Phase 1

Systems Planning
Preliminary Investigation
SDLC Phases
Phase 1: Systems Planning

Systems Analysis and Design Fourth Edition

SDLC Phases
Phase 1: Systems Planning Objectives
 Learn how projects get started
 Learn how projects are evaluated initially

Systems Analysis and Design Fourth Edition

Chapter 2
Preliminary Investigation

Systems Analysis and Design Fourth Edition

Objectives
Describe the strategic planning process,
and why it is important to IT managers
Explain the purpose of a mission
statement
Explain the SDLC as a framework for
systems development and business
modeling
Explain the reasons for information
systems projects and the factors that
affect such projects

Systems Analysis and Design Fourth Edition

Objectives
Describe the initial review of systems
requests and the role of the systems
review committee
Describe the internal and external factors
that affect information systems projects
Define operational feasibility, technical
feasibility, and economic feasibility
Describe the steps and end product of a
preliminary investigation

Systems Analysis and Design Fourth Edition

Introduction
Systems planning tasks
Examine the systems request
Conduct a preliminary investigation
Using SDLC and CASE tools to provide a
framework

Systems Analysis and Design Fourth Edition

The Importance of Strategic
Planning
Overview of the strategic planning
process
SWOT analysis
Strengths
Weaknesses
Opportunities
Threats

Systems Analysis and Design Fourth Edition

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The Importance of Strategic
Planning
From the strategic plan to business
results
Examples of mission statements
nFront
Quebecor Printing Corp.
Federal Express

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The Importance of Strategic
Planning
The future
Thriving e-commerce
Rapid change

Systems Analysis and Design Fourth Edition

A Framework for Systems
Development
A business model example
IT director favors SDLC using System
Architect 2001 (S/A 2001)

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A Framework for Systems
Development
A business model example
IT director favors SDLC using System
Architect 2001 (S/A 2001)
Critical success factors
Critical business issues
Case for action
S/A 2001 encyclopedias

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A Framework for Systems
Development
The role of the IT department
Close link between operations and IT
JAD and RAD
Some companies see IT as technology
gatekeeper

Systems Analysis and Design Fourth Edition

Information Systems Projects
Starting point is a systems request

Systems Analysis and Design Fourth Edition

Information Systems Projects
Reasons for systems projects
Improved service
Better performance
More information
Stronger controls
Reduced cost

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Information Systems Projects
Reasons for systems projects
Improved service
Better performance
More information
Stronger controls
Reduced cost

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Information Systems Projects
Factors affecting systems projects
User requests
Top-management directives
Existing systems
Information technology department
The economy
Technology
Government
Software and hardware vendors
Competitors
Customers
Suppliers Click to see Figure 2-7
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Information Systems Projects
Systems request forms
Streamlines the process
Ensures consistency
Must be easy to understand and use
Must include clear instructions

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Evaluation of Systems Requests
Evaluation of projects
Systems review committee
Evaluate requests
Set priorities
Assess feasibility

Systems Analysis and Design Fourth Edition

Evaluation of Systems Requests
Overview of feasibility
Feasibility study uses three main
yardsticks:
Operational feasibility
Technical feasibility
Economic feasibility

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Evaluation of Systems Requests
Operational feasibility
Is the system a practical and effective
approach?
Operational feasibility depends on:
Management and user support
User involvement in planning
Impact on performance, customers, and
company image
Reasonable schedules

Systems Analysis and Design Fourth Edition

Evaluation of Systems Requests
 Technical feasibility
 Does the organization have resources to
develop/purchase and operate the system?
 Technical feasibility depends on:
 Technical expertise within the organization
 Availability of necessary equipment
 Hardware and software reliability
 Adequate performance that will meet
specifications
 Capacity for future needs/projected growth

Systems Analysis and Design Fourth Edition

Evaluation of Systems Requests
 Economic feasibility
 Do the projected benefits outweigh the estimated
costs of development, installation, and
operation?
 Economic feasibility depends on:
 Costs — one time and continuing costs
 Benefits — tangible and intangible benefits
 Timing of various costs and benefits
 Cost of not developing the system

Systems Analysis and Design Fourth Edition

Evaluation of Systems Requests
Determining feasibility
First step is a determination of feasibility
Goal is to identify nonfeasible projects as
soon as possible
Feasibility can change over time
Nonfeasible projects can be resubmitted
Initially feasible projects can be rejected later

Systems Analysis and Design Fourth Edition

Evaluation of Systems Requests
 Criteria used to evaluate systems requests
 Reduce costs
 Increase revenue
 Produce more information or better results
 Serve customers and the organization better
 Reasonable time frame and lasting results
 Resources available
 Necessary or discretionary
 Tangible or intangible factors

