Chapter 4

Constractual feasibility

1. Assessment of if proposed system would be allowable by existing contract 2. Ex) Does it violate the union contract?

Legal feasibility

1. Assessment of if proposed system would be allowable by law 2. Ex) collecting private information about people without consent in EU is illegal 3. Ex) Can't demonstrate debit/credits match in bank software

Ethical feasibility

1. Mission, statement, actions 2. Assessment of if proposed system would be consistent with corporate ethics and goals even if legal 3. Ex) Lots of e-waste 4. Ex) requires layoffs locally

Economic Feasibility

1. Process of identifying the financial benefits and costs associated with a development project 2. Required for the baseline project plan 3. During the project initiation and planning, it's important that you identify and quantify benefits and costs 4. Review: worksheet use to record costs and benefits and techniques for making cost benefit calculations 5. Cost/benefit analysis: determine net cost or benefiting by a. capturing all relevant cost/benefit of tangible and intangible items b. Within those categories: all start up and recurring 6. Net present value: break even analysis are calculated over a period of time to test for feasibility 7. Net value: sum of all tangible starts up and tangible recurring cost and subtract from all tangible start up and tangible recurring benefits

Operational feasibility

1. The process of assessing the degree to which a proposed system solves business problems or takes advantage of business opportunities 2. Process of examining the likelihood that the project will attain its desire objective 3. Goal: understand the degree to which the proposed system will likely solve the business problem or take advantage of the opportunities outlined in the system service request or project identification study 4. Ex) if process were to build a new sport arena, then a study determining how the area will operate in.a way that is conductive to its inhabitant, parking, human flow, accessibility, and other elements

schedule feasibility

1. The process of assessing the degree to which the potential time frame and completion dates for all major activities within a project meet organizational deadlines and constraints for effecting change 2. Consider the likelihood that all potential time frames and completion data schedule can be met and that meeting these dates will be sufficient for dealing with the needs of the organization 3. System analysis have to estimate how long system will take to develop and whether all potential time frame and completion data schedule are met 4. Need to determine whether deadlines are mandatory or desirable 5. Ex) system may have to be operational by a government imposed deadline by a particular point in the business cycle a. Beginning of the season when new products are introduced b. Or at least by the time a competitor is expected to introduce a similar system

Technical feasibility

1. The process of assessing the development organization's ability to construct a proposed system 2. Assessment includes: assessment of the development group's understanding of the possible target hardware, software, and operating environment to use used, as well as system size, complexity, and group's experience with similar systems 3. Assessment of it proposed system can be acquired, used, and manage from a strictly technical perspective 4. Based on capabilities and constraint of human technical and data resources in place or available and possible in market 5. Help answer the follow questions: a. Whether technology needed for the system to exist b. How difficult it is to build c. Whether firm has enough experience using technology d. Can IT function rented/ own make it work?

Political feasibility

1. The process of evaluating how key stakeholders within the organization view the proposed system 2. IS may affect the distribution of information within the organization, distribution of power, construction of IS can have political ramification 3. So those stakeholders not supporting the project may take steps to block, disrupt, or change the project's intended focus a. Ex) Oregon Vs. Washington I-5 bridge 4. Ex) How will this affect morale? a. Will we see a worker slowdown in other areas? b. Will work sabotage data?

break-even analysis

A type of cost-benefit analysis to identify at what point (if ever) benefits equal costs.

Baseline project plan (BPP)

One of the major outcomes and deliverables from the project initiation and planning phase. It contains the best eliminate of the project's scope, benefits, cost, risks, and resource requirements

18) Tangible benefit:

a) A benefit derived from the creation of an information system that can be measured in dollars with certainty

8) Intangible benefit:

a) A benefit derived from the creation of an information system that cannot be easily measured in dollars or with certainty

9) Intangible cost

a) A cost associated with an information system that cannot be easily measured in terms of dollar or with certainty

11) One time cost:

a) A cost associated with project initiation and development or system set up

16) Recurring cost

a) A cost resulting from the ongoing evolution and use of the system

22) Walkthrough:

a) A peer group review of any product created during a system development process; also called structural walkthrough

Incremental commitment:

a) A strategy in systems analysis and design in which the project is reviewed after each phase, and and continuation of the project is justified in each of those reviews

19) Tangible cost

a) Cost associate with an information system that can be easily measured in dollars and with certainty

15) Project scope statement

a) Document prepared for the customer that describe what the project will deliver and outlines generally oat a high level all work required to complete the project

Discount rate

a) Interest rate used to compute the present value of future cash flow

6) Electronic commerce

a) Internet based communication and other technologies that support day to day business activities

21) Time value of money (TVM):

a) Process of comparing present cash outlays to future expected returns

14) Present value:

a) The current value of a future cash flow

Business case

a) Written reports that outlines the justification for an information system. The report highlight economic benefit and costs and the technical and organizational feasibility of the proposed system