Task 3 & Task 4
Haq_1
Lect3.pptxPart II: Project Planning and Project
Chapter11
SBM4201 System Analysis and Design
Bahareh Berenjforoush
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
Objectives: Chapter11
Activities of SDLC Core Process 1:
Identify the Problem and Obtain Approval
Activities of SDLC Core Process 2:
Plan and Monitor the Project
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
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Activities of Core Process 1:
Identify the Problem and Obtain Approval
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
Identify the Problem
IS Development Projects usually:
Respond to an opportunity
Strategic initiative
Something that provides competitive advantage
Resolve a problem
Operational issues keep coming up
User needs aren’t being met
Respond to an external directive
Legislation requires new form of reporting
Changes in tax laws or regulations
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
Identify the Problem
System Vision Document
Problem Description
What is the problem and idea for the solution?
System Capabilities
What are the capabilities the new system will have?
Helps define the scope
Business Benefits
The benefits that accrue to the organization
Tangible (in dollars) and intangible benefits
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
Example: Ridgeline Mountain Outfitters (RMO)
Large Retail Company
Outdoor and sporting clothing and accessories
Skiing, mountain biking, water sports
Hiking, camping, mountain climbing
Rocky Mountain and Western States
Started mail order and phone order
Added retail stores
Added extensive E-business component
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Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
Example: RMO Tradeshow System
Sample project for chapter
Small information system (app)
Being added to larger supply chain management system
Demonstrates one iteration of the small project – assumes more iterations in total project
Goes through all six core processes of SDLC
The plan for this example is to complete iteration in six days
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Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
Example1: RMO Tradeshow System
Problem-- purchasing agents attend apparel and fabric trade shows around the world to order new products from suppliers
Need– information system (app) to collect and track information about suppliers and new products while at tradeshows
Tradeshow Project– is proposed
Supplier information subsystem
Product information subsystem
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Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
Example2: System Vision Document RMO CSMS
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
RMO CSMS Vision Document (1)
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
RMO CSMS Vision Document (2)
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
RMO CSMS Vision Document (3)
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
Quantify Project Approval Factors
Anticipated Benefits from New System
Opening up new markets with new services, products, or locations
Increasing market share in existing markets
Enhancing cross-sales capabilities with existing customers
Reducing staff by automating manual functions or increasing efficiency
Decreasing operating expenses, such as shipping charges for “emergency shipments”
Reducing error rates through automated editing or validation
Reducing bad accounts or bad credit losses
Reducing inventory or merchandise losses through tighter controls
Collecting receivables (accounts receivable) more rapidly
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
Cost/Benefit Analysis
Cost/benefit analysis
comparing costs and benefits to see if the net result is plus or minus
Net Present Value (NPV)
the present value of dollar benefits and dollar costs of a particular investment
Break-even Point
point in time at which benefits and costs are equal
Payback Period
the time period after which the dollar benefits have offset the dollar costs
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
Cost/Benefit Analysis
Tangible Benefit
a benefit that can be measured or estimated in terms of dollars
Intangible Benefit
a benefit that accrues to an organization but that can’t be measured quantitatively or estimated accurately
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
Calculating Financial Returns Net Present Value
The two basic concepts of net present value are (1) that all benefits and costs are calculated in terms of today’s dollars (that is, present value) and (2) that benefits and costs are combined to give a net value—hence, the name net present value
Discount rate – the annual percentage rate that an amount of money is discounted to bring it to a present value
Discount factor – the accumulation of yearly discounts based on the discount rate
Systems Analysis and Design in a Changing World, 7th Edition - Online Chapter C ©2016. Cengage Learning. All rights reserved.
Calculating Financial Returns Net Present Value
Systems Analysis and Design in a Changing World, 7th Edition - Online Chapter C ©2016. Cengage Learning. All rights reserved.
NPV Formula
NPV Calculation Example
Discount factors Fn are usually looked up in tables rather than calculated
Method of calculation for Payback Period
Information Technology Project Management- Chapter 4
Cost/Benefit Analysis
Use present value (after discount factor) for all dollar values
Estimate the useful life of the system
The NPV after 5 years is $1,713,097
Payback Period is 2 years and 128 days
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
Calculating Financial Returns Return on Investment (ROI)
Return on investment – calculates a percentage return (like an interest rate) on the initial investment
Sometimes, ROI calculations are done by using values that include the discount factor
At other times, ROI is done on purely a cash basis without considering the organization’s assigned discount rate
Next Figure shows both calculations
Systems Analysis and Design in a Changing World, 7th Edition - Online Chapter C ©2016. Cengage Learning. All rights reserved.
Calculating Financial Returns Return on Investment (ROI)
Systems Analysis and Design in a Changing World, 7th Edition - Online Chapter C ©2016. Cengage Learning. All rights reserved.
