ANALYZING THE

BUSINESS CASE

Chapter 2
2.1 Introduction
 During the systems planning phase, the
IT team reviews a proposal to determine
if it presents a strong business case. The
term business case refers to the reasons,
or justification, for a proposal. To
analyze the business case for a specific
proposal, the analyst must consider the
company’s overall mission, objectives,
and IT needs.
 2.2 A framework for IT
Systems Development
 Strategic Planning is the process of
identifying long term organizational goals,
strategies, and resources. A strategic plan
looks beyond day-to-day activities and
focuses on a horizon that is three, five ten or
more years in future. A company requires
information technology to support strategic
goals. Because the firm’s IT group will be
expected to deliver IT resources, IT managers
have to participate in strategic planning.
 2.2.1 Strategic Planning
Overview
 Strategic planning starts with a mission
statement that reflects the firm’s vision,
purpose, and values.
 A critical success factor is one of that must
be achieved to fulfill the company’s
mission.
 Objectives also might include tactical plans,
such as creating a new website and
training a special costumer support group
to answer email inquiries.
2.2.2 What is SWOT Analysis?
 A SWOT Analysis can focus on a specific
product or project, an operating division, the
entire company, or the mission statement
itself.
 An enterprise SWOT analysis usually begins
with these questions:

 What are our strength, and how can we use

them to achieve our business goals?
 What are our weakness, how we use or
reduce or eliminate them?
 What are our opportunities, how do we
plan to take advantage of them?
 What are our threats, and how can we
assess, manage, and respond to the
possible risks?
 2.2.3 Strategic planning for IT
Projects
Experienced analysis know that planning is
essential foe IT project success, and it must
starts as early as possible. Careful planning
can help assure that:

 The project support overall business strategy

and operational needs.
 The project scope is well defined and clearly

stated.
 The project goals are realistic, achievable,
and tied to specific statement, assumptions,
constraints, factors, and other inputs.
2.2.4 The Changing Role of the IT
Department
 The IT department perform the initial
evaluation, or should a cross-functional
team to do it? The answer probably depends
on the company’s size, the nature of the
system request, and scale the project. For
example, in smaller companies or firm
where only one person has It skilled, that
person acts as a coordinator and consultants
closely with the users and managers to
evaluate systems request.
 2.3 What Is a Business Case?
 As mention earlier, the term Business case
refers to the reason, or justification. For a
proposal. A business case should be
comprehensive yet easy to understand. It
should describe the project clearly, provide
the justification to proceed, and estimate the
project’s financial impact. The business case
should answer questions such as the
following:
 Why are we doing this project?
 What is the project about?
 How does this solution address key business
issues?
 How much will it cost and how long will it
takes?
 Will we suffer a productivity loss during the
transition?
 What is the return on investment and payback
period?
 What are the risk of doing the project? What
are the risks of not doing project?
 How will you measure success?

 What are the alt

 ernative exits?
2.4 Information System Projects
 This section discuss reason for system
projects and terminal and external factors
that effects the system project.
2.4.1 Main Reason For System projects

 The is the starting point of the

project is called a system
request , which is a formal of
asking for IT support.
Six Main Reason For System Request

 Stronger Controls
 Reduced Cost

 More Information

 Better Performance

 Improved Service

 More Support
 Stronger Controls – A system must have effective controls
ensure that data is secure and accurate.
 Reduce Cost – The current system could be expensive to
operate or maintain as a result.
 More Information – The system might produce information that
is insufficient, incomplete, or unable support the company.
 Better Performance – The current system might not meet the
performance requirements.
 Improved Service – System request often are aimed at
improving service to customer or users within the company.
 More support – its all about new products and services often
require,
2.4.2 Factors That Affect System
Projects

Internal and external factors

affect every business decision
that company makes, and IT
projects are no exceptions.
2.4.3 Internal Factors

 Internal factors include the

strategic plan, top managers,
users request, information
technology.
2.4.4 External Factors

 External factors include technology ,

suppliers competitors, the economy,
and government.
 Technology – Changing technology is a major force
affecting bussiness and society in general.
 Suppliers – The growth of electronic data interchange
(IDE ) relationship with suppliers .
 Customers – vitally important to any business ,
information system interact with costumer usually receive
top priority.
 Competitors- Drives many information system decision
 The Economy – Activity has a powerful influence on
corporate information management.
 Government – Federal, state, and local government
regulations.
2.5 Evaluation of System Requirements

 In most organization, the IT

department receive more request
than it can handle.
2.5.1 System Request Forms

 Many organization use a special form

for system requests, this form must be
easy to understand and include clear
instructions.
2.5.2 System Review Committee

 Most large companies use a system

review committee to evaluate system
request.
2.6 Overview of Feasibility

Operational

Schedule Feasible? Economics

Technical
2.6.1 Operational Feasibility

 Proposed system will be used

effectively after it has been
developed.
2.6.2

 Means that the project benefits of the

proposed system out weight
estimated cost .
2.6.3 Technical Feasibility

 Refers to the technical resource

needed to developed, purchase,
install or operate the system.
2.6.4 Schedule Feasibility

 Means that a project can be

implemented in an acceptable time
frame.