Document

Opening Case:
Project Management
McGraw-Hill-Ryerson
©2015 The McGraw-Hill Companies, All Rights Reserved
Chapter Eleven Overview
• SECTION 11.1 – SYSTEMS DEVELOPMENT
– Introduction
– Developing Information Systems
– The Systems Development Life Cycle (SDLC)
– Systems Development Methodologies
– Developing Successful Systems
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Chapter Eleven Overview
• SECTION 11.2 – PROJECT MANAGEMENT & GOVERNANCE
– Introduction
– Managing Software Development Projects
– Project Management Fundamentals
– Choosing Strategic Projects and IT Governance
– Understanding Project Planning
– Managing Projects
– Measuring Project Value
– Outsourcing Projects
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Learning Outcomes
1.
Explain the business benefits associated with successful
systems development and how the issues and challenges
developing domestic information systems amplify with global
systems development.
2.
Describe and understand the relationships between each of
the seven phases of the systems development life cycle.
3.
Summarize and compare different systems development
methodologies.
4.
Explain the importance of good project management practice.
5.
Describe the benefits and challenges of outsourcing systems
development projects.
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SYSTEMS
DEVELOPMENT
McGraw-Hill-Ryerson
©2015 The McGraw-Hill Companies, All Rights Reserved
Introduction
Learning
Outcome
11.1
• IS solutions allow companies to:
– Improve cost structure, manage people
better, bring new products to market
faster, solve complex problems
• Effective systems development processes
can:
– Transform an organization as its
business transforms
– Make an organization more responsive
to customers and competition
• Poor processes
– Can damage productivity and morale
– Cause a business to fail
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Developing Information Systems
Learning
Outcome
11.1
Consequences of System Success and Failure
Figure 11.1
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Global Information Systems Development
Learning
Outcome
11.1
Unlike domestic systems, global IS must support a diverse base of
customers, users, products, languages, currencies, laws, etc.
Strategies to solve some global IS development problems:
1. Transform domestic system for global use. Established business
processes and end-users will be supported.
2. Set up multi-national development team to articulate the
needs of local sites.
3. Assign system development to the particular subsidiary which
is the centre of excellence for the required business or
technical skills.
4. Outsource to global or offshore development countries that
have the required skills and experience.
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The Systems Development Life Cycle (SDLC)
Learning
Outcome
11.2
• The overall process for
developing an IS from
planning to implementation
and maintenance
• Begins with the business
needs and ends when the
benefits of the system no
longer outweighs its
maintenance costs
• Referred to as a cycle as the
final maintenance stage
leads into planning for a new
development
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The systems Development Life Cycle
and Its Associated Activities
From Figure 11.2
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The Systems Development Life Cycle and Its
Associated Activities
Learning
Outcome
11.2
From Figure 11.2
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Systems Development Methodologies
Learning
Outcome
11.3
• Methodology
– Set of policies, procedures, standards, processes, practices,
tools, techniques, and tasks applied to technical and
management challenges.
– Method of managing the information systems deployment
– Formal methodology can include coding standards, code
libraries, development practices and much more
• Types
–
–
–
–
Waterfall
Agile Software Development
Participatory Design
Self-Sourcing
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The Traditional Waterfall Methodology
Learning
Outcome
11.3
A sequential,
activity-based
process in
which each
phase of the
SDLC is
performed.
Figure 11.3
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Issues Related to the Waterfall Methodology
Learning
Outcome
11.3
Figure 11.4
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Agile Software Development Methodologies
Learning
Outcome
11.3
• Agile Methodology
– Aims for customer satisfaction with early and continuous
delivery of useful system or software components meeting
bare minimum requirements.
• Iterative Development
– The basis for Agile Methodologies
– Consists of a series of fast, efficient, short, lower cost
projects that achieve rapid feedback and acceptance
– Speed, size and focus account for end user satisfaction
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Agile Software Development Methodologies
Learning
Outcome
The Iterative Approach
11.3
Figure 11.5
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Rapid Application Development Methodology
(RAD)
Learning
Outcome
11.3
Emphasizes extensive
user involvement in the
rapid and evolutionary
construction of working
prototypes that
accelerate systems
development.
The RAD Approach
A prototype is a smallerscale working model of
the user’s requirements.
Figure 11.6
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Rational Unified Process (RUP)
Learning
Outcome
11.3
Each gate consists of executable iterations of the software. Software
moves on when designers are satisfied. At any time the software can
be send back to Gate One.
1. Gate One: Inception
– Ensures stakeholders share an understanding of the system
2. Gate Two: Elaboration
– What are the agreed-upon details of the system?
– Do we have the architecture to support & build the system?
3. Gate Three: Construction
– Building and Developing the product
4.
Gate Four:
– Who owns the system?
