James Nowotarski 5 June 2008 IS 425 Enterprise Information Spring 2008.

James Nowotarski

5 June 2008

IS 425Enterprise Information

Spring 2008

2

Topic Duration 5/29 recap 30 minutes

IT governance 45 minutes

*** Break 15 minutes

Current event report 10 minutes

IT emerging trends and issues 75 minutes

Wrap-up 10 minutes

Today’s Agenda

3

Creating a project “work plan”

Custrequirements 1

Negotiatereqts

negotiatedrequirements

2

Decom-pose

workbreakdownstructure

4

Estimateresources

workmonths

3

Estimatesize

deliverablesize

5

Developschedule

schedule

Iterate as necessary

Copyright Copyright © © 2006 The 2006 The McGraw-Hill Companies. All McGraw-Hill Companies. All rights reserved. rights reserved.

Deliverable-oriented WBS

Copyright Copyright © © 2006 The 2006 The McGraw-Hill Companies. All McGraw-Hill Companies. All rights reserved. rights reserved.

Activity-oriented WBS

6

Usersrequirements 1

Negotiatereqts


2

Decom-pose


4

Estimateresources

workmonths

3

Estimatesize

deliverablesize

5

Developschedule

schedule


productivity rate

Planning process

7

Units of software size

Lines of code (LOC)

Function points (FP)

Components

Computing Function PointsMeasurement parameter Count Sim-

pleAvg Com

-plex

Number of user inputs X 3 4 6 =

Number of user outputs X 4 5 7 =

Number of user inquiries

X 3 4 6 =

Number of files X 7 10 15 =

Number of external interfaces

X 5 7 10 =

Count (Unadjusted Function Points) UFP

5

8

10

8

2

15

32

40

80

10

177

Reconciling FP and LOC

http://www.theadvisors.com/langcomparison.htm

LANGUAGEAVERAGE SOURCE STATEMENTS PER FUNCTION POINT

1032/AF 16

1st Generation default 320

2nd Generation default 107

3rd Generation default 80

4th Generation default 20

5th Generation default 5

Assembly (Basic) 320

BASIC 107

C 128

C++ 53

COBOL 107

JAVA 53

Visual Basic 5 29

10

Components

Simple Medium Hard

# Database tables

# Reports

Etc.

11

Usersrequirements 1

Negotiatereqts


2

Decom-pose


4

Estimateresources

workmonths

3

Estimatesize

deliverablesize

5

Developschedule

schedule


productivity rate

Planning process

12

Bottom-up estimating

Estimate = #units x time per unit For example, a report design task:

10 reports3 hours per reportEstimate = 30 person-hours (aka

“workhours” Most projects are estimated in this way,

once details are known about units

13

Other estimating techniques

Expert judgment Analogy Algorithmic

General model:E = A + B x (ev)c where E is effort in person months

A, B, and C are empirically derived constantsev is the estimation variable (either in LOC

or FP)

14

LOC-Oriented Estimation Models

E = 5.2 X (KLOC)0.91 Walston-Felix Model

E = 5.5 + 0.73 X (KLOC)1.16 Bailey-Basili Model

E = 3.2 X (KLOC)1.05 Boehm simple model

E = 5.288 X (KLOC)1.047 Dot Model for KLOC > 9

FP-Oriented Estimation Models

E = -13.39 + 0.0545 FP Albrecht and Gaffney Model

E = 60.62 X 7.728 X 10-8 FP3

Kemerer model

E = 585.7 + 15.12 FP Matson, Barnett, Mellichamp model

Software size estimation formulae

15

Top-down vs. Bottom-up

Communication project initiation requirements

Modeling analysis design

Construction code test

Deployment delivery support

Planning & Managing

Top-down “approximating”:- Expert judgment- Analogy- Algorithmic

Bottom-up “estimating”

16

Estimating accuracy improves over time

http://sunset.usc.edu/research/COCOMOII/index.html



17

Usersrequirements 1

Negotiatereqts


2

Decom-pose


4

Estimateresources

workmonths

3

Estimatesize

deliverablesize

5

Developschedule

schedule


productivity rate

Planning process

18

GANTT Schedule

• View Project in Context of time.

• Critical for monitoring a schedule.

• Granularity 1 –2 weeks.

