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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CHAPTER ELEVEN OVERVIEW

SECTION 11.1 – DEVELOPING ENTERPRISE APPLICATIONS• Developing Software• The Systems Development Life Cycle• Traditional Software Development Methodology: Waterfall• Agile Software Development Methodologies• Developing Successful Software SECTION 11.2 – PROJECT MANAGEMENT• Managing Software Development Projects• Project Management Fundamentals• Choosing Strategic Projects• Understanding Project Planning• Managing Projects, Resources, and Change• Outsourcing Projects

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

SECTION 11.1SECTION 11.1

DEVELOPING ENTERPRISE

APPLICATIONS

DEVELOPING ENTERPRISE

APPLICATIONS

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LEARNING OUTCOMES

1. Identify the business benefits associated with successful software development

2. Describe the seven phases of the systems development life cycle

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LEARNING OUTCOMES

3. Summarize the different software development methodologies

4. Define the relationship between the systems development life cycle and software development

5. Compare the waterfall methodology and the agile methodology

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DEVLOPING 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 LIFE CYCLE (SDLC)

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

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THE SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC)

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

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

• Business requirement – detailed set of business requests that the system must meet in order to be successful

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THE SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC))

3. Design phase – involves describing 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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THE SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC)

5. Testing phase – involves bringing all the project pieces together into a special testing environment to test for errors, bugs, and interoperability 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 the system

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THE SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC)

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

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SOFTWARE DEVELOPMENT METHODOLOGIES

• There are a number of different software development methodologies including:

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

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Waterfall Methodology

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

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Agile Methodology

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

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

– Iterative development – consists of a series of tiny projects

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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

• The 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

• 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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Implementing Agile Methodologies

• The Agile Alliance Manifesto– 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– Test and deliver frequently– Assign non-IT executives to software

projects

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OPENING CASE QUESTIONSHP’s Software Problems

1. Identify the business benefits associated with successful software development for HP

2. Which of the seven phases of the systems development life cycle is most important to HP?

3. Which of the seven phases of the systems development life cycle is least important to HP?

4. Which of the different software development methodologies should HP use to implement successful systems?

5. Explain what might happen if HP used the waterfall methodology to develop its ERP system

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

SECTION 11.2SECTION 11.2

PROJECT MANAGEMENT

PROJECT MANAGEMENT

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LEARNING OUTCOMES

6. Explain the triple constraints and its importance in project management

7. Describe the project stakeholders and executive sponsor’s roles in choosing strategic projects

8. Highlight the five components of a project charter

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LEARNING OUTCOMES

9. Describe the two primary diagrams most frequently used in project planning

10.Identify the three primary areas a project manager must focus on managing to ensure success

11.Explain the three different types of outsourcing

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MANAGING SOFTWARE DEVELOPMENT PROJECTS

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

• 70 percent will be lost due to failed projects

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

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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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The Triple Constraint

• Common reasons why IT projects fall behind schedule or fail

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PROJECT MANAGEMENT FUNDAMENTALS

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

• Project management – the application of knowledge, skills, tools, and techniques to project activities to meet project requirements

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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

• 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

• Project management office (PMO) – an internal department that oversees all organizational projects

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PROJECT MANAGEMENT FUNDAMENTALS

• Project management role

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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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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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Project Charter

• 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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Project Charter

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

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Project Plan

• 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

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Project Plan

• 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• Critical path

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

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Project Plan

• PERT Chart EXPERT – PERT Chart Example

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Project Plan

• MS Project – Gantt Chart Example

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MANAGING PROJECTS

• 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 projects is completed on time and on budget

• Project milestones - represent key dates when a certain group of activities must be performed

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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 – 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

• Common reasons change occurs– An omission in defining initial scope– A misunderstanding of the initial scope– An external event– Organizational changes– Availability of better technology– Shifts in planned technology– Users needs and requests– Management reducing funding

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Preparing for Change

• Three important guidelines fore effectively dealing with change management

1. Institute change management polices

2. Anticipate change

3. Seek change

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OUTSOURCING PROJECTS

• 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

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OUTSOURCING PROJECTS

• Reasons companies outsource

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OUTSOURCING PROJECTS

• 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 countries to write code and develop systems

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OUTSOURCING PROJECTS

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

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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

• According to PricewaterhouseCoopers “Businesses that outsource are growing faster, larger, and more profitable than those that do not”

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OUTSOURCING PROJECTS

• 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 – Reduced operating expenses– Outsourcing non-core processes– Reduced exposure to risk– Economies of scale, expertise, and best practices– Access to advanced technologies– Increased flexibility – Avoid costly outlay of capital funds– Reduced headcount and associated overhead

expense– Reduced time to market for products or services

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Outsourcing Challenges

• Outsourcing challenges include– Contract length

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

– Competitive edge– Confidentiality– Scope definition

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OPENING CASE QUESTIONSHP’s Software Problems

6. Review the project charter and explain how HP could benefit by using one

7. Why is project management critical to HP’s software development process?

8. Identify the three outsourcing options along with the pros and cons HP should consider if it chooses to outsource its systems development effort

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CLOSING CASE ONEDenver International Airport

1. One of the problems with DIA’s baggage system was inadequate testing. Why is testing important to a project’s success?

2. Evaluate the different systems development methodologies. Which one would have most significantly increased the chances of the project’s success?

3. How could more time spent in the analysis and design phase have saved Colorado taxpayers hundreds of millions of dollars?

4. Why could BAE not take an existing IT infrastructure and simply increase its scale and expect it to work?

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CLOSING CASE TWOReducing Ambiguity

1. Why are ambiguous business requirements the leading cause of system development failures?

2. Why do the words “and” and “or” tend to lead to ambiguous requirements?

3. Research the Web and determine other reasons for “bad” business requirements

4. What is wrong with the following business requirement: “The system must support employee birthdays since every employee always has a birthday every year”

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CLOSING CASE THREEToronto Transit

1. Describe Gantt charts and explain how TTC could use one to communicate project status

2. Describe PERT charts and explain how TTC could use one to communicate project status

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BUSINESS DRIVEN BEST SELLERS

• Death March: The Complete Software Developer’s Guide to Surviving “Mission Impossible” Projects, by Edward Yourdon

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BUSINESS DRIVEN BEST SELLERS

• A Survival Guide for Working with Humans, by Gini Graham Scott