Stage 1: Preliminary Investigation Report 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. Stage 1: Preliminary Investigation Report 1 I. II. III. IV. V. 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 Problem to be solved - The basis of the system request, including an explanation of major problems or opportunities (1 paragraph) 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) 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) 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] Submitting Your Assignment Submit your document via your Assignment Folder as Microsoft Word document, or a document that can be ready using MS Word, with your last name included in the filename. Use the Grading Rubric below to be sure you have covered all aspects of the assignment. GRADING RUBRIC: Criteria 90-100% 80-89% 70-79% 60-69% < 60% Far Above Standards Above Standards Meets Standards Below Standards Well Below Standards 9-10 Points 8 Points 7 Points 6 Points 0-5 Points The introduction includes the statement of the problem, who The introduction includes the statement of the problem, who The introduction includes the statement of the problem, The background for the business case is not Introduction is not included, or demonstrate Introduction Possibl e Points 10 Stage 1: Preliminary Investigation Report 2 Description of Problem initiated and who conducted the investigation, and is clear, logical, derived from the Case Study, and demonstrates a sophisticated level of writing. initiated and who conducted the investigation, and is clear, logical, derived from the Case Study, and demonstrates a clear understanding of the course concepts. who initiated and who conducted the investigation; is adequate, and is derived from the Case Study. clear, logical and/or derived from the Case Study. It may not include the statement of the problem, who initiated and who conducted the investigation. s little effort. 9-10 Points 8 Points 7 Points 6 Points 0-5 Points The basis of the system request, including an explanation of major problems or opportunities is provided, and is clear, specific, and logical, appropriate to the Case Study and demonstrates a sophisticated level of writing. The basis of the system request, including an explanation of major problems or opportunities is provided, and is clear, specific, and logical, appropriate to the Case Study and demonstrates effective writing. The basis of the system request, including an explanation of major problems or opportunities is provided, and is adequate and appropriate to the Case Study. The basis of the system request is unclear, too general, and/or not appropriate to the Case Study. It may not provide an explanation of major problems or opportunities. Description of Problem is not submitted, or demonstrate s little effort. 10 Findings 20 18-20 Points 16-17 Points 14-15 Points Findings include scope, constraints, fact finding results and conclusions, and current system costs, and is clear, specific, and logical, appropriate to the Case Study and demonstrates a sophisticated level of writing. Findings include scope, constraints, fact finding results and conclusions, and current system costs, and is clear, specific, and logical, appropriate to the Case Study and demonstrates effective writing. Findings include scope, constraints, fact finding results and conclusions, and current system costs, and is adequate and appropriate to the Case Study. Stage 1: Preliminary Investigation Report 12-13 Points Findings may not include scope, constraints, fact finding results and conclusions, and current system costs. 0-11 Points Findings are not provided, or demonstrate s little effort. 3 Feasibility Analysis 30 Recommen d-ation 27-30 Points 24-26 Points 21-23 Points 18-20 Points 0-17 Points Feasibility Analysis correctly and convincingly explains the technical, economic and organizational/ behavioral feasibility of the proposed system. Demonstrates a sophisticated level of writing. Feasibility Analysis correctly explains the technical, economic and organizational/ behavioral feasibility of the proposed system. Is appropriate to the case study and demonstrates effective writing. Feasibility Analysis explains the technical, economic and organizational/ behavioral feasibility of the proposed system. Is appropriate to the case study. Feasibility Analysis may not explain the technical, economic and organizational/ behavioral feasibility of the proposed system. Feasibility Analysis is not included, or demonstrate s little effort. 18-20 Points 16-17 Points 14-15 Points 12-13 Points 0-11 Points Recommendation is clear, convincing, and includes estimated time and cost, and tangible and intangible benefits. Demonstrates a sophisticated level of writing. Recommendation is clear, and includes estimated time and cost, and tangible and intangible benefits. Is appropriate to the case study and demonstrates effective writing. Recommendatio n includes estimated time and cost, and tangible and intangible benefits. Is appropriate to the case study. Recommendati on may not include estimated time and cost, and/or tangible and intangible benefits. Recommend -ation is not included or demonstrate s little effort. 