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1 eBusiness Planning Copyright © 2003 Abou-Bakr Zayd eBusiness Planning Abou-Bakr Zayd [email protected] Spring 2003 SYST 430: BIS Analysis & Development

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SYST 430: BIS Analysis & Development. eBusiness Planning. Spring 2003. Abou-Bakr Zayd [email protected]. e-Business Strategic Planning: Contents. Strategic Planning e-Business Plan Phase [i] Preliminary Feasibility Phase [ii] Preliminary Investigation Phase [iii] Project Plan - PowerPoint PPT Presentation

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Page 1: eBusiness  Planning

1eBusiness PlanningCopyright © 2003 Abou-Bakr Zayd

eBusiness

Planning

Abou-Bakr Zayd

[email protected]

Spring 2003

SYST 430: BIS Analysis & Development

Page 2: eBusiness  Planning

2eBusiness PlanningCopyright © 2003 Abou-Bakr Zayd

Strategic Planning

e-Business Plan

Phase [i] Preliminary Feasibility

Phase [ii] Preliminary Investigation

Phase [iii] Project Plan

e-Business Development Framework

Quality Life-Cycle

Analysis Planning

Development Planning

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: Contents

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3eBusiness PlanningCopyright © 2003 Abou-Bakr Zayd

Strateg

ic Plan

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verview

Strategic Planning is the process of identifying long-term organizational goals,

strategies & resources

By performing a SWOT analysis

long-term Strategic Business Plan

emerges

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4eBusiness PlanningCopyright © 2003 Abou-Bakr Zayd

Plan Required

Resources

Technical

Financial

Human

Most Important: Information resources & Technology, supplied by IT

professionals including system analysts

Strateg

ic Plan

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verview

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Purpose Vision Values

Mission Statement

Goals

Objectives

Information Technology

Business Operations

Other Corporate Resources

Business Results

Stakeholders

Strateg

ic Plan

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e-Business Plan includes:• Primary Purpose: Define the purpose of your e-Business.

What is the purpose of the project? Goals? Objectives? What do you intend to sell? What services will you provide?

• Strategy: Describe how your product or service fits into the marketspace. How is it different from existing products or services? How will it be profitable? ROI Models?

• Support: Provide evidence that supports the idea of your business & justifications. Conduct research, define market, target customers, management team, project revenue & expenses

• e-Business Model: Define e-Business model (s). How will you conduct transactions?

• Process: List necessary steps to build e-business. Does more research need to be conducted before you move forward? Investors will want to know where their money is being allocated

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Purpose: Triggering e-Business projects

• Reasons for e-Business projects: e-Business projects are initiated by a “Systems Request” that tackles a problem or an opportunity. The main reasons for system requests are:– Improved service– Better Performance– More Information– Stronger Controls– Reduced Costs

• Generating New e-Business Ideas

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8eBusiness PlanningCopyright © 2003 Abou-Bakr Zayd

Research & Risk Analysis

• Research is crucial: In the past few years, many Internet companies have experienced growth & more have struggled to get off the ground, hence it is important to review the e-business growth curve & the current market

• e-Business can be expensive & risky venture whether an extension for a brick & mortar or a new business. Competition is intense, determining market niche & reaching target audience often require financial backing (Support)

Incubator is a company that specializes in the development of Internet businesses (www.idealab.com & www.ideavelopers.com) Venture capitals are individuals or groups that generate the financial support of a growing enterprise usually in exchange for ownership in the company

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Operational, Technical & Economic Feasibility

• Operational feasibility: the projection of systems’ effective usability after development

• Technical feasibility: the availability of necessary resources to develop/purchase, install, & operate the system

• Economic feasibility: when the projected benefits outweigh the estimated costs (TCO) involved in acquiring, installing & operating it, in addition to tangible & intangible benefits

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10eBusiness PlanningCopyright © 2003 Abou-Bakr Zayd

Factors Affecting e-Business projects

• Factors affecting systems projects: every business decision that a company makes is affected by internal factors such as:– User Requests– Top Management Directives– Existing systems– IT Department

• And external factors such as:– The Economy– Technology– Government– S/W & H/W Vendors– Competitors– Customers– Suppliers

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Prioritization

• Organizations need to Prioritize e-Business Projects – for further Research & Development - according to Feasibility & ROI studies through a systems review committee

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Steps

• Step1 : Understand Problem/Opportunity

• Step 2: Define Project Scope & Constraints

• Step 3: Perform Fact-Finding– Analyze organizational charts– Conduct interviews– Review documentation– Observe operation to obtain information– Conduct a survey of people who use the system

