Systems Analysis and Design in a Changing World, 5 rd Edition Chapter 3: The Analyst as a Project Manager

Systems Analysis and Design in a Changing World, 5rd Edition

Chapter 3:The Analyst as a Project Manager

Learning Objectives

2

Explain the elements of project management and the responsibilities of a project manager

Explain project initiation and the activities in the project planning phase of the SDLC

Describe how the scope of the new system is determined

Learning Objectives (continued)

3

Develop a project schedule using PERT and Gantt charts

Develop a cost/benefit analysis and assess the feasibility of a proposed project

Discuss how to staff and launch a project

Project Management

4

Organizing and directing other people to achieve a planned result within a predermined schedule and budget.

Management: Getting things done through other people

Reasons for Project Failure

5

Incomplete or changing requirements

Limited user involvement

Lack of executive support

Lack of technical support

Poor project planning

Unclear objectives

Lack of required resources

Reasons for Project Success

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Clear system requirement definitions

Substantial user involvement

Support from upper management

Thorough and detailed project plans

Realistic work schedules and milestones

Project Management Roles

Systems Analysis and Design in a Changing World, 3rd Edition7

Internal Responsibilities Identify project tasks and build a work breakdown

structure. Develop the project schedule Recruit and train team member Assign team members to task. Coordinate activities of team members and

subteams. Assess project risks. Monitor and control project deliverables and

milestones. Verify the quality of project deliverables.

Project Management Roles


External Responsibilities: Report the projects status and progress. Establish good working relationships with

those who identify the needed system requirement.

Work directly with the client and other stakeholders.

Identify resource needs and obtain resources.

Participants in a System Development Project

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Client: The person or group that funds the project.

Oversight Committee: Clients and key managers who review and direct the project.

User: The person or group of people who will use the new system.

Strategic Planning – A Framework for IT Systems Development Strategic Planning

OverviewSWOT analysis

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Strategic Planning – A Framework for IT Systems Development

From Strategic Plans to Business ResultsMission statementStakeholdersGoalsObjectives

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Project Management Body of Knowledge

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Scope managementControl functions included in systemControl scope of work done by team

Time managementBuild detailed schedule of all project tasksMonitor progress of project against

milestonesCost management

Calculate cost/benefit initial analysis Monitor expenses

Project Management Body of Knowledge (continued)

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Quality managementEstablish quality plan and control activities for

each project phaseHuman resource management

Recruit and hire project team membersTrain, motivate, team build

Communications managementIdentify stakeholders and their communications Establish team communications

Project Management Body of Knowledge (continued)

14

Risk management

Identify and review risks for failure

Develop plans to reduce these risks

Procurement management

Develop requests for proposals (RFPs)

Evaluate bids, write contracts

Monitor vendor performance

Activities of the Project Planning Phase

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Defining the Problem

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The main objective is to define precisely the business problem and determine the scope of the new systems

Review business needs Use strategic plan documents Consult key users Develop list of expected business benefits ( measured in

monetary terms). Identify expected system capabilities Define scope in terms of requirements Create system scope document (a document containing

problem description, business benefit, and system capabilities to help define the scope of the new systems).

Build proof of concept prototype (a very preliminary prototype built to illustrate the solution t a business need is feasible).

Create context diagram (Data Flow Diagram showing the scope of the system).

Project Initiation and the Project Planning Phase

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Driving forces to start projectRespond to opportunityResolve problemConform to directive ( matching the goals and

objectives). Project Initiation comes from:

Long-term IS strategic plan (top-down) prioritized by weighted scoring (Technique used by companies to prioritize project based on criteria with unequal weight).

