CIS 360 – Lecture Three

Ch. 4: Identifying and Selecting Projects

Ch. 5: Project Initiation and Planning

Objectives

Project Identification and Selection– General Approaches and Outcomes– Integration between Strategic and IS

Planning for Project ID and Selection Project Initiation and Planning

– Basic Activities in Initiation and Planning– Deliverables and Outcomes

Where are we in SDLC?Project Identification and Selection

Proj. Identification & Selection

Proj. Initiation & Planning

Analysis

Logical Design

Physical Design

Implementation

Maintenance

1. Identifying Projects2. Ranking Projects3. Selecting a Project

Where are we in SDLC?Initiation and Planning

1. Initiating the Project2. Studying the Project3. Generating BPP and SOW

Project ID and Selection

Project Initiation & Planning

Analysis

Logical Design

Physical Design

Implementation

Maintenance

Identify and Selecting IS Projects

Identifying and Selecting IS Development Projects

Deliverables and Outcomes– Primary Deliverable

• Schedule of specific IS development projects

– Outcomes• Assurance that careful consideration was given

to project selection• Clear understanding of project’s relation to

organizational objectives

General Approaches

Top Down:

1. Top Mgmt2. Steering comm

Sources of Potential Projects

Schedule of Projects

1. Initiating2. Feasibility Study3. Cost/Benefits 4. BPP5. ...

Project Identificationand Selection

Project Initiationand Planning

Evaluate,Prioritize, and

Select Projects

Bottom Up:

3. User Dept4. Develop. Group

Who Makes The Identification and Selection ... It really matters!

Top-down: – by top management and steering committee– gain a broad understanding of the information

system needs of the entire organization– greater strategic focus, cross functional, larger

size & duration, riskier

Bottom-Up:– by user-department and development group– solving operational business problems or taking

advantage of some business opportunities– narrow, non-strategic focus, integration with

existing systems, smaller project

Possible Evaluation Criteria

Value Chain Analysis - ident. value-added activities

Strategic Alignment - compatible w/ org obj./goals

Potential Benefits - any improvements and profits

Resource Availability - $$ and resources??

Project Size / Duration - complexity and time

Technical Difficulty / Risks - can we make it?

Corporate Strategic Planning

An ongoing process that defines the mission, objectives, and strategies of an organization

Current Enterprise

(where you are)

Step 1:

Gap isidentified

Future Enterprise

(where you want to be)

Step 2:

Strategic Plan(How to get there?)

Step 3:

Results of Corporate Strategic PlanningMission, Objective & Strategic Plan

Mission Statement:– A statement that makes it clear what business a

company is in

Objective Statements:– A series of statements that express an

organization’s goals for reaching a desired future position

Strategic Plan:– The method by which an organization attempts to

achieve its mission and objectives

An Example - Pine Valley Furniture

Mission StatementWe are in the business of designing, fabricating, and selling to retail stores high-quality wood furniture for household, office, and institutional use. We value quality in our products, and in our relationships with customers and suppliers. We consider our employees our most critical resource.

An Example - Pine Valley FurnitureObjective Statements

1. PVF will strive to increase market share and profitability (prime objective).

2. PVF will be considered a market leader in customer service.

3. PVF will be innovative in the use of technology to help bring new products to market faster than our competition.

4. PVF will employ the fewest number of the highest-quality people necessary to accomplish our prime objective. (efficient)

5. PVF will create an environment that values diversity in gender, race, values, and culture among employees, suppliers, and customers. (fair)

Information Systems PlanningAn orderly means of assessing the information needs of an organization, and defining the systems, databases, and technologies that will best satisfy those needs.

PinpointCurrent System

(what you have)

Step 1:

Gap isidentified

IdentifyFuture IS Needs

(what you want)

Step 2:

ScheduleIS Plan

(How to get there?)

Step 3:

Information Systems Planning

Current situation– Listing of manual & automated processes– Listing of manual & automated data– Technology inventory– Human resources inventory

Future Situation– Blueprints of manual & automated processes– Blueprints of manual & automated data– Technology blueprints– Human resources blueprints

A Match between CSP and ISP

Strategic Plan(How to get there?)

ScheduleIS Plan

(How to get there?)

Current Enterprise

(where you are)

Step 1:

Future Enterprise

(where you want to be)

Step 2: Step 3:

PinpointCurrent System

(what you have)

Step 1:

IdentifyFuture IS Needs

(what you want)

Step 2: Step 3:

Project Initiation and Planning

Project Initiation and Planning

Deliverables and Outcomes– Baseline Project Plan (BPP)

• Scope• Benefits• Costs• Risks• Resources

– Statement of Work (SOW)• Describes deliverables• Outlines work needed to be performed

Elements of Project Initiation

– Establishment of project team– Development of relationship with customer– Project Initiation Plan– Establishment of Management Procedures– Establishment of Project Workbook

Elements of Project Planning– Describe the Project scope, alternatives, and

feasibility– Dividing the project into manageable tasks– Estimating resources and creating a resource plan– Developing a preliminary schedule– Developing a communication plan– Determining Project standards and procedures – Identifying and assessing risk– Creating a preliminary budget– Developing a statement of work (Figure 6-2, p.167)

– Setting a baseline project plan (Figure 6-10, p.182)

Project Planning

Assessing Project Feasibility– Economic - benefits outweigh costs – Technical - know-how versus risks– Operational - consistent with IS plan– Schedule - time and duration OK– Legal - ownership / licensing issues– Political - potential power shift / resistance

Cost-Benefit Analysis (Figure 6-7, p.175)

A process used to assess economic feasibility by attempting to quantify benefits and costs associated with proposed information system projects– Net present value (NPV)– Break even analysis– Return on investment (ROI)

Benefits of an IS Tangible benefits:

– easily measured in dollars and certainty• e.g., Cost reduction and avoidance, Error reduction,

Increased flexibility, Increased speed of activity, Improved management planning and control, Opening new markets and increasing sales opportunities

Intangible benefits– cannot be easily measured in dollars or certainty

• e.g., Increased employee morale, Competitive necessity, More timely information, Promotion of organizational learning and understanding, Improved asset utilization, Improved resource control, Positive impacts on society

Types of IS Costs

Tangible Cost– easily measured in dollars and certainty; e.g., Hardware

Intangible Cost– cannot be easily measured in dollars and certainty

• e.g., Loss of customer goodwill, Loss of employee morale

One-Time Costs– Costs associated with project initiation and development

• e.g., equipment purchase, site preparation and modifications

Recurring Costs– costs resulting from ongoing evolution and use of the system

• e.g., system maintenance, employee costs

Project Planning

Assessing Project Risk– Large projects are riskier than small

– Structured problems are less risky than the messy, ill structured, ill defined ones which are subject to the judgment of an individual

– Using standard technology is less risky than using nonstandard / new technology

– User group with knowledge in development process / application area is less risky

IS Planning Deliverable

Outline for Baseline Project Plan (Figure 6-10, p.182)– Introduction

• Overview• Recommendation

– System Description• Project Scope, Objectives, Functions

– Feasibility Study• Cost/Benefits Analysis

– Management Issues• Team Organization, Communication procedure, Preliminary

Plan Schedule