![Page 28Classification: Restricted
What to Study What to Conclude
• Things to be studied during the feasibility study phase:
• The present organizational system (users, policies, functions,
objectives,...)
• Problems with the present system (inconsistencies, inadequacies in
functionality, performance,...)
• Objectives and other requirements for the new system (what needs to
change?)
• Constraints, including nonfunctional requirements on the system
(preliminary pass)
• Possible alternatives (the current system [status quo] is always one of
those)
• Advantages and disadvantages of the alternatives
• Things to conclude:
• Feasibility of the project and the preferred alternative](https://image.slidesharecdn.com/session3enterpriseanalysis-180811003038/85/Enterprise-Analysis-28-320.jpg)
Enterprise Analysis
- 2. Page 2Classification: Restricted Agenda • Enterprise Analysis • What is Enterprise Analysis • Why Enterprise Analysis • Different Architectures • Enterprise Analysis Activities • Techniques Used to Define a Business Need • Techniques Used to assess Capability Gaps • Techniques Used to Determine Solution Approach • Techniques Used to Define Solution Scope • Techniques Used to Define a Business Case • SWOT Analysis • GAP Analysis • Feasibility Study • Root Cause Analysis
- 3. Page 3Classification: Restricted The BABOK describes Business Analysis areas of knowledge, their associated activities and tasks and the skills necessary to be effective in their execution.
- 4. Page 4Classification: Restricted What is Enterprise Analysis? Describes the Business Analysis activities necessary to identify a business need, problem, or opportunity, define the nature of a solution that satisfies the identified need and justify the investment necessary to deliver the solution. Enterprise Analysis Outputs create context to requirements analysis.
- 5. Page 5Classification: Restricted Provides context to requirements analysis and solution identification Often serves as the starting point for initiating a new project Business requirements are identified and documented through enterprise analysis activities Why Enterprise Analysis?
- 6. Page 6Classification: Restricted Different Architectures The Enterprise Architecture consists of five architectures which in total comprise • Business Architecture • Information Architecture • Application Architecture • Technology Architecture • Security Architecture
- 8. Page 8Classification: Restricted Enterprise Analysis
- 9. Page 9Classification: Restricted Techniques Used to Define a Business Need
- 10. Page 10Classification: Restricted Techniques Used to assess Capability Gaps
- 11. Page 11Classification: Restricted Techniques Used to Determine Solution Approach
- 12. Page 12Classification: Restricted Techniques Used to Define Solution Scope
- 13. Page 13Classification: Restricted Techniques Used to Define a Business Case
- 14. Page 14Classification: Restricted SWOT Analysis Strengths: characteristics of the business, or project team that give it an advantage over others Weaknesses (or Limitations): are characteristics that place the team at a disadvantage relative to others Opportunities: external chances to improve performance (e.g. make greater profits) in the environment Threats: external elements in the environment that could cause trouble for the business or project.
- 15. Page 15Classification: Restricted SWOT Analysis
- 16. Page 16Classification: Restricted SWOT Analysis
- 18. Page 18Classification: Restricted How to Conduct SWOT Analysis Analyze the Internal & External Environment
- 19. Page 19Classification: Restricted GAP ANALYSIS
- 20. Page 20Classification: Restricted Gap analysis is a technique to identify the area of improvement in any process ranging from Business to technology. The areas of improvement doesn’t necessarily mean any new enhancement, it is either about finding a gap between what is expected and what is really done. What is Gap Analysis?
