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Enterprise Resource Planning

notes real-time flows of data, which are in different LANs or databases, so that they can improve their
productivity and competitiveness. The solution is to deploy an enterprise wide client / server
architecture, that is, to combine the two concepts to form a cohesive, flexible, and powerful
computing environment.
12.2 software Development Lifecycle

The systems approach to developing information system solutions involves a staged process
known as systems development life cycle (SDLC). Information Systems Life Cycle covers the
planning, construction, deployment and maintenance of an Information System. It covers the
steps of investigation, analysis, design, and implementation and maintenance.
The investigation stage includes a preliminary study of proposed information system solutions
to end user business problems known as a Feasibility Study.

12.2.1 feasibility study

Because the process of developing a major information system can be costly, the systems
investigation stage frequently requires a preliminary study called a feasibility study. A feasibility
study is a preliminary study which investigates the information needs of prospective users and
determines the resource requirements, costs, benefits, and feasibility of a proposed project.
The goal of feasibility studies is to evaluate alternative systems and to propose the most feasible
and desirable systems for development. The feasibility of a proposed system can be evaluated in
terms of four major categories.
The focus of organizational feasibility is on how well a proposed information system supports
the objectives of the organization and its strategic plan for information systems.
Economic feasibility is concerned with whether expected cost savings, increased revenue,
increased profits, reductions in required investment, and other types of benefits will exceed the
costs of developing and operating a proposed system.
Technical feasibility can be demonstrated if reliable hardware and software capable of meeting
the needs of a proposed system can be acquired or developed by the business in the required
time. Finally, operational feasibility is the willingness and ability of the management, employees,
customers, suppliers, and others to operate, use, and support a proposed system.

Cost/Benefit Analysis

Feasibility studies typically involve cost/benefit analysis. If costs and benefits can be quantified,
they are called tangible; if not, they are called intangible. Examples of tangible costs are the costs
of hardware and software, employee salaries, and other quantifiable costs needed to develop
and implement an IS solution. Intangible costs are difficult to quantify; they include the loss
of customer goodwill or employee morale caused by errors and disruptions arising from the
installation a new system.
Tangible benefits are favorable results, such as the decrease in payroll costs caused by a reduction
in personnel or a decrease in inventory carrying costs caused by a reduction in inventory.
Intangible benefits are harder to estimate. Benefits such as better customer service or faster and
more accurate information for management fall into this category.

analysis of the present system

Before you design a new system, it is important to study the system that will be improved or
replaced (if there is one). You need to analyze how this system uses hardware, software, network,
and people resources to convert data resources, such as transactions data, into information

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