Identifying and Selecting IS Development ProjectsCorporate/IS PlanningInformation Systems PlanStepsSelection MethodEvaluation CriteriaSlide 7Project Identification & SelectionIncremental CommitmentWhy so much time on identification of projects?Types of FeasibilityEconomic FeasibilityBenefitsSlide 14CostsOperational FeasibilitySchedule FeasibilityLegal and Contractual FeasibilityPolitical FeasibilityProject ScopeIdentifying and Selecting IS Development ProjectsCorporate/IS Planning•Corporate strategic planning–An ongoing process that defines the mission, objectives and strategies of an organization•Information systems planning–An orderly means of assessing the information needs of an organization and defining the systems, databases, and technologies that will best satisfy those needsInformation Systems Plan•Organizational Mission, Objectives and Strategy•Informational Inventory•Mission and Objectives of Information Systems•Constraints on IS Development•Overall Systems Needs and Long-Range Strategies•The Short-Term Plan•ConclusionsSteps•Identify potential development projects•Classify and rank projects•Select projects for developmentSelection Method•Top management Steering committee–greater strategic focus - cross-functional focus–- largest project size - formal cost benefit analysis–longest project duration - greater organizational change - larger and riskier projects•User department Development group–narrow, non-strategic focus - integration with existing –faster development systems focus–few users, management layers - fewer development delaysand business functions - less concern with cost/benefitEvaluation Criteria•Value Chain Analysis – extent to which activities add value and costs when developing products and services•Strategic Alignment – extent to which the project is viewed as helping the organization achieve its strategic objectives and long-term goals•Potential Benefits –the extent to which the project is viewed as improving profits, customer service, and the duration of these benefitsEvaluation Criteria•Resource Availability–amount and type of resources the project requires and their availability•Project Size/Duration–number of individuals and the length of time needed to complete the project•Technical Difficulty/Risks–level of technical difficulty to successfully complete the project within given time and resource constraintsProject Identification & Selection•Deliverable–a schedule of specific IS development projects, coming from both top-down and bottom-up sources, to move into the remaining SDLC stepsIncremental CommitmentA strategy in systems analysis and design in which the project is reviewed after each phase and continuation of the project is rejustified in each of these reviewsWhy so much time on identification of projects?•Cost of IS approaches 40% of total expenses in some organizations•Increase importance of interorganizational systems•Application backlogs –Three years or greater are common–Users start creating own system•Data redundancyTypes of Feasibility•Economic•Technical•Operational•Schedule•Legal and Contractual•PoliticalEconomic FeasibilityA process of identifying the financial benefits and costs associated with a development projectBenefits•Tangible–A benefit derived from the creation of an information system that can be measured in dollars and with certainty•cost reduction and avoidance•error reduction•increased flexibility•increased speed of activity•improvement of management planning and control•opening new markets and increasing opportunitiesBenefits•Intangible benefits–A benefit derived from the creation of an information system that cannot be easily measured in dollars or with certainty•Competitive necessity•More timely information•Availability of new, better, or more information•Faster (and hopefully better) decision making•Positive impacts on society•Increased accuracy in clerical operations•Improved work process/employee moraleCosts•Tangible–A cost associated with an information system that can be measured in dollars and with certainty•Intangible–A cost associated with an information system that cannot be easily measured in terms of dollars or with certainty•One-Time Cost–A cost associated with project start-up and development •Recurring Costs–A cost resulting from the ongoing evolution and use of a systemOperational FeasibilityThe process of assessing the degree to which a proposed system solves business problems or takes advantages of business opportunitiesSchedule FeasibilityThe 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 changeLegal and Contractual FeasibilityThe process of assessing potential legal and contractual ramifications due to the construction of a systemPolitical FeasibilityThe process of evaluating how key stakeholders within the organization view the proposed systemProject Scope•General Project Information•Problem/Opportunity Statement•Project Objectives•Project Description•Business Benefits•Project Deliverables•Estimated Project