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1
Identifying and selecting system Development project
Chapter-4
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Identifying and selecting system Development project
The first phase of the SDLC is Identifying and selecting system Development project.
During this activity, a senior manger, a business group, an IS manager, or a steering committee identify and assess all possible system development projects that an organization unit could undertake.
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The Process of Identifying and Selecting IS Development Projects
1. Identifying potential development projects
2. Classifying and ranking projects
3. Selecting projects for development
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Identifying and selecting system Development project
Potential development projects are identified by: A key member of top management.
CEO of small sized organization Senior executive in a large organization
A steering Committee: composed of a cross section of manager with an interest in systems
User department Head of the requesting unit Committee of from the requesting department
The development group or a senor IS manger
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Identifying and selecting system Development project
Top-management Greater strategic focus Largest project size/duration
Steering Committee Cross-functional focus Greater organizational change Larger and riskier project
User development Faster development Fewer user
Development group Fewer development delays
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Top-Down Identification Senior management or steering committee Focus is on global needs of organization
Bottom-up Identification Business unit or IS group Don’t reflect overall goals of the organization
Top-down and bottom-up identification
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Identifying and selecting system Development project
Classifying and Ranking IS development Projects : 2nd major activity in the project identification and selection process focuses
on assessing the relative merit of potential project. Performed by top management, steering committee, business units of IS
development group Value chain analysis is often used
Method to analyze an organization’s activities to determine where value is added and costs are incurred
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Evaluation criteria when classifying and ranking projects
1. Resources availability: amount and type of resources the project requires and their availability
2. Project size & duration: number of individuals and the length of time needed to complete the project
3. Value chain analysis: Extend to which activities add value and costs when developing product/services
4. Strategic Alignment: Extent to which the project is viewed as helping the organization achieve its strategic objectives and long-term goals.
5. Technical difficulty/risks: Level of technical difficulty to successfully complete the project which give time and resource constraint
6. Potential benefits: Extent to which the project is viewed as improving profits, customer service
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Identifying and Selecting IS Development Projects
Selecting IS Development Projects: project selection decision Process of considering short and long-term projects Projects most likely to achieve business objectives are
selected Decision requires consideration of:
Perceived and real needs Potential and ongoing projects Current organizational environment Existing and available resources Evaluation criteria
5.95.9
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Identifying and Selecting IS Development Projects
Selecting IS Development Projects Outcomes
Project Acceptance Project Rejection Delay Refocus End-User Development Proof of Concept
5.105.10
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Information Systems Planning Traditional Project
Identification and Selection
Solves isolated problems Focuses on business processes Does not easily allow for
organizational change
Planning-Based Approach to Project Identification and Selection Focuses on present and future
information needs Information needs change slower
than business processes
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Information Systems Planning Need for planning
Improperly planned projects result in systems that cannot be shared across an organization
As business processes change, lack of integration will hamper strategy and business process changes
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Information Systems Planning Information Systems Planning (ISP)
An orderly means of assessing the information needs of an organization and defining the systems, databases and technologies that will best satisfy those needs
Three key activities: Describe the Current Situation Describe the Target (or Future) Situation Develop a Transition Plan and Strategy
5.135.13
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Information Systems Planning Information Systems Planning1. Describing the Current Situation
Top-down Planning Generic methodology that attempts to gain a broad understanding
of the information system needs of the entire organization Bottom-up Planning
Generic methodology that identifies and defines IS development projects based upon solving operational business problems or taking advantage of some business opportunities
5.145.14
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Information Systems Planning Information Systems Planning
1. Describing the Current Situation (Continued) Planning team is chartered to model existing situation Identification of Organizational:
Locations Units Functions Processes Data
Information Systems
5.155.15
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Information Systems Planning Information Systems Planning
1. Describing the Current Situation (Continued) Matrices are developed to cross-reference units
Location-to-Function Location-to-Unit Unit-to-Function Function-to-Objective Function-to-Process Function-to-Data Entity Process-to-Data Entity Process-to-Information System Data Entity-to-Information System Information System-to-Objective
5.165.16
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Corporate and Information Systems Planning
Information Systems Planning2. Describing the Target Situation Update list of organizational locations,
functions, etc. to reflect desired locations, functions, etc.
