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Identifying and Selecting Systems Development Projects

The document discusses the process of identifying and selecting IS development projects which involves 3 primary activities: 1) Identifying potential projects, 2) Classifying and ranking projects, and 3) Selecting projects. Projects are identified through top-down and bottom-up initiatives. Common criteria for evaluating projects include costs, benefits, risks, and alignment with corporate goals. Multicriteria analysis is used to score and select projects. Corporate strategic planning defines an organization's mission, objectives, and strategies and provides important context for identifying projects that support strategic goals.

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Satya Nadella
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0% found this document useful (0 votes)
36 views

Identifying and Selecting Systems Development Projects

The document discusses the process of identifying and selecting IS development projects which involves 3 primary activities: 1) Identifying potential projects, 2) Classifying and ranking projects, and 3) Selecting projects. Projects are identified through top-down and bottom-up initiatives. Common criteria for evaluating projects include costs, benefits, risks, and alignment with corporate goals. Multicriteria analysis is used to score and select projects. Corporate strategic planning defines an organization's mission, objectives, and strategies and provides important context for identifying projects that support strategic goals.

Uploaded by

Satya Nadella
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© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Chapter 4

Identifying and Selecting


Systems Development Projects
Learning Objectives
Describe the project identification and selection
process.
Describe corporate strategic planning and information
systems planning.
Explain the relationship between corporate strategic
planning and IS planning.
Describe how IS planning can assist in system
development project identification and selection.
Analyze IS planning matrices.
The Process of Identifying and Selecting
IS Development Projects

Project identification and selection


consists of three primary activities:
1. Identifying potential development projects

2. Classifying and ranking IS development projects

3. Selecting IS development projects


The Process of Identifying and Selecting
IS Development Projects

Identifying potential development projects


 a key member of top management, either the CEO
of a small organization or a senior executive in a
larger organization
 A steering committee, composed of a cross
section of managers with an interest in systems
 user departments, in which either the head of the
requesting unit or a committee from the requesting
department decides which projects to submit
 the development group or a senior IS manager.
Each stakeholder group brings their own perspective
and motivation to the IS decision.
The Process of Identifying and Selecting
IS Development Projects

 projects are identified by both top-down and


bottom-up initiatives
 Top-down source are projects identified by top
management or by a diverse steering committee.
 Bottom-up source are project initiatives stemming
from managers, business units, or the
development group.
 The process varies substantially across
organizations.
The Process of Identifying and Selecting
IS Development Projects (Cont.)
Classifying and ranking potential IS projects
– focuses on assessing the relative merit of potential projects.
– Commonly used criteria for assessing projects are summarized in Table 4-2
The Process of Identifying and Selecting
IS Development Projects (Cont.)
Classifying and ranking potential IS projects
– An important project evaluation method that is widely used for assessing
information systems development projects is called value chain analysis.
The framework divides activities that generate value into two categories:
 Primary activities comprise a set of activities that contribute to the creation of value in a
direct manner.
 Support activities consist of functions and tasks that are intended to support primary
activities.
The Process of Identifying and Selecting
IS Development Projects (Cont.)
The Process of Identifying and Selecting
IS Development Projects (Cont.)

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.
Factors for Project Selection
• Figure 4-3 shows that a selection
decision requires that the perceived
needs of the organization, existing
systems and ongoing projects, resource
availability, evaluation criteria, current
business conditions.

• Numerous outcomes can occur from


this decision process.

• Of course, projects can be accepted or


rejected.

• Acceptance of a project usually means


that funding to conduct the next phase
of the SDLC has been approved.

• Rejection means that the project will no


longer be considered for development.
Multicriteria Analysis

One method for deciding among different projects or when


considering alternative designs for a given system is:
 For each requirement or constraint:
Score = weight X rating.

 Each alternative:
sum scores across requirements / constraints.

 Alternative with highest score wins.


Multicriteria Analysis

Scale of 1 to 5: Rating 1 indicates that alternative does not meet the requirement or violates the constraint.
Rating 5 indicates that alternative meets / exceeds the requirement or clearly abides by the constraint

Each requirement or constraint: Score = Weight x Rating


Each alternative: sum scores across requirements/constraints
Alternative with highest score wins
Deliverables and Outcomes

Primary deliverable from the first part of the planning


phase is a schedule of specific IS development
projects.

An outcome of this phase is the assurance that


careful consideration was given to project selection,
with a clear understanding of how each project can
help the organization reach its objectives
Corporate Strategic Planning
An ongoing process that defines mission, objectives, and strategies of an
organization
A prerequisite for making effective project selection decisions is to gain a
clear idea of where an organization is, its vision of where it wants to be in
the future, and how to make the transition to its desired future state.

Corporate strategic planning can be viewed as a three step


process:
(1) current enterprise
The first step focuses on gaining an understanding of the current
enterprise.
In other words, if you don’t know where you are, it is impossible
to tell where you are going
(2) future enterprise
top management must determine where it wants the enterprise to
be in the future
(3) strategic plan.
after gaining an understanding of the current and future
enterprise, a strategic plan can be developed to guide this
transition.
Corporate Strategic Planning (cont.)
During corporate strategic planning, two major
outcomes and deliverable developed:
a) mission statements

b) objective statements

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