The planning phase is the initial step in understanding the purpose of building an information system and determining the approach for its development. This phase consists of two steps:
- Project Initiation: In this step, the system’s business value to the organization is identified, focusing on how it can reduce costs or increase revenues. Ideas for new systems usually originate from departments outside of the information systems area, such as marketing or accounting. These ideas are presented in the form of a system request, which provides a brief overview of the business need and explains how a system supporting that need will create value. The IS department collaborates with the project sponsor (the person or department making the request) to conduct a feasibility analysis. This analysis examines technical feasibility (can we build it?), economic feasibility (will it provide business value?), and organizational feasibility (will it be used if we build it?). The system request and feasibility analysis are then presented to an information systems approval committee, also known as a steering committee, which decides whether to proceed with the project.
- Project Management: Once the project is approved, it enters the project management phase. Here, the project manager develops a work plan, assembles the project team, and establishes techniques to control and guide the project throughout the entire Systems Development Life Cycle (SDLC). The outcome of project management is a project plan that outlines the approach for developing the system.
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