2 Mission Statement. Company’s overall purpose and direction, products, services and values. Goals. That accomplish the mission. E.g. 5 year plan

SYSTEM PLANNING

Strategic Planning Process

2

Mission Statement. Company’s overall purpose and direction,

products, services and values. Goals.

That accomplish the mission. E.g. 5 year plan List of Objectives to achieve the Goals.

List of specific tasks within a time.

IS Project Initiation

3

System Request A form should be there

Possible reasons for system request Improved service Better Performance More Information Strong control Reduce cost


4

Who initiates User request Top management directive Existing system – problems, Errors IS department


5

External factors Change in government policies e.g. taxes New release of version of S/W package Competitors Industrial and organizational relationship,

IT board want to have data of all universities, then we have to change our system to

Advance in technology

Evaluation of System Request

6

System review committee/steering committee.

The committee examines the feasibility of requests.

Project Feasibility

7

Economic Cost/benefit analysis Sources of funds (cash flow, long-term

capital) Organizational and Cultural Technological Schedule Resource Feasibility Analysis – identify risks early

to implement corrective measures

Feasibility Study

8

It is the measure of how beneficial or practical the development of IS will be to an organization

Feasibility Analysis It is the process by which feasibility is measured

Categories Operation Technical Economic Schedule Behavioral Political

In general PIECES (Performance, Information, Economy, Control, Efficiency, Services) is considered

Feasibility Report - Operation

9

Operational viability. User need, management support, effective

usage. Training, resources for training. Reduction of employs … what about them. Involvement of users. Operation charges?, if so compare with overall

gain. Side affects of the new system. Is scheduling is reasonable. Look for ethical and legal issues.

Feasibility Report - Technical

10

Technically feasible. Is need there. Capacity of equipment Reliable and long term planning for H/W & S/W Exact specifications System be able to handle the projected growth

Feasibility Report - Economic

11

Economically desirable. People H/W & S/W In house development / purchase Formal and informal training Licenses and fees Consulting expenses Facility cost other

Organizational and Cultural Feasibility

12

Each company has own culture New system must fit into culture

Evaluate related issues for potential risks Low level of computer competency Computer phobia Perceived loss of control Shift in power Fear of job change or employment loss Reversal of established work procedures

Schedule Feasibility

13

Estimates needed without complete information

Management deadlines may not be realistic Project managers:

Drive to realistic assumptions and estimates

Recommend completion date flexibility Assign interim milestones to periodically

reassess completion dates Involve experienced personnel Manage proper allocation of resources

Resource Feasibility

14

Team member availability

Team skill levels

Computers, equipment, and supplies

Support staff time and availability

Physical facilities

Criteria used Evaluation of System Request

15

Reduction of cost Where, When, How and How much?

Increase in revenue Where, When, How and How much?

Better Result How and Are they measurable? Will the system serve customer, organization

better How much the project life is? Are necessary people available to proceed

with? Is the project absolutely necessary? Tangible and Intangible factors

Cost Benefit Analysis

16

Tangible Benefits Fewer processing errors Increased throughput Decreased response time Increase sale Reduce credit loss Reduce expense

Intangible Benefits Improved customer good-well Better service Improved employee moral Better decision making

Discretionary and Non-Discretionary

17

Discretionary Projects Project where management has choice in

implementation Non-discretionary Projects

Project where management has no choice in implementation

Preliminary Investigation

18

Understanding the problem Defining scope and constraints

Constraints are conditions, limitation e.g. use the existing H/W

Identify the benefits Tangible & Intangible

Estimate the time and cost Report to Management

Steps for Preliminary Investigation

19

Obtain Authorization Identify the necessary information

Understand the problem Define the project scope & constraints Identify benefits Estimate the time and cost Report to management


20

Fact finding Organization chart Interview Documents review Observe current operation Survey

Analyze the information


21

Presentation to the management Introduction

Overview, who conducted the investigations… System request summary Findings Recommendations Time & Cost estimate Expected benefits Appendix