2.3 (BUSINESS CASE AND FEASIBILITY ANALYSIS (feasibility study (IS auditor…
BUSINESS CASE AND FEASIBILITY ANALYSIS
A business case provides the information required for an organization
TO DECIDE WHETHER PROJECT SHOULD PROCEED.
either the first step in a project or a precursor (predecessor ) to the start of a project.
BUSINESS REASONS OR BENEFITS
for a project
for initiating and continuing
business case should be
A KEY ELEMENT OF DECISION MAKING PROCESS
throughout the LIFE CYCLE of any project
WHY ? at any stage if it renders to be irrelevant project sponsor or IT steering committee should consider
whether the project should proceed.
IN CASE changes during the course of an IT project, the project should be re approved through the departmental planning and approval process.
After the initial approval has been given to move forward with a project, an analysis begins to clearly
define the need
identify alternatives for addressing the need.
include 6 elements
of the business problem and/or opportunity to be addressed
Definition and establishment of an understanding of a
system, a software product, etc
whether current system working properly
or need to be modified or need to be replaced
At this point in the process,
the strengths and
weaknesses of the current system or software product are identified.
Definition of project requirements
based upon stakeholder needs and constraints.
examples of needs and constraints used to define requirements:
• Business, contractual and regulatory processes
• End-user functional needs
• Technical and physical attributes defining operational and engineering parameters
COURSE OF ACTION TO SATISFY REQUIREMENTS
for a recommended system and/or software solution.
wherein the use of existing structures and commercial alternatives are considered (e.g.,
"BUILD vs. BUY DECISIONS"
identifies the alternatives that were considered
rationale as to why the preferred solution was selected.
Examination of the
cost-effectiveness of the project
based upon the previously completed elements
Elements of the final report include:
estimated total cost of the project if the preferred solution is selected, along with the alternates to provide a cost comparison,
– Estimate of employee hours required to complete
– Material and facility costs
– Vendors and third-party contractors’ costs
– Project schedule start and end dates
• A cost and evaluation summary encompassing cost-benefit analysis,
Reviews (formal) of the previously completed elements of the feasibility study
validate the completeness and accuracy
render a decision to either
approve or reject the project
ask for corrections before making a final decision
Done with STAKEHOLDERS, if approved all key stakeholders sign doc
rationale of rejection should be explained
INITIAL BUSINESS CASE
normally derive from a feasibility study undertaken as part of project initiation/planning.
early study of a problem
to assess if a
solution is practical and meets requirements within established budgets and schedule requirements.
tasks typically performed by an
when reviewing a feasibility study
• Review and evaluate the
of the business and information system process
• Determine if a
solution can be achieved with systems already in place.
review the evaluation of alternative solutions
• Determine the
reasonableness of the chosen solution based on their strengths and weaknesses.
• Determine whether
all cost justifications/benefits are verifiable
reflect anticipated costs and benefits to be realized.
• Review the
documentation produced for reasonableness
IS auditor functions for requirements definition within feasibility studies
• Obtain the
detailed requirements definition document
and verify its
accuracy and completeness through interviews
with the relevant user departments.
• Identify the key team members on the project team and verify that all affected user groups
have/had appropriate representation.
• Verify that
project initiation and cost have received proper management approval.
• Review the
conceptual design specifications (e.g., transforms, data descriptions)
to ensure that they
ADDRESS THE NEED OF USER
CONTROL SPECIFICATION have been defined
• Determine whether a
reasonable number of vendors received a proposal covering the project scope
and user requirements.
• Review the UAT specification.
• Determine whether the application is a candidate for the use of an embedded audit routine. If so,
request that the routine be incorporated in the conceptual design of the system.