20 Format 10 9-10 Points 8 Points 7 Points 6 Points 0-5 Points Submission reflects effective organization and sophisticated writing; follows instructions provided; uses correct structure, grammar, and spelling; presented in a professional format; any references used are appropriately Submission reflects effective organization and clear writing; follows instructions provided; uses correct structure, grammar, and spelling; presented in a professional format; any references used are appropriately Submission is adequate, is somewhat organized, follows instructions provided; contai ns minimal grammar and/or spelling errors; and follows APA style for any references and citations. Submission is not well organized, and/or does not follow instructions provided; and/or contains grammar and/or spelling errors; and/or does not follow APA style for any references and citations. Document is extremely poorly written and does not convey the information. Stage 1: Preliminary Investigation Report 4 incorporated and cited using APA style. incorporated and cited using APA style. May demonstrate inadequate level of writing. TOTAL Points Possible Stage 1: Preliminary Investigation Report 100 5 IFSM 461: Systems Analysis and Design Precision Electronic Parts, Inc. Case Study Introduction This case study will be used for a series of staged assignments. It should be thoroughly read and understood prior to working on any of the assignments. Setting Precision Electronic Parts (PEP), Inc., is a small private business that has retained you to assist in the development of a new billing and payment system and associated processes. Background PEP is a small, private specialized electronics company in Kansas. For the past 20 years, it has manufactured a wide range of precision electronic components and replacement parts for medical equipment used in hospitals, doctor's offices, and pharmacies. Last year, the company began building and delivering custom low voltage motors that reduced electricity costs and made older medical equipment more environmentally friendly. More recently, PEP has added a new line of more efficient low voltage motors that can be used in precision equipment outside the healthcare industry. As a result, PEP is experiencing significant increases in orders for the motors. The manufacturing facility has been expanded, and the sales and marketing teams have been enlarged. All of this is straining the Ordering & Shipping Department and the Inventory Management Department, which have received no increase in personnel. They are meeting the challenge, but the Executive Leadership Team (the CEO, COO, CFO, and CIO) know that they are only treading water. The Finance Department, however, is getting further and further behind in their invoice, billing and payment processes. The Business Administration Department has stepped up to the task, but is at the breaking point. IT Steering Committee The IT Steering Committee (ITSC) at PEP is comprised of the Executive Leadership Team, the Senior Vice President and Vice President. Carolyn West is the Chief Executive Officer (CEO). She has been at the company for 11 years. Carolyn has a background working for and managing electronics companies. Like most CEOs, Carolyn is focused on the strategic and long-term business health of PEP. She chairs the IT Steering Committee. Carolyn and the committee members jointly make decisions about IT systems and major organizational business process changes. Tim Uduak, Jr. is the Chief Operating Officer (COO) and the son of founding partner Tim Uduak, Sr. Tim has been around the company since its inception in one capacity or another, except for four years of college and a 3-year break to startup his own company. When his startup failed, Tim came back to PEP as the SVP, Engineering & Manufacturing Operations. Last year, he was promoted to COO. While Tim has a PEP Case Study 1 strategic focus and is not technology averse, he prefers to solve business challenges with processes rather than information technology. Karl Manley is the Chief Financial Officer (CFO). He has been with the company for 9 years. Karl has a background in accounting and finance, and is a certified public accountant (CPA). He tends to focus on the company's financial health to the exclusion of all other business concerns. While Karl is technology fluent, he resists new IT purchases unless there is a clear and direct connection made between the technology investment and improving the company's financial profile. The Director, Accounts Receivable (Mary Winston) and the Director, Accounts Payable (Amy Dole) report to the CFO, and together are responsible for the financial operations of the business. Mark Temple is the Chief Information Officer (CIO) and head of the IT Department. He provides all IT services to PEP. Prior to being hired as the CIO, Mark was an IT manager at a large multi-national corporation responsible for providing IT services to their offices from the headquarters in Lincoln, Nebraska. While in