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McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved Business Driven Information Business Driven Information Systems 2e Systems 2e CHAPTER 11 SYSTEMS DEVELOPMENT AND PROJECT MANAGEMENT
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Page 1: 11-1 McGraw-Hill/Irwin

McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved

Business Driven Information Systems 2eBusiness Driven Information Systems 2eBusiness Driven Information Systems 2eBusiness Driven Information Systems 2e

CHAPTER 11

SYSTEMS DEVELOPMENT AND PROJECT MANAGEMENT

CHAPTER 11

SYSTEMS DEVELOPMENT AND PROJECT MANAGEMENT

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DEVLOPING SOFTWARE

• Software that is built correctly can transform as the organization and its business transform

• 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 revenues– Repair or damage brand reputation– Prevent or incur liabilities– Increase or decrease productivity

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The Systems Development Life Cycle (SDLC)

• Large, complex IT systems take teams of architects, analysts, developers, testers, and users many years to create

• The systems development life cycle (SDLC) is the foundation for many systems development methodologies

– Systems development life cycle – the overall process for developing information systems from planning and analysis through implementation and maintenance

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SDLC

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SDLC - PHASE 1: PLANNING

• Planning phase – involves establishing a high-level plan of the intended project and determining project goals

• Primary planning activities include1. Identify and select the system(s) for

development2. Assess project feasibility – is the proposed

solution (SW project) achievable from a financial, technical, and organizational standpoint?

3. Develop the project plan

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SDLC - PHASE 2: ANALYSIS

• Analysis phase – involves analyzing end-user business requirements and refining project goals into defined functions and operations of the intended system

• Primary analysis activities include:1. Gather business requirements - detailed set of

business requests that the system must meet in order to be successful

2. Create process diagrams – such as data flow diagrams

3. Perform a buy vs. build analysis ( buy commercial off the shelf SW, or build it from scratch)

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Create Process Diagrams

• Sample data flow diagram

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SDLC - PHASE 3: DESIGN

• Design phase – involves describing the desired features and operations of the system including screen layouts, business rules, process diagrams, pseudo code, and other documentation

• Primary design activities include:1. Design the IT infrastructure

2. Design system models1. Graphical User Interface (GUI) screen design

2. Data models and database design

3. Report layouts

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Design the IT Infrastructure

• Sample IT infrastructure

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SDLC - PHASE 4: DEVELOPMENT

• Development phase – involves taking all of the detailed design documents from the design phase and transforming them into the actual system

• Primary development activities include:1. Develop the IT infrastructure

2. Develop the GUI, database, reports, etc.

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SDLC - PHASE 5: TESTING

• Testing phase – involves bringing all the project pieces together into a special testing environment to test for errors, bugs, and interoperability, in order to verify that the system meets all the business requirements defined in the analysis phase

• Primary testing activities include:1. Write the test conditions2. Perform the system testing

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SDLC - PHASE 6: IMPLEMENTATION

• Implementation phase – involves placing the system into production so users can begin to perform actual business operations with the system

• Primary implementation activities include:1. Write detailed user documentation

2. Provide training for the system users

3. Determine implementation method

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Implementation Methods

• Four primary implementation methods 1. Parallel implementation – using both old and new

systems until it is evident that the new system performs correctly

2. Plunge implementation – discard old system completely and start using new system

3. Pilot implementation – implement new system in one department or location only until it is evident that the new system works

4. Phased implementation – implement new system in phases or pieces

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SDLC - PHASE 7: MAINTENANCE

• Maintenance phase – involves performing changes, corrections, additions, and upgrades to ensure the system continues to meet the business goals

• Primary maintenance activities include:1. Provide a help desk to support the system users

2. Perform system maintenance

3. Provide an environment to support system changes

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System Maintenance/Changes

• System Maintenance – fixing or enhancing an information system

– Corrective maintenance – repair defects or flaws in the design, coding or implementation

– Adaptive maintenance – increase system functionality to meet new business requirements

– Perfective maintenance – enhancements or improvements; desired but not necessarily required features

– Preventative maintenance – changes to reduce the chance of system failure

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SW Development Methodologies

There are a number of different software development methodologies

• Traditional methodology is the Waterfall• Newer, more Agile methodologies

include:– Rapid application development (RAD)– Extreme programming (XP)– Rational unified process (RUP)– Scrum

