• Are the necessary financial, human, and technical resources available?
Very few projects will score high in all areas. Some proposed systems might not
reduce costs but will provide important new features. Other systems might reduce operating costs substantially but require the purchase or lease of additional hardware. Some
systems might be very desirable but require several years of development before producing significant benefits.
Whenever possible, the analyst should evaluate a proposed project based on tangible
costs and benefits that represent actual (or approximate) dollar values. For example, a
reduction of $8,000 in network maintenance is an example of a tangible benefit.
Often, the evaluation involves intangible costs or benefits, as described in the section
on economic feasibility. In contrast to tangible benefits, such as the network cost reduction example, it is more difficult to assign dollar values to intangible benefits such as
enhancing the organization’s image, raising employee morale, or improving customer
service. Intangible costs and benefits often influence systems decisions and priorities and
must be considered carefully.
......................
Discretionary and Nondiscretionary Projects
Is the project absolutely necessary? Projects where management has a choice in implementing them are called discretionary projects. Projects where no choice exists are
called nondiscretionary projects. Creating a new report for a user is an example of a
discretionary project; adding a report required by a new federal law is an example of a
nondiscretionary project.
If a particular project is not discretionary, is it really necessary for the systems review
committee to evaluate it? Some people believe that waiting for committee approval
delays critical nondiscretionary projects unnecessarily. Others believe that by submitting
all systems requests to the systems review committee, the committee is kept aware of all
projects that compete for the resources of the IT department. As a result, the committee
assesses the priority of discretionary projects and can schedule them more realistically.
Additionally, the committee might need to prioritize nondiscretionary projects when
funds or staff are limited.
Many nondiscretionary projects are predictable. Examples include annual updates to
payroll, tax percentages, or quarterly changes in reporting requirements for an insurance
processing system. By planning ahead for predictable projects, the IT department manages its resources better and keeps the systems review committee fully informed without
needing prior approval in every case