- 26. Page 26Classification: Restricted What is Feasibility Study? An analysis and evaluation of a proposed project to determine if it (1) is technically feasible, (2) is feasible within the estimated cost, and (3) will be profitable. • Feasibility study is used to determine the viability of an idea • The objective of such a study is to ensure a project is legally and technically feasible and economically justifiable • It tells us whether a project is worth the investment • It is also called as Feasibility Analysis
- 27. Page 27Classification: Restricted Why do a feasibility study • IT IS ALL ABOUT MAKING AN INFORMED CHOICE • It is an analysis of the viability of an idea through a disciplined and documented process. • A feasibility study is a management-oriented activity & should tell management: • Whether the project can be done • What are alternative solutions? • What are the criteria for choosing among them? • Is there a preferred alternative? • After a feasibility study, management makes a go/no-go decision. • A feasibility study: • Gives focus to the project and outline alternatives • Enhances the probability of success by addressing and mitigating factors early on that could affect the project • Provides quality information for decision making • Helps to increase investment in the company • Helps in securing funding from lending institutions and other monetary sources
- 28. Page 28Classification: Restricted What to Study What to Conclude • Things to be studied during the feasibility study phase: • The present organizational system (users, policies, functions, objectives,...) • Problems with the present system (inconsistencies, inadequacies in functionality, performance,...) • Objectives and other requirements for the new system (what needs to change?) • Constraints, including nonfunctional requirements on the system (preliminary pass) • Possible alternatives (the current system [status quo] is always one of those) • Advantages and disadvantages of the alternatives • Things to conclude: • Feasibility of the project and the preferred alternative
- 29. Page 29Classification: Restricted What defines a feasibility study ➢ A feasible business venture is one where the business will generate adequate cash flow and profits, the business will withstand the risks it will encounter, the business will remain viable in the long-term, and the business will meet the goals of the founders.
- 30. Page 30Classification: Restricted Types of Feasibility - TRELOS ➢T - Technology and System Feasibility “Can it be built?” • Technological feasibility is carried out to determine whether the company has the capability, in terms of required technology, software, hardware, personnel and expertise, to handle the completion of the project ➢R - Risk Feasibility ➢E - Economic Feasibility “Will it make economic sense if it works and is built?” “ Will it generate PROFITS?” • Cost-based study: It is important to identify cost and benefit factors eg. Development costs and Operational costs. This is an analysis of the costs to be incurred in the system and the benefits derivable out of the system. • Time-based study: This is an analysis of the time required to achieve a return on investments. The future value of a project is also a factor.
- 31. Page 31Classification: Restricted Types of Feasibility - TRELOS Cont’d… ➢ L – Legal Feasibility • It includes study concerning contracts, liability, violations, and legal other traps frequently unknown to the technical staff. • Determines whether the proposed system conflicts with legal requirements, e.g. a data processing system must comply with the local Data Protection Acts. ➢ O – Operational Feasibility “Will it work?” • Operational feasibility is mainly concerned with issues like whether the system will be used if it is developed and implemented. ➢ S – Schedule Feasibility • A project will fail if it takes too long to be completed before it is useful. • Schedule feasibility is a measure of how reasonable the project timetable is.
- 32. Page 32Classification: Restricted Economic Feasibility • The bottom line in many projects is economic feasibility. • As soon as specific requirements and solutions have been identified, the analyst can weigh the costs and benefits of each alternative. This is called a cost-benefit analysis • The purpose of a cost/benefit analysis is to answer questions such as: • Is the project justified (because benefits outweigh costs)? • Can the project be done, within given cost constraints? • What is the minimal cost to attain a certain system? • What is the preferred alternative, among candidate solutions? • Examples of things to consider: • Hardware/software selection • How to convince management to develop the new system • Selection among alternative financing arrangements (rent/lease/purchase) • Difficulties -- discovering and assessing benefits and costs; they can both be intangible, hidden and/or hard to estimate, it's also hard to rank multi-criteria alternative BENEFIT COST
- 33. Page 33Classification: Restricted Types of Benefits • Benefits may be classified into one of the following categories: • Monetary -- when $-values can be calculated • Tangible (Quantified) -- when benefits can be quantified, but $-values can't be calculated • Intangible -- when neither of the above applies • Examples of particular benefits: • Cost reductions • Error reductions • Increased throughput • Improved time management ▪ How to identify benefits? • By organizational level (operational, lower/middle/upper management) • By department (production, purchasing, sales,...)
