SYSTEM PLANNING

- first phase in the System Development Life Cycle

- identify the scope of the system

STRATEGIC PLANNING
- identification of long term organizational
- begins with a management evaluation

SWOT ANALYSIS
- STRENGTHS - things that a corporation does particularly well
- WEAKNESSES - inherent features of organization
- OPPORTUNITIES - possibilities for something positive
- THREATS - negatively affect their business from the surface

- Project identification
- Project Planning

PROJECT INITIATION/IDENTIFICATION - identifies that there is a need to improve

Systems Request - own approach of determining what needs to be accomplished

REASONS OF SYSTEM REQUEST

IMPROVED SERVICE
BETTER PERFORMANCE
MORE INFORMATION
STRONGER CONTROLS
REDUCED COST

SOURCES OF SYSTEM PROJECTS

- INTERNAL FACTORS - Factors that are generally under the direct control
- STRATEGIC PLAN - sets the overall direction for the firm
- TOP MANAGERS - prime source of large-scale system
- USER REQUESTS - users rely more heavily on information systems

INFORMATION TECHNOLOGY DEPARTMENT - Many systems project requests come from

- IT staff members - often make recommendations based on their knowledge

EXISTING SYSTEM - can trigger requests for system projects.

EXTERNAL FACTORS - occur outside the organization but which can cause internal impact

Electronic data interchange (EDI) - enables just-in-time (JIT) inventory systems

CUSTOMERS - vitally important to any business

COMPETITORS - drives many information systems decisions.

THE ECONOMY - need to be ready with scalable systems

GOVERNMENT - affect the design of corporate

PRELIMINARY INVESTIGATION - to conduct an initial study and findings of the existing system
- UNDERSTAND THE PROBLEM OR OPPORTUNITY
- DEFINE THE PROJECT SCOPE AND CONSTRAINTS
- PERFORM FACT-FINDING
- ANALYZE PROJECT USABILITY, COST, BENEFIT, AND SCHEDULE DATA
- EVALUATE FEASIBILITY
- PRESENT RESULTS AND RECOMMENDATIONS TO MANAGEMENT

PROJECT FEASIBILITY STUDY - an analysis that takes all of a project's relevant factors into account

TYPES OF FEASIBILITY STUDY

- TECHNICAL FEASIBILITY - refers to the exploration to determine whether the solutions are often
supported.
- OPERATIONAL FEASIBILITY - determines whether the system is functioning effectively
- SCHEDULE FEASIBILITY - determines that the proposed project should be finished
- ECONOMIC FEASIBILITY - assessment of the effectiveness of the proposed system by using a
cost/benefit

PROJECT SCHEDULING TECHNIQUE - proportionate with the time set for the project

Work Breakdown Structure or (WBS) - a list of tasks is broken down called

- to complete in a definite sequence, which defines the project

GANTT CHART - a bar graph that displays key activities in sequence on the left.

Cost Benefit Analysis or CBA - determines the benefits and savings that are expected from the system

FORMULA:
Net Economic Benefit =Total Cost
Reduction+Error Cost Reduction
Discount Rate = [1 ( / (1 + i)^n )

ROI - It tells how profitable an investment is over a given period of time.

NPV = Net Present Value

Payback period (break-even point) – the point in time at which the increased cash flow

BUSINESS CASE - documented economic feasibility study’ that outlines the business needs

COST - includes the breakdown of the total sum

BENEFIT - includes breakdown of all your tangible benefits

BREAK EVEN ANALYSIS TABLE AND CHART - calculation and graphical representation of your break-even
point