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One of the primary jobs of a project manager is to manage these tradeoffs

IT organizations that require PMI certification for PM’s

20

Source: Standish Group, 2007

IT Organization

The business situation will drive the degree to which IT is weighted toward business users vs. IT concerns

Business user concerns• Responsiveness• Customization• Innovation

IT concerns• Efficiency • Standards• Control

Business situation

Unresponsive

No business unit (BU) ownership

Doesn’t meet every BU’s needs

Economiesof scale

Sharedstandards

Critical massof skills

Compliancecontrol

Purely centralized

Organizational design challenge: Centralized hierarchies support control and efficiency . . .

Cons Pros

Redundant functions/costs

Proliferation of data, platforms

Variable quality, control

Lack of synergy and integration

Speed

Promotes risk, innovation

Responsive to BU’s needs

Purely decentralized

. . . while the decentralized model supports flat organizations with responsibility on the “edges”

Pros Cons

Hybrid/Federal IT model

Unresponsive

No business unit (BU) ownership

Doesn’t meet every BU’s needs

Redundant functions/costs

Proliferation of assets, delivery vehicles, rollouts

Variable quality, control

Lack of synergy and integration

Economiesof scale

Sharedstandards

Critical massof skills

Control

Speed

Promotes risk, innovation

Responsive to BU’s needs

Shared vision &

leadership

Consistent quality

Synergy &Integration

Mutual trust & commitment

Purely centralized IT Purely decentralized IT

The “hybrid” or “federal” model is the best structure for balancing business user and IT concerns

Source: MIT

Hybrid/Federal IT

CEO

VP Finance VP Marketing VP Product A VP Product B

Function 1

Sys dev’t Finance

Function 1

Function 1

Function 1

CIOArchitecture

Operations

Sys dev’t Marketing

Sys dev’t Product A

Sys dev’t Product B

Sys. dev’t

27© James W. Nowotarski

IT Outsourcing

• Cost reduction.

• Cost predictability.

• Improved performance levels. For example, speed of delivery, customer satisfaction, quality, etc. These are especially relevant for seasonal businesses where volume fluctuates widely.

• Desire to refocus on corporate core competencies.

• Desire to have in-house IT resources focus on strategic systems and/or technology.

Information technology (IT) outsourcing is a multiyear contract/relationship involving the purchase of one or more IT services

Drivers


IT Outsourcing

• Lack of in-house IT resources. This includes personnel resources and computing resources such as hardware capacity.

• Desire to become and stay technologically current.

• Financial factors. Outsourcing typically involves the outsourcing firm making up-front payment to the customer firm for a transfer of people and/or computing assets. This improves the balance sheet and short-term cash flow.

• Desire to overcome internal inertia and resistance to change.

• Increased recognition of the strategic benefits of alliances.

Information technology (IT) outsourcing is a multiyear contract/relationship involving the purchase of one or more IT services

Drivers (continued)


IT Outsourcing

Multisourcing Example: Nissan

Service Provider Deal Scope

Satyam (India) Application support• Maintenance• Enhancement

IBM Global Services IT infrastructure

Internal Business analysis

Project management

Note: Prior to April 2006, all of the above had been outsourced to IBM


IT Offshoring

Offshore - A location/development center in a country remote from the country in which the service or process is consumed or touches the end user or customer

Source: Gartner Group


• Reduce cost– 40-50% savings, according to Merrill Lynch CTO

• Higher quality/capability– A disproportionately high percentage of CMMI Level 5 systems

development organizations are in India (CMMI Level 5 is the top level of performance on an industry benchmark)

• Speed– A “follow the sun” approach allows for 24x7 work on a project

Cost, quality, and speed are the main reasons for going offshore

IT Offshoring


• Highly capable workforce– 2-3M college graduates per year (will double by 2010)– #2 in world in computer science grads (china #1, U.S. #3)

• Focus on process and product quality– “Quality has become an obsession with the software developers in India”

– Casimir Welch, American Society for Quality Fellows• Low labor and infrastructure costs• Government commitment and support• English (and other) language skills

India is the leading location for offshore sourcing

Reasons

IT Offshoring


• Competition for talent is driving salaries up by as much as 30% per year

• China, Russia, Mexico, Vietnam and Philippines are training armies of programmers to compete with India

– BearingPoint chose Shanghai for its new software development center . . . pays $500/month for engineers in Shanghai, $700 in India, $4000 in U.S.

