Lecture Business driven information systems (4/e): Chapter 9 - Paige Baltzan

Chapter 9 - Systems development and project management: Corporate responsibility. Learning objectives of this chapter include: Describe the seven phases of the systems development life cycle, summarize the different software development methodologies, explain project management and identify the primary reasons projects fail, identify the primary project planning diagrams, identify the three different types of outsourcing along with their benefits and challenges.

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CHAPTER OVERVIEW

 SECTION 9.1 – Developing Enterprise

Applications

• Developing Software

• The Systems Development Life Cycle

• Traditional Software Development Methodology: Waterfall

• Agile Software Development Methodologies

• Developing Successful Software

 SECTION 9.2 – Project Management

• Managing Software Development Projects

• Choosing Strategic Projects

• Understanding Project Planning

• Managing Projects

• Outsourcing Projects

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Developing

Enterprise

Applications

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LEARNING OUTCOMES

1 Describe the seven phases of the

systems development life cycle

2 Summarize the different software

development methodologies

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DEVELOPING SOFTWARE

 Software that is built correctly can

transform as the organization and its

business transforms

 Software that effectively meets

employee needs will help an

organization become more productive

and enhance decision making

 Software that does not meet employee

needs may have a damaging effect on

productivity and can even cause a

business to fail

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DEVELOPING SOFTWARE

 As organizations’ reliance on software grows,

so do the business-related consequences of

software successes and failures including:

• Increase or decrease revenue

• Repair or damage to brand reputation

• Prevent or incur liabilities

• Increase or decrease productivity

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THE SYSTEMS DEVELOPMENT

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LIFE CYCLE (SDLC)

1 Planning phase – Establishes a high-level

plan of the intended project and determines

project goals

2 Analysis phase – Involves analyzing

end-user business requirements and refining

project goals into defined functions and

operations of the intended system

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3 Design phase – Establishes

descriptions of the desired features

and operations of the system

including screen layouts, business

rules, process diagrams, pseudo

code, and other documentation

4 Development phase – Involves

taking all of the detailed design

documents from the design phase

and transforming them into the

actual system

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5 Testing phase – Involves bringing all the

project pieces together into a special testing

environment to eliminate errors and bugs, and verify that the system meets all of the

business requirements defined in the analysis phase

6 Implementation phase – Involves placing the

system into production so users can begin to

perform actual business operations with it

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7 Maintenance phase – Involves

performing changes, corrections,

additions, and upgrades to ensure the

system continues to meet its business

goals

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Agile Methodology

 Iterative development –

Consists of a series of tiny

projects

 Agile methodology – Aims for

customer satisfaction through

early and continuous delivery of

useful software components

developed by an iterative

process using the bare

minimum requirements

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Rapid Application Development

Methodology (RAD)

 Rapid application development methodology–

Emphasizes extensive user involvement in the

rapid and evolutionary construction of working

prototypes of a system to accelerate the systems development process

 Prototype – A smaller-scale representation or

working model of the users’ requirements or a

proposed design for an information system

 The prototype is an essential part of the analysis

phase when using a RAD methodology

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Extreme Programming

Methodology

 Extreme programming (XP) methodology – Breaks a

project into tiny phases, and developers cannot continue on

to the next phase until the first phase is complete

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Rational Unified Process (RUP)

Methodology

 Rational Unified Process (RUP) – Provides a

framework for breaking down the development of software into four gates

• Gate One: Inception

• Gate Two: Elaboration

• Gate Three: Construction

• Gate Four: Transition

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SCRUM Methodology

 SCRUM – Uses small teams to produce small

pieces of deliverable software using sprints, or

30-day intervals, to achieve an appointed goal

 Under this methodology, each day ends or

begins with a stand-up meeting to monitor and

control the development effort

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DEVELOPING SUCCESSFUL

SOFTWARE

 Primary reasons for project failure

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SOFTWARE

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SOFTWARE

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SOFTWARE

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SOFTWARE

 The later in the SDLC an error is found the more

expensive it is to fix!

