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Content

Chapter 4
Identifying and Selecting Systems
Development Projects

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2011 by Prentice Hall: J.A.Hoffer et.al., Modern Systems Analysis & Design, 6th Edition

Describe the project identification and selection


process
Describe corporate strategic planning and information
systems (IS) planning process & their relationships
Describe how IS planning can be used to assist in
identifying and selecting systems development
projects
Analyze IS planning matrices to forecast the impact of
IS projects on business objectives
Describe the three classes of Internet e-Commerce
applications: Internet, intranet, and extranet

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1. Identifying and Selecting IS Dev. Projects

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1.1 Process of Identifying & Selecting


IS Development Projects

There are 3 primary activities:


Define

a) Defining potential development projects


b) Classifying & raking ISD projects
c) Selecting ISD projects

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Classify &rank

Select

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a) Identifying IS Development Projects

Identifying IS Development Projects (Cont.)

Define
Identification from a stakeholder group
Each stakeholder group brings their own
Classify &rank
perspective and motivation to the IS decision
Select

Top-down

source are projects identified by top


management or steering committee
Bottom-up source are project initiatives stemming
from user department (managers & business units)
or the development group
Pros & cons of each source
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b) Classifying & Ranking IS Development Projects

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Classifying & Ranking IS Development Projects (Cont.) *

Define

Using value chain analysis

Classify &rank

The

process of analyzing an organizations activities


for making products and/or services to determine Select
where value is added and costs are incurred

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c) Selecting IS Development Projects

Define

Selecting IS Development Projects (Cont.)

Classify &rank

Based on various factors **


Select
Consider both short- and long-term projects
Select those most likely to achieve business objectives
Is a very important and ongoing activity

One method for deciding among different


projects or alternative designs is:
For

each requirement or constraint:

Score = weight * rating

Each

alternative:

sum scores across requirements/constraints

Alternative

with highest score wins

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1.2 Deliverables and Outcomes

Selecting IS Development Projects (Cont.)

Primary deliverable from the first part of the planning


phase is a schedule of specific IS development
projects *

Outcome of the next part of the planning phase


project initiation and planning is the assurance that
careful consideration was given to project selection
and each project can help the organization reach its
goals.

Incremental commitment
a

strategy in SA&D in which the project is reviewed after


each phase and continuation of the project is re-justified

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IS Development Projects come from both topdown and bottom-up initiatives

2 Corporate and IS Planning

To benefit from a planning-based approach for


identifying and selecting projects
An organization must analyze its
information needs
Plan its projects carefully

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2.1 Corporate Strategic Planning

Factors for Improving IS *

Ongoing

process that defines mission,


objectives, and strategies of an
organization

IS Cost
Cross organizational boundaries application
Critical business problems
Data redundancy
System maintenance cost
Application backlogs to create individual
system

Corporate
Mission

strategy involves:

statement

Objective

statements

Description

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of competitive strategy
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Mission Statement *

A statement that
makes it clear what
business a company
is in

Support
organizational vision
(optimistic view of
the future)

Objective Statements

A series of
statements that
express an
organizations
qualitative and
quantitative goals for
reaching a desired
future position

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Competitive Strategy *

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The method by which an organization attempts


to achieve its mission and objectives

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: " "


1. (Self Sustainable)

2.
3.

4.

5.
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SIT: " "

Corporate Strategic Planning (cont.)

Corporate strategic planning is a three-step


process.

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Information Systems Planning Process

2.2 Information Systems Planning (ISP)

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ISP: an orderly means of assessing the


information needs of an organization and
defining systems, databases, and technologies
that will best meet those needs *

ISP must be done in accordance with the


organization's mission, objectives, and
competitive strategy

ISP must be kept in line with corporate


strategic planning
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Information System Plan (ISP) Process

a) Describe the Current Organizational Situation

a) Describe the current situation

b) Describe the target situation, trends, and


constraints

Top-down planning: attempts to gain a broad


understanding of IS needs of an organization & offers:
Broader

c) Developing a transition strategy and plan

Improved

integration

Improved

management support

Better

~
Corporate
Strategic
Planning

perspective

understanding

Bottom-up planning: identifies ISD projects based on


solving business problems or taking opportunity
advantage
Can

be faster and less costly

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The Decomposition of PVFs Business Functions

Business Functions, Data Entities, and IS

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Functional
Decomposition:
breaking high-level
abstract information
into smaller units for
more detailed
planning

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Example: Data Entity-to-Function Matrix

Describe the Current Organizational Situation (cont.)


Briefly

describe mission, objectives, and


strategy of the organization

Provide

summary of current and future


processes, functions, data entities, and
information needs of the enterprise

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b) Describe the Target Situation, Trends &


Constraints

Describe primary role of IS will play in the


organization to transform enterprise from
current to future state

Describe limitations imposed by technology


and current levels of financial, technical, and
personnel resources

Summarize overall IS needs in the company

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c) Developing a Transition Strategy & Plans

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Set long-term strategies for filling the needs

Show detailed inventory of present projects


and systems & detailed plan for the current
year

Describe unknown but likely events that can


affect the plan, presently known business
change elements, and description of their
impact on the plan

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Developing a Transition Strategy & Plans (cont.)

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Example: IS Plan

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3. e-Commerce Applications and Internet


Basics

E-Commerce: Internet-based communication


to support day-to-day business activities
Internet:

a large worldwide network of networks


that use a common protocol to communicate with
each other
Intranet: Internet-based communication to support
business activities within a single organization
Extranet: Internet-based communication to
support business-to-business activities *
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E.g. SAP, Oracle, PeopleSoft36/42

Front-office information systems support business


functions that reach out to customers (or constituents).

e-Commerce Applications and Internet


Basics (Cont.)

Marketing
Sales
Customer

management

Back-office information systems support internal


business operations and interact with suppliers (of
materials, equipment, supplies, and services).
Human

resources (HR)
Financial management
Manufacturing
Inventory control
Office Automation : Combine Both

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Questions & Answers

Summary
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Describe the project identification and selection


process
Describe corporate strategic planning and IS planning
process & their relationships
Describe how IS planning can be used to assist in
identifying and selecting systems development
projects
Analyze IS planning matrices to forecast the impact
of IS projects on business objectives
Describe the three classes of Internet e-Commerce
applications: Internet, intranet, and extranet
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Quiz

Exercise

1 _________________ is a method by which an


organization attempts to achieve its mission and
objectives.
2 _______ is an Internet-based communication that
supports business-to-business activities.
3 __________ is orderly means of assessing the
information needs of an organization and defining
the system, databases and technologies that will
best satisfy those needs.
4 _______________ is a statement that makes it
clear what business a company is in.
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Describe the project identification and


selection process

Describe several project evaluation criteria

Discuss the factors that give the evidence for


the need for improved IS planning today

Give generic competitive strategies

Self-Study: CRM system, pp. 125-129


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