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ChaPter 3 • ProjeCt management 93

meet their goals and solve systems problems, an analyst creates a problem definition. A problem definition
is a formal statement of the problem, including (1) the issues of the present situation, (2) the objectives for
each issue, (3) the requirements that must be included in all proposed systems, and (4) the constraints that
limit system development.
Selecting a project is a difficult decision because more projects will be requested than can actually be
done. Five important criteria for project selection are (1) that the requested project be backed by manage-
ment, (2) that it be timed appropriately for a commitment of resources, (3) that it move the business toward
attainment of its goals, (4) that it be practical, and (5) that it be important enough to be considered over
other possible projects.
If a requested project meets these criteria, a feasibility study of its operational, technical, and economic
merits can be done. Through the feasibility study, a systems analyst gathers data to enable management to
decide whether to proceed with a full systems study. By inventorying equipment already on hand and on
order, systems analysts can better determine whether new, modified, or current computer hardware is to be
recommended.
There are advantages and disadvantages to purchasing computer hardware. Alternatively the ana-
lyst may help the organization weigh the advantages and disadvantages of renting time and space
through use of a cloud service provider. Three main categories of cloud computing are Software as a
Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS). As user sophistica-
tion grows, some companies are adopting bring your own device (BYOD) approaches to boost morale
of employees and lower the initial cost to the organization of purchasing mobile devices. Security risks
from untrained users are likely the biggest threat to organizations adopting a “bring your own device”
policy.
Cloud services and other hardware vendors will supply support services such as preventive mainte-
nance and user training that are typically negotiated separately. Software can be created as a custom prod-
uct, purchased as a commercial off-the-shelf (COTS) software package, or outsourced to a Software as a
Service (SaaS) provider.
Preparing a systems proposal means identifying all the costs and benefits of a number of alternatives.
A systems analyst has a number of methods available to forecast future costs, benefits, volumes of trans-
actions, and economic variables that affect costs and benefits. Costs and benefits can be tangible (quan-
tifiable) or intangible (nonquantifiable and resistant to direct comparison). A systems analyst can use
many methods for analyzing costs and benefits, including break-even analysis, the payback method, and
cash-flow analysis.
Project planning includes the estimation of time required for each of the analyst’s activities, scheduling
the activities, and expediting them if necessary to ensure that a project is completed on time.
In order to complete projects on time, within budget, and with the features that are promised, a project
needs to be broken down into smaller tasks or activities. These tasks together make up a work breakdown
structure (WBS), usually through decomposition. There are different types of work breakdown structures;
they can be product oriented or process oriented. A process-oriented work breakdown structure is typical in
systems analysis and design.
One technique available to a systems analyst for scheduling tasks is a Gantt chart, which displays ac-
tivities as bars on a graph. Another technique, called Program Evaluation and Review Technique (PERT),
displays activities as arrows on a network. PERT helps an analyst determine the critical path and slack time,
which is the information required for effective project control.
Earned value management (EVM) is a technique used to help the analyst determine progress (or
setbacks) on a project and involves project cost, the project schedule, and the performance of the project
team. The four key measures in earned value management are: budget at completion (BAC), planned
value (PV), actual cost (AC), and earned value (EV). These four measures or variables are the core of
earned value management (EVM). They can be used to calculate a number of performance measures,
including cost variance (CV), schedule variance (SV), the cost performance index (CPI), and the sched-
ule performance index (SPI).
Creating a project charter that contains user expectations and analyst deliverables is recommended
since programmers cited unrealistic management deadlines, adding unneeded personnel to a project that is
trying to meet an unrealistic deadline, and not permitting developer teams to seek expert help outside their
immediate group as reasons projects had failed. Project failures can usually be avoided by examining the
motivations for requested projects, as well as a team’s motives for recommending or avoiding a particular
project.
A systems analyst must follow these steps when putting together an effective systems proposal: effec-
tively organizing the proposal content, and writing and delivering the proposal in an appropriate business
style. To be effective, a proposal should be written in a clear and understandable manner, and its content
should be divided into 10 functional sections. Visual considerations are important when putting together a
proposal. Face-to face meetings with key decision makers provide a way to orally present the systems pro-
posal in a brief and compelling presentation.