Matrices are updated to reflect future states Planners focus on differences between current
lists and matrices and future lists and matrices
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Description of three process that play significant role in project selection
Value chain analysis Corporate Strategic Planning Information System Planning
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Value chain analysis Value Chain Analysis consists to analyse an
organisation’s activities to determine where value is added to products and or to services and the costs generated for doing so.
Purpose It enables to select projects that offer more support to key
activities with high costs Criteria can differ from organisation to
organisation E.g. criteria used by the EC
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Corporate Strategy Planning (CSP) Effective deployment of resources require clearly
understanding of organisational missions, objectives & strategy
Corporate Strategy Planning is a top-down process of three steps
CSP is an ongoing process that defines the mission, objectives and strategies of an organisation CSP is a process that is frequently subject to change It requires constant surveillance
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Process of corporate strategy planning
Analysis of strategic position: what is the current position?
Desired strategic position: what are the objectives
Design of the possible strategies to achieve desired goals
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Advantages of IS planning1. Allow to construct ISs that support the whole
organisation
2. Allow integration of different tools
3. Avoid data redundancy (process oriented approach vs data oriented approach)
4. Reduce maintenance costs because planned system will require less revision
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Information system planning (ISP) Information system planning” is different from “project
planning” Information System Planning (ISP) is the process by
which a company (organisation) analyses its information needs and plan its project carefully
ISP is an orderly means of assessing the information needs of an organisation and defining the systems, databases, and technologies that will best satisfy those needs
ISP is a top-down process that takes into account the outside forces that drive the business (need vigilance)
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ISP and Corporate Strategy Planning
Desired situation for informational needs•Listing of manual & automated processes•Listing of manual & automated data•Technology inventory•Human resources inventory
Schedule of projects to transit from current to desiredProject 1Project 2----
Current enterprise
Future enterprise
Strategic plan
Current situation for informational needs•Listing of manual & automated processes•Listing of manual & automated data•Technology inventory•Human resources inventory
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Information System Planning ISP requires support of top management and
itscommitment to reach desired objectives Description of the current requires a planning team Techniques used to capture information system needs,
include Interviewing managers and executives Reviewing corporate documents Analysing competitors, markets and products
There are two approaches to describe current situation needs
Top down planning Bottom-up planning
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Step 1: describing the current needs Top down planning is a generic methodology that
attempts to gain a broad understanding of the IS needs of the entire organisation
Bottom-up planning is a generic IS methodology that identifies and defines IS development project based upon solving operational business problem or taking advantages of some business opportunities
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Information collected about current situation
Locations where the company operates Business unit that operate within a company Functions = cross organisational collection of activities
used to perform day-to-day business operation. Processes of a company Data underlying processes Information system represent automated and non
automated systems used to support business processes.
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Outcome = mMatrix of Information systems (IS) * objectives
Information systems (IS)/ Objectives
IS1 IS2 IS3 … ISn
Objective 1
Objective 2
Objective 3
…
Objective j
X
X
X X
X
X
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Matrix of Information systems (IS) * processes
Information systems (IS)/ Processes (P)
IS1 IS2 IS3 … ISn
P 1
P 2
P 3
…
P j
X
X
X X
X
X
Several techniques of multi-criteria decision could be applied to select IS that satisfies the company’s current needs
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Step 2 and 3 of ISP Step 2: describing the target situation and constraints
Define situation of location, units , functions, processes, data and information system taking into account the trends and constraint of the organisation
Target situation could also be described in term of matrix
Step 3: developing a transition strategy and plans Plans reflect both short-term and long-term organisational development
needs Plans include organisational mission, information inventory, mission and
objectives of IS, constraints, long-term plans and short-term plans Selected projects are those derived from ISP and that fulfil the gap
between current and desired situation