The Systems Development Life Cycle: Generation and Evaluation of Alternatives

Teach Me

During this phase, alternative solutions for addressing the system requirements are researched. All solutions are compared according to technical aspects, organizational aspects, and the economics of the project.

• Technical assessment looks at how risky the technical aspects of the alternative are. Poses the question "Can it be built?"
• Organizational assessment looks at the organization and determines whether or not there is support for the project. Poses the question "Will people use it?"
• Economic assessment looks at the costs versus the benefits of the new system from a financial point of view. Poses the question "Do the benefits outweigh the costs?"
  • Tangible costs (hardware, software, personnel, etc.) v. intangible costs (learning curve for new system, disruption in operation, morale issues)
  • Tangible benefits (new system allows for reduction in payroll or allows for increased volume) v. intangible benefits (customer satisfaction)

When evaluating a proposed system, organizations use the following three criteria to select the best alternative: Highest Return on Investment (ROI) Highest Net Present Value (NPV) Shortest Payback Period (earliest break-even point)

Show Me

Three issues to consider when investigating alternatives:

• Technical assessment — "Can it be built?"
• Organizational assessment — "Will people use it?"
• Economic assessment — "Do the benefits outweigh the costs?"