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Chapter 2
Identify projects with
business value
How do projects begin?
•Project sponsor: a key person to
recognizes business need for new system
& desires to see it implemented.
•Projects are selected based on business
needs and project risks.
•Business needs determine the system’s
functionality (what it will do).
•Project’s business value should be clear.
System Request
•A document describing business reasons for
project & system’s expected value.
•Must pass several tests before it can be
approved
•project sponsor
•Lists project’s •business need
key elements •business requirements
•business value
•special
issues/constraints
•The approval committee
reviews system requests
throughout the
organization
selects projects for
the benefit of the
business
System Request
Examples
Project sponsor VP of Marketing
Project size
Number of people, time, and features
Compatibility with existing systems
•
–
•
Economic Feasibility
Should we build it?
•Proposed system must be economically viable
•Do the benefits outweigh the costs?
•The cost can be one-time or recurring costs
Tangible benefits - benefits that will increase sales and those that reduce costs, such as increased sales.
•Intangible benefits – benefits like customer service and care are more difficult to measure
•
The analyst must perform a cost-benefit analysis and determine if the system is economically feasible
Economic feasibility
Access Financial Viability
Strategic alignment
How well do the project goals align with business objectives?
Stakeholder analysis
Project champion
Organizational management
System users
•
•
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Project Selection Issues
Approval committee works from the
system request & feasibility study