that position, Mark participated in very structured IT processes, and developed an appreciation for working with the operational and management divisions to ensure success of IT projects. When he arrived at PEP, he advised the CEO, COO and CFO that an IT Steering Committee could help ensure they pursued the most beneficial IT projects. He is your primary point of contact for dealing with PEP in analyzing their processes and systems. Susan Black is the Senior Vice President (SVP), Engineering & Manufacturing Operations and is Tim's replacement. Susan has worked for the company for 13 years. She started as a Senior Engineer, and after six years was promoted to Director, Engineering, where she spearheaded the successful research and development of the low voltage motors. Susan is a champion of information technology as long as it is clearly focused on the core business. Jason Udo is the Vice President (VP), Business Administration. He oversees all departments, except Engineering & Manufacturing, Finance, and IT. His responsibilities include key support functions such as Sales, Marketing, Ordering & Shipping, Inventory, and Human Resources. The ITSC has adopted the IT governance processes recommended by the CIO. They review proposals for IT investments and determine where to invest their limited funds. Each of the members has particular areas of interest, but all of them are focused on reducing the overall cost of running the business, increasing sales, and managing the cost of IT for the company. The ITSC has established a series of checkpoints at which they make go/no-go decisions on IT projects. At these decision points the following documents are reviewed by the ITSC: Preliminary Investigation Report - describes the problem/opportunity, identifies benefits of a new system, and reports on various aspects of feasibility of the proposed project. Requirements Specification - documents the requirements to be fulfilled by the proposed system. Systems Design Specification - translates the requirements into a logical design for the proposed system. Final System Report - compiles previous documents and lays out the way ahead if the project is approved and funded. As each report is approved, work on the following step begins. This controls the amount of time and effort put into a request for a system. For example, if the Preliminary Investigation Report is not accepted by the ITSC, no further work is performed on the system proposal. PEP Case Study 2 Your Task You are an independent Business and IT Systems Analyst, specializing in developing IT solutions for small business needs. You have been contracted by the CIO to prepare the documentation required for the ITSC as they consider replacing the information systems associated with operations, business administration, and finance. Due to the backlog in the billing and payment processes, the ITSC wants to start by replacing the current customer billing and payment system and processes. However, the ITSC requires assurance that a new billing and payment system and processes can be interfaced with other new IT systems and updated business processes as needed. While there is currently no money in the budget allocated to replacing or upgrading these systems, the executives are committed to moving the company forward and improving PEP's ability to manage its growing business efficiently and effectively. Your Activities After interviewing each member of the ITSC, you have collected the following information regarding the invoice, billing and payment processes and needs: Customer billing is handled by the Invoicing Department, which reports to the VP, Business Administration. Customer payments are handled by the Accounts Receivable Department, which reports to the CFO. Customer billing and payments are managed and recorded in an in-house developed Microsoft Access based solution. The solution was developed by the IT Department and is housed on a server controlled and managed by the IT Department. The solution is updated on request from the Invoicing and Accounts Receivable Departments. The Sales Department works with Invoicing to establish new customer accounts and update and close existing accounts as needed. The Ordering & Shipping Department sends a monthly report to Invoicing where the products ordered and shipped and their codes are entered into the invoicing module. Pricing is computed based on the product codes and quantities entered. Invoicing is responsible for adding, updating, and maintaining the product codes and pricing used by the invoicing database on the 15th of each calendar month. The monthly report containing the updates is provided by the Marketing Department. Invoicing generates and mails customer bills on the last business day of each calendar month. Customer payments (lump sum) are due by the 10th of each calendar. Customers send the payments to Accounts Receivable. Accounts Receivable is responsible for updating customer account records when the payments are received. Invoicing is responsible for identifying accounts that are 30 days, 60 days or more overdue. These