Systems Analysis and Design Fourth Edition

Evaluation of Systems Requests
Discretionary and non-discretionary
projects
Necessity of project
Possibly no need to review non-
discretionary projects in committee

Systems Analysis and Design Fourth Edition

Preliminary Investigation
Overview
 Purpose
 To decide whether to continue the project
 Objectives for a preliminary investigation
1. Understand the problem
2. Define the project scope and constraints
3. Identify the benefits
4. Estimate the time and costs
5. Report to management
 Interaction with managers and users

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Steps in the Preliminary
Investigation
Step 1: Understand the problem
Identify the true nature of the problem
and the reason for the systems request
Stated problem may not be the real
problem
Clear statement defines the investigation
scope

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Steps in the Preliminary
Investigation
Step 2:Define the project scope and
constraints
Project scope
Define the range or extent of the project
Set project boundaries
Constraints
Identify conditions, restrictions, or requirements
 Present vs. future
 Internal vs. external
 Mandatory vs. desirable

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Steps in the Preliminary
Investigation
Step 3: Perform fact finding
Analyze organization charts
Conduct interviews
Observe operations
Carry out a user survey

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Steps in the Preliminary
Investigation
Step 4: Determine feasibility
Determine operational, technical, and
economic feasibility

Systems Analysis and Design Fourth Edition

Steps in the Preliminary
Investigation
 Step 5: Estimate time and cost to continue
development
 Determine what information is needed
 Identify the sources of information
 Decide whether to use interviews, if so how
many, and what time needed
 Decide whether to use surveys, if so who to
complete it, and what time needed
 Estimate the cost of gathering, analyzing, and
reporting the information to management

Systems Analysis and Design Fourth Edition

Steps in the Preliminary
Investigation
Step 6: Present results and
recommendations to management
Final task in the preliminary investigation
Key elements
Evaluation of systems request
Estimate of costs and benefits
Recommendations

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Steps in the Preliminary
Investigation
Step 6: Present results and
recommendations to management
Final task in the preliminary investigation
Key elements
Evaluation of systems request
Estimate of costs and benefits
Recommendations
Oral and written presentations

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SOFTWEAR, LIMITED
Background
SWL uses outside firm (BIS) for payroll
processing
Payroll deductions permitted for credit
union and SWL stock purchase
Recent reports of problems
Errors in employee deductions
Overtime necessary to correct
Future Employee Savings Investment
Plan (ESIP) is possible

Systems Analysis and Design Fourth Edition

SOFTWEAR, LIMITED
Request for information
technology services
Systems request submitted by
Michael Jeremy
Describes problem generally
Does not identify cause or propose
solution

Systems Analysis and Design Fourth Edition

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SOFTWEAR, LIMITED
Request for information technology
services
Systems request submitted by Michael
Jeremy
Describes problem generally
Does not identify cause or propose solution
IT department response
SWL does not have systems review
committee
Rick Williams assigned to preliminary
investigation

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SOFTWEAR, LIMITED
Request for information technology
services
Systems request submitted by Michael
Jeremy
Describes problem generally
Does not identify cause or propose solution
IT department response
SWL does not have systems review
committee
Rick Williams assigned to preliminary
investigation
Michael Jeremy issues authorization memo

Systems Analysis and Design Fourth Edition

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SOFTWEAR, LIMITED
Organization charts
Current organization charts not available
Rick obtains job descriptions and draws
charts

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SOFTWEAR, LIMITED
Interviews
Michael Jeremy, vice president of
finance
Mike Feiner, director of human
resources
Amy Calico, director of payroll

Systems Analysis and Design Fourth Edition

SOFTWEAR, LIMITED
Current documentation
Results and findings
Specific procedures are being followed
by the payroll department
Written descriptions for these
procedures are outdated
Payroll department has never seen the
stock plan deduction form

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SOFTWEAR, LIMITED
Presentation to Management
IT department tasks
Prepared a preliminary investigation
report
Attached a cover memo
Scheduled a presentation
Management decisions
Analyze the payroll system as
requested
Scope to include whether current BIS
can handle new ESIP options

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SOFTWEAR, LIMITED
Presentation to Management
IT department tasks
Prepared a preliminary investigation
report
Attached a cover memo
Scheduled a presentation
Management decisions
Analyze the payroll system as
requested
Scope to include whether current BIS
can handle new ESIP options

Systems Analysis and Design Fourth Edition

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 End
Chapter 2