Phase 1 of systems planning involves identifying and selecting IS projects, and initiating and planning their development. This includes determining the feasibility of projects by evaluating their potential benefits and costs, both tangible and intangible. Cost-benefit analysis methods are used to analyze projects' economic feasibility and compare alternatives. The goal is to select projects that are strategically aligned and will help the organization achieve its objectives in a cost-effective manner.

1. Phase 1 :Systems Planning บทที่ 4

4. Information Systems Planning Corporate Strategic Planning

12. Information Systems Planning Business Mission & Goals Existing Information System Details Information Systems Plans and Project Information Revise and Study the Business Mission & Goals Define an Information Architecture A Generic Information Systems Planning Methodology (Adapted from Whitten, J.L., Bently, L.D., and Barlow, V.M., Systems Analysis & Design Methods, 3rd Edition, Irwin, Boston, MA., 1994, p. 103.) Evaluate Business Areas and Applications Business Plans Business Areas and Applications Note: Dotted line symbols are optional

13. Stakeholder Requirements Specification Information Technology Staff Analysis Design and Implementation Requirements Continued Involvement Information System Problem Definition Skills Problem Solution Skills Information Systems Planning Inputs & Outputs Information Systems Planning Business Mission & Goals Existing Information System Details Information Systems Plans and Project Information

14. ขั้นตอนการทำแผนแม่บทสารสนเทศ Existing Information Systems Details Business missions and goals & (Business areas and applications)

16. ตัวอย่าง การจัดทำรายการต่างๆ

17. ตัวอย่าง การจั ดทำ decomposition of functions

19. ตัวอย่าง การจัดทำตารางแสดงความสัมพันธ์

20. ตัวอย่าง การจัดทำตารางแสดงความสัมพันธ์

28. Phase 1 :Systems Planning

34. งานที่ต้องทำใน Phase 1: Systems Planning

35. การกำหนดและคัดเลือกระบบ (Project Identification and Selection)

41. 3. Project selection

42. การเริ่มต้นและวางแผนโครงการ (Project Initiation and Planning)

47. Economic Feasibility : Determining project benefits

51. Economic Feasibility : Determining project costs

52. Economic Feasibility : Determining project costs

57. Commonly used economic cost-benefit analysis Payback Analysis (39000-22000)= 17000 (135700-132000) =3700 17000 12 3700 (12*3700) /17000 = 2.6 213,000 42,000 181,000 23,300 6 171,000 39,000 157,700 22,000 5 132,000 36,000 135,700 21,000 4 96,000 34,000 114,700 19,200 3 62,000 31,000 95,500 18,500 2 31,000 28,000 77,000 18,500 1 3,000 3,000 60,000 60,000 0 Benefits Costs Cumulative Benefits Cumulative Costs Year Project A : Payback period is approximately 4.2 years

58. Commonly used economic cost-benefit analysis Payback Analysis (82000-26500) = 55500 (191000-156000) =35000 55500 12 35000 (12*35000) /55500=7.5 330,000 92,000 247,500 30,000 6 238,000 82,000 217,500 26,500 5 156,000 70,000 191,000 24,000 4 86,000 54,000 167,000 22,000 3 32,000 26,000 145,000 25,000 2 6,000 6,000 120,000 40,000 1 0 0 80,000 80,000 0 Benefits Costs Cumulative Benefits Cumulative Costs Year Project B : Payback period is approximately 4.7 years

59. Commonly used economic cost-benefit analysis Payback Analysis

60. Brake-even point

62. Commonly used economic cost-benefit analysis Return on Investment Analysis (ROI) ROI is a percentage rate that measures profitability by comparing the total net benefits received from the project to the total costs (the investment) of the project. ROI = (total benefits – total costs) / total costs Project A: ROI = (213,000 – 181,000) / 181,000 = 17.7% Project B: ROI = (330,000 – 247,500) / 247,500 = 33.3%

65. Commonly used economic cost-benefit analysis Present Value Analysis A baht you have today is worth more than a baht you do not receive until one year from today The present value of a future baht is the amount of money that, when invested today at a specified interest rate, grows to exactly one baht at a certain point in the future. The specified interest rate is called the discount rate .

66. Commonly used economic cost-benefit analysis Present Value Analysis Present value tables : help us to perform present value analysis, adjustment factors for various interests rates and number of years are calculated and printed in tables call present value tables . PERIODS 6% 8% 10% 12% 14% 1 0.943 0.926 0.909 0.893 0.877 2 0.890 0.857 0.826 0.797 0.769 3 0.840 0.794 0.751 0.712 0.675 4 0.792 0.735 0.683 0.636 0.592 5 0.747 0.681 0.621 0.567 0.519 … … . …. …. ….. ….

67. Commonly used economic cost-benefit analysis Present Value Analysis . PERIODS 6% 8% 10% 12% 14% 1 0.943 0.926 0.909 0.893 0.877 2 0.890 0.857 0.826 0.797 0.769 3 0.840 0.794 0.751 0.712 0.675 4 0.792 0.735 0.683 0.636 0.592 5 0.747 0.681 0.621 0.567 0.519 … … . …. …. ….. …. To calculate the present value of ฿ 3 ,000 at 12% for 5 years : PV = 3,000 * 0.567 = ฿ 1,701 That is – The present value of ฿ 3,000 will be ฿ 1,701 in 5 years with a discount rate of 12 %

68. Commonly used economic cost-benefit analysis Present Value Analysis PROJECT A : Present Value Analysis Year Year Year Year Year Year Year 0 1 2 3 4 5 6 Total Benefits : 3,000 28,000 31,000 34,000 36,000 39,000 42,000 PVFactor(12%) 1.000 0.893 0.797 0.712 0.636 0.567 0.507 PV 3,000 25,004 24,707 24,208 22,896 22,113 21,294 143,222 Costs: 60,000 17,000 18,500 19,200 21,000 22,000 23,300 PVFactor(12%) 1.000 0.893 0.797 0.712 0.636 0.567 0.507 PV 60,000 15,181 14,745 13,670 13,356 12,474 11,813 141,239 Net Present Value 1,983

69. Commonly used economic cost-benefit analysis Present Value Analysis PROJECT B : Present Value Analysis Year Year Year Year Year Year Year 0 1 2 3 4 5 6 Total Benefits : 0 6,000 26,000 54,000 70,000 82,000 92,000 PVFactor(12%) 1.000 0.893 0.797 0.712 0.636 0.567 0.507 PV 0 5,358 20,722 38,448 44,520 46,494 46,644 202,186 Costs: 80,000 40,000 25,000 22,000 24,000 26,500 30,000 PVFactor(12%) 1.000 0.893 0.797 0.712 0.636 0.567 0.507 PV 80,000 35,720 19,925 15,664 15,264 15,026 15,210 196,809 Net Present Value 5,377

74. Generate the preliminary investigation report Introduction: Project overview (scope, requirements, schedules, problem and constraints), Recommendation System Description: Alternatives (brief alternative system configurations), System description (describe the selected configuration) Feasibility Assessment : Economic, Technical, Operation Management Issues : Team configuration and management, Communication plan, Project Standard and Procedure, Other topics relevant