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Systems Analysis and Design ISQA 420 Fall 2001 Oct 15, 2001 “Problem definition &

Systems Analysis and Design ISQA 420 Fall 2001 Oct 15, 2001 “Problem definition & Feasibility analysis”. Identify symptoms of inefficiencies or other problems with existing system Determine the objectives and project constraints and scope of an improved system. Problem definition phase.

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Systems Analysis and Design ISQA 420 Fall 2001 Oct 15, 2001 “Problem definition &

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  1. Systems Analysis and Design ISQA 420 Fall 2001 Oct 15, 2001 “Problem definition & Feasibility analysis”

  2. Identify symptoms of inefficiencies or other problems with existing system Determine the objectives and project constraints and scope of an improved system Problem definition phase

  3. Know what system objectives, project constraints, and scope are Four types of feasibility Costs (development-production) and benefits (tangible and intangible) Cost-benefit analysis Project Risk Evaluation Problem Definition Report What is needed to accomplish

  4. Enterprise analysis User submits Systems Services Request to in house IS staff User meeting with outside IS support Project initiation Reasons

  5. Identifying symptoms Determine objectives, constraints, and scope of the development project Problem Definition

  6. Symptom – evidence that an existing information system is inefficient or ineffective Interview and observe system Request for Systems Services Problems with not getting good information Identify symptom

  7. Complete Accurate Timely Relevant Easy to understand Reliable Consistent Economical Good information

  8. Efficiency Effectiveness Competitiveness System objectives

  9. Limits functions and business areas addressed by the project Boundaries Organizational – business units, branches to be studied Business Area – which areas within the business are to be studied – only the HRM Functional (Process) – which processes are to be studied – payroll processing system Project Scope and Constraints

  10. Limits on the resources allocated Time, money, personnel Trade offs Constraints

  11. System costs – development/production Benefits – tangible/intangible Benefit-cost analysis Economic feasibility

  12. An Overview Problem definition: o define the system’s objectives o determine the project scope o identify project constraints The objectives and constraints combine to create tension… which necessitates a feasibility analysis: o economic feasibility o organizational feasibility o technical feasibility o operational feasibility The enterprise analysis, problem definition, and feasibility analysis are brought together in a Problem Definition Report.

  13. Economic Feasibility It’s about projecting and comparing the accumulating costs and benefits over the life of the system. Note the important distinction between: o tangible costs and intangible costs o tangible benefits and intangible benefits Intangible costs and/or benefits may make the difference between choosing a project or not… despite what the calculations tell you.

  14. On the limits of economic justification… "But I even put out some business proposals... [with] what I call, The cost of not doing it. If you don't do this, what's it going to cost you? 'Cause in some cases, you can't justify it but you better do it anyway. … Not everything has an ROI, return on investment. You just can't justify on tangible terms everything you do in business. There's a lot of intangible savings or costs that you have to think about. And some of them are not measurable. That is frustrating, especially for the numbers people who see everything as numbers... ... I mean, we may go into a managed care contract, and the employer says, 'I want you to be able to cover my people'… But there may be something over here that we just don't make any money on, but if you don't have it, you're not even going to get the contract. … I think you always have to look at the big picture. Everything. Don't make it a numbers-only game. That's dangerous, I think.” IS manager for a hospital chain

  15. Beyond economic feasibility... Organizational feasibility How well the proposed system will contribute to organizational efficiency, effectiveness, and competitiveness. Technical feasibility Concerns about hardware and software capability, reliability, and availability, plus the skills of the development team. Operational feasibility Concerns user acceptance, management support, demands of external entities. These dimensions of feasibility help to determine the level ofproject risk

  16. Feasibility… it’s a moving target! o Consider your determination of feasibility in the Problem Definition Report provisional. o Possible responses to perceived changes in feasibility can include: changing system scope, getting more resources, reorganizing project tasks or schedule, or (even) discontinuing the project... Escalation o “Escalating commitment to a failing course of action.” o A classic systems example: The baggage system at the Denver International Airport...

  17. Do Check your understanding 5-1(2,3), 5-2 (1), 6-1, 6-2, 6-3 Quiz

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