Topic # 6. Initiating and Planning Systems Development Projects. Project Initiation and Planning: Part of Systems Life Cycle
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1 Topic # 6 Initiating and Planning Systems Development Projects Project Initiation and Planning: Part of Systems Life Cycle
2 Project Initiation Process Project initiation focuses on activities designed to assist in organizing a team to conduct project planning. The types of activities performed during project initiation are listed below: Online Education Project 1. establishing the project initiation team (faculty, Cont. Ed, manager, student helpers) 2. establishing a relationship with the customer (local school, colleges, universities, and businesses) 3. establishing the project initiation plan (schedule of activities, project administration) 4. establishing management procedures (project director, contractors, reports, outcomes, deliverables, modifications, etc.) 5. establishing the project environment and project workbook (lab, communications, workbook) Project Planning Process Project planning is the process of defining clear, discrete activities and the work needed to complete each activity within a single project. (A proposal) The range of activities performed during project planning are: 1) Describing Project Scope, Alternatives, and Feasibility 2) Dividing the project into Manageable Tasks 3) Estimating Resources and creating a Resource Plan 4) Developing a Preliminary Schedule 5) Developing a Communication Plan 6) Determining Project Standards and Procedures 7) Identifying and Assessing Risk 8) Creating a Preliminary Budget 9) Developing a Statement of Work 10) Setting Baseline Project Plan
3 Project Planning Process The objective of the project planning process is the following deliverables: 1. Business Case: Justification for an information system, expressed as 1.1. tangible and intangible costs, 1.2. tangible and intangible benefits, and 1.3. technical/organizational feasibility 2. Baseline Project Plan (BPP) the most important document 3. Statement of Work (SOW). Baseline Project Plan (BPP) and Statement of Work (SOW) Baseline Project Plan (BPP) The Baseline Project Plan (BPP) contains all information collected and analyzed during project initiation and planning. The plan reflects the best estimate of the project s - scope, - benefits, - costs, - risks, and - resource requirements given the current understanding of the project. The BPP specifies detailed project activities for the next life cycle phase, analysis, and less detail for subsequent project phases (since these depend on the results of the analysis phase). The content and format of a BPP depends on the size, complexity, and standards of an organization. The Statement of Work (SOW) is a document prepared for customer at this phase of SDLC. It describes what the project will deliver and outlines all works required to complete the project.
4 Baseline Project Plan Baseline Project Plan (BPP) is a document intended primarily to guide the development team. Sections: 1) Introduction 2) System description 3) Feasibility assessment 4) Management issues Project Scope Project Scope statement is part of the BPP introduction. Sections: 1) Problem statement 2) Project objectives 3) Project description 4) Business benefits 5) Deliverables 6) Expected duration
5 Statement of Work Statement of Work (SOW) is a contract between the IS staff and the customer regarding deliverables and time estimates for a system development project. Economic Feasibility (under limited resources and finite time) The types of project feasibility are economic, technical, operational, schedule, legal and contractual, and political. Economic feasibility is the process of identifying the financial benefits and costs associated with a development project. Technical feasibility is the process of assessing the development organization s ability to construct a proposed system. Operational feasibility is the process of assessing the degree to which a proposed system solves business problems or takes advantage of business opportunities. Schedule feasibility is the process of assessing the degree to which the potential time frame and completion dates for all major activities within a project meet organizational deadlines and constraints for affecting change. Legal and contractual feasibility is the process of assessing potential legal and contractual ramifications due to the construction of a system. Political feasibility is the process of evaluating how key stakeholders within the organization view the proposed system. No factor is most important; one factor may be most important in some situations, while another may be most important in others.
6 Tangible Benefits There are two primary categories of benefits from an IS project: tangible benefits, and intangible benefits. Tangible benefits are those derived from the creation of an information system that can be measured in dollars and with certainty and expressed with numeric values. Main categories of TB: Online Education cost reduction 75%-25% of traditional ed. error reduction increased flexibility course pace is controlled by student increased speed of activity 1 semester course in 15 days improvement of management planning and control opening new markets international students increasing sales opportunities new students (with no dorms, classrooms, etc.) Tangible Benefits
7 Project Benefits Intangible benefits are those derived from the creation of an information system that cannot be easily measured in dollars or with certainty. Intangible benefits are derived from the creation of an information system and cannot be easily measured in dollars or with certainty. Main categories of IB: - competitive necessity - more timely information - availability of new, better, or more information - faster decision making, etc. Intangible Benefits
8 Topic # 6 Initiating and Planning Systems Development Projects In-classroom Exercise Economic Cost Benefit Analysis
9 Types of Costs Tangible: can be measured in dollars and with certainty Intangible: cannot easily be measured in dollar or with certainty One-time (start-up): a cost associated with project start-up and development or systems start-up Recurring (project-related, maintenance): a cost associated with ongoing evolution and use of a system One-Time Costs (usually, costs at the very beginning of a project)
10 Recurring Costs (usually, costs to maintain project activities, environments, infrastructure, supplies, etc.) Economic Cost Benefit Analysis Three methods for performing economic cost benefit analysis: - net present value (NPV), - return on investment (ROI), and - break even analysis. Terminology: - Time Value of Money (TVM) it refers to the concept of comparing present cash outlays to future expected returns. - Present Value (PV) the current value of future cash flow, - Discount Rate (DR) the rate of return used to compute the PV of future cash flows (the rate at which money can be borrowed or invested is also called the cost of capital)
11 Net Present Value PV n = present value of Y dollars n years from now based on a discount rate of i. NPV = sum of PVs across years. Calculates time value of money. Summary Spreadsheet Reflecting the Present Value Calculations of All Benefits and Costs for the CIS
12 Break-Even Analysis Ex. 4 on page 151: The Outcomes
13 Ex. 10 on page 151: The Outcomes Topic # 6 Initiating and Planning Systems Development Projects Homework Assignment
14 A Structured Walkthrough (FTR Formal Technical Review) A structured walkthrough is a peer group review of any product created during the systems development process. This review takes place BEFORE the next phase of the SDLC can begin and BEFORE the BPP is submitted or presented to some project approval body for funding. The objective of this review is to assure that the proposed IS conforms to organizational standards and that all relevant parties understand and agree with the information contained in the project's BPP. Most walkthroughs are not rigidly formal or exceeding long in duration. It is important, however, that a specific agenda be established for the walkthrough so that all attendees understand what is to be covered and the expected completion time. A Structured Walkthrough People Involved: At walkthrough meetings, there is a need to have individuals play specific roles. - A coordinator plans the meeting and facilitates a smooth meeting process. - The presenter describes the work product to the group. - A user (or group) assures that the work product meets the needs of the project s customers. - A secretary takes notes and records decisions or recommendations made by the group. - The standards bearer role is to assure that the work product adheres to organizational technical standards. - A maintenance oracle reviews the work product in terms of future maintenance activities.
15 Structured walkthrough form
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