Objectives: Introduction Over View of System Analysis and Design
Financial and Economic Feasibility
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- 3.11 Handling Infeasible Projects
- 3.12 Summary
| 3.10.3 Financial and Economic Feasibility A system that can be developed technically and that will be used installed must still be a good investment for the organization. Financial benefits must equal or exceed the costs. The financial and economic questions raised by analysts during he preliminary investigation are for the purpose of estimating the following 1. The cost to conduct a full systems investigation 2. The cost of hardware and software for the class of application being considered. 3. The cost nothing changes (i.e., the proposed system is not developed To be judged feasible, a project proposal must passed all these tests. Otherwise, it is not a feasible project. For example, a personnel record feasible if the necessary technology does not exit. A medical system that can be developed at reasonable costs but that nurses will avoid using cannot be judged operationally feasible. 3.11 Handling Infeasible Projects Not all projects submitted for evaluation and review are judged acceptable. Requests that fail to pass feasibility tests are not pursued further, unless they are reworked and resubmitted as new proposals. In some cases, only part of a project is actually unworkable, and the selection committee may decide to combine the workable part of the project with another feasible proposal. Instill other cases, preliminary investigations produce enough new information to suggest that improvements in management and supervision, not the development of information systems, are the actual solutions to reported problems. 3.12 Summary The first step in the system development life cycle is the identification of a need. This is a user’s request to change, improve or enhance an existing system. Because there is likely to be a stream of such requests, standard procedures must be established to deal with them. The objective of project selection is to determine whether the request is valid and feasible before a recommendation is reached to do nothing, improve or modify the existing system or build anew one. There are four primary sources of project requests. The requesters inside the organization are department managers, senior executives, and systems analysts. Shared, complete and accurate information requirements are essential in building computer – based information systems. The Association for Computing Machinery (ACM) Curriculum Committee on Computing Education for Management recognized this by suggesting two distinct job titles for systems developments “ information analyst and “ systems designer rather than the more general term “ systems analyst. There are three key strategies or general approaches for eliciting information regarding the user’s requirements (1) asking, (2) getting information form the existing information system, and prototyping. The third strategy for determining user information requirements is used when the user cannot establish information needs accurately before the information system is built. Managing Project Review and Selection will be done by different methods such as Steering committee method, Information System Committee Method, User-group committee method and others method. The data that the analysts collect during preliminary investigations are gathered through two primary methods reviewing documents and interviewing selected company personnel. Preliminary investigations examine project feasibility, the likelihood the system will be useful to the organization. Three tests of feasibility-all equally important-are studied operational, technical and financial. Not all projects submitted for evaluation and review are judged acceptable. Download 0.94 Mb. Share with your friends:
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