FEASIBILITY OF AN IT PROJECT
Before you begin this assignment, be sure you have read the Case Study and all assignments for this class, especially Stage 4: Final System Report.
Purpose of this Assignment
This assignment gives you the opportunity to use industry-standard methodologies for analyzing a business situation, initiating a project, and determining various aspects of feasibility of an IT project. This assignment specifically addresses the following course outcomes to enable you to:
• plan, build, and maintain systems that meet organizational strategic goals by demonstrating the use of enterprise architecture and applying enterprise governance principles and practices
• effectively communicate with stakeholders to determine, manage, and document business requirements throughout the SDLC
Assignment
The results of your systems analysis and design work in this class will be documented in a Final System Report. The purpose of the Report is to inform management of your system proposal and gain approval to proceed with the project. The Report will be developed and submitted in stages, which will be compiled at the end of class into the Final System Report. Review the outline of the Final System Report in the Stage 4 Assignment description. Note that it contains the analysis of the problem(s) and requirements, and proposes what kind of a system solution is needed. It does not propose a specific solution, but it does recommend why and how the organization should acquire the solution.
The first step in the analysis process is to create a Preliminary Investigation Report (PIR). The PIR documents the system planning phase of the System Development Life Cycle (SDLC). During the planning phase, the opportunities presented or problem(s) to be solved with an information technology system are identified, investigation into the current situation occurs, and various feasibility aspects of implementing a system are analyzed. This results in a recommendation for further action with estimated costs and schedule, and a list of benefits. Once it is completed and approved, the PIR becomes the major source document for use to begin the systems analysis phase.
To start, read the case study carefully. The case study tells you that the executives at Precision Electronics Parts, Inc., have identified a need to replace the current customer billing and payment system and re-engineer the associated processes. As you review the case study, list the most important relevant business problems and identify the information presented that you will need to complete the sections of the Preliminary Investigation Report shown below. All of the information you need to complete the projects in this class is not provided in the case study. In the discussion area of the classroom, there is a discussion titled “Case Study Interview Questions” where you can pose questions about the case study, as if you were interviewing the people in the case study organization. Any information that you need that is not included in the case study should be asked about in this discussion. Responses from the faculty member on behalf of the case study organization will be available for everyone in the class.
Using the case study and the outline and resources listed below, develop your Preliminary Investigation Report. Approximate lengths for each section are provided as a guideline; be sure to provide all pertinent information. References in brackets are to the two e-textbooks (by authors Jawahar and Conger) used in this class and the page on which the explanatory information begins.
I. Introduction (1 paragraph)
a. Brief statement of the problem or system
b. Name of person or group who initiated the investigation
c. Name of person or group who performed the investigation
II. Problem to be solved – The basis of the system request, including an explanation of major problems or opportunities (1 paragraph)
III. Findings
a. Scope of proposed system (1 paragraph describing the system boundaries – what is included, perhaps where it stops)
b. Constraints (1 paragraph, including a short list of constraints) [Jawahar, p. 61]
c. Fact Finding – significant findings and conclusions (1 paragraph with more than one finding and conclusion to be drawn; source is the case study and responses to questions posed in the Case Study Interview Questions discussion)
d. Current Costs – cost of current system (1 short paragraph; source is the case study and responses to questions posed in the Case Study Interview Questions discussion)
IV. Feasibility Analysis: This is not a complete Feasibility Report; instead it is a discussion of whether and how the proposed systems is technically, financially and organizationally feasible. Describe what aspects of the organization in the case study and the proposed system make it technically, financially and organizationally feasible. [Jawahar, p. 65]
a. Technical Feasibility (1 paragraph)
b. Financial Feasibility (1 paragraph)
c. Organizational/Behavioral Feasibility (1 paragraph)
V. Recommendation for further action
a. An estimate of how long it would take to implement the system and have it available for use, and a rough cost estimate for the entire project (short paragraph with estimated time and cost)
b. Expected benefits – tangible (with estimated quantification) and intangible benefits (introductory paragraph and list of tangible (quantified) and intangible benefits) [Conger, p. 148]
Introduction
This report presents a preliminary investigation report of Precision Electronic Parts, Inc. which is specialized in electronic manufacturing and replacement parts for medical equipment used in hospitals, pharmacies, and doctors’ offices. The company has a problem in its system and it is in need of a new billing and payment system. The preliminary report would examine the problems and opportunities of the new system, provide benefits associated with the new system and report on various aspects of the feasibility of the project. The investigation was initiated by PEP’s Business Administration Department after observing some of the major challenges facing the company due to the system in place. The other important person who initiated the investigation is Mark Temple the Chief Information Officer at PEP Company. Each member of the IT Steering Committee took part in the investigation through interviews.
