CHAPTER OVERVIEW

Chapter 9Systems Development and Project

Management: Corporate

Responsibility

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

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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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SECTION 9.1

Developing Enterprise

Applications

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LEARNING OUTCOMES

1. Explain the business benefits associated with successful software development

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

3. 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 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 – 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

• Business requirement – Specific business requests the system must meet to be successful

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THE SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC)

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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THE SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC)

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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THE SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC)

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

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SOFTWARE DEVELOPMENT METHODOLOGIES

• There are a number of different software development methodologies including

Waterfall Agile Rapid application development

(RAD) Extreme programming Rational unified process (RUP) Scrum

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Waterfall Methodology

• Waterfall methodology – A sequence of phases in which the output of each phase becomes the input for the next

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

o Scope creepo Feature creep

Failure to manage project plan Changing technology

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DEVELOPING SUCCESSFUL SOFTWARE

• The later in the SDLC an error is found the more expensive it is to fix!

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SECTION 9.2

Project Management

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LEARNING OUTCOMES

4. Explain project management, the triple constraint, and project stakeholder and executive sponsor’s roles in choosing strategic projects

5. Explain how project stakeholder’s choose strategic projects

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

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LEARNING OUTCOMES

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

8. Explain 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 more than $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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MANAGING SOFTWARE DEVELOPMENT PROJECTS

• 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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MANAGING SOFTWARE DEVELOPMENT PROJECTS

• 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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MANAGING SOFTWARE DEVELOPMENT PROJECTS

• 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 3 in 10 major IT projects fail 21 percent of the companies state that they cannot

adjust rapidly to market changes 1 in 4 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

Project Management Role

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CHOOSING STRATEGIC PROJECTS

• Three common techniques for selecting projects

1. Focus on organizational goals2. Categorize projects3. 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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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 statement Project objectives Project constraints Projects assumptions

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UNDERSTANDING PROJECT PLANNING

• 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

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UNDERSTANDING PROJECT PLANNING

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

PERT charto Dependencyo Critical path

Gantt chart

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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

1. People2. Communications3. 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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OUTSOURCING PROJECTS

• Factors driving outsourcing growth include Core competencies Financial savings Rapid growth The Internet and globalization

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OUTSOURCING PROJECTS

• Onshore outsourcing • Nearshore outsourcing• Offshore outsourcing

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OUTSOURCING PROJECTS

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

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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 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 contract2. Problems in foreseeing future needs3. Problems in reforming an internal IT

department after the contract is finished Threat to competitive advantage Loss of confidentiality