Department managers or process managers (bottom-up)

Response to outside forces

Preliminary Investigation OverviewStep 1: Understand the Problem or

OpportunityA popular technique for investigating causes

and effects is called a fishbone diagram, or Ishikawa diagram

Pareto chart

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Preliminary Investigation OverviewStep 2: Define the Project Scope and

ConstraintsProject scope Project creepConstraint

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Preliminary Investigation OverviewStep 2: Define the Project Scope and

ConstraintsPresent versus futureInternal versus externalMandatory versus desirableRegardless of the type, all constraints should

be identified as early as possible to avoid future problems and surprises

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Setting PrioritiesFactors that Affect Priority

Will the proposed system reduce costs? Where? When? How? How much?

Will the system increase revenue for the company? Where? When? How? How much?

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Will the systems project result in more information or produce better results? How? Are the results measurable?

Will the system serve customers better?Will the system serve the organization

better?

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Can the project be implemented in a reasonable time period? How long will the results last?

Are the necessary financial, human, and technical resources available?

Whenever possible, the analyst should evaluate a proposed project based on tangible costs and benefits that represent actual (or approximate) dollar values

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Setting PrioritiesDiscretionary and Nondiscretionary Projects

Projects where management has a choice in implementing them are called discretionary projects

Projects where no choice exists are called nondiscretionary projects

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Overview of FeasibilityA systems request

must pass several tests, called a feasibility study, to see whether it is worthwhile to proceed further

Operational FeasibilityDepends on

several vital issues

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Overview of FeasibilityTechnical FeasibilityEconomic Feasibility

Total cost of ownership (TCO)Tangible benefitsIntangible benefits

Schedule Feasibility

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Evaluating FeasibilityThe first step in evaluating feasibility is to

identify and weed out systems requests that are not feasible

Even if the request is feasible, it might not be necessary

Feasibility analysis is an ongoing task that must be performed throughout the systems development process

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Preliminary Investigation OverviewStep 3: Evaluate Feasibility

Start by reviewing the answers to the questions you asked

Operational feasibilityTechnical feasibilityEconomic feasibilitySchedule feasibility

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Preliminary Investigation OverviewStep 4: Present Results and

Recommendations to ManagementThe final task in the preliminary investigation

is to prepare a report to managementThe format of the preliminary investigation

report varies from one company to another

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Preliminary Investigation OverviewStep 4: Present

Results and Recommendations to Management

IntroductionSystems request

summaryFindingsCase for action

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Preliminary Investigation OverviewStep 4: Present Results and

Recommendations to ManagementProject RolesTime & cost estimatesExpected benefitsAppendix

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Initiating Customer Support System RMO

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Strategic IS plan directs IS development’s project priorities

Customer support system (CSS) selectedJohn MacMurty - creates project charterBarbara Halifax - project managerSteven Deerfield - senior systems analystGoal is to support multiple types of customer

services (Ordering, returns, on-line catalogs)Project charter describes key participants

RMO Project Charter

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Defining the Problem at RMO

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Barbara: Completed problem definition statement

Steve: Conducted preliminary research on alternative solutions

Barbara, Steve and William McDougal: Proceed with analysis before making solution decisions

Barbara, Steve: Began schedule, budget, feasibility statement for new system

Producing the Project Schedule

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Developing Work Breakdown Structure (WBS)List of tasks and duration required for projectSimilar to outline for research paperWBS is foundation for project scheduleGood example find in page 91

Building a GANT ChartAssists in assigning tasksCritical path method

Confirming Project Feasibility Why?

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To determine whether a development project has a reasonable chance to success.

Assess the risk of the projectEconomic

Cost/benefit analysisSources of funds (cash flow, long-term capital)

Organizational and Cultural Technological Schedule Resource

Risk Management Figure 3-19 P 100


Is the project management area that forward-looking , during which the team tries to identify potential trouble spots that could jeopardize the success of the project.

The core team members should be the primary participant in this session using brainstorming technique .

The Ideas flow freely before judging and eliminating the bad ones.

Economic Feasibility


Consists of two test:Is the anticipated value of the benefits greater than projected costs of the development.Does the organization have an adequate cash flow to fund the project during the development period.