• Step 4: Estimate Project Benefits

• Step 5: Estimate Project Development Time & Cost

• Step 6: Present Results & Recommendations to Management

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Fact-Finding: Overview

• Fact-finding is the process of gathering information through different fact-finding techniques including interviews, document review, observation, surveys & questionnaires, sampling, & research

• To obtain answers to necessary questions a fact-finding plan should be designed:– Develop a strategy– Carry out fact-finding techniques– Document the results– Prepare system requirements document – Present to management

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Fact-Finding: Overview

• Fact-finding involves answers to 5 familiar questions: – What is done? Why? What should be done?– Where is it done? Why? Where should it be done?– When is it done? Why? When should it be done?– Who does it? Why? Who should do it?– How is it done? Why? How should it be done?

• The sequence of questions is very important especially at early stages

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Fact-Finding Techniques: Interviews

• Interview is a planned meeting during which information is obtained, both inside & outside the IT department

• Analysts must have the required skills to plan, conduct & document interviews successfully

• Interviewing process consists of 7 steps:– Determine people to interview– Establish objectives for interview– Develop interview questions (open-ended, closed-ended,

range of response questions)– Prepare for interview– Conduct interview– Document interview– Evaluate interview

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Fact-Finding Techniques: Interviews

• Unsuccessful interviews can occur if Interviewer & interviewee did not get along well due to:– Misunderstanding or personality conflict– Interviewee might be afraid that new system will eliminate or

change their job

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Fact-Finding Techniques: other

• Document review: can help understand how the current system is supposed to work if not out dated. Therefore, copies of actual forms & operating documents should be obtained

• Observation: seeing the system in action gives additional perspective & better understanding of system procedures, and allows the verification of statements made in interviews

• Questionnaires & Surveys: used to obtain I/P from a large number of people

• Sampling: include records, reports, operational logs, data entry documents, complaint summaries, work requests, & various types of forms. Types of sampling include systematic, stratified & random samples

• Research: reviewing journals, periodicals, books & Internet to obtain background info, technical material, & news about industry trends & developments

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Fact-Finding: Documentation

• Keeping accurate records of interviews, facts, ideas, & observations is essential to successful systems development. The ability to manage info is the mark of a successful analyst

• Documentation forms include data flow diagrams, flowcharts, sample forms, screen captures as well as narrative lists with simple statements about what is occurring apparent problems, and suggestions for improvement

• S/W Tools: to record & document info– CASE (Computer Aided Systems Engineering) Tools– Word Processing– Spreadsheets– Databases– Presentation Graphics– Personal Information Manager

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Project Management

• Project Management is the process of Scoping, Planning, Staffing, Organizing, Directing & Controlling the development of an Acceptable System at a Minimum Cost within a Specified Time Frame

• Project: is a [Temporary] sequence of unique, complex & connected activities having one goal/purpose and that must be completed by a specific time, within budget & according o specification

• Process Management is an ongoing activity that documents, manages the use of, and improves an organization’s chosen methodology (the “process”) for systems development. Process Management is concerned with the activities, deliverables & quality standards to be applied to all projects

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Project Management Functions

• Scoping: Define project boundaries• Planning: Identify the required tasks to complete the project• Estimating: Identify time, HR & skills• Scheduling: Sequencing activities• Organizing: Team members roles & responsibilities as well as

reporting relationship with project manager• Directing: managing team activities including coordination,

delegation, motivation, advising, appraising & rewarding• Controlling: Monitoring & reporting progress against gals,

schedules & costs and make appropriate adjustments when necessary

• Closing: Assess success & failures at the conclusion of the project

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BIS & e-commerce Quality Life-Cyclee-Bu

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Quality Life Cycle Framework

• The Quality Life Cycle is valid for both BIS & e-commerce development whether using structured or Object Oriented methodologies

• Before the first phase in the Quality Life Cycle, Strategic planning must be conducted including preliminary investigation and preliminary feasibility studies

• The role of the IT department: new approaches emerged such as Joint Application Development (JAD) & Rapid Application Development (RAD) where a team of users, managers & IT staff are working together from the start and throughout the cycle.

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Phase 1: Internet Business Analysis (IBA)

• Conducting a thorough review understanding the different networks infrastructure and information systems of the different premises, and setting the most effective ways to integrate these different systems in a way that provide the best Return on Investment.

