Phase 1 Systems Planning

Preliminary Investigation

SDLC Phases
Phase 1: Systems Planning

Systems Analysis and Design Fourth Edition

SDLC Phases
Phase 1: Systems Planning Objectives
Learn how projects get started Learn how projects are evaluated initially

Systems Analysis and Design Fourth Edition

Chapter 2
Preliminary Investigation

Systems Analysis and Design Fourth Edition

Objectives
Describe the strategic planning process, and why it is important to IT managers Explain the purpose of a mission statement Explain the SDLC as a framework for systems development and business modeling Explain the reasons for information systems projects and the factors that affect such projects
Systems Analysis and Design Fourth Edition

Objectives
Describe the initial review of systems requests and the role of the systems review committee Describe the internal and external factors that affect information systems projects Define operational feasibility, technical feasibility, and economic feasibility Describe the steps and end product of a preliminary investigation
Systems Analysis and Design Fourth Edition

Introduction
Systems planning tasks
Examine the systems request Conduct a preliminary investigation Using SDLC and CASE tools to provide a framework

Systems Analysis and Design Fourth Edition

The Importance of Strategic Planning

Overview of the strategic planning process
SWOT analysis
Strengths Weaknesses Opportunities Threats

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The Importance of Strategic Planning

From the strategic plan to business results
Examples of mission statements
nFront Quebecor Printing Corp. Federal Express

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The Importance of Strategic Planning

The future
Thriving e-commerce Rapid change

Systems Analysis and Design Fourth Edition

A Framework for Systems Development

A business model example
IT director favors SDLC using System Architect 2001 (S/A 2001)

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A Framework for Systems Development

A business model example
IT director favors SDLC using System Architect 2001 (S/A 2001) Critical success factors Critical business issues Case for action S/A 2001 encyclopedias

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A Framework for Systems Development

The role of the IT department
Close link between operations and IT
JAD and RAD

Some companies see IT as technology gatekeeper

Systems Analysis and Design Fourth Edition

Information Systems Projects

Starting point is a systems request

Systems Analysis and Design Fourth Edition

Information Systems Projects

Reasons for systems projects
Improved service Better performance More information Stronger controls Reduced cost

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Information Systems Projects

Reasons for systems projects
Improved service Better performance More information Stronger controls Reduced cost

Systems Analysis and Design Fourth Edition

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Information Systems Projects

Factors affecting systems projects
User requests Top-management directives Existing systems Information technology department The economy Technology Government Software and hardware vendors Competitors Customers Click to see Figure 2-7 2Suppliers
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Information Systems Projects

Systems request forms
Streamlines the process Ensures consistency Must be easy to understand and use Must include clear instructions

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Evaluation of Systems Requests

Evaluation of projects
Systems review committee
Evaluate requests Set priorities Assess feasibility

Systems Analysis and Design Fourth Edition

Evaluation of Systems Requests

Overview of feasibility
Feasibility study uses three main yardsticks:
Operational feasibility Technical feasibility Economic feasibility

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Evaluation of Systems Requests

Operational feasibility
Is the system a practical and effective approach?

Operational feasibility depends on:

Management and user support User involvement in planning Impact on performance, customers, and company image Reasonable schedules
Systems Analysis and Design Fourth Edition

Evaluation of Systems Requests

Technical feasibility
Does the organization have resources to develop/purchase and operate the system?

Technical feasibility depends on:

Technical expertise within the organization Availability of necessary equipment Hardware and software reliability Adequate performance that will meet specifications Capacity for future needs/projected growth

Systems Analysis and Design Fourth Edition

Evaluation of Systems Requests

Economic feasibility
Do the projected benefits outweigh the estimated costs of development, installation, and operation?

