Module 2:

Identifying and Selecting IS

projects
Major objectives of systems
analysis
To find answers for each business process:
 What is being done?
 How is it being done?
 Who is doing it?
 When is he doing it?
 Why is it being done?
 How can it be improved?
It attempts to give birth to a new efficient
system that satisfies the current needs of the
user and has scope for future growth within
the organizational constraints.
 System Design
Based on the user requirements and the
detailed analysis of the existing system
Classic Management Pyramid

Top-level
Strategic
managers

Middle-level
managers Tactical

Low-level
managers Operational
 Flattened Management
Pyramid

Top-level
Strategic
managers

Low and
Middle-level Tactical
managers

Workers Operational
Flattening Organizations &
Information Systems
Redesigned Work Flow For
Insurance Underwriting
 Project Initiation
Projects are initiated for two broad
reasons:
 Problems that lend themselves to systems
solutions
 Opportunities for improvement through
 Upgrading systems
 Altering systems
 Installing new systems
 Organizational Problems
Identify problems by
Check output against performance criteria
 Too many errors
 Work completed slowly
 Work done incorrectly
 Work done incompletely
 Work not done at all
Organizational Problems
Observe behavior of employees
 High absenteeism
 High job dissatisfaction
 High job turnover
Organizational Problems
Listen to feedback from vendors,
customers, and suppliers
 Complaints
 Suggestions for improvement
 Loss of sales
 Lower sales
 Checking Output, Observing Employee Behavior, and
Listening to Feedback Are all Ways to Help the Analyst
Pinpoint Systems Problems and Opportunities
 Selection Of Projects
Backing from management
Appropriate timing of project commitment
Possibility of improving attainment of
organizational goals
Practical in terms of resources for the system
analyst and organization
Worthwhile project compared with other ways
the organization could invest resources
 Selection of Projects: Improving
Attainment of Organizational Goals

Improving corporate profits

Supporting the competitive strategy of the
organization
Improving cooperation with vendors and
partners
Improving internal operations support
Improving internal decision support so that
decisions are more effective
Improving customer service
Increasing employee morale
Possibilities for Improvement
Many possible objectives exist including
 Speeding up a process
 Streamlining a process
 Combining processes
 Reducing errors in input
 Reducing redundant storage
 Reducing redundant output
 Improving system and subsystem
integration
Determining Feasibility and
Managing Analysis and
Design Activities
 Feasibility Study
Guides the organization in determining
whether to proceed with a project or not
Identifies the important risks associated
with the project that must be addressed
if the project is approved
 Feasibility Study
Is it a practical approach that will solve
a problem or take advantage of an
opportunity to achieve company goals?
Are the necessary technical resources
and people available for the project?
 Feasibility Study
Is the problem worth solving, and will
the request result in a sound business
investment?
Can the proposal be accomplished
within an acceptable time frame?
 Feasibility
A feasibility study assesses the
operational, technical, and economic
merits of the proposed project
There are three types of feasibility:
 Technical feasibility
 Economic feasibility
 Operational feasibility
 Technical Feasibility
Technical feasibility assesses whether
the current technical resources are
sufficient for the new system
If they are not available, can they be
upgraded to provide the level of
technology necessary for the new
system
 Economic Feasibility
Economic feasibility determines whether
the time and money are available to
develop the system
Includes the purchase of
 New equipment
 Hardware
 Software
 Operational Feasibility
Operational feasibility determines if the
human resources are available to
operate the system once it has been
installed
Users that do not want a new system
may prevent it from becoming
operationally feasible
 Operational Feasibility
Means that the proposed system will be
used effectively after it has been
developed
A measure of the user’s attitude
towards the system and how well the
solution will work in the organization
 Operational Feasibility
If users have a difficulty with a system, it
will not produce the expected benefits
 Operational Feasibility

Is the problem worth solving

or will the solution to the
problem work?
 Operational Feasibility
Does management support the project?
Do users see the need for change?
Will the new system result in a
workforce reduction?
Will the new system place any new
demands on users or require any
operating changes?
 Operational Feasibility
Will any information be less accessible
or produced less frequently?
Will customers experience adverse
effects in any way?
Do legal or ethical issues need to be
considered?
 Technical Feasibility
Refers to the technical resources
needed to develop, purchase, install, or
operate the system
Analysis of technical risks like familiarity
with the application or technology,
project size, and compatibility
 Technical Feasibility

Do we have the

technical abilities and
resources to be able to build
the system?
 Technical Feasibility
Can the company acquire the
necessary hardware, software, and
network resources without difficulty?
Does the company have the needed
technical expertise?
Does the proposed platform have
sufficient capacity for future needs?
 Technical Feasibility
Will the hardware and software
environment interface properly with
external systems operated by
customers and suppliers?
Do clear expectations and performance
specifications exist?
 Economic Feasibility
Means that the projected benefits of the
proposed system outweigh the
estimated costs, which includes ongoing
support and maintenance costs, as well
as acquisition costs
 Economic Feasibility

Can we support the

system’s development and
operational costs?
 Economic Feasibility
Development Costs
 Development team salaries
 Consultant fees
 Development training
 Hardware and software
 Vendor installation
 Office space and equipment
 Data conversion costs
 Economic Feasibility
Operational Costs
 Software upgrades
 Software licensing fees
 Hardware repairs
 Hardware upgrades
 Operational team salaries
 Communications charges
 User training
 Economic Feasibility
Tangible Benefits
 Increased sales
 Reductions in staff
 Reductions in inventory and elimination of
production delays
 Reductions in IT costs
 Better supplier prices
 Economic Feasibility
Intangible Benefits
 Increased market share
 Increased brand recognition
 Enhanced company image
 Higher quality products
 Improved employee job satisfaction
 Improved customer service
 Better supplier relations
 Schedule Feasibility

Can the system be finished

on time?
 Schedule Feasibility
Can the company or the IT team control
the factors that affect schedule
feasibility?
Has management established a firm
timetable for the project?
What conditions must be satisfied
during the development of the system?
 Schedule Feasibility
Will an accelerated schedule pose any
risks?
Will project management techniques be
available to coordinate and control the
project?
Will a project manager be appointed?
 Evaluating Feasibility

Even if the request is

feasible, it might not
be necessary
 Determining Feasibility
Defining objectives
Determining resources
 Operationally
 Technically
 Economically
The Three Key Elements of Feasibility Include
Technical, Economic, and Operational
Feasibility
 Technical Feasibility
Can current technical resources be
upgraded or added to in a manner that
fulfills the request under consideration?
If not, is there technology in existence
that meets the specifications?
 Economic Feasibility
Economic feasibility determines whether
value of the investment exceeds the time and
cost.
Includes:
 Analyst and analyst team time
 Business employee time
 Hardware
 Software
 Software development
 Operational Feasibility
Operational feasibility determines if the
human resources are available to
operate the system once it has been
installed.
Users that do not want a new system
may prevent it from becoming
operationally feasible.
Activity Planning and Control
Planning includes:
 Selecting a systems analysis team
 Estimating time required to complete each task
 Scheduling the project
Control includes:
 Comparing the plan for the project with its actual
evolution
 Taking appropriate action to expedite or
reschedule activities
 Estimating Time
Project is broken down into phases.
Further project is broken down into tasks or
activities.
Finally project is broken down into steps or
even smaller units.
Time is estimated for each task or activity.
Most likely, pessimistic and optimistic
estimates for time may be used.