• Increasing competition closer to the customer, e.g., – “Nearshore”, e.g., Mexico and Canada for U.S. customers– “Onshore”, e.g., Rural Arkansas

India’s advantage is beginning to erodeReasons

IT Offshoring

Global delivery

Planning; high level

tasksExecution

Common processestechnology and tools

Copyright Copyright © © 2006 The McGraw-Hill Companies. All rights reserved. 2006 The McGraw-Hill Companies. All rights reserved.

Hofstede Cultural Dimensions FrameworkHofstede Cultural Dimensions FrameworkHofstede Cultural Dimensions FrameworkHofstede Cultural Dimensions Framework

• Individualism versus collectivism– Identifies whether a culture holds individuals or the group

responsible for each member’s welfare.

• Power distance– Describes degree to which a culture accepts status and power

differences among its members.

• Uncertainty avoidance– Identifies a culture’s willingness to accept uncertainty and

ambiguity about the future.

• Masculinity-femininity– Describes the degree to which the culture emphasizes

competitive and achievement-oriented behavior or displays concerns for relationships.

Copyright Copyright © © 2006 The McGraw-Hill Companies. All rights reserved. 2006 The McGraw-Hill Companies. All rights reserved.

Sample Country Clusters on Hofstede’s Dimensions Sample Country Clusters on Hofstede’s Dimensions of Individualism-Collectivism and Power Distanceof Individualism-Collectivism and Power Distance

Sample Country Clusters on Hofstede’s Dimensions Sample Country Clusters on Hofstede’s Dimensions of Individualism-Collectivism and Power Distanceof Individualism-Collectivism and Power Distance

37






Wrap-up 10 minutes

Today’s Agenda

38

• The operating model for how the organization makes and enacts decisions about the use of IT

• What is meant by “operating model”?– Organizational units involved– Division of roles, responsibilities, and accountabilities– Processes, standards, policies– Measurements

• What types of decisions are we talking about?– What IT goals and priorities will enable the organization and

maximize benefits– How to obtain and deploy IT resources– How to appropriately mitigate and control risk

IT Governance: Definition

39

• Proposal: Replace proprietary and/or locally implemented reporting systems with a single, global management reporting system

• Hard to justify on purely economic grounds• Local units will be resistant, but their cooperation

is essential to the success of the initiative• Who decides? Who is accountable for the

implementation of the decision? How will the results of the decision be measured and monitored?

IT Governance: Example

40

Senior management of the enterprise devoting more attention to IT governance

Enterprises are more dependent than ever on IT

Enterprises need to maximize the business value from their [often] large investment in IT

An increasing percentage of IT spending is controlled by business units

IT viewed as “strategic partner” vs. “order taker”

Reasons

41

• Historically poor performance of IT• Tendency of IT to focus on itself• Increased variety of service delivery models

(cloud computing, multisourcing, etc.) creates complexity

• Regulatory focus in post-Enron era, e.g., Sarbanes Oxley

Senior management of the enterprise devoting more attention to IT governance (cont.)

Reasons (cont.)

42

IT Organization Design vs. Governance

Central headquarters

IT

IT

Marketing

IT

Finance

IT

Manufacturing

External parties

Decision-making processes • Goals• Priorities• Risk mitigation• Value from IT• Who does what

Steering Comm.

IT Governance vs. IT Management

CoBIT’s 34 standard IT processes

Source: isaca.org/cobit

45






Wrap-up 10 minutes

Today’s Agenda

46

Market trends

Globalization Volatility Innovation [Green] energy Information explosion Wall Street effect Moore’s Law Aging population Faster, better, cheaper

IT Emerging Trends and Issues

48

Executives’ Club of Chicago survey of technology executives regarding plans for 2008

The number one required change in IT?? CIO’s most important focus area?? Focus area most gaining in importance?? Top 2 technologies??

What will be the biggest change for CIOs in the next five years (Gartner)? Fundamentally, the biggest changes

will revolve around a shift in focus from technology to business results.

This will involve more strategic thinking not just from the CIO, but the entire IT services staff.

Source: Gartner ITXpo, April 200849

No. 1 Concern of CIOs for 2008 (SIM)?

