LESSON 2:

PROJECT INITIATION
AND PRELIMINARY INVESTIGATION

OBJECTIVES:
At the end of this lesson, students will be able to:

▪ Define project initiation and discuss its significance in system planning

phase;

▪ Identify the system development project and create a system request;

▪ Cite and comprehend the reasons for system projects;

▪ Identify the different factors to consider that drives change in the business;

▪ Enumerate the steps in conducting preliminary investigation; and

▪ Comprehend and cite the four key steps in managing projects

Duration: 5 Hours
 Thoughts to Ponder
“A project without a critical path is like a ship without a rudder.”

~ D. Meyer

Overview of Project Initiation

Today, the demands for a new or enhancement of the system exceeds the
ability and resources of most organizations to conduct system development projects.
System planning is the first phase in the system development life cycle. System
planning is where an organization’s total information needs are identified, analyzed,
prioritized, and arranged. The organization creates and assesses the original goals
and expectations of a new system. There are reasons why the organization needs to
develop a new or improved system; for example, it is to add value to the
organization. In this phase, you will learn how information system projects get started
and how the team evaluates a proposed system and determines its feasibility before
it will be developed. The planning phase begins by reviewing the request for system
development. Figure 2.4 shows two major activities involved in system planning:

i. Project Initiation (Project Identification)

ii. Preliminary Investigation (Feasibility Study)

Figure 2.4 Two Major Activities Involved in System Planning

Let us define first what is project initiation, according to (Slideshare, 2018),

“Project initiation begins when someone in a corporation identifies that there's a

requirement to enhance an existing system or a replacement system is
required to enhance business operations. Most ideas come from non-IT
department like marketing, accounting, and etc., as a sort of system request”

Project initiation, also called project identification, is the first activity in a

project's life cycle. It is in this stage where the opportunity or goal for the project is
identified, and a project needs to be developed to take advantage of that opportunity.
It is also during this stage that a project team is assembled to initiate the project, and
a business case is designed to define the business perspective of the information
system project in detail.

Several Sub-Steps of Project Initiation:

​ Systems Request
​ Reasons for Systems Projects
​ Sources of Systems Projects

System Request

In project initiation, every organization has its own approach of determining

what needs to be accomplished or changed in its existing system, and that technique
can be done by system request.

“The starting point for most projects is called a systems request, which is a formal
way of asking for IT support. A systems request might propose enhancements for an
existing system, the correction of problems, the replacement of an older system, or
the development of an entirely new information system that is needed to support a
company’s current and future business needs.” (Shelly & Rosenblatt, 2012, Chapter
2, Page 59)

As stated in the definition above, a system service request is considered the

starting point of an information system project. It is built when someone in the
organization identifies that they need to enhance an existing system through the
correction of problems or errors encountered in the current process, or create a new
system for a certain need entirely. The system service request is another way of
informing the management that users are asking for IT support. System service
request form can be requested by the user to the IT department, either manually
submitting the system request form or sending it through e-mail or web-based
downloadable system request system.
 Figure 2.5 Example of an Online System Request Form
Source: Shelly, G. B., & Rosenblatt, H. J. (2012 p. 65). Systems analysis and design (9th ed., Shelly
Cashman). Boston: Course Technology Cengage Learning.

Figure 2.5. shows an example of an online system request form. Every

organization has a different approach to initiating information system projects such
as system requests. It is an essential document that includes reasons for enhancing
or building a new information system project in an organization. A designated system
analyst or a system review committee examines whether it needs the approval to
proceed with a preliminary investigation or not depending on its need for immediate
response or if the problem involves a mission-critical system, then it needs to be
prioritized. The project team then conducts a review and prepares for the next
activities in the system planning phase. (Shelly & Rosenblatt, 2012, p.65)

Reasons for Systems Requests

This section discusses the main reasons for systems projects as listed below:

Improved service. Systems requests often aim at improving service to customers,

suppliers, or users within the corporate. For instance, a bank or a open-end fund
company might want to permit its account holders to see account balances from the
corporate websites, or a university might want to make a web registration system.
Better performance. The present system would not meet performance
requirements. For instance, the systems could be old and slow to reply to inquiries,
have limited flexibility, or unable to support company growth.

More information. Existing system might produce information that's insufficient,

incomplete, or unable to supply the company's changing information needs. For
instance , a system that tracks customer orders would not be capable of analyzing
marketing needs. The business might keep track of some critical information which
will not be obtained from the present system.

Stronger controls. A system might not have all rules on accurate data entry,
resulting in incorrect entry of data and storage, loss of income, and even system
failure. For instance, a system might not have all security required by the corporate
for various users. Standard user controls include login passwords to programs and
databases, various levels of systems access.

