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Unit 13: PROJECT INITIATION

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Object Oriented Systems Analysis andDesign

Use-case driven

Architecture Centric

Iterative and Incremental The Unified Process

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Engineering Workflows

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Supporting Workflows

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Key Ideas

Projects being when someone sees anopportunity to create business value fromusing information technology.

Feasibility analysis is used to aid in thedecision of whether or not to proceed with

the IS project.

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Key Ideas

The project sponsor is a key person proposingdevelopment or adoption of the new informationtechnology .

The approval committee reviews proposals fromvarious groups and units in the organization anddecides which to commit to developing.

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IDENTIFYING BUSINESS VALUE

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System Request

Lists key elements of the project

Project name

Project sponsor Business need

Functionality

Expected value Special issues or constraints

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FEASIBILITY ANALYSIS

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Feasibility Analysis

Detailing Expected Costs and Benefits

Technical feasibility

Economic feasibility Organizational feasibility

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Technical Feasibility:CanWe Build It?

Familiarity with application

Knowledge of business domain

Familiarity with technology Extension of existing firm technologies

Project size

Number of people, time, and features

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Economic FeasibilityShouldWe Build It?

Development costs

Annual operational costs

Annual benefits Intangible costs and benefit

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Expected Value

Costs Benefits

Tangible

Intangible

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Cash Flow Method for Cost BenefitAnalysis

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Total (benefits - costs)

Return on Investment Calculation

Total costs

RETURN ON INVESTMENT EQUALS

Divided by

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Net Present Value Calculation

(1 + interest rate)n

Some amount of money

NET PRESENT VALUE EQUALS

Divided by

Where n equals the number of periods

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Organizational FeasibilityIf we build it, will they come?

Stakeholder analysis considers

Project champion(s)

Organizational management

System users