cis 360 – lecture three ch. 4: identifying and selecting projects ch. 5: project initiation and...
TRANSCRIPT
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