Economic feasibility depends on:

Costs one time and continuing costs Benefits tangible and intangible benefits Timing of various costs and benefits Cost of not developing the system

Systems Analysis and Design Fourth Edition

Evaluation of Systems Requests

Determining feasibility
First step is a determination of feasibility Goal is to identify nonfeasible projects as soon as possible Feasibility can change over time
Nonfeasible projects can be resubmitted Initially feasible projects can be rejected later

Systems Analysis and Design Fourth Edition

Evaluation of Systems Requests

Criteria used to evaluate systems requests
Reduce costs Increase revenue Produce more information or better results Serve customers and the organization better Reasonable time frame and lasting results Resources available Necessary or discretionary Tangible or intangible factors

Systems Analysis and Design Fourth Edition

Evaluation of Systems Requests

Discretionary and non-discretionary projects
Necessity of project Possibly no need to review nondiscretionary projects in committee

Systems Analysis and Design Fourth Edition

Preliminary Investigation Overview

Purpose
To decide whether to continue the project

Objectives for a preliminary investigation

1. Understand the problem 2. Define the project scope and constraints 3. Identify the benefits 4. Estimate the time and costs 5. Report to management

Interaction with managers and users

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Steps in the Preliminary Investigation

Step 1: Understand the problem
Identify the true nature of the problem and the reason for the systems request Stated problem may not be the real problem Clear statement defines the investigation scope

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Steps in the Preliminary Investigation

Step 2:Define the project scope and constraints
Project scope
Define the range or extent of the project Set project boundaries

Constraints
Identify conditions, restrictions, or requirements
Present vs. future Internal vs. external Mandatory vs. desirable
Systems Analysis and Design Fourth Edition

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Steps in the Preliminary Investigation

Step 3: Perform fact finding
Analyze organization charts Conduct interviews Observe operations Carry out a user survey

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Steps in the Preliminary Investigation

Step 4: Determine feasibility
Determine operational, technical, and economic feasibility

Systems Analysis and Design Fourth Edition

Steps in the Preliminary Investigation

Step 5: Estimate time and cost to continue development
Determine what information is needed Identify the sources of information Decide whether to use interviews, if so how many, and what time needed Decide whether to use surveys, if so who to complete it, and what time needed Estimate the cost of gathering, analyzing, and reporting the information to management

Systems Analysis and Design Fourth Edition

Steps in the Preliminary Investigation

Step 6: Present results and recommendations to management
Final task in the preliminary investigation Key elements
Evaluation of systems request Estimate of costs and benefits Recommendations

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Steps in the Preliminary Investigation

Step 6: Present results and recommendations to management
Final task in the preliminary investigation Key elements
Evaluation of systems request Estimate of costs and benefits Recommendations

Oral and written presentations

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Background
SWL uses outside firm (BIS) for payroll processing Payroll deductions permitted for credit union and SWL stock purchase Recent reports of problems Errors in employee deductions Overtime necessary to correct Future Employee Savings Investment Plan (ESIP) is possible
Systems Analysis and Design Fourth Edition

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Request for information technology services
Systems request submitted by Michael Jeremy
Describes problem generally Does not identify cause or propose solution

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SOFTWEAR, LIMITED
Request for information technology services
Systems request submitted by Michael Jeremy
Describes problem generally Does not identify cause or propose solution

IT department response

SWL does not have systems review committee Rick Williams assigned to preliminary investigation
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SOFTWEAR, LIMITED
Request for information technology services
Systems request submitted by Michael Jeremy
Describes problem generally Does not identify cause or propose solution

IT department response

SWL does not have systems review committee Rick Williams assigned to preliminary investigation Michael Jeremy issues authorization memo
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Organization charts
Current organization charts not available Rick obtains job descriptions and draws charts

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Interviews
Michael Jeremy, vice president of finance Mike Feiner, director of human resources Amy Calico, director of payroll

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Current documentation
Results and findings
Specific procedures are being followed by the payroll department Written descriptions for these procedures are outdated Payroll department has never seen the stock plan deduction form

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Presentation to Management
IT department tasks
Prepared a preliminary investigation report Attached a cover memo Scheduled a presentation

Management decisions
Analyze the payroll system as requested Scope to include whether current BIS can handle new ESIP options
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SOFTWEAR, LIMITED
Presentation to Management
IT department tasks
Prepared a preliminary investigation report Attached a cover memo Scheduled a presentation

Management decisions
Analyze the payroll system as requested Scope to include whether current BIS can handle new ESIP options
Systems Analysis and Design Fourth Edition

Click to see Figure 2-23 2Package

End Chapter 2