Examples of Intangible Benefits
Increased levels of service (in ways that can’t be measured in dollars)
Increased customer satisfaction (not measurable in dollars)
Survival—need to do it to compete
Need to develop in-house expertise (such as a pilot program with new technology)
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
Determine Project Risk and Feasibility
Determine the organizational risks and feasibility
How well does the new system fit the organizational culture? Risk of negative impacts?
Evaluate the technological risks and feasibility
Can the system be built by the team using technology needed? Training available?
Assess the resource risks and feasibility
Are the needed resources available? Skilled people?
Identify the schedule risks and feasibility
Can the system be built in the amount of time available? Fixed Deadline?
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
Review with Client and Obtain Approval
Executive committee reviews and approves
Board must review and approve for very large projects
Involved stakeholders need to understand what is expected of them
IS department needs to know what to do for staffing and support
Whole organization should be made aware of the project and its importance
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
Activities of Core Process 2: Plan and Monitor the Project
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
Establish the Project Environment
Project manager must establish project parameters and the work environment:
Recording and communicating—internal and external
Who, what, when, and how
Work environment
Workstations, software development tools (IDE), servers and repositories, office and meeting space, support staff
Process and procedures followed
Reporting and documentation, programming approach, testing, deliverables, code and version control
In other words, tailor and operationalize the methodology being used
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
Schedule the Work
Project manager must establish initial project schedule and keep adjusting:
Project Iteration Schedule
The list of iterations and use cases or user stories assigned to each iteration
Detailed Work Schedule
Within an iteration, the schedule that lists, organizes, and describes the dependencies of the detailed work tasks
As each iteration is finished, a detailed work schedule is prepared for the next iteration
The next detailed work schedule takes into account the changes necessary based on feedback/progress
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
Schedule the Work
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
Schedule the Work
Developing Detailed Work Schedule takes three steps:
Develop a Work Breakdown Structure (WBS)
The list or hierarchy of activities and tasks used to estimate the work to be done in a project or iteration
Estimate effort and identify dependencies
Task times
Tasks that must be completed before another task begins
Critical path--a sequence of tasks that can’t be delayed without causing the entire project to be delayed
Create a schedule using a Gantt chart
Bar chart that portrays the schedule by the length of horizontal bars superimposed on a calendar
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
Schedule the Work
Tasks for the Work Breakdown Schedule
There should be a way to recognize when the task is complete.
The definition of the task should be clear enough so you can estimate the amount of effort required.
As a general rule for software projects, the effort should take one to five working days.
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
Schedule the Work: Work Breakdown Structure (WBS) with Time Estimates and Notes
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
Schedule the Work
Gantt Chart for first iteration
Shows task, duration, start date, predecessors, and resources
Generates chart graphically showing dates, predecessors, tasks, and critical path
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
Staff and Allocate Resources
Staffing activity tasks consists of 5 tasks:
Developing a resource plan for the project
Identifying and requesting specific technical staff
Identifying and requesting specific user staff
Organizing the project team into work groups
Conducting preliminary training and team-building exercises
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
Evaluate Work Processes: Retrospective
Are our communication procedures adequate? How can they be improved?
Are our working relationships with the user effective?
Did we hit our deadlines? Why or why not?
Did we miss any major issues? How can we avoid this in the future?
What things went especially well? How can we ensure it continues?
What were the bottlenecks or problem areas? How can we eliminate them?
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
Monitor Project Progress and Make Corrections
Process to monitor and control project execution
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
Summary
The SDLC in this text includes two Core Processes that involve the project manager: 1) Identify the problem and obtain approval and 2) Plan and monitor the project. This chapter discusses the activities or both Core Process.
The core process Identify the problem and obtain approval includes the following activities: 1) identify the problem, 2) quantify project approval factors, 3) perform risk and feasibility analysis, and 4) review with client and obtain approval.
The RMO CSMS Project will be used throughout the text as an example of analysis and design
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
Summary (continued)
A key deliverable is the System Vision Document, which includes a problem description, an overview of system capabilities, and a list of business benefits. Key project approval factors include time estimate, cost estimate, and cost/benefit analysis. Additionally, risk and feasibility factors are organizational, technological, resource, and schedule.
The core process Plan and monitor the project includes the following activities: 1) establish the project environment, 2) schedule the work, 3) staff and allocate resources, 4) evaluate work processes, and 5) monitor progress and make corrections.
Scheduling the work includes a project iteration schedule and detailed work schedules. A work breakdown structure (WBS) lists tasks to be completed. Dependencies and time estimates are also considered and shown in a Gantt chart.
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 11
References
Satzinger .J, Jackson. R & Burd. S, 2016, Systems Analysis and Design in a Changing 7th edn, Cengage, Australia.
Schwalbe. K, 2012, Information Technology Project Management, 7th edn, Cengage, Australia