reports are sent to Accounts Receivable and Sales. Accounts Receivable handles all collections. There is a 2% fee added to all invoices that are 30 days or more overdue. Accounts Receivable notifies the Sales Department to assist with customers who are 60 days or more delinquent. Ordering & Shipping is also notified so that no further shipments are made until the outstanding invoice is paid in full. These situations are rare. Installation services are offered as a fixed price fee for small businesses (doctor's offices, individually owned pharmacies, etc.). Larger installations (hospitals, chain pharmacies, pharmaceutical manufacturers, etc.) are billed on a pre-defined hourly rate. PEP Case Study 3 Volume discounts are not currently offered, but Marketing is planning to offer this discount within the next six (6) months because the low voltage motors are increasingly being ordered in quantities of five (5) or more. The following volume discounts will be offered: o 5 or more: 2% o 10 or more: 5% o 25 or more: 10% Electronic invoicing via email is not currently offered, but Marketing and Invoicing plan to offer this feature within the next six (6) months. Electronic payment to a lockbox account is not currently offered, but Marketing and Accounts Receiving plan to offer this feature within the next six (6) months. The customer account data elements currently include: o Customer Organization Name o Customer Street Address o Customer City o Customer State o Customer Zip Code + 4 o Primary Contact First Name o Primary Contact Last Name o Primary Contact Phone Number o Primary Contact Email Address o Secondary Contact First Name o Secondary Contact Last Name o Secondary Contact Phone Number o Secondary Contact Email Address o Products Ordered o Product Ordered Date o Products Shipped o Product Ship Date o Quantity o Product Pricing o Calculated Price (Calculated Field) o Amount Due (Calculated Field) o Amount Paid o Date Paid o Amount 30 Days Overdue (Calculated Field) o Amount 60 Days Overdue (Calculated Field) o Amount Greater Than 60 Days Overdue (Calculated Field) o 2% Overdue Amount (Calculated Field) The customer account data elements required for near-term plans include: o Quantity Discount (Calculated Field) o Electronic Invoicing (Check Box) o Electronic Payment (Check Box) Paper invoices currently contain the following data elements: o Unique Serialized Invoice Number (System Generated?) PEP Case Study 4 o Customer Organization Name o Customer Street Address o Customer City o Customer State o Customer Zip Code + 4 o Products Ordered o Product Ordered Date o Products Shipped o Product Ship Date o Quantity o Product Pricing o Calculated Price (Calculated Field) o Amount Due (Calculated Field) o Amount 30 Days Overdue (Calculated Field) o Amount 60 Days Overdue (Calculated Field) o Amount Greater Than 60 Days Overdue (Calculated Field) o 2% Overdue Amount (Calculated Field) Paper invoice data points required for near-term plans include: o Volume Discount (Calculated Field) o Electronic Invoicing (Yes or No) o Electronic Payment (Yes or No) When electronic invoices are offered, the same current and near-term data elements as shown above will be included. You have also documented the following additional considerations: All customer, invoicing, and payment data must be secured, but accessible to those departments and personnel who have a need to know. PEP requires the ability to generate a receipt automatically at the time payments are recorded. The receipt will be sent electronically to the organization's primary contact email address. The receipt must contain: o Unique Serialized Invoice Number o Customer Organization Name o Customer Street Address o Customer City o Customer State o Customer Zip Code + 4 o Amount Paid o Date Paid o Amount Outstanding The following company entities need to be able to generate their own reports as needed: o COO o CFO o Director, Accounts Receivable o Accounts Receivable Managers & Staff o Director, Accounts Payable PEP Case Study 5 o SVP, Engineering & Manufacturing Operations o VP, Business Administration o Invoicing Managers & Staff o Sales Managers & Staff o Marketing Managers & Staff o Ordering & Shipping Managers & Staff Your Deliverables Your first task is to develop the Preliminary Investigation Report (PIR), which will examine the problems/opportunities, identify benefits of a new system, and report on various aspects of feasibility of such a project. You will draw upon the background and other information provided above to develop the PIR. If that Report is accepted by the ITSC, you will analyze and organize the requirements you have collected into a Requirements Specification. After receiving approval of the Requirements Specification, you will develop the Systems Design Specification, which will translate the requirements into a logical design of the proposed system. With a further decision to proceed, you will then develop the Final System Report, which will combine your previously developed documents and lay out the way ahead if the project is approved and funded. PEP Case Study 6