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Phase 2: Functional Design (FD)

• Gathering the required information relating to the Intranet and a detailed definition of Intranet requirements for delivery to Creative Design and Development teams. These requirements ranges from the necessary functions and processes that need to be integrated to the required tuning of value chains.

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Phase 3: Build

• The Development team produces all the coding and database integration for the Intranet according to the FD, and the Network team sets down the required Infrastructure.

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Phase 4: Test

• During the Test, technical team tests all the key components . The solution then is subjected to user-acceptance testing to ensure that all key functionality is working according to expectations. This testing is driven from the functional requirements defined in the FD. When acceptance is complete and signed off, the solution is ready to go live.

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Phase 5: Launch

• During the Launch period, the solution is published on servers. The solution is closely monitored to ensure there are no unexpected issues. Database tables are populated with the latest version of populated data. All internal and operations processes associated with the solution are implemented and validated. Staff training also occurs during early stages of Launch.

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Phase 6: Managing results

• During Managing Results, implementation team and customer team meet at regular intervals to review the solution, to understand which components are successful and which areas may be appropriate for review. The two teams also identify potential subsequent enhancements to the solution. The Manage Results phase leads to subsequent IBA work and the Lifecycle begins again.

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Highlights

• The overall objective of the Analysis phase is to understand the proposed project, ensure that it will support business requirements & build a solid foundation for the Design Phase

• It includes 4 activities: Requirements Modeling, Data & Process Modeling, Object Modeling, and the Transition to Systems Design

• During Analysis Models & Documentation tools are used to visualize & describe the proposed system

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Highlights

• The end product of the Analysis phase is a System Requirements Document, which is an overall design blueprint for the new system. In addition, each activity within the Analysis phase has an end product & milestone (s)

• Successful analysts must have both Critical Thinking Skills to recognize problem/opportunity, analyze the elements & communicate the results effectively, as well as Interpersonal Skills to be able to work with people at all organizational levels & balance the conflicting needs of users

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Systems Development Methods

• The traditional model for development was an IT department that used structured analysis & consulted users when their I/P or approval was needed

• IT staff still play an essential role & structured analysis remains a commonly used method but many companies now use teams to develop BIS & e-commerce projects

• For example:– JAD (Joint Application Development)– RAD (Rapid Application Development)– MSF (Microsoft Solutions Framework)

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Systems Development Methods: JAD

• JAD is a group oriented technique for fact finding & requirements modeling where the company creates a task force of users, managers, & IT professionals that works together to gather info, discuss business needs & define the new system requirements

• JAD team meets frequently insulated from day to day operation under a project leader who has strong interpersonal & organizational skills & a member who document & record results & decisions

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Systems Development Methods: JAD

• Pros: JAD allows key users to participate effectively in the requirement modeling process

• Cons: JAD is more expensive compared with traditional methods & can be cumbersome if the group is too large relative to the size of the project

• When properly used JAD can result in more accurate statement of systems requirements, a better understanding of common goals & a stronger commitment to the success of the new system

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Modeling Tools & Techniques: UML

• Models involves graphical methods & non-technical language that help users, managers & developers to understand current or new system designs

• During requirements modeling, Unified Modeling Language (UML) can be used to describe user interaction with the system & functional decomposition diagrams to show the organization of business function & processes

• UML provides various graphical tools & techniques such as use case diagrams & sequence diagrams

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Modeling Tools & Techniques: Other

• Use Case Diagrams: visually represents the interaction between users & the IS where users are represented as actors with a specific role interacting with the system

• Sequence Diagrams: show the timing of transactions between objects as they occur

• Functional Decomposition Diagrams (FDD): is a top-down representation of business functions & processes

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Requirements Modeling: Overview

• Requirement Modeling involves investigation & fact-finding to describe current system & define requirements for new system

• System Requirement is a characteristic or feature that must be included in IS to satisfy business requirements & be acceptable to users.

• System Requirements serve as benchmarks to measure the overall acceptability of the finished system

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Systems Requirements Categories

• System Requirements fall into 5 general categories (Checklist):– O/P: Web site must report online volume statistics every 4

hrs & hourly during peak periods– I/P: Department head must enter overtime hrs on a separate

screen– Processes: Student records system must allow record

access by either student name or number– Performance: System must support 25 users online

simultaneously– Controls: System must maintain separate levels of security

for users & system administrators

• In addition, systems developers should consider:– Scalability (future growth): the ability to adjust system

capacity as business requirements change in the future – Total Cost of Ownership (TCO)

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Highlights

• There are numerous ways to approach designing, developing & maintaining an e-business– Turnkey solution: a prepackaged e-business– E-business templates: outline the basic structure but allow

the design to be determined by the owner– Outsource project to an organization offering e-business

package– In-House: to build it using internal resources

• Before beginning to build an e-business you must have a solid idea of the products & services you want to offer via the web. Surf the web to discover similar sites or sites that provide exceptional services

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e-Business Solutions: end-to-end solutions

• End-to-end e-business solution provider offers services to build web sites from conception to implementation.