Problem to be solved
The new system is expected to solve various problems that the company faces. The problems include enhancing workflow in the ordering and shipping department and the inventory management department which faces delays due to increased orders for the motors. The system is to ensure financial department remain up to date with its activities such as invoice, billing and payment processes. The new system not only would it be able to solve these problems, but it also offers the opportunity of reducing the overall cost of running the business, increase sales, and managing the cost of IT for the company (Precision Electronic Parts, Inc.).
Findings
Scope of proposed system
The system would be able to able to improve collection schedule by billing 30 days in advance; it reduces cost by reducing the payroll by two employees in the billing section; it would reduce physical space requirement that is occupied by desks since placing one microcomputer which can perform the function of all the people on those desks provide extra space that can be used for customer services; and it would improve customer services through online through master card and rental information which reduces the waiting time of customers from 3 minutes to 30 seconds (Precision Electronic Parts, Inc.).
Constraints
Some of the constraints observed during the initial investigation include the view of the company Chief Operating Officer, Time Uduak who prefers to solve business challenges with processes rather than through information technology; and the company Chief Financial Officer (CFO) tends to resist new IT purchases unless there is a clear and direct connection made between the technology to be invested and how it improves the company’ financial profile (Dr. Jawahar, n.d).
Fact Finding
Some of the findings during the initial investigation show that the company does not offer electronic invoicing via email currently, the solution by the new system will enable marketing and invoicing plan to incorporate the electronic invoicing via email within six months. The other finding is that the company marketing and accounts departments do not offer electronic payment to a lockbox account currently, a feature that would be set within the new system in the next six months.
Current Costs
The current costs system at the company include Invoicing Department which handles customer billing and reports to the vice president of Business Administration; customer payments are handled by the Accounts Receivable Department, which reports to the Chief Financial Officer (CFO); Customer billing and payments are managed and recorded in an in-house developed Microsoft Access based solution; the new customer accounts establishing process and update is conducted by the Sales department and Invoicing Department; all invoice that are 30 days or more overdue receive an additional 2% fee; and the Department of Ordering and Shipping provides the Department of Invoicing a monthly report of products that were shipped and ordered with their codes which are computed in the invoicing module (Precision Electronic Parts, Inc.).
Feasibility Analysis
Technical Feasibility
The technical feasibility of the company centers on the existing computer system hardware and software and if t can be able to support the new system. The initial investigation shows that the current computer system is running at full capacity and still presents delays in the Invoicing Department. Therefore, the addition of another application would be impossible to function, which means the company would have to provide additional hardware and software to run the project which can be a problem if the budget turns to be a serious constraint (Dr. Jawahar, n.d).
Financial Feasibility
The financial feasibility entails the economic or cost/benefit analysis of the project effectiveness which involves the determination of the benefits and savings that the new system is to offer compared with cost. The new system being proposed top PEP Company would definitely outweigh costs due to its features that it would add to different departments of PEP such as electronic invoicing, electronic payment, and volume discount. However, this would be determined throughout the system life cycle (Dr. Jawahar, n.d).
Organizational/Behavioral Feasibility
Resistance to change is common when computer systems are to be involved in facilitating the change in an organization. The PEP company behavioral feasibility, the individuals interviewed during the initial visibility are six with those with a resistance mind to the idea of being two; the company CFO and COO. The company CFO has worked with PEP Company for 9 years and yet believes the new system is not yet a good idea unless clearly proved while COO who is the son of the company’s co-founder has been with the company his enter life expect only four seven years (Dr. Jawahar, n.d).
Recommendation for further action
The estimated time for the implementation of the system is six months which will provide enough time to incorporate all aspects required by the company and improve other operational sectors. The expected benefits of the new system include a network structure which will allow the company to connect with its partners in the industry and outside the industry. The network allows 1:1, 1:M, or M:M relationships among entities (Dr. Jawahar, n.d). Therefore, the new system would increase efficiency and accuracy in the company’s operations.
References
Dr. Jawahar. System Analysis & Design
Precision Electronic Parts, Inc. Case Study
