Solution Planning

Dr. Gita A. Kumta

Dr. Gita A. Kumta

Business Model
It is a conceptual framework that specifies
What products / services should be offered to
the customer
To which customers?
At what price?
How will the business be organised and
operated to deliver value to the customer?
Dr. Gita A. Kumta

Business Model for a Bank

PLANNING & RISK MANAGEMENT

TREASURY

RESOURCE MANAGEMENT

FOREX

CALL MONEY

FUNDS POSITION

Trial Balance
INVESTMENTS

LARGE
CREDIT
DETAILS

Personnel
Information

CORE DATABASE

EXTRACTION

BRANCH OPERATIONS
Dr. Gita A. Kumta

Functions at a Bank Branch level

Branch Management
Planning
Monitoring

Resource
Mobilisation

Credit
Management

Reporting
Mis
Statutory
Ad Hoc

House Keeping
Scrolls, Ledgers
Registers
Day Book, Gl, P & L

Liabilities (Deposits)
Term Deposits Savings Current

Remittances

Risk
Management

C
L
E
A
R
I
N
G

Cash
Inspection
Management
Follow-up

General Admin
Human Resources
Premises
Stationery
Technology

Assets (Loans & Advances)

O.D.
CASH CREDIT
BILLS

Depository Services

Customer
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Dr. Gita A. Kumta

Evolving an IT Strategy

Strategic planning for information systems:

How do we manage Information? What Application is required
to deliver the Business Model?

Technology planning:
What opportunities does new technology provide? Do we
invest in process / office automation or make a radical change
in our business model?

Management of data communication: Networks

Establishing standards and Policies

End-user support Managing IT Systems

Dr. Gita A. Kumta

Enterprise Architecture
EA is fundamentally concerned with
identifying common or shared assets whether
they are strategies, business processes,
investments, data, systems or technologies.
EA is driven by strategy, it helps a business
identify whether its resources are properly
aligned to the organisational mission and
strategic goals and objectives.
Dr. Gita A. Kumta

Purpose of Creating an Enterprise

Architecture
To ensure that business strategy and IT
investments are aligned.
Allows traceability from the business strategy
down to the underlying technology.
Relates more broadly to the practice of
business optimization and addresses business
architecture, performance management,
organizational structure and process
architecture.
Dr. Gita A. Kumta

Key Components of an Architecture-enabled

Environment

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Dr. Gita A. Kumta

Systems Development Life Cycle

DEFINITION PHASE:
Feasibility analysis
Requirement definition

CONSTRUCTION PHASE:
System design
System building
System testing

IMPLEMENTATION PHASE:
Installation
Operations
Maintenance

Dr. Gita A. Kumta

Determining Project Feasibility

Preliminary investigations to examine
project feasibility
- Operational Feasibility
-

Technical Feasibility
Economic Feasibility
Organisational Feasibility
Environmental Feasibility
Dr. Gita A. Kumta

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Operational Feasibility
How well does the proposed system
support the business priorities of the
organisation.
To what extent will the proposed system
solve the identified problem.
How well can it be positioned in the
existing organisational structure.
Dr. Gita A. Kumta

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Economic Feasibility

What is the cost saving?

Will there be increased revenue / Profit?
Will there be productivity improvement?
What will be the intangible benefits?
Cot-Benefit Analysis

Dr. Gita A. Kumta

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Technical Feasibility
What are the Hardware, Software &
Network capabilities required?
How reliable will the system be?
Will it be available at all times / as and
when required?

Dr. Gita A. Kumta

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Feasibility Study Scope

Study the current system

Build the current logical model
Analyse the objectives of the new system
Derive a new logical model
Draft alternative approaches giving
- Scope ( Requirements, design approach )
- Acquisition option with resources requirement,
tentative schedule, total cost and risk factors.
Dr. Gita A. Kumta

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Organisational Feasibility
Is there a stakeholder acceptance?
Top Management support.
Do we have the skill sets required in
terms of support functions and new /
revised roles?
Does the existing organisational structure
require a change?
Dr. Gita A. Kumta

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Environmental Feasibility
Patent, copyright, licensing issues.
Are there any Government restrictions?
Who are the affected stakeholders and
how are they handled?
Is Statutory requirements taken care?

Dr. Gita A. Kumta

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Contents of a Feasibility study Report

Business Model
Current Scenario
- Organisational Structure
- Work flow & bottlenecks
- Information requirements
Proposed solution indicating the Objective, Design option,
H/W-S/W requirements, human resources and other
requirements
Budgetary estimate of cost and time
Tentative Schedule
Quality Assurance plan- Testing & Reviews
Implementation Plan
Dr. Gita A. Kumta

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IT Strategy
Application Development Issues
What applications will bring about the highest return?
What applications will support the strategic goals of the
organization?

Should we move toward a centralised data-driven

application environment?
Should software packages be used?
What Platform should be used?
Dr. Gita A. Kumta

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Alternative Options

Processing Modes
- Batch processing
- On-line processing (either batch overnight
update or on-line immediate update).