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Waterfall Methodology

• Waterfall methodology – a sequential, activity-based process in which each phase in the SDLC is performed sequentially from planning through implementation and maintenance

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Agile Methodologies

• Agile methodologies – aim for customer satisfaction through early and continuous delivery of components developed by an iterative process

– Iterative development – consists of a series of smaller projects

– An agile project sets a minimum number of requirements and turns them into a deliverable product

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Agile Methodologies

• Agile methodologies include:

– Rapid application development (RAD)– Extreme programming (XP)– Rational unified process (RUP)– Scrum

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Rapid Application Development Methodology (RAD)

• Rapid application development methodology (RAD) – emphasizes extensive user involvement in the rapid and evolutionary construction of working prototypes of a system to accelerate the systems development process

• A prototype is an essential part of the analysis phase when using a RAD methodology

– Prototype – a smaller-scale representation or working model of the users’ requirements or a proposed design for an information system

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Rapid Application Development Methodology (RAD)

• Fundamentals of RAD– Focus initially on creating a prototype that

looks and acts like the desired system– Actively involve system users in the analysis,

design, and development phases– Accelerate collecting the business

requirements through an interactive and iterative construction approach

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Extreme Programming Methodology (XP)

• Extreme programming (XP) methodology – breaks a project into tiny phases; 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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Implementing Agile Methodologies

• The Agile Alliance Manifesto suggests the following principles:– Early and continuous delivery of valuable

software will satisfy the customer– Changing requirements are welcome– Business people and developers work together– Projects need motivated individuals– Use self-organizing teams– Reflect on how to become more effective

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DEVELOPING SUCCESSFUL SOFTWARE

• Primary principles for successful (agile) software development include:

– Slash the budget– If it doesn’t work, kill it– Keep requirements to a minimum – watch out for:

• Scope creep- the scope of the project increases• Feature creep – extra features are added

– Test and deliver frequently– Assign non-IT executives to software projects

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SOFTWARE PROBLEMS ARE BUSINESS PROBLEMS

• Primary reasons for SW development project failure include:

– Unclear or missing business requirements– Skipping SDLC phases– Failure to manage project scope (allowing

scope creep and/or feature creep)– Failure to manage project plan– Changing technology

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• http://www.updatexp.com/we-share-your-pain.html

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PROJECT MANAGEMENT:MANAGING SW DEVELOPMENT PROJECTS

• Analysts predict investment in IT projects worldwide through 2010 will be over $1 trillion

• 70% will be lost due to failed projects

• The consequences of failed projects include:– Damaged brand or company reputation– Lost goodwill– Dissolution of partnerships– Lost investment opportunities– Low morale

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PROJECT MANAGEMENT

• Project – a temporary endeavor undertaken to create a unique product or service

• Project management – the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project

• Project management software – supports the long-term and day-to-day management and execution of the steps in a project

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Project Management

• Common reasons why IT projects fall behind schedule or fail

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PROJECT MANAGEMENT FUNDAMENTALS

• 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

professional (ethics)2. The content and structure of the profession’s

body of knowledge (standards)3. Recognition of professional attainment

(accreditation)

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PROJECT MANAGEMENT FUNDAMENTALS

• 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 manager – an individual who is an expert in project planning and management, defines and develops the project plan, and tracks the plan to ensure all key project milestones are completed on time

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Project Management: The Triple Constraint

• Project management interdependent variables

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PROJECT MANAGEMENT FUNDAMENTALS

• Project management role

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PROJECT MANAGEMENT FUNDAMENTALS

• 4 primary project management activities:– Choosing strategic projects– Understanding project planning– Managing projects– Outsourcing projects

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Choosing Strategic Projects

• Organizations must determine which projects to pursue

• Sometimes referred to as “Project Portfolio Management”

• Three common techniques for selecting projects

1. Focus on organizational goals2. Categorize projects3. Perform a financial analysis

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Choosing Strategic Projects

Three common techniques for selecting projects:

1. Focus on organizational goals – choose projects that align with the organization’s goals

2. Categorize projects1. Problems

2. Opportunities

3. Directives

3. Perform a financial analysis1. ROI, net present value, payback analysis

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CHOOSING STRATEGIC PROJECTS

• Project stakeholders - 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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UNDERSTANDING PROJECT PLANNING

