Life Cycle Demand Analysis LCDA

The business analyst should analyze and measure the anticipated usage and demands on the current information system (or systems) and what the likely demand on the new solution will be over the next few years. A technique that works well for this situation is the life cycle demand analysis (LCDA). The analyst reviews the current system by studying historical data to project back as far as possible (e.g., going back five years) and then calculating the demand for each subsequent year the system will be in use. The average can then be determined and projections made for future years. However, the analyst must carefully determine the future "volumes" or "users" that will be likely be using the system, and ensure that this LCDA is not performed in isolation.

The technique shows its value most when the results (obtained from interviews, surveys, IT administration) are displayed on a spreadsheet format for easy reference and review. Table 4.4 gives a typical LCDA for a company that would like to reflect the anticipated usage or demand of a proposed product or solution. In this example, a 16.6 percent average annual increase is anticipated. Accordingly, the analyst uses this growth factor when assessing the current and proposed utilization.

Table 4.4: LCDA of a proposed IT solution

Projected Life of Solution

1999

2000

2001

2002

2003

2004

User Demand

1,500

1,875

2,030

2,300

2,900

3,200

% Change

0

25.0%

8.26%

13.30%

26.08%

10.34%

Average %

16.59%

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