Class 8 Systems Development Asper School of Business - MBA 6150 Management of Information Systems & Technology April-June 2009 Instructor: Bob Travica.

Class 8Systems Development

Asper School of Business - MBA6150 Management of Information Systems & Technology

April-June 2009Instructor: Bob Travica

Updated May 2009

2 of 126150 Management of Information

Systems & Technology

Outline

• System development methodologies

• Feasibility of IS development project

• Risks of IS development project

• Management of IS development project

• Systems’ business value - planning and monitoring

• Messages for change leader

System Development Methodologies

• Structured approach (“waterfall model”), system life cycle (SLC) a as a sequence of stages:

or Installation or

Cons

truc

tion

Systems Planning

Get system requirements

Create system “on paper”

Code, assemblesoftware

Mount software on test hardware and studyperformance

Install software on production hardware;Train users

Business use of system,and upgrading

Decide which system to build. Assess expected value, feasibility, risks. (see slide 12)

3 of 12

Note: Arrows meanrelationships betweenSLC and organization.

4 of 126150 Management of Information

Systems & Technology

Rapid Application Development

Analysis & Design (a function,

a part of user interface)

Construction

Installation

User’s Testing

• Build system’s functions & user interface quickly, piece by piece• Keep revising design (iterate) based on user’s

feedback

• IT changes (components, Object-Oriented tech.), business too need of speed in SLC

5 of 126150 Management of Information

Systems & Technology

• Markus & Tanis: Four-Phase Enterprise Systems Experience Cycle

Phases1. Chartering (Planning)

2. Project (Development, Implementation – configuring of-the-shelf software rather than coding)

3. Shakedown (“Go live” to achieve system’s routine use – process change challenge)

ERP Systems Development

• Cases on Provincial Power Corporation and Dow Corning

6 of 126150 Management of Information

Systems & Technology

IS Project Feasibility (Making Business Case for IS)

• Economic feasibility (C/B, ROI, Break-Even, Net Present Value… Scoring method often used in selecting alternative projects. mini case on Trucking company)

• Technical feasibility (capability of building or maintaining system)

• Organizational feasibility (capability of adopting system)

• Operational feasibility (capability of maintaining normal operations)

• Schedule feasibility (meeting deadline for system’s roll out)

• Political feasibility (capability of implementing system given political setup)

• Systems are developed via team projects (mini case “A day in life…”)

(Also see Fig. 10-1, p. 368:Leadership, Employees, Project Scope & Urgency)

7 of 126150 Management of Information

Systems & Technology

8 of 126150 Management of Information

Systems & Technology

IS Project Management

• Managing expectations (dreams, best of possible alternatives) of users and technologists

• Managing nuts & bolts of IS development project (the daily grind) – mini case “A day in life….”) :

- Project tasks

- Time

- People (IS staff, others)

- Money

9 of 126150 Management of Information

Systems & Technology

Managing Project Tasks

10 of 126150 Management of Information

Systems & Technology

Managing Project Time

• Critical path method for assessing tasks time and risks: which tasks can/cannot be delayed.

11 of 126150 Management of Information

Systems & Technology

Managing People – IS Project Team

• Project manager manages/influences:- IS staff (systems analyst, programmer, business analyst, database, network, and content experts)- Others:

• Burnout problem (e.g.: Netscape - 24/7 work vs. SAS Corp. gate closes at 5 pm)

• Management of motivation (e.g.: Microsoft – work space, status, money) More

DevelopmentProject Team

Vendor Executive

DepartmentManager

End-User

SupervisoryManagement

Expert User

12 of 126150 Management of Information

Systems & Technology

Systems’ Business Value - Planning and Monitoring

• Formal financial and combined methods used for• Planning which systems to build• Monitoring returns (value) from system

• Tangible costs easier to estimate than tangible benefits; Cost savings main tangible benefit (Trucking co.)

• Financial methods:• Cost-Benefit Analysis (CBA, basis to other methods)• ROI, Break-Even Analysis…

• Importance of intangible benefits

6150 Management of Information Systems & Technology

Messages for Change Leader

• Reason for change must be in org. problem - not mere technological change

• Plan system well, assess feasibility thoroughly, and consider alternative development methodologies (if possible)

• If technical expertise is missing, hire a consultant

• Have a dedicated system project team

• For ERP systems, consider alternatives based on the type of organization you are/want to be, and engage in vendor management

• For ERP systems, be aware of organizational change and the need to teach it

• Provide resources for appropriate IT training