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Project

Management

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LEARNING OUTCOMES

3 Explain project management and the

primary reasons project fail

4 Identify the primary project planning

diagrams

5 Identify the three different types of

outsourcing along with their benefits and challenges

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MANAGING SOFTWARE DEVELOPMENT PROJECTS

 Analysts predict investment in MIS

projects worldwide is over $1 trillion

 70 percent will be lost due to failed

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 The Project Management Institute (PMI) develops procedures and concepts necessary to support the profession of project management (www.pmi.org) and has three areas of focus

1 The distinguishing characteristics of a practicing

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 Project – Temporary activities undertaken to

create a unique product or service

 Project management – The application of

knowledge, skills, tools, and techniques to

project activities to meet project requirements

 Project manager – An individual who is an

expert in project planning and management,

defines and develops the project plan, and

tracks the plan to ensure the project is

completed on time and on budget

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 Project deliverable – Any measurable,

tangible, verifiable outcome, result, or item that

is produced to complete a project or part of a

project

 Project milestone – Represents key dates

when a certain group of activities must be

performed

 Project management office (PMO) – An

internal department that oversees all

organizational projects

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The Triple Constraint

Project Management Interdependent Variables

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The Triple Constraint

 Benjamin Franklin’s timeless advice - by failing to prepare, you prepare to fail - applies to software

development projects

 The Hackett Group analyzed 2,000 companies and discovered

• Three in 10 major IT projects fail

• 21 percent of the companies state that they cannot

adjust rapidly to market changes

• One in four validates a business case for IT projects

after completion

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Project Participants

 Project stakeholder - Individuals and

organizations actively involved in the project or whose interests might be affected as a result of project execution or project completion

 Executive sponsor The person or group who provides the financial resources for the

project

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Project Participants

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CHOOSING STRATEGIC PROJECTS

 Three common techniques for selecting projects

1 Focus on organizational goals

2 Categorize projects

3 Perform a financial analysis

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UNDERSTANDING PROJECT

PLANNING

 After selecting strategic projects and identifying

a project manager the next critical component is the project plan

 Building a project plan involves two key

components

• Project charter

• Project plan

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PLANNING

 Project charter - A document issued by the

project initiator or sponsor that formally

authorizes the existence of a project and

provides the project manager with the authority

to apply organizational resources to project

activities and includes

• Project scope statement

• Project objectives

• Project constraints

• Projects assumptions

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PLANNING

 SMART criteria are

useful reminders on

how to ensure that

the project has

created

understandable and

measurable

objectives

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PLANNING

 Project plan – A formal, approved document

that manages and controls project execution

 A well-defined project plan should be

criticality

project manager

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PLANNING

 Two primary diagrams used in project

planning include PERT and Gantt charts

• PERT chart

 Dependency

 Critical path

• Gantt chart

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PLANNING

PERT Chart EXPERT – PERT Chart Example

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PLANNING

MS Project – Gantt Chart Example

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• Balancing the competing demands of

quality, scope, time, and cost

• Adapting the specifications, plans, and

approach to the different concerns and

expectations of the various

stakeholders

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MANAGING PROJECTS

 A project manager must focus on managing

three primary areas to ensure success

1 People

2 Communications

3 Change

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OUTSOURCING PROJECTS

 In-sourcing

(in-house-development) –Uses the

professional expertise within an

organization to develop and maintain

its information technology systems

 Outsourcing – An arrangement by

which one organization provides a

service or services for another

organization that chooses not to

perform them in-house

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 Onshore outsourcing

 Nearshore outsourcing

 Offshore outsourcing

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 Big selling point for offshore outsourcing

“inexpensive good work”

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 Most organizations outsource their noncore business functions, such as payroll and IT

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Outsourcing Benefits

 Outsourcing benefits include

• Increased quality and efficiency of business processes

• Reduced operating expenses for head count and

exposure to risk for large capital investments

• Access to outsourcing service provider’s expertise,

economies of scale, best practices, and advanced

technologies

• Increased flexibility for faster response to market changes and less time to market for new products or services

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Outsourcing Challenges

 Outsourcing challenges include

• Length of contract

1 Difficulties in getting out of a contract

2 Problems in foreseeing future needs

3 Problems in reforming an internal IT department

after the contract is finished

• Threat to competitive advantage

• Loss of confidentiality

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LEARNING OUTCOME REVIEW

 Now that you have finished the chapter

please review the learning outcomes in

your text

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