Project Risks and Feasibility Assessment

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Project Risks and Feasibility Assessment

• Advanced Systems Analysis and Design

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Project Risk Factors
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Project Risk Classification
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• Feasibility is the measure of how beneficial or
  practical the development of an information
  system will be to an organization.
• Feasibility analysis is the process by which
  feasibility is measured.
• Feasibility should be measured throughout the
  life cycle.
• The scope and complexity of an apparently
  feasible project can change after the initial
  problems and opportunities are fully analyzed or
  after the system has been designed.
• Thus, a project that is feasible at one point in
  time may become infeasible at a later point in
  time.

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Feasibility Assessment

• Why feasibility assessment?
• Information systems are major investments
• IS projects are subject to the same cost
  justifications as any other capital investments
• Business value paradox
• Avoid "black hole" projects

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Feasibility Analysis

• Feasibility Checkpoints During Analysis
• Systems Analysis -Survey Phase
• Do the problems (or opportunities) warrant the
  cost of a detailed study of the current system?''
• Systems Analysis - Study/Definition Phase
• Better estimates of development costs and the
  benefits to be obtained from a new system.
• Requirements often prove to be more extensive
  that originally stated.
• If feasibility is in question, scope, schedule,
  and costs must be rejustified.
• Systems Analysis - Selection Phase
• A major feasibility analysis evaluating options
  for the target systems design.
• Typical options that are evaluated include
• Do nothing! Leave the current system alone.
• Reengineer the (manual) business processes, not
  the computer-based processes.
• Enhance existing computer processes.
• Purchase a packaged application.

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Four Tests for Feasibility

• Operational feasibility is a measure of how well
  a specific solution will work in the
  organization. It is also a measure of how people
  feel about the system/project.
• Does management support the system?
• How do the end-users feel about their role in the
  new system?
• What end-users or managers may resist or not use
  the system? Can this problem be overcome? If so,
  how?
• Usability analysis
• Ease of use, Ease of learning, User satisfaction
• Technical feasibility is a measure of the
  practicality of a specific technical solution and
  the availability of technical resources and
  expertise.
• Is the proposed technology or solution practical?
  Is the technology mature?
• Do we currently possess the necessary technology?
  
• Do we possess the necessary technical expertise,
  and is the schedule reasonable?
• Schedule feasibility is a measure of how
  reasonable the project timetable is.
• Economic feasibility is a measure of the
  cost-effectiveness of a project or solution. This
  is often called a cost-benefit analysis.

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Constructive Cost Model (COCOMO)

• Developed by Barry Boehm (1981)
• Predicts the effort duration of a project
• Based on size of the system a number of cost
  drivers,

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Constructive Cost Model (COCOMO)
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Cost Drivers in COCOMO

• Product attributes
• software reliability, database size, software
  complexity
• Hardware/platform attributes
• execution time constraints, main storage
  constraints, virtual machine volatility,
  turnaround time
• Personnel attributes
• Analyst capability, applications experience,
  programmer capability, virtual machine
  experience, language experience
• Project attributes
• use of modern programming practices, use of
  software tools, development schedule constriants

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Factors not Included in COCOMO

• Application type
• Language level
• Requirements volatility
• Personnel continuity
• Management quality
• Customer interface quality

• Amount of documentation
• Hardware configuration
• Security and privacy restrictions

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Function Point Analysis

• Developed by Allan Albrecht at IBM (1979)
• Based on estimation of inputs, outputs, queries,
  interfaces, and files
• Main advantages
• Possible to estimate function points early in the
  development life cycle
• Can be estimated by non-technical personnel

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Function Point Analysis
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Feasibility Analysis of Candidate Systems

• Candidate Systems Matrix
• The candidate systems matrix documents
  similarities and differences between candidate
  systems however, it offers no analysis.
• The columns of the matrix represent candidate
  solutions.
• The rows of the matrix represent characteristics
  that serve to differentiate the candidates. The
  breakdown is as follows
• TECHNOLOGY
• INTERFACES
• DATA
• PROCESSES
• GEOGRAPHY

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Feasibility Analysis of Candidate Systems

• Feasibility Analysis Matrix
• This matrix complements the candidate systems
  matrix with an analysis and ranking of the
  candidate systems. It is called a feasibility
  analysis matrix.
• The columns of the matrix correspond to the same
  candidate solutions as shown in the candidate
  systems matrix.
• Some rows correspond to the feasibility criteria
  presented in this chapter.
• Rows are added to describe the general solution
  and a ranking of the candidates.
• The cells contain the feasibility assessment
  notes for each candidate.

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Feasibility Analysis of Candidate Systems

• Feasibility Analysis Matrix
• Each row can be assigned a rank or score for each
  criteria (e.g., for operational feasibility,
  candidates can be ranked 1, 2, 3, etc.).
• After ranking or scoring all candidates on each
  criteria, a final ranking or score is recorded in
  the last row.

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