Reduced cost. The present system might be expensive to work and maintain
thanks to technical problems, design weaknesses, or the changing demands of the
business. For instance , it will be possible to adapt the system to newer technology
or upgrade it. On the opposite hand, the analysis might show that a replacement
system would be less expensive and supply better support for long-term objectives.
(“Systems Planning – Phase 1 System Planning”, n.d.)

Sources of Systems Projects

Just like any other organization, there are so many different factors to
consider that drives change in the business. Requests of information systems
projects may face many factors in various areas, both internal and external, to an
organization.

Internal Factors
The internal factors refer to the strategic plan, top managers, user requests,
information technology department, and existing systems and data inside an
organization that is generally under the direct control of the company.

Strategic Plan. A company’s strategic plan sets the general direction for the firm
and has an important impact thereon projects. Company goals and
objectives that require IT support will generate system requests and influence IT
priorities. A strategic plan that emphasizes technology tends to make a
positive climate for IT projects that extends throughout the organization.

Top Managers. Directives from top managers are a major source of large-scale
system projects. It often results from strategic business decisions that need new IT
systems, more information for decision-making, or stronger support for
mission-critical systems.

User Requests. As users depend more heavily on information systems to perform

their jobs, they are likely to request even more IT services and support. Users
would not be satisfied with the present system because it's difficult for business
requirements that did not exist when the system was developed.
Information Technology Department. Most project requests usually come from
the IT department. IT staff members often make recommendations to support
their knowledge of business operations and technology trends. IT proposals
could be strictly technical matters, like the replacement of certain network
components, or suggestions could be more business-
oriented, like proposing a replacement reporting or data collection system.

Existing Systems. Errors or problems in existing systems can prompt requests for
system projects. It must be corrected, but analysts often spend an excessive
amount of time reacting to day-to-day issues without watching the underlying
causes. This approach can turn a data system into a patchwork of corrections and
changes that cannot support its overall business needs.

External Factors
The external factors include technology, suppliers, customers, competitors,
the economy, and government. These are factors that occur outside the organization
but can cause internal impact, and it is beyond the company’s control.

Technology. Changing technology is a significant force affecting business and

society in general. Technology also dramatically reshapes existing business
operations. Most companies have the collaboration of software and hardware that
must work together effectively. As technology changes, companies make decisions
that prompt system requests.

Suppliers. With the expansion of electronic data interchange (EDI), relationships

with suppliers are critically important. For instance, an automobile company might
require that suppliers code their parts during a specific manner to match the auto
company’s internal control system. The aim of this is to supply the proper
product within the right place at the proper time.

Customers. Customers are extremely vital to any business, and knowledge

systems that link with customers usually receive top priority. Most companies
implement customer relationship management (CRM) systems that integrate all
customer-related events and transactions, including marketing, sales, and customer
service activities. CRM components can provide an automatic response to
sales inquiries, web-based processing, and online inventory tracking.

Competitors. Competition drives many information systems decisions. New

marketing research and development, marketing, sales, and repair all require IT
support.

The Economy. Economic activity features a powerful influence on corporate

information management. In periods of economic expansion, firms have to be ready
with scalable systems to handle additional volume and growth. Predicting the trade
cycle is not a particular science, and careful research and planning are critically
important.
Government. Federal, state, and local government regulations influence the design
of corporate information systems. For instance, income tax reporting requirements
must be designed into a payroll package.(Shelly & Rosenblatt, 2012, p. 62-64)

Preliminary Investigation
Preliminary Investigation
After initiating a system request in the early stages of the system planning
phase, the next activity is to conduct a preliminary investigation. During this phase,
the existing system is investigated. The goal of this activity is to administer an initial
study and findings of the current system. It includes the following steps:

1. Understand the problem or opportunity

a. Analyze the problem statement and understand the existing system that
need for a new system or modification of the current system
b. Identify the improvements to be done in the current system and if
improvements have been made, know how it will impact the new system
c. Identify the affected group of people

2. Define the project scope and constraints. Determining the project scope by
defining the characteristics of the project and the result of the project.
a. The scope statement defines the quality of the end project obtained and
produces a clear idea of what the project consists of.
b. The scope of the project should be SMART(specific, measurable,
attainable, realistic, and time-bounded.
c. Constraints define limitations for projects, including time, resources, and
performance. It is used to identify what is part of the new system.

3. Perform fact-finding. Fact-finding is the technique of collecting information for a

new information system.
a. It is useful for the development of new systems. Facts can be collected for
users of the new system.
b. It is essential to know the function of an organization, its performance,,
and how it will use the proposed system. You can do it by conducting
interviews, conducting surveys, and collecting facts. System analysts can
observe the existing system document the reviews and results of their
observations.

4. Analyze project usability, schedule data, cost and benefit. Analyzing the
data for finding out estimated cost and time for the development of the project
a. The system analyst checks the project usability for the end-users and
documents the findings.
b. System analysts schedules the gathered data, where the collected data is
essential for module development of the project.
c. System Analyst uses many techniques to produce a precise estimate.

