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Chapter 4:Chapter 4:Selecting and Planning Selecting and Planning

ProjectsProjects

Object-Oriented Systems Analysis and Design

Joey F. George, Dinesh Batra,

Joseph S. Valacich, Jeffrey A. Hoffer

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Chapter ObjectivesChapter Objectives

– Describe the steps involved for identifying and selecting, initiating, planning, and executing projects.

– Describe several methods for feasibility assessment.

– Describe tangible vs. intangible benefits and costs, and one-time vs. recurring costs.

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Chapter Objectives Chapter Objectives (Continued)(Continued)

– Perform cost-benefit analysis by performing net present value (NPV), return on investment (ROI), and breakeven analysis.

– Explain Project Scope Statement and Baseline Project Plan (BPP).

– Describe the activities and roles in a structured walkthrough.

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Identifying and Selecting Identifying and Selecting OOSAD ProjectsOOSAD Projects

Top-down approaches– Top management– Steering committees

Bottom-up approaches– User departments– Development group

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Each stakeholder group brings their own perspective and motivation to the IS decision

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The project charter is a short document that formally announces project and briefly describes its objectives, assumptions, and stakeholders

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Managing the Project:Managing the Project:Initiation TasksInitiation Tasks

1. Establishing the project initiation team2. Establishing a relationship with the

customer3. Establishing the project initiation plan4. Establishing management procedures5. Establishing the project management

environment and the project workbook6. Developing the project charter

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Managing the Project:Managing the Project:Planning TasksPlanning Tasks

1. Describing project scope, alternatives, and feasibility

2. Dividing the project into manageable tasks

3. Estimating resources and creating a resource plan

4. Developing a preliminary schedule

5. Developing a communication plan

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Managing the Project:Managing the Project:Planning Tasks (cont.)Planning Tasks (cont.)

6. Determining project standards and procedures

7. Identifying and assessing risk

8. Creating a preliminary budget

9. Developing a project scope statement

10. Setting a baseline project plan

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System Service Request (SSR) is a form requesting development or maintenance of an information system. It includes the contact person, a problem statement, a service request statement, and liaison contact information.

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Feasibility AssessmentFeasibility Assessment

Economic feasibilityTechnical feasibilityOperational feasibilitySchedule feasibilityLegal and contractual feasibilityPolitical feasibility

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Economic FeasibilityEconomic Feasibility

Cost-benefit analysis – identify all the financial benefits and costs associated with a project

Tangible vs. intangible benefitsTangible vs. intangible costsOne-time vs. recurring costs

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Three financial measures for cost-benefit analysis

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Net Present ValueNet Present Value

PVn = present value of Y dollars n years from now

based on a discount rate of i.

NPV = sum of PVs across years.

Calculates time value of money.

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BEA determines the time at which benefits begin to exceed costs

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Technical FeasibilityTechnical Feasibility

Assessing the organization’s ability to construct the proposed system

Takes into account various project risk factors

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High technical familiarity mitigates risk due to project size and structure. Low familiarity increases risk.

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Other Feasibility ConcernsOther Feasibility Concerns Operational

– Will the system achieve the objectives of the project? Schedule

– Can the project be accomplished in a reasonable time frame?– Project management critical path scheduling can help answer this

concern. Legal/Contractual

– Are there regulations or legal obligations that affect the success of the project?

Political– Will the project have user and management support?– Will there be resistance?

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Baseline Project Plan (BPP) is a document intended primarily to guide the development team, containing an overview of the project, a detailed description of the system, a complete feasibility assessment, and a list of management issues.

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Project Scope statement is part of the BPP, and identifies the problem or opportunity, the project objectives, description, benefits, deliverables, and expected duration.

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What is a Structured Walkthrough?What is a Structured Walkthrough?

A peer-group review of any product created during the system development process

- Individuals attending can have the following roles: coordinator, presenter, user, secretary, standard-bearer, maintenance oracle

- Can be applied to BPP, system specifications, logical and physical designs, program code, test procedures, manuals and documentation

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Structured walkthrough form