• After selecting strategic projects, identifying a project manager, and lining up an executive sponsor, the next critical component is the project plan

• Building a project plan involves two key components:– Project charter– Project plan

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UNDERSTANDING PROJECT 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– Project objectives– Project constraints– Projects assumptions

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UNDERSTANDING PROJECT PLANNING

• Project Objectives:

SMART criteria are useful reminders on how to ensure that the project has created understandable and measurable objectives

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UNDERSTANDING PROJECT PLANNING

Project plan – a formal, approved document that manages and controls project execution

• A well-defined project plan should be:– Easy to understand and read– Communicated to all key participants– Appropriate to the project’s size, complexity, and

criticality– Prepared by the team, rather than by the individual

project manager

• May include a kill switch – a trigger that enables the project manager to close the project prior to completion

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UNDERSTANDING PROJECT PLANNING

• Two primary diagrams used in project planning include PERT and Gantt charts

– PERT chart – a graphical network model that depicts a project’s tasks and the relationships between those tasks

• Dependency - a logical relationship between the project tasks, or between a project task and a milestone

• Critical path - a path from the start to the finish that passes through all the tasks that are critical to completing the project in the shortest amount of time

– Gantt chart – a simple bar chart that depicts project tasks against a calendar

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UNDERSTANDING PROJECT PLANNING

• PERT Chart EXPERT – PERT Chart Example

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UNDERSTANDING PROJECT PLANNING

• MS Project – Gantt Chart Example

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MANAGING PROJECTS

• Managing a project includes:– Identifying requirements– Establishing clear and achievable objectives.– 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:– Managing people– Managing communications– Managing change

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MANAGING PROJECTS: Change Management

• Change management – a set of techniques that aid in evolution, composition, and policy management of the design and implementation of a system

– Change management system – a collection of procedures to document a change request and define the steps necessary to consider the change based on the expected impact of the change

– Change control board (CCB) – responsible for approving or rejecting all change requests

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Managing Projects: Change Management

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Managing Projects: Preparing for Change

• Three important change management guidelines:

1. Institute change management polices

2. Anticipate change

3. Seek change

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OUTSOURCING PROJECTS

• Businesses need to undertake every effort to re-think processes/choices regarding obtaining IT services

• Insourcing (in-house-development) – a common approach using the professional expertise within an organization to develop and maintain the organization's 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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OUTSOURCING PROJECTS: OPTIONS

• Onshore outsourcing – engaging another company within the same country for services

• Nearshore outsourcing – contracting an outsourcing arrangement with a company in a nearby country

• Offshore outsourcing – using organizations from developing (or far-shore) countries to write code and develop systems

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OUTSOURCING PROJECTS

• Factors driving outsourcing growth include:– Core competencies– Financial savings– Rapid growth– Industry changes– The Internet– Globalization

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OUTSOURCING PROJECTS

• Big selling point for offshore outsourcing “inexpensive good work”

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OUTSOURCING PROJECTS

• Reasons companies outsource

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OUTSOURCING PROJECTS

• What companies outsource

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Issues in Outsourcing Projects

• Labor– Size and stability of labor pool– Skills, experience of workers– Labor costs

• Cultural affinity

• Time zone/geographic differences

• Language differences

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Issues in Outsourcing Projects, cont.

• Telecommunications infrastructure and technology

• Political issues/risks– Government stability, corruption

• Regulatory barriers/”red tape”

• Issues with copyright/intellectual property/piracy infringements

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Outsourcing Benefits• Outsourcing benefits include:

– Increased quality and efficiency – Reduced operating expenses– Outsourcing non-core processes allows focus on core

competencies– Reduced exposure to risk of large capital investments– Service providers economies of scale, expertise, and best

practices– Access to advanced technologies– Increased flexibility – ability to respond quickly– Avoid costly outlay of capital funds– Reduced headcount and associated overhead expense– Reduced frustrations and expense related to

hiring/retaining employees – Reduced time to market for products or services

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Outsourcing Challenges

– Contract issues1. Contract length – usually several or more yrs.2. Difficulties in getting out of or changing a contract3. Problems in foreseeing future needs

– Problems in reforming the area internally after the contract is finished

– Loss of Competitive edge in outsourced area

– Confidentiality issues– Problems in defining the Scope of the

outsourced area


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