9.351 Systems Analysis & Design

Planning 1

Chapter 4:

Business and Systems

Planning

9.351 Systems Analysis & Design

Planning 2

Planning

• Systems planning related to planning business.Systems must accomplish business goals.

• Business Planning:- Top-down (Top management, Steering committee)- Bottom-up approaches (User departments, Development group)

• There may be competing projects (upgrades, new ones, priorities…)

9.351 Systems Analysis & Design

Planning 3

• System Planning:

•the first stage in waterfall SDC.

•an iterative step (workflow) in OO-based SDC,

repeats across OO phases and possibly within them.

9.351 Systems Analysis & Design

Planning 4

• Main tasks in planning of a system:

•Write business case (economic

implications, feasibility assessment)

•Write Baseline Project Plan (BPP)

9.351 Systems Analysis & Design

Planning 5

• Business Case = Assessment of systems economic

implications and of feasibility of IS development project.

• Economic Implications:

•List of Benefits and Costs -> next

•Capital Budgeting Models (NPV, Break-Even…)

•Support to Value Chain

•Portfolio Analysis (compare risks with benefits; risks

assessed as technical feasibility)

9.351 Systems Analysis & Design

Planning 6

Reduced execution time

9.351 Systems Analysis & Design

Planning 7

One-time tangible costs

Recurring tangible costs

9.351 Systems Analysis & Design

Planning 8

Net 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.More:NPV

*

9.351 Systems Analysis & Design

Planning 9

9.351 Systems Analysis & Design

Planning 10

9.351 Systems Analysis & Design

Planning 11

• Feasibility Assessment:

• Economic feasibility (result of analysis of economic

implications)

• Technical feasibility (development capability &

risks) most important!

• Operational feasibility (support to business)

• Schedule feasibility

• Legal feasibility

• Political feasibility

9.351 Systems Analysis & Design

Planning 12

Technical Feasibility

9.351 Systems Analysis & Design

Planning 13

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

Technical Feasibility

9.351 Systems Analysis & Design

Planning 14

Baseline Project Plan (BPP); see Fig. 4-14

Content:

•Project Name (usually system’s name)

•Introduction

•Project Scope (what organizational parts it affects)

•System Description

•Economic implications

•Feasibility

•Management (workers, lines of reporting…)