Economic Feasibility

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Cost/benefit analysis (CBA)Estimate project development costsEstimate operational costs after projectEstimate financial benefits based on annual

savings and increased revenuesCalculate CBA using complete list of costs

and benefitsCBA uses net present value (NPV), payback

period, return on investment (ROI) techniques

Economic Feasibility-continued


Development cost:•Salaries and Wages.•Equipment and installation.•Software and licenses.•Consulting fees and payment to third parties.•Training.•Facilities.•Utilities and tools.•Support staff.•Travel and miscellaneous



Ongoing costs of operations:•Connectivity•Equipment and maintenance.•Costs of upgrade software licenses.•Programming support•Amortization of equipment.•Training and ongoing assistance ( help desk).•Supplies.

Intangibles in Economic Feasibility


Intangible benefits cannot be measured in dollarsIncreased levels of service

Customer satisfaction

Survival

Need to develop in-house expertiseIntangible costs cannot be measured in dollars

Reduced employee morale

Lost productivity

Lost customers or sales



Financial calculations:NPV: the present value of dollar benefits and

costs for an investment such as new systems.Payback period: the time period in which the

dollar benefits have offset the dollar costs.Breakeven point: the point in time at which the

dollar benefits have offset the dollar costs.Return on investment: a measure of the

percentage gain from an investment as a new system.

Supporting Detail for Salaries

and Wages for RMO

44

Summary of Development Costs for RMO


Summary of Annual Operating Costs

for RMO


Sample Benefits for RMO


RMO Cost Benefit Analysis


Organizational and Cultural Feasibility


Each company has own cultureNew system must fit into culture

Evaluate related issues for potential risksLow level of computer competency

Computer phobia

Perceived loss of control

Shift in power

Fear of job change or employment loss

Reversal of established work procedures

Technological Feasibility


Does system stretch state-of-the-art technology? (is the highest level of development, as of a

device, technique, or scientific field, achieved at a particular time).

Does in-house expertise presently exist for development?

Does an outside vendor need to be involved?Solutions include:

Training or hiring more experienced employeesHiring consultantsChanging scope and project approach

Schedule Feasibility


Estimates needed without complete information

Management deadlines may not be realisticProject managers:

Drive to realistic assumptions and estimates

Recommend completion date flexibility

Assign interim milestones to periodically reassess completion dates

Involve experienced personnel

Manage proper allocation of resources

Resource Feasibility


Team member availability

Team skill levels

Computers, equipment, and supplies

Support staff time and availability

Physical facilities

Staffing and Launching the Project


Develop resource plan for the project

Identify and request specific technical staff

Identify and request specific user staff

Organize the project team into workgroups

Conduct preliminary training and team building exercises

Key staffing question: “Are the resources available, trained, and ready to start?”

Launching Project


Scope defined, risks identified, project is feasible, schedule developed, team members identified and ready

Oversight committee finalized, meet to give go-ahead, and release funds

Formal announcement made to all involved parties within organization

Key launch question: “Are we ready to start?”

Recap of Project Planning for RMO


Created schedule and plans for CSSAddressed all aspects of project

management (project planning and scope)Included project communication and qualityIdentified desired team members

Refine internal working proceduresTaught tools and techniques used on project

Planned kickoff meeting to officially launch

Summary


Project management tasksStart at SDLC project planning phase Continue throughout each SDLC phase

Organizing and directing other peopleAchieve planned result Use predetermined schedule and budget

Knowledge areas neededScope, time, cost, quality, human resources,

communications, risk, procurement

Summary (continued)


Project initiation Information system needs are identified and

prioritized in strategic plansProject planning phase

Define problem (investigation and scope)Produce project schedule (WBS)Confirm project feasibility (evaluate risks)Staff project (know people’s skills)Launch project (executive formal approval)

Documents

Systems Analysis and Design in a Changing World, 5 rd Edition Chapter 3: The Analyst as a Project Manager