In a 2007 SIM survey of 130 senior IT execs, 51% cited, “attract, develop, and retain IT professionals” as a top concern, more than any other factor.

Source: InformationWeek, January 7, 2008

50

51

CIO answers to “What are your top 3 initiatives” (InformationWeek)

Create an analytical infrastructure and enterprise information architectureAccentureAriseCambridge Integrated ServicesFoley & Lardner LLPFreescale SemiconductorIron MountainJackson Family Enterprises

52

Support growth/globalization AccentureAriseCMEGMRockwell Automation

Migrate from disparate, legacy systems to an enterprise systemAccentureFreescale SemiconductorRockwell Automation


53

Infrastructure improvements (e.g., reliability)CUNAGlobal Crossing

Data center consolidationFoley & Lardner LLPFoundry Networks


54

Balanced portfolio of people, processes, technology CUNAMueller Water Products

Enterprise 2.0AccentureMotorola


55

Implement local and remote failover environments Foundry Networks

Green equipment/vendorsCadence Design Systems

ITIL implementationRed Hat

Voice and video over IPFoundry Networks


56

Enterprise content management Jackson Family Enterprises

Geographic information systemsJackson Family Enterprises

Service oriented architecture (SOA)1-800-Flowers.com


57

Improve customer experience at web site1-800-Flowers.com

Decomposing and refactoring legacy systemsIron Mountain


58

Software engineering productivity gainsCadence

Project management officeArise

Issue tracking and resolution Red Hat


59

Increase business value of ITMotorola


60

“Enterprise 2.0 is reaching the mainstream, and companies that do not aggressively adopt enterprise 2.0 will experience serious competitive threats within three years.”

Source: Rollyson, The Global Human Capital Journal

Enterprise 2.0 is reaching the mainstream

61

The Machine is Us/ing Us (Michael Wesch) (Mar. 2007) (4:33)* http://youtube.com/v/NLlGopyXT_g

Enterprise 2.0: What is it (Andrew McAfee) (Apr. 2008) (3:30)* http://www.youtube.com/watch?v=6xKSJfQh89k Enterprise 2.0: Hype or Happening? (CIOs) (Feb. 2008) (1:32)* http://www.youtube.com/watch?v=i2WOCIMGx5Q


62


What is itUnified communications

• Messaging• Presence

Information sharing• Blogs• Social bookmarking • Social networking• Tagging• Virtual worlds• Wikis

Example: Facebook

www.facebook.com

63

Example: Serena Software

Facebook Fridays Private Facebook group as a front end

linked to a low-cost content management system behind the firewall

Public Facebook groups to connect with marketplaceCustomersRecruits

64

65

Facebook platform: “f8”

Launched May 24, 2007 24,000 applications built on the platform

An application is a module Facebook's users can add to their pages and then invite their Facebook friends to join

About 140 applications added per day The most successful apps generate ad revenue

Example: Scrabulous - $18K/month Most users have added at least one application

66

Facebook platform: “f8”

What’s in it for users?

For application developers?

For Facebook?

67

Example: IBM’s SmallBlue auto-generates social networks

68


BenefitsCost reduction

• Tools can be cheap to acquire/operateImproved collaboration (internal or external)Agility

• “Only 11% of organizations believe they are highly adaptable” - IBM

Innovation• Via cross-silo collaboration• Via collaboration with customers

Productivity???

69


ChallengesControlInformation overload

• Called “problem of the year” for 2008Demonstrating ROILegal (“land mine”)PrivacySecurityRequires a culture of trust

70

Enterprise 2.0 discussion

Enterprise 2.0 vs. Web 2.0

Business applications of Enterprise 2.0

Compare/Contrast Enterprise 2.0 with enterprise applications

Anatomy of an Enterprise System

Source: Adam & Sammon

72

Networked Economy 2.0 (Rollyson reading): Highlights:

Job Market

75

Job Market Notes

Average U.S. IT employment is 12% higher than a year ago, hitting an all-time high of 3.8 million IT jobs (Bureau of Labor Statistics, March 2008)

Areas of demandArchitectsIT auditorsBusiness intelligence analystsApplications developers Networking Data administration

76

Holistic view

Technology

ProcessPeople

77






Wrap-up 10 minutes

Today’s Agenda

78

Final (submit via COLWeb)

For June 12

79

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