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INFORMATION SYSTEM PROJECT INITIATION. IS Project Requests (reasons, sources) Project Review and Selection Preliminary Investigation Requirements Determination Requirements anticipation Requirements investigation Requirements specification. Information System Project Requests.

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    1. INFORMATION SYSTEM PROJECT INITIATION IS Project Requests (reasons, sources) Project Review and Selection Preliminary Investigation Requirements Determination Requirements anticipation Requirements investigation Requirements specification

    2. Information System Project Requests • Reasons for project proposal Capability: greater processing speed, increased volume, faster information retrieval. Control: greater accuracy and consistency, better security. Communication: enhanced communication, integration of business areas. Cost: monitoring, reduction Competitive Advantage: lock-in customers, lock-out competitors, improve arrangements with suppliers, new product development. • Sources of project requests Department Managers: to solve a problem or improve efficiency within the department. Senior Executives: broad, institutional projects. System Analysts: improvement of existing applications or projects for the systems dept. Outside Groups: government, ISO.

    3. Project Review and Selection Method • Steering Committee Upper Management (Executive VP, VP Manufacturing) Departmental Managers (Marketing, Accounting) Technical Managers (R&D, QC) Information Systems Group (DP manager, Senior Analyst) • Information Systems Committee • User-Group Committee • Management Planning Committees Integrating the Applications Portfolio • Horizontal Integration spans functional business areas • Vertical Integration links applications up and down the management hierarchy within specific business functions • Physical Integration:spans geographic boundaries • External-to-internal Integration brings outside data sources into the company as well as communication with entities such as customers, suppliers.

    4. Preliminary InvestigationEvaluation of project requests • Objective Orientation (New Systems) • Start with objectives • Convert objectives to responsibilities • Decisions to carry out the responsibilities • Information needs to make these decisions (CSF, BSP) • Problem Orientation (Modification of existing system) • Focus on problems • Decisions necessary to solve the problems • Information needs to make these decisions

    5. Preliminary InvestigationIS Performance Criteria 12 % ROI $ 25 million sales revenue; operating expenses under $1.2 million Provide a monthly expense report that compares actual with budgeted expenses for each operating unit Periodic sales and expense reports

    6. Preliminary InvestigationEvaluation of project requests Executive VP, functional VP, managers VP Information Services, (CIO), IS staff 1. Recognise the problem S U P P O R T 2. Define the problem 3. Set system objectives 4. Identify system constraints 5. Conduct feasibility study 6. Prepare project proposal 7. Approve disapprove 8. Establish control mechanism

    7. Preliminary InvestigationEvaluation of project requests • Define the problem step 2 (Clarify and understand the project request): • What is required? • Why? • What management levels are involved? • Which functional areas? • Which subsystems are deficient? • Separate symptoms from causes. • Determine the size of the project: • New development or modification? • Time • Number of people

    8. What is the problem? Inventory records are frequently inaccurate, causing shortages at manufacturing time and variances in cost of goods sold. Details of problem Quantity on hand and actual physical count records do not always agree – no pattern is evident. Sometimes quantity on record is high and other times it is low. The quantity should always agree if material requisitions are posted properly. The two buyers usually ensure that enough material has been ordered and delivered on time. How significant is the problem? The shortage causes major problems. Sometimes we even have to shutdown lines until emergency reorders are filled. The controller objects when costs become excessive at end of month. The inventory manager complains when books are out of agreement with the on-hand actuals. Preliminary InvestigationClarify and understandtheprojectrequest

    9. What does user feel is the solution? We need to automate receiving, withdrawal, inventory records, and posting to eliminate arithmetic errors. How will information systems help? Cut down on arithmetic errors; also provide quicker information. Who else knows about this and could be contacted? Controller Buyers Manager of Inventory Signed by Manufacturing Manager Preliminary InvestigationClarify and understandtheprojectrequest

    10. Preliminary InvestigationEvaluation of project requests • Set system objectives step 3 (functional VPs)) • All IS objectives should help firm to achieve its objectives • Lower level objectives must support higher level objectives • Objectives should be valid (steer firm in the direction it wants to go) • Objectives should be realistic, yet stimulate improvement • Objectives should produce measurable standards

    11. Preliminary InvestigationEvaluation of project requests • Identify system constraints step 4 to minimise modifications later on. • Constraints imposed by the environment (government regulations ex. tax reporting; customers) • Internal constraints (cost and time limits, expertise)

    12. Preliminary InvestigationEvaluation of project requests • Conduct feasibility study step 5 operational: support from users and management for current system, their involvement in project request, external and internal system constraints, major barriers to implementation. technical: does the company have the necessary technology, equipment capacity for new system, adequate response time for number and location of users, data security? financial: estimation of cost of development, hardware, software, benefits in terms of reduced costs or fewer errors, cost if nothing changes. Project must be feasible operationally and technically as well as financially. legal: will the system operate within legal and ethical boundaries?

    13. Preliminary InvestigationEvaluation of project requests • Prepare project proposal step 6: written report of findings and recommendations to committee (by systems staff).(Committee approves/disapproves step 7; establishes control mechanism for project step8) • Introduction –reason for proposal • Problem definition • Possible alternatives • Recommended course of action • Tasks to be accomplished • Resource requirements • Time • Cost • Anticipated results (organizational, operational, financial impact) • General implementation plan • Project objectives (tasks, budget) • Summary

    14. System Development Life Cycle • Requirements Determination (Systems Analysis) • Requirements anticipation • Requirements investigation • Requirements specification • System Design • General system design • Design of output, input, data base • System Development (software, hardware) • Implementation and Evaluation • Training and other implementation activities • Conversion • Postimplementation review and maintenance

    15. Requirements Determination • Study of the current system to find out how it works and where improvements should be made • Requirements anticipation: initial preparation to determine possible needs (in terms of functions, businessprocesses). • The basis of anticipation is the project request (reasons, justification), and the results of the preliminary investigation (causes). • Requirements investigation • Requirements specification

    16. Requirements investigation • Understand the main business processes • Identify the data used and info produced • Determine frequency, time and volume • Identify controls • what is the purpose of the activity? • what steps are performed? • where are they performed? • who performs them? • who uses the resulting information? • inputs and outputs of each business process • how often (trigger)? • how long does it take? • number of transactions? • are there any specific performance standards? • who compares actual versus standard? • how are mistakes caught? • how are errors handled? • are errors excessive?

    17. Requirements specification • Transition from analysis to design • Capacity • Control • Accessibility • Complexity

    18. Requirements specification • Capacity • People • Equipment • Space • Procedures • increase capabilities • lower expectations • redefine nature of tasks

    19. Requirements specification • Control of deviations, missing activities, handling of unanticipated events. • procedure control • content control to ensure that data entering the system is correct (input validation) • audit control • responsibility control *

    20. Requirements specification(Control continued) • Control • procedure controlare all steps in a process performed? properly? any extra unauthorised steps? duplicate activities? will management know if steps are not performed? • content control to ensure that data entering the system is correct (input validation) *

    21. Requirements specification(Control continued) • Control • audit control record of a transaction; who performed it? when? what results did it produce? • responsibility controlis anyone assigned to oversee the achievement of specific performance levels? are these levels vague? • design to avoid control problems • design to detect and report control problems • design to detect and fix control problems

    22. Requirements specification • eliminate the need for info (purchase orders issued automatically without user intervention; built in default options) • ease access to info: streamline commands; default alternatives • eliminate the need for processing • change method of presentation • simplify • partition • resequence • Accessibility :does the information exist? is the info available? reliable? retrievable? presentable?is there a procedural problem to access it? • Complexity