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

2 of 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 Construction Systems Planning Get system requirements Create system “on paper” Code, assemble software Mount software on test hardware and study performance 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 mean relationships between SLC and organization.

4 of Management of Information Systems & Technology Rapid Application Development Analysis & Design (a function, a part of user interface) ConstructionInstallation 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 Management of Information Systems & Technology Markus & Tanis: Four-Phase Enterprise Systems Experience Cycle Phases 1.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 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 Management of Information Systems & Technology

8 of 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 Management of Information Systems & Technology Managing Project Tasks

10 of 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 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 Development Project Team Vendor Executive Department Manager End-User Supervisory Management Expert User

12 of 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