LIM, MARYLYN GRACE C.

OOA

            Book: Systems Analysis and Design: an Active Approach

            Author: George M. Marakas

            Reference No.: QA

                                    76.9

                                    S88

                                    M37

                                    2001

Chapter 3: Identification and Selection of Development Projects

Quote: “When schemes are laid in advance, it is surprising how often the circumstances fit with them.”

Review:

            This chapter discusses the importance of a formal evaluation and selection process for organizational application development projects. The systems development projects are proposed for two reasons. First, the perception of a problem that can be solve with a computer-based solution. Second, the identification of an opportunity for improvement that can be facilitated by upgrading a current system or designing a new one. There are four evaluation criteria used in the selection of system development projects. First is the potential organizational benefit. This determines the project’s potential for providing significant, ongoing and measurable benefits to the organization. Second is the strategic fit, this evaluates the degree to which the proposed project fits the existing organizational strategic focus. Third is the level of resource allocation. This is an assessment of the amount and types of organizational resources that must be committed to the proposed project to reach a successful outcome. Lastly, the value chain analysis is a process that involves the assessment of an organization’s overall activities associated with IT use in terms of the value it add to the enterprise. The creeping commitment is a concept that suggests the process of selection and development is an incremental one that requires a reassessment of the value of the project at each step of the way. The primary source of new development projects in some organization is the result of a formal, ongoing process called information system planning or ISP. ISP is an orderly means of assessing the information needs of an organization and defining the IS, databases and techniques that best satisfy those needs. The preliminary project feasibility analysis is being done when organizations adopt the creeping commitment approach to system development. The preliminary project feasibility analysis takes a categorical approach to the determination of project feasibility to ensure that the continued application of corporate resources is both relevant and contributing to the organization’s goals. There are five categories of project feasibility assessment. First is the technical feasibility, this determines the relationship between the present technology resources of the organization and the expected technology needs of the proposed project. Second is operational feasibility, this determines the degree to which the proposed development project fits with the existing business environment and objectives with regards to development schedule, delivery date, corporate culture and existing business process.  Third is human factors feasibility, this determines the relationship between the present human resource base of the organization and the expected human resource needs of the proposed project. Fourth is legal and political feasibility, this identifies any potential legal ramifications resulting from the construction and implementation of the new system. Last is the economic feasibility, this assesses the cost-benefit relationship of the proposed project and its net value contribution to the organization. After having a preliminary project feasibility analysis, they will do the baseline plan. The baseline plan is a deliverable from a successful preliminary feasibility assessment. There are six sections in this document. First is plan summary, this is a overview of the project. Second is formal problem definition. This contains the scope and objectives of the project. The third is system narrative section; this contains information related to the proposed system’s expected configuration. Fifth is the feasibility assessment, this is where the outcome of the categorical feasibility studies is reported. The final section is the managerial issues, this talk about various cross-life cycle issues. After having the baseline plan, the steering committee, which composed of members of senior management, systems managers and analysts and representative of various stakeholders, will study the project and they will give the formal approval of the project.