- 34. Page 34Classification: Restricted Types of Costs • Project-related costs • Development and purchasing costs: • who builds the system (internally or contracted out)? • software used (buy or build)? • hardware (what to buy, buy/lease)? • facilities (site, communications, power,...) • Installation and conversion costs: • installing the system, training of personnel, file conversion,.... • Operational costs (on-going) • Maintenance: hardware (maintenance, lease, materials,...), software (maintenance fees and contracts), facilities • Personnel: operation, maintenance
- 35. Page 35Classification: Restricted Return on Investment (ROI) • ROI is a percentage that shows what return you make by investing in something. ROI = (Benefit – Cost) ÷ Cost • Example: A company invests in a project that costs $200,000. The benefit of doing the project saves the company $230,000 in the first year alone. In this case, the ROI = (230,000-200,000)/200,000 = 15%. • So for ROI, Bigger is better.
- 36. Page 36Classification: Restricted Operational Feasibility The PIECES framework can help in identifying problems to be solved, and their urgency: Performance -- Does current mode of operation provide adequate throughput and response time? Information -- Does current mode provide end users and managers with timely, pertinent, accurate and usefully formatted information? Economy -- Does current mode of operation provide cost-effective information services to the business? Could there be a reduction in costs and/or an increase in benefits? Control -- Does current mode of operation offer effective controls to protect against fraud and to guarantee accuracy and security of data and information? Efficiency -- Does current mode of operation make maximum use of available resources, including people, time, flow of forms,...? Services – Does current mode of operation provide reliable service? Is it flexible and expandable?
- 37. Page 37Classification: Restricted Schedule Feasibility • We may have the technology, but that doesn't mean we have the skills required to properly apply that technology - The learning curve of the team members will impact the schedule. • Given our technical expertise, are the project deadlines reasonable? Determine whether the deadlines are mandatory or desirable? If the deadlines are desirable rather than mandatory, the analyst can propose alternative schedules. • It is preferable (unless the deadline is absolutely mandatory) to deliver a properly functioning information system two months late than to deliver an error-prone, useless information system on time! Missed schedules are bad, but inadequate systems are worse
- 38. Page 38Classification: Restricted Feasibility Analysis Matrix • How do we compare alternatives when there are multiple selection criteria and none of the alternatives is superior across the board? - Use a Feasibility Analysis Matrix! • In a feasibility analysis matrix: • The columns correspond to the candidate solutions • Some rows correspond to the feasibility criteria • The cells contain the feasibility assessment notes for each candidate. • Each row can be assigned a rank or score for each criterion (e.g., for operational feasibility, candidates can be ranked 1, 2, 3, etc.). • After ranking or scoring all candidates on each criterion, a final ranking or score is recorded in the last row
- 39. Page 39Classification: Restricted Example of a Feasibility Matrix Feasibility Criteria Wt. Candidate 1 Candidate 2 Candidate 3 Operational Feasibility Functionality. A description of to what degree the candidate would benefit the organization and how well the system would work. Political. A description of how well received this solution would be from both user management, user, and organization perspective. 30% Score: Score: Score: Technical Feasibility Technology. An assessment of the maturity, availability (or ability to acquire), and desirability of the computer technology needed to support this candidate. Expertise. An assessment to the technical expertise needed to develop, operate, and maintain the candidate system. 30% Score: Score: Score: Economic Feasibility Cost to develop: Payback period (discounted): Net present value: Detailed calculations: 30% Score: Score: Score: Schedule Feasibility An assessment of how long the solution will take to design and implement. 10% Score: Score: Score: Ranking: 100%
- 40. Page 40Classification: Restricted Root Cause Analysis
- 41. Page 41Classification: Restricted • Root cause analysis (RCA) is a method of problem solving used for identifying the root causes of faults or problems. • The Root Cause Analysis process is also known as the “Ishikawa Diagram” or “Fishbone Diagram.”
- 43. Page 43Classification: Restricted Root Cause Analysis
- 44. Page 44Classification: Restricted Topic to be covered in next session • Requirements Engineering • Project Scope • Landscape of Requirements • Properties of Requirements • Types of Requirements • Stakeholder • Requirements Elicitation • Techniques