– Establish the training of key personnel
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Scrum Methodology
Learning
Outcome
11.3
• 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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The Agile Alliance Manifesto
Learning
Outcome
11.3
Figure 11.7
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Participatory Design (PD)
Learning
Outcome
11.3
• Promotes the active involvement of users
• Sees users as the experts
Tenets
• The design process makes a difference for participants
• Implementing the results from the design process is likely
• It’s fun to participate
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Self-Sourcing (End-User Design)
Learning
Outcome
11.3
• Development is by people who use the system
• End users build and maintain the system without much support
from IT
• Ranges from simple Excel worksheet templates to complex systems
including prototypes
• Advantages:
– Meeting user requirements
– Sense of ownership by users
– Faster development
• Disadvantages
– Problems due to lack of development expertise
– Not consistent with organizational goals
– Lack of alternatives and documentation
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Developing Successful Systems
Learning
Outcome
11.3
• Slash the Budget
– Focusses designers on essentials; easier to kill small projects
• If it doesn’t work, kill it
– Bring key stakeholders together at the beginning to eliminate anything
that won’t meet expectations.
• Keep Requirements to a Minimum
– Identify “must haves” and work to achieve these
– Feature Creep developers add new features as they go
– Scope Creep project gets bigger or broader
• Test and deliver frequently
• Assign Non-IT executives to software projects
– Liaise between user groups and IT
– Test iterations to ensure they work
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Outsourcing Projects
Learning
Outcome
11.5
• Insourcing (In-house development)
– Uses the professional expertise within the organization itself
• Outsourcing
– An arrangement by which one organization provides a service
or services for another organization that chooses not to
perform them in-house.
Departments Commonly
Outsourced by
Organizations
Figure 11.18
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Primary Reasons Companies Outsource
Learning
Outcome
11.5
Figure 11.19
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Outsourcing Models
Learning
Outcome
11.5
• Onshore outsourcing
– Engaging a company within
the country
Outsourcing Models and
Cost Savings
• Nearshore outsourcing
– Engaging a company in a
nearby country, example USA
• Offshore outsourcing
– Engaging organizations from
developing countries or
countries far away
– Often used for code writing
and systems development
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Figure 11.20
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Results of Outsourcing
Learning
Outcome
11.5
• Companies concentrate on Core
Competencies using outsourcing as a
revenue generation, not cost cutting strategy
• Financial savings coupled with finding skilled
workers
• Rapid growth due to an enlarged, engaged
workforce
• Industry changes force companies to
manage dynamic environment and send
structured work out
• Internet has provided an effective channel to
distribute systems work
• Globalization has opened huge off shore
labour markets
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Outsourcing Opportunities
Learning
Outcome
11.5
Figure 11.21
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The Challenges of Outsourcing
Learning
Outcome
11.5
• Contract Length
– Long-term contracts due to high start up costs
– Difficulties in getting out of unsuitable contracts
– Problems in foreseeing business needs over the
long term
– Problems in restructuring IS department after
the contract is finished
• Competitive Edge
– Competitive focus and edge can be lost if
computer system is central to the enterprise’s
success and the functions are outsourced
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The Challenges of Outsourcing
Learning
Outcome
11.5
• Confidentiality
– Pricing policies, product mix information,
formulas and sales analysis may be less secure
– Requires additional investment in security and
surveillance to ensure there are no problems
• Scope definition
– Affects outsourcing contracts as well as in-house
development
– Problems arise from contractual
misunderstandings especially dealing with what
is considered within the scope and outside of
the scope of the agreement
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OPENING CASE QUESTIONS
Project Management
5.
Did this project benefit from project management
principles and techniques?
6.
What project management principles and techniques
could have been followed to improve the project?
7.
How could the concept of governance be applied to the
management of this project?
8.
What are the opportunities for outsourcing in this
project in both the development and maintenance
stages of the project?
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CLOSING CASE ONE:
HP’s Software Problems
1.
Which of the seven phases of the systems development
life cycle is least important to HP? Most important? Why?
2.
Which of the different software development
methodologies should HP use to implement successful
systems? Why?
3.
Identify the primary reasons for systems project failure
and explain which ones HP experienced on its ERP build.
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CLOSING CASE ONE:
HP’s Software Problems
4.
Review the buy-versus-build decision and explain why HP
chose to buy its ERP system.
5.
Review the project charter and explain how HP could
benefit by using one.
6.
Review the three outsourcing options and identify the pros
and cons HP should consider if it chooses to outsources its
systems development effort.
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CLOSING CASE TWO:
Disaster at Denver International Airport
1. One problem with DIA’s baggage system was inadequate
testing. Why is testing important to a project’s success? Why
do so many projects decide to skip testing?
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 THREE:
Staying on Track: Toronto Transit
1.
How was project management software used by the TTC
for better project management?
2.
Describe Gantt charts and explain how the TTC could have
used one to communicate project status.
3.
Describe PERT charts and explain how the TTC could have
used one to communicate project status.
4.
Using this case study of the TTC as a guide, under what
circumstances should organizations use project
management software to help manage projects?
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