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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

Documents

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