Question 1 (Marks: 10)
Read the scenario below and answer the questions that follow:
You have been contracted to design and develop an expense tracking system for a start‐up
financial institution. The application should allow users to track and log their current and historical
finances on the app and make predictions on their future expenses for the coming month.
Q.1.1 Discuss three steps that need to happen in the planning phase of this project. (5)
Q.1.2 Discuss why it is important to develop a set criterion when selecting a project (5
Q.1.1 Three steps that need to happen in the planning phase of this project are:
1. Defining the project scope: This involves clearly identifying the objectives and goals of the expense tracking system. It includes understanding the specific requirements of the financial institution and the target users. This step helps in establishing the boundaries of the project and determining what features and functionalities need to be included.
2. Creating a project timeline: This step involves developing a detailed schedule for the different tasks and activities involved in the project. It includes setting milestones, assigning resources, and estimating the time required for each task. A project timeline helps in organizing and prioritizing the work, ensuring that the project is completed within the desired time frame.
3. Identifying potential risks: In this step, the project team identifies and evaluates potential risks and challenges that may arise during the development and implementation of the expense tracking system. This includes considering technical, financial, and operational risks. By identifying and analyzing these risks in advance, the team can develop mitigation strategies to minimize their impact on the project.
Q.1.2 It is important to develop a set criterion when selecting a project because:
1. Alignment with organizational goals: A set criterion helps in ensuring that the selected project aligns with the strategic objectives and goals of the financial institution. It ensures that the project contributes to the overall mission and vision of the organization, and will deliver value in terms of meeting user needs and improving financial operations.
2. Resource allocation: Developing a set criterion enables the financial institution to prioritize and allocate resources effectively. It helps in identifying projects that have a higher potential for success and value creation, allowing the organization to allocate resources like budget, manpower, and time accordingly.
3. Risk assessment: A set criterion allows the financial institution to assess the risks associated with the project. By considering factors such as technical complexity, feasibility, and market demand, the organization can evaluate the potential risks and benefits of the project. This helps in making informed decisions and reducing the chances of investing in projects with high risks and low returns.
In summary, developing a set criterion when selecting a project helps ensure strategic alignment, effective resource allocation, and risk assessment, leading to successful project outcomes for the financial institution.