• They provide capabilities such as accepting payments online, implementing NT & monitoring services in addition to back-end systems such as e-fulfillment, data management (www.bcentral.com), & monitoring (www.webvision.com)

• www.WEBtropolis.com includes storefront construction, searching features, Dbase, B2B turnkey solution, marketing strategies & online payment

• www.ROIDirect.com offers building branding, maintenance & management services in addition to navigation tools, customer service, reward structures & referrals

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e-Business Solutions: others

• www.OpenAir.com: web based project management, expense tracking & time management service provider

• www.Intacct.com: provides online accounting & auditing services. Reports are offered in a graphical form & can be organized by department

• www.Bscol.com: provides a method to measure the success of a business by its performance in customer satisfaction, integration capabilities & potential for growth

• www.Ebsure.com: offers S/W suite of eBWatch, eBTracker & eBRobot to measure the amount of time transactions take, gather info about visitors, & register pages visited

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Integration Planning: Supply Chain Management

• e-fulfillment: warehouse storage, inventory management & return procedures

• Businesses are no longer required to keep large inventories, instead through online management of fulfillment, these companies can rely on a manufacturer or a distributor to supply them with products as needed this will allow them to accept made-to-order requests (JIT)

• The ability for members of the supply chain to view fulfillment status increase efficiency (e.g. web merchants can serve customers better by knowing the status of order: availability & if product is in warehouse or delivered & who signed for it)

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Enhancing User Experience

• Searching features to make it easy to find items on your site can be added for free (www.freefind.com)

• Intelligent agents can help you meet the needs of your customers by comparing their previous behavior & adjusting site offerings accordingly (e.g. Amazon)

• Zooming (ImagePump www.xippix.com) allows users to take a closer look at merchandise

• Community building tools enhance users’ experience by allowing to ask questions, locate events (www.MyEvents.com)

• FAQ can be a plus when used effectively• Contacts (e-mail, address & phone number) is another

important element for users

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Protecting your e-Business

• Your web site should include a privacy policy detailing the intended uses of consumers’ private information; telling users how their personal info is used can influence their decision to visit the site (Staples)

• Many web sites help businesses build their privacy policy & give it their seal which demonstrate your concern about users’ privacy

• E-businesses should also host Disclaimers to provide users with the limits of their products/services. A small spelling or editing error such as an inaccurate statistic or product price could result in product misrepresentation, angry consumers & lost business (e.g. egghead)

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Choosing a Domain Name

• A domain name is the name that you use in the URL for your web site, which is comprised of the host name (www) the domain name & the Top Level Domain (TLD)

• Choose a concise name that people will be able to recognize & type easily

• As your web site will be accessed worldwide it is important to consider how the name will be interpreted

• Choose the relevant TLD to your business

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Web Site Hosting• Web hosting companies (data centers) provide products,

services & support for businesses & individuals to help them create & maintain web sites mainly on shared space basis

• Dedicated Server: assigned a specific purpose to ensure that the function of that server is not interrupted by other responsibilities offering the advantage of constant download times

• Co-location Services: provide a secure physical location for a business’s server H/W, incl. dedicated Internet connections, & protection from power outages, fire & other disasters

• Some e-business owners may choose to host their own sites. This require purchase of H/W, S/W, Internet connection, & administrators.

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Web Design

• A well designed, easy to navigate web site is a crucial element in a successful e-business

• While elaborate design & graphics might attract customers initially, content should be the foundation

• Consistency among sections is also important• Contact info & privacy policy easily located • Customers should be able to locate products/services & prices

easily• Low switching costs make e-commerce a fiercely competitive

field• Other factors that might discourage consumers include poor

customer service & weak return policies• Web sites should be designed with customers’ preferences in

mind

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• H. Deitel, P. Deitel & K. Steinbuhler, e-Business and e-Commerce for Managers, 2001

• G. Shelly, T. Cashman & H. Rosenblatt, Systems Analysis and Design (4th), 2000

• J. Whitten, L. Bentley & K. Dittman, Systems Analysis and Design Methods (5th), 2000

Referen

ces