Design Architectures
- Centralised processing
- Decentralised processing.

Acquisition of Information systems

- Build your own: In-house software development
- Outsource development to a 3rd party: Tailor-made system from software
houses
- Buy a prepackaged solution: Ready software packages
- End user development for specific uses.

Dr. Gita A. Kumta

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System Construction Process

Identify the Business Model, problems and

the information requirements
Break the Business Model into several
smaller, more manageable sub processes
Translate each into computer programs /
modules
Piece together each program into an overall
comprehensive IS that addresses problems &
provides information
Dr. Gita A. Kumta

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Definition of a Software
Requirement
A software requirement is:
A condition or capability needed by a stakeholder to solve a
problem or achieve an objective.
A condition or capability that must be met or possessed by a
system or system component to satisfy a contract, standard,
specification, or other formally imposed documents.
A documented representation of a condition or capability as in
(1) or (2).
Requirements serve as the foundation of systems or system
components
Dr. Gita A. Kumta

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Types of Requirements

Business Requirements
User Requirements
Functional Requirements
Quality of Service Requirements
Assumptions and constraints KA.
Implementation requirements

Dr. Gita A. Kumta

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Requirements Traceability

Dr. Gita A. Kumta

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Conceptual Models For Planning Of

Information Systems
Business Strategy Frameworks -Michael
Porters
McFarlans Strategic Grid
Critical Success Factor Method
Gartners Hype Cycles
Gartners Magic Quadrant
Dr. Gita A. Kumta

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IT Strategy
-Direction of IT Investments
Impact

High

Low

Warren MacFarlans Strategic Grid

Turnaround

Support
Low

Strategic

Factory
High

Dr. Gita A. Kumta

Dependence
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IT Strategy
-Direction of IT Investments
Impact

High

MacFarlans Strategic Grid for ATMs

ATMs in early 90s

ATMs in the late 90s

ATMs today

Low
Low

High
Dr. Gita A. Kumta

Dependence
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CSF Methodology
Identify what is now critical for success of the organization.
Identify how success may be measured- Key Performance Indicators
(KPIs).
The CSFs / KPIs are essentially the information required for more
effective control over the organization.
Which application/systems/process could provide this information?
Audit each of the applications/systems/processes to find out if they are
functionally adequate and technically rugged.
Based on the assessment of each application/system/process identify the
gap between the information available vs. information required-this is
the information gap.
Make recommendations about how missing information may be
supplied-which systems may have to be developed, modified to achieve
this.
Dr. Gita A. Kumta

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Hype Cycles
It is a graphic representation of the maturity, adoption
and social application of specific technologies.
Shows how and when technologies move beyond the
hype, offer practical benefits and become widely
accepted.
Hype Curve gives a good view of the technology
horizon.
The organisation can therefore plan the choice of the
technology based on the the Hype curve.
Dr. Gita A. Kumta

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Phases of Hype Cycle

"Technology Trigger" The first phase of a hype cycle is the "technology

trigger" or breakthrough, product launch or other event that generates significant

press and interest.
"Peak of Inflated Expectations" In the next phase, a frenzy of publicity
typically generates over-enthusiasm and unrealistic expectations. There may be
some successful applications of a technology, but there are typically more failures.
"Trough of Disillusionment" Technologies enter the "trough of
disillusionment" because they fail to meet expectations and quickly become
unfashionable. Consequently, the press usually abandons the topic and the
technology.
"Slope of Enlightenment" Although the press may have stopped covering
the technology, some businesses continue through the "slope of enlightenment" and
experiment to understand the benefits and practical application of the technology.
"Plateau of Productivity" A technology reaches the "plateau of
productivity" as the benefits of it become widely demonstrated and accepted. The
final height of the plateau varies according to whether the technology is broadly
applicable or benefits only a niche market.
Dr. Gita A. Kumta

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Hype Cycle

Dr. Gita A. Kumta

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Magic Quadrants
Gartner rates vendors upon two criteria: completeness of vision and ability
to execute.
Using different qualifiers per criteria for the varying industries, the Magic
Quadrant then rates the participants along each of these parameters.
Using a methodology which Gartner does not disclose, these component
scores lead to a vendor position in one of four quadrants:
Leaders score higher on both criteria; the ability to execute and completeness
of vision.
Challengers score higher on the ability to execute and lower on the
completeness of vision.
Visionaries score lower on the ability to execute and higher on the
completeness of vision.
Niche players score lower on both criteria: the ability to execute and
completeness of vision. Typically new additions to the Magic Quadrant.
Dr. Gita A. Kumta

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Dr. Gita A. Kumta

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Business Process Modeling

Provides ways of expressing business

processes or strategies in terms of activities
and collaborative behaviour to better
understand the process and the participants in
the process.

Dr. Gita A. Kumta

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What is Process mapping?

Process mapping is a tool that is used to
understand, analyse and document processes
and activities in an organisation and assist in
identifying opportunities for improvement
A process map displays the sequential steps
involved in converting a specific input into the
required output

Dr. Gita A. Kumta

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