System Request and Feasibility Analysis
Systems Development Life Cycle (SDLC)
The Systems Development Life Cycle (SDLC) is a structured process used in systems analysis and design. The general phases mentioned include:
Planning
Analysis
Design
Implementation
Maintenance (implied by the cycle, though not explicitly listed on a slide for phases 1-4)
Project Initiation: System Request
Agenda Overview: The project initiation phase includes two main sub-components:
System Request
Feasibility Analysis
Elements of a System Request: A system request form documents the core details and justification for a new system project. It typically includes:
Project Sponsor: The individual who owns the project and serves as the primary point of contact. They champion the project within the organization.
Business Need: The fundamental reason or problem that prompts the project. It outlines what the organization hopes to achieve or address.
Business Requirements: These specify the business capabilities that the new system must possess to address the identified business need. They describe what the system will do from a business perspective.
Business Value: The anticipated benefits the organization expects to gain from the project. This can be financial (e.g., increased revenue, cost savings) or non-financial (e.g., improved customer satisfaction).
Special Issues: Any other unique considerations that should be taken into account when evaluating or planning the project. This could include legal, political, or timing constraints.
Project Initiation: Feasibility Analysis
Purpose of Feasibility Analysis: This crucial step guides an organization in deciding whether to proceed with a proposed project. It systematically identifies potential risks that must be managed if the project is approved.
Major Components of Feasibility Analysis: There are three primary dimensions of feasibility:
Technical Feasibility: Addresses the question, "Can we build it?"
Economic Feasibility: Addresses the question, "Should we build it?" (Also known as cost-benefit analysis).
Organizational Feasibility: Addresses the question, "If we build it, will they come?" (Focuses on stakeholder acceptance).
Technical Feasibility
Definition: Technical feasibility assesses the extent to which the project team can successfully design, develop, and install the proposed system. It evaluates the organization's technical capabilities relative to the project's demands.
Four Sources of Risks (that endanger project success):
Familiarity with functional area:
This refers to the project team's experience with the specific business domain (e.g., finance, marketing, human resources) the system will support.
Less familiarity generally translates to higher project risk.
Familiarity with technology:
This concerns the team's experience with the specific hardware, software, programming languages, and tools required for the system.
Less familiarity with the underlying technology also generates more risk.
Project size:
Evaluates the scale of the project in terms of factors like the number of people involved, the number of features to be developed, and the estimated time to complete the project.
Larger projects inherently carry more risk due to increased complexity and coordination challenges.
Compatibility with existing systems:
Addresses how well the new system will integrate with the organization's current information systems and infrastructure.
Difficult integration, especially regarding data formats and interfaces, significantly increases project risk.
Economic Feasibility (Cost-Benefit Analysis)
Definition: Economic feasibility, often referred to as a cost-benefit analysis, is the process of identifying and quantifying the financial risks and benefits associated with a project. It helps in making an informed decision about the project's financial viability.
Steps for Cost-Benefit Analysis (Detailed in Appendix):
Identify (and categorize) Costs and Benefits.
Assign Values to Costs and Benefits.
Determine Cash Flow over time.
Assess the project's Economic Value (using metrics like ROI, Break-Even, NPV).
Organizational Feasibility
Definition: Organizational feasibility considers how successfully the new system will ultimately be accepted and utilized by its various stakeholders, both internal (employees, management) and external (customers, suppliers, shareholders).
Stakeholder Analysis: This is a systematic process used to evaluate organizational feasibility. It involves:
Identifies all parties (e.g., management, system users, shareholders, customers, suppliers) who will be impacted by the new information system.
Attempts to estimate and understand the potential consequences (positive and negative) of the project for each identified stakeholder group.
The goal is to proactively address concerns and foster acceptance.
Appendix: Steps for Cost-Benefit Analysis
Step 1: Identify Costs and Benefits
Costs and benefits are typically categorized into four main types:
Development Costs: Tangible, one-time expenses incurred during the creation phase of the system. Examples include:
Salaries for development team members
Hardware and software purchases (for development)
Consultant fees
Training for the development team
Office space and equipment (allocated to the project)
Vendor installation costs
Data conversion costs
Operational Costs: Tangible, ongoing expenses required to operate and maintain the system after deployment. These are recurring costs. Examples include:
Salaries for operational staff (e.g., IT support, system administrators)
Software licensing fees (annual renewals)
Equipment upgrades
Hardware repairs and maintenance
Communications charges
User training (ongoing for new users or updates)
Tangible Benefits: Measurable revenues or cost avoidances that the system enables the organization to realize. These are quantifiable benefits. Examples include:
Increased sales revenue
Reductions in staff (due to automation or improved efficiency)
Reductions in inventory holding costs
Reductions in IT costs (e.g., consolidation of systems)
Better supplier prices (due to improved procurement systems)
Intangible Benefits: Benefits that are more difficult to quantify with precise financial metrics. They are often based on intuition, belief, and qualitative improvements rather than