info1409 De Montfort University19 User group 1 -Top Managers Top Managers develop long-range plans called strategic plans,. They need information from both inside and outside the company (e.g. economic forecasts, technology trends, competitive threats and governmental issues )

20. info1409 De Montfort University20 User Group 2 -Middle Managers and Knowledge workers Middle managers provide supervisors and team leaders with: Direction Performance feedback Necessary resources In addition every company needs knowledge workers (Analysts, programmers, accountants etc)

21. info1409 De Montfort University21 User group 3 - Supervisors and Team leaders These employees: Oversee operational employees Carry out day to day functions Need decision support information and knowledge management systems in order to carry out their responsibilities

22. info1409 De Montfort University22 User group 4 -Operational Employees Rely upon Transaction processing systems Their work is often to enter and receive data They need information to handle specific tasks.

23. info1409 De Montfort University23 Strategic planning risks The greatest risk occurs when a company tries to decide how the system will be implemented before determining what the system is supposed to do. To avoid this we have to begin by outlining a company’s user requirements, (and business needs) to identify possibilities or solutions.

24. info1409 De Montfort University24 Strategic planning Strategic planning is the process of identifying long term organisational goals, strategies and resources. Strategic planning looks beyond the day to day activities and focuses on a horizon that is 5 to 10 years in the future.

25. info1409 De Montfort University25 Mission Statements Objectives and IT needs “ To analyse the business case for a specific proposal, the Analyst must consider the company’s overall mission, objectives and IT needs.” Ch.2 Shelley et al. Page 44.

26. info1409 De Montfort University26 Preliminary investigation stage As we learned in Lecture 3, systems development begins with: 1. A systems request 2. A preliminary investigation/feasibility study) 3. Fact finding

27. info1409 De Montfort University27 Fact finding planning tools Managers often do a SWOT analysis when planning for the future. This identifies the following: STRENGTHS WEAKNESSES OPPORTUNITIES THREATS Each of these areas may lead to an IT related issue which in turn requires, review, analysis and planning

28. info1409 De Montfort University28 Strategic decision making is crucial for the future of a business as decisions made affect all levels of employees. Example of a SWOT analysis result

29. info1409 De Montfort University29 In conclusion: You should now be able to Recognise that IT needs differ with user groups Identify the organizational levels. Explain the early stages of Systems development.

30. info1409 De Montfort University30 Recommended Reading Chapter 1 up to pages 20-25 of the recommended text ‘Systems Analysis & Design’, Shelley Cashman Series, Thomson Course Technology