Making business case for IS Asper School of Business University of Manitoba Systems Analysis &...
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Making business case for IS Asper School of Business University of Manitoba Systems Analysis & Design Instructor: Bob Travica Updated: September 2014
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Transcript of Making business case for IS Asper School of Business University of Manitoba Systems Analysis &...
Making business case for IS
Asper School of Business University of Manitoba
Systems Analysis & Design
Instructor: Bob Travica
Updated: September 2014
3510 Systems Analysis & Design * Bob Travica 2
Outline
Business and systems planning Business Case Feasibility kinds Risk management
3510 Systems Analysis & Design * Bob Travica 3
Business and systems planning Business comes first, then
systems
Business strategy determines systems strategy
Case: Rocky Mountain Outfitters (RMO) in the book
3510 Systems Analysis & Design * Bob Travica 4
RMO Case Business: Manufacture and distribute
sports clothing.
Strategic goal: Support growth through business-to-consumer e-commerce.
Systems strategy: Develop new customer support system (CSS) that fits business goals.
In 2010s, social media are part of the e-commerce context.
3510 Systems Analysis & Design * Bob Travica 5
RMO Case (cont.)
What should system analyst’s do first: Understand customer-related tasks
(e.g., product search, ordering) Investigate current IS Define objectives of new CSS Create planning documentation
As any system, CSS is developed via a system development project project organization & team work matter
3510 Systems Analysis & Design * Bob Travica 6
Business case (See pp. 107-113)
Business Case = Assessment of a system’s feasibility and risks.
Feasibility:1. Economic (benefits vs. costs of IS? Next slides…)2. Technological (expertise to develop & use IS? IT maturity?*)3. IS Development Project aspects (size,
complexity?)4. Organizational factors (IS culture & politics?)**5. Scheduling (development timing vs. a
company’s time constraints?)6. Resource (sufficient staff available?)
3510 Systems Analysis & Design * Bob Travica 7
Economic feasibility:System benefits
Reduced execution time
Online store example
Common
Productivity
Challenging
Quality eliminates re-working
3510 Systems Analysis & Design * Bob Travica 8
System costs
One-time tangible costs Recurring tangible costsOnline store example
Online store example
Matching costs with benefits Use some financial model (NPV,
Break-Even analysis, Return on Investment…)
Intangible costs & benefits – can be part of feasibility case common way: listing & trying to
project conversion of intangible benefits into tangibles
better way: formal methods like Balanced Scorecard
3510 Systems Analysis & Design * Bob Travica 9
3510 Systems Analysis & Design * Bob Travica 10
Risk management Risk = undesirable events affecting
feasibility aspects during IS development project in production stage of an IS can be calculated (later slide)
3510 Systems Analysis & Design * Bob Travica 11
Risk analysis
Technological Factors: - Developers- Users
Organizationalfactors
Project factors
3510 Systems Analysis & Design * Bob Travica 12
Risk analysis (cont.)
Risk level=Risk Factor Weight (Impact)*Occurrence Likelihood (p)
Example*; scales of Risk and Risk Factor: 0 (low)-10 (high), probability scale: 0-1:
Key developer unavailability: weight=7, p=0.6; Risk=7*0.6=0.42
Legal problems, weight=7, p=0.3; Risk=7*0.3=0.21
Key developer unavailability risk > Legal risk
To run the formula on risk frameworks, some re-wording may be needed (check table on slide 11)
See Note bellow
