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    Chapter 4

    Identifying and Selecting Systems

    Development Projects

    2011 by Prentice Hall: J.A.Hoffer et.al., Modern Systems Analysis & Design, 6th Edition 2/42

    Content

    Describe theproject identification andselection

    process

    Describe corporate strategic planning and information

    systems (IS) planning process & their relationships

    Describe how IS planning can be used to assist in

    identifying and selecting systems development

    projects

    Analyze IS planning matrices to forecast the impact of

    IS projects on business objectives Describe the three classes of Internet e-Commerce

    applications: Internet, intranet, and extranet

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    1. Identifying and Selecting IS Dev. Projects

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    1.1 Process of Identifying & Selecting

    IS Development Projects

    There are 3 primary activities:

    a) Defining potential development projects

    b) Classifying & raking ISD projects

    c) Selecting ISD projects

    Define

    Classify &rank

    Select

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    a) Identifying IS Development Projects

    Identification from a stakeholder group

    Each stakeholder group brings their own

    perspective and motivation to the IS decision

    Top-down source are projects identified by top

    management or steering committee

    Bottom-up source are project initiatives stemming

    from user department (managers & business units)

    or the development group

    Pros & cons of each source

    Define

    Classify &rank

    Select

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    Identifying IS Development Projects (Cont.)

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    b) Classifying & Ranking IS Development Projects

    Using value chain analysis

    The process of analyzing an organizations activities

    for making products and/or services to determine

    where value is added and costs are incurred

    Define

    Classify &rank

    Select

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    Classifying & Ranking IS Development Projects (Cont.) *

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    c) Selecting IS Development Projects

    Based on various factors **

    Consider both short- and long-term projects

    Select those most likely to achieve business objectives Is a very important and ongoing activity

    Define

    Classify &rank

    Select

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    Selecting IS Development Projects (Cont.)

    One method for deciding among different

    projects or alternative designs is:For each requirement or constraint:

    Score = weight * rating

    Each alternative:

    sum scores across requirements/constraints

    Alternative with highest score wins

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    Selecting IS Development Projects (Cont.)

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    1.2 Deliverables and Outcomes

    Primary deliverable from the first part of theplanning

    phase is a schedule of specific IS development

    projects *

    Outcome of the next part of the planning phase

    project initiation and planning is the assurance that

    careful consideration was given to project selection

    and each project can help the organization reach its

    goals.

    Incremental commitment

    a strategy in SA&D in which the project is reviewed after

    each phase and continuation of the project is re-justified

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    IS Development Projects come from both top-

    down and bottom-up initiatives

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    2 Corporate and IS Planning

    To benefit from a planning-based approach for

    identifying and selecting projects

    An organization must analyze its

    information needs

    Plan its projects carefully

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    Factors for Improving IS *

    IS Cost

    Cross organizational boundaries application

    Critical business problems

    Data redundancy

    System maintenance cost

    Application backlogs to create individual

    system

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    2.1 Corporate Strategic Planning

    Ongoing process that defines mission,

    objectives, and strategies of an

    organization

    Corporate strategy involves:

    Mission statement

    Objective statements

    Description of competitive strategy

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    Mission Statement *

    A statement that

    makes it clear whatbusiness a company

    is in

    Support

    organizational vision

    (optimistic view ofthe future)

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    Objective Statements

    A series of

    statements thatexpress an

    organizations

    qualitative and

    quantitative goals for

    reaching a desired

    future position

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    Competitive Strategy *

    The methodby which an organization attempts

    to achieve its mission and objectives

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    : " "

    1. (Self Sustainable)

    2. 3.

    4.

    5.

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    SIT: ""

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    Corporate Strategic Planning (cont.)

    Corporate strategic planning is a three-step

    process.

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    2.2 Information Systems Planning (ISP)

    ISP: an orderly means of assessing the

    information needs ofan organization and

    defining systems, databases, and technologiesthat will best meet those needs *

    ISP must be done in accordance with the

    organization's mission, objectives, and

    competitive strategy

    ISP must be kept in line with corporatestrategic planning

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    Information Systems Planning Process

    a

    b

    c

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    Information System Plan (ISP) Process

    a) Describe the current situation

    b) Describe the target situation, trends, andconstraints

    c) Developing a transition strategy and plan

    ~Corporate

    Strategic

    Planning

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    a) Describe the Current Organizational Situation

    Top-down planning: attempts to gain a broad

    understanding of IS needs of an organization & offers:

    Broader perspective

    Improved integration

    Improved management support

    Better understanding

    Bottom-up planning: identifies ISD projects based on

    solving business problems or taking opportunityadvantage

    Can be faster and less costly

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    Business Functions, Data Entities, and IS

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    The Decomposition of PVFs Business Functions

    Functional

    Decomposition:

    breaking high-levelabstract information

    into smaller units for

    more detailed

    planning

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    Example: Data Entity-to-Function Matrix

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    Describe the Current Organizational Situation (cont.)

    Briefly describe mission, objectives, and

    strategy of the organization

    Provide summary of current and future

    processes, functions, data entities, and

    information needs of the enterprise

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    b) Describe the Target Situation, Trends &

    Constraints

    Describe primary role of IS will play in the

    organization to transform enterprise from

    current to future state

    Describe limitations imposed by technology

    and current levels of financial, technical, and

    personnel resources

    Summarize overall IS needs in the company

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    c) Developing a Transition Strategy & Plans

    Set long-term strategies for filling the needs

    Show detailed inventory ofpresent projects

    and systems & detailed plan for the currentyear

    Describe unknown but likely events that can

    affect the plan, presently known business

    change elements, and description of their

    impact on the plan

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    Developing a Transition Strategy & Plans (cont.)

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    Example: IS Plan

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    3. e-Commerce Applications and Internet

    Basics

    E-Commerce: Internet-based communicationto support day-to-day business activities

    Internet: a large worldwide network of networks

    that use a common protocol to communicate with

    each other

    Intranet: Internet-based communication to support

    business activities within a single organizationExtranet: Internet-based communication to

    support business-to-business activities *36/42E.g. SAP, Oracle, PeopleSoft

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    Front-office information systems supportbusiness

    functions that reach out to customers (or constituents).

    Marketing

    Sales

    Customer management

    Back-office information systems support internal

    business operations and interact with suppliers (of

    materials, equipment, supplies, and services).

    Human resources (HR)

    Financial management

    Manufacturing

    Inventory control

    Office Automation : Combine Both 38/42

    e-Commerce Applications and Internet

    Basics (Cont.)

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    Summary

    Describe theproject identification and selection

    process

    Describe corporate strategic planning and IS planning

    process & their relationships

    Describe how IS planning can be used to assist in

    identifying and selecting systems development

    projects

    Analyze IS planning matrices to forecast the impact

    of IS projects on business objectives

    Describe the three classes of Internet e-Commerce

    applications: Internet, intranet, and extranet

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    Questions & Answers

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    Quiz

    1 _________________ is a method by which an

    organization attempts to achieve its mission and

    objectives.

    2 _______ is an Internet-based communication that

    supports business-to-business activities.

    3 __________ is orderly means of assessing the

    information needs of an organization and defining

    the system, databases and technologies that will

    best satisfy those needs.

    4 _______________ is a statement that makes it

    clear what business a company is in.42/42

    Exercise

    Describe the project identification and

    selection process

    Describe several project evaluation criteria

    Discuss the factors that give the evidence for

    the need for improved IS planning today

    Give generic competitive strategies

    Self-Study: CRM system, pp. 125-129