5. Evaluate feasibility. Determine the viability of an idea, such as ensuring a

project is technically feasible and economically justifiable. It tells the system
analyst whether a project is worth the investment or it may not be doable
because findings show that the proposed system needs a massive amount of
resources, that may cost more than an organization would earn back, so why
proceed on a project that is not profitable at all.
 (Note: Detailed discussions about feasibility study will be discussed in the next
topic for better understanding of the lesson)

6. Present outcome and suggestion to the management. It is a document of the

investigation report, which included what system request is present.
a. The system analysts recommend the proposed project, estimated time,
and the whole cost required in project development.
b. Benefits attained by the organization over the cost incurred are
presented to management. (“Solved; Describe the Six Steps in a Typical
Preliminary Investigation,” n.d.)

Managing the Project

When managing projects, always bear in mind that you should not put
yourself in a rush when you are doing project planning. It would be best if you do it
correctly; doing project planning takes time. If you do not, it guarantees that you will
encounter problems and people would not understand what they allege to do and
why.
Excellent preparation sets you up for success. It gives you the reliance on
knowing that you have all your processes, tools, and systems in place to deliver the
desired result. In managing one's project, the study and style method can become
unwieldy, especially when the system to be developed is large to keep the event
activities as manageable. We usually employ several project management
techniques to assist us in getting organized. One crucial aspect of project
management is the way to manage one's schedule to finish the system on time, but
it's not the sole thing needed. The project manager is usually the lead analyst. The
project manager determines what is needed and how to initiate a project, develop a
drag definition; examine the feasibility of completing the systems project; reduce risk;
identify and manage activities; and the way to rent, manage and motivate other team
members. ("Managing the Project," 2017)

Four Key Steps in Managing Projects

1. Identifying project size
2. Creating and managing work plan
3. Staffing the project
4. Defining project activities

Identifying Project Size

Identifying project size is a defining process coverage. Project size is a
determinant factor of the range of the processes involved in the project defined as
the level and extent to which project management practices are formally applied.
Project sizing is a "must consider factor" for project planning, ensuring that plans and
activities are relevant and appropriately used and allocated. It is particularly vital in
the multi-project environment, where simultaneous projects must compete for funds
and human resources.
Creating and Managing Work Plan
In achieving your goals, you need to plan on how you can hit those goals. A
work plan is what you need to create a clear path to achieve those desired results.
Along that path is going to be resources, constraints, and other elements
that require to be recognized. This work plan should be written and initiated by one
person. It is thought of as action for a project that ought to eventually be
submitted to board members and stakeholders for approval. Once all is claimed and
done, you'll continue building out your work plan's remainder. A work plan could
also be a project management plan by another name. When done correctly, your
work plan will articulate and describe the steps needed to know a department-level
or company-level end goal by baking in milestones, deliverables, resources,
budgetary requirements, and a timeline weave it together. (Scavetta, 2020)

Steps in Creating a Work Plan

Creating a work plan is a process that requires as many established details as
possible before presenting to stakeholders. The subsequent is what you get to
specialize in creating a project plan:

● Identify the Project Name, Purpose, and General Timeline

● Put Your Work Plan into Context
● Establish Your Goals and Objectives
● Define and Coordinate Your Resources
● Understand Your Constraints
● Discuss Risks and Accountability

Staffing the Project

Putting together the project team is a vital part of making a project successful.
Without the proper people in place, the project would not go very far. You may wish
to spend the acceptable amount of some time at the start of the project reviewing the
project team to handle it and determining who belongs and who does not—and those
are not easy decisions. It helps you to have a solid management plan in place to
staff the project correctly. It will not happen overnight—and if you wish to make those
tough decisions for the project's benefit, you need to come up with a staffing plan.
The staffing plan should relate to how you will allot the resources into the
project and manage throughout the entire lifecycle. Within this project management
plan, you would wish to detail how people will bring into the project, whether or not
they are new hires or contractors, assigned from other areas within the organization,
or an area of a matrixed organization.
The plan should relate to how the team is mentioned to hurry, how it will place
into the project, and how everyone will organize. Everyone should have a
transparent understanding of who is making decisions, who can help them run
through any issues, and assign the work from a high-level viewpoint. (Darter, 2016)
 UNIT 2: Systems Planning

Defining Project Activities

In Project Management, activities characterize the measure of labor that
changes over an idea for appropriate outcomes. Activities during a project cannot
identify and document accessible activities to supply the project deliverables.
To define activities during a project, you would wish to possess the work package,
which is the Work Breakdown Structure (WBS), and thus it drives in due to the first
input of the scope baseline. In every project, activities might be estimated,
scheduled, monitored, and managed. ("Defining Activities during a Project," n.d.)

A project manager should be conversant in two important things:

● Scope baseline