The New Information Technology System at Tax Organization - Lab Report Example

Risk Analysis Risk analysis Affiliation March Table of Contents 3 Situation Analysis 3 Question 4  Technology Acceptance Risk 5 Question 2 6 Political Risk: 7 7 Security Risks 7 Business process risk 7 Functionality risk 8 Conclusion 8 References 9 Abstract Many projects fail due to cost overruns, failing to follow schedule, and so forth. However, these risks could be reduced by investing some time in up front planning before starting a project. In addition, a key to success in project management is to identify all stakeholders, implementing a better mitigation plan for potential risk, and make certain that they clearly understand and support what the project has to achieve. This paper presents a detailed risk analysis of the new information technology based system implementation for the submission of personal tax returns. This paper will outline some of main and inflectional risks those can make this project a failure. This paper also includes recommendations and some of effective mitigation steps to effectively manage and handle this project. Situation Analysis Present time is acknowledged as the age of information technology because IT is playing key roles in almost every walk of life. At the present, the organizations have more effective and efficient tools and to carry out business activities and operations. Additionally, the development and maintenance of information systems have become major activities of organizations. Since, the use of the information systems in the business has offered wonderful advantages (Whitten, Bentley, & Dittman, 2000). This paper is about the implementation of new information system technology at the huge tax returns organization. The aim of this paper is to analyze and implement the new information technology system at tax organization through offering a detailed feasibly and risk analysis, and present the mitigation and recommendations for the new prioritized risks for the new technology platform. This case study is available at: http://www.egov4dev.org/success/case/camtax.shtml Risk analysis A risk is a magnitude of the probability and outcome of not accomplishing an established project or business objective. Risk analysis is the process of evaluating and categorizing the dangers to businesses, individuals, and government agencies created by potential natural and human-caused unfavorable events. However, In IT, a risk analysis report can be utilized to support technology related goals with an organization’s business objectives. In addition, a risk analysis report can be either qualitative or quantitative (Padayachee, 2002; Pressman, 2001; TechTarget, 2009). Question 1 Risk Description Risk Impact Actual Risk Response Recommended Response Budgetary Risk In huge project like we are going to develop there are huge risk regarding the budget and overall cost overrun. In this scenario we can face difficulties for instance, exceeding from project cost that can lead toward overall project failure. However, this can take place due to the less management interest in the development of the underlying project.  Effective allocation of cost resource to the overall project phases. To effectively mitigate this risk we need to allocate suitable funds to the overall project. In addition, we need to plan this project in a proper way for the successful management of this project. Time Schedule Risk In case of this information system implementation project we are having main risk regarding the time overrun of project. In case of any delay in project development we can face problem changing the overall project established schedule. In this scenario project delays and overall cost of project will exceed. Thus, this can lead toward both budget and time related problems of the project.   In case of effective time planning we need to assess some of main project areas. In this scenario we need to plan the major project activities in a more effective manner using more sophisticated planning tools, such as MS Project. In this type of risk we need to strictly follow the project time plan and critical path for the overall goals achievement and management of project tasks. Thus, we can develop a critical path analysis to find out the critical path that can lead toward fulfillment and completion of the project activities on time. Technology Risks In case of information technology based system development for the tax department that will also offer the web based services can include some of main risks regarding the technology we are going to implement. In this scenario the system we are going to develop needs to be well known in marketplace so that we can get consultation in case of any problem during project development. However, in case of state-of-the-art technology implementation we would have less market awareness about the new technology platform that can lead us toward problems regarding the new technology platform implementation. In case of some of technological risks we need to make sure that tools we are going to implement are offering enough web and market support.   In case of such technology implementation we need to research the market to find out the appropriate technology that can offer enhanced services to our tax firm based inflation system.  Technology Acceptance Risk In case of new technology establishment in the tax department we can face some of potential risks regarding the acceptance of new technology in the department. Since, the people inside the department are working using traditional ways of tax handling and personal records management. Thus, this will be difficult for them to adopt new system.  The system we are going to develop should be according to employees’ requirements. For mitigating this kind of risk we need to effectively develop the system that will be developed according to needs and requirements of department people. Thus, we should take the requirements from the department’s people so that the finally development system would be according to their needs and working requirements. Question 2 Risk Description Trigger Ranking Recommended Mitigation /  Response Political Risk: The implementation of new system at tax department could diminish the need for large workforce that is currently working to manage tasks for the tax department. In this case the new information system implementation at the TAX corporate can lead to some kind of political risks those can take some severe circumstances. These political aspects can be against the new technology platform since, this implementation can affect the jobs of employees. Department staff Medium  For managing this risk we need to consider the department personnel’ point of view, and guarantee them they will not be eliminated. IN addition, the management should give them surety that they would be adjusted in some different places. Security Risks In case of tax based department information will be a most significant and valuable asset for the Department. Since, there will be a database that will encompass information of Nation‘s TAX payers. In case of damage to this resource, the whole department can go down. Thus, the security of this information is really necessary.   Inner and outer people, hackers, Higher The management of security can involve the handling and implementation of the security measures for securing the tax department network and corporate information. However, this risk could be minimized by using some security tools and techniques such as Antivirus software packages, firewalls etc. Business process risk  In case of new information system implementation at Tax department we can face some of the risks regarding the department processes. In other words, the new technology based infrastructure can disturb the overall tax department operational network and handling scenario.   New technology implementation conflicts among Department management Medium In case of mitigating risks regarding the department process we need to develop the system according to tax department operations. In this regard there is need for the effective system requirements analyses and design development for the better technology based information system development. Functionality risk In case of new technology development for the tax department we can face some of risks regarding the overall system functionalities. This means that new system development is not offering better services and functionalities for managing the TAX corporate operations on web as well as inside tax branches.     Technology availability, Development skills and implementation process Higher To effectively deal with and manage this risk we need to assess the basic tax department functionalities in the initial department analyses phase. This will offer us a better understating of tax department operations and dealings for the overall operations inside the department. In this scenario the basic concentration should be given on department system’s requirements and design phase.   Conclusion The implementation of new technology at any corporation is brings a lot of opportunities as well as risks. However, we need to effectively assess the risk factors to gain benefits from the implementation of information technology. This paper has presented a detailed description of risks those can affect the IS development project at tax department. I hope this research will offer a better understanding of new technology establishment at tax department. References Padayachee, K. (2002). An interpretive study of software risk management perspectives. ACM International Conference Proceeding Series; Vol. 30, Proceedings of the 2002 annual research conference of the South African institute of computer scientists and information technologists on Enablement through technology (pp. 118-127 ). Port Elizabeth, South Africa: South African Institute for Computer Scientists and Information Technologists , Republic of South Africa . Pressman, R. S. (2001). Software Engineering: A Practicioners Approach, 5th Edition. London: McGraw Hill. TechTarget. (2009, March 11). Risk Analysis. Retrieved March 21 2010, from http://searchmidmarketsecurity.techtarget.com/sDefinition/0,,sid198_gci1182538,00.html Whitten, J. L., Bentley, L. D., & Dittman, K. C. (2000). Systems Analysis and Design Methods 5th Edition. New York: Irwin/McGraw-Hill. Read More