CHAPTER 11 SYSTEMS DEVELOPMENT AND PROJECT MANAGEMENT Modified by Prof. V. Yen

11.1 Importance of 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

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

THE SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC) 1. Planning phase – involves establishing a high- level plan of the intended project (problem) and determining project goals 1. Analysis phase – involves analyzing end-user business requirements and refining project goals into defined functions and operations of the intended system Business requirement – detailed set of business requests that the system must meet in order to be successful

THE SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC) ) 1. Design phase – involves describing the desired features and operations of the system including screen layouts, business rules, process diagrams, pseudo code, and other documentation 1. Development phase – involves taking all of the detailed design documents from the design phase, such as coding and transforming them into the actual system

THE SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC) 1. Testing phase – involves bringing all the project pieces together into a special testing environment to test for errors, bugs, and interoperability and verify that the system meets all of the business requirements defined in the analysis phase 1. Implementation phase – involves placing the system into production so users can begin to perform actual business operations with the system

THE SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC) 1. Maintenance phase – involves performing changes, corrections, additions, and upgrades to ensure the system continues to meet the business goals

SOFTWARE DEVELOPMENT METHODOLOGIES There are a number of different software development methodologies including: Agile Waterfall Rapid application development (RAD) Rational unified process (RUP)

Waterfall Methodology This is an activity- based process in which each phase in the SDLC is performed sequentially from planning through implementation and maintenance

Agile Methodology aims for customer satisfaction through early and continuous delivery of components developed by an iterative process An agile project sets a minimum number of requirements and turns them into a deliverable product Iterative development – consists of a series of tiny projects

Rapid Application Development Methodology (RAD) emphasizes extensive user involvement in the rapid and evolutionary construction of working prototypes of a system to accelerate the systems development process The prototype is an essential part of the analysis phase when using a RAD methodology Prototype – a smaller-scale representation or working model of the users’ requirements or a proposed design for an information system

Rapid Application Development Methodology (RAD) Fundamentals of RAD Focus initially on creating a prototype that looks and acts like the desired system Actively involve system users in the analysis, design, and development phases Accelerate collecting the business requirements through an interactive and iterative construction approach

Rational Unified Process (RUP) Methodology 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

Rational Unified Process (RUP)

Implementing Agile Methodologies The Agile Alliance Manifesto Early and continuous delivery of valuable software will satisfy the customer Changing requirements are welcome Business people and developers work together Projects need motivated individuals Use self-organizing teams Reflect on how to become more effective

DEVELOPING SUCCESSFUL SOFTWARE Primary principles for successful agile software development include: Slash the budget If it doesn’t work, kill it Keep requirements to a minimum Test and deliver frequently Assign non-IT executives to software projects

11.2 MANAGING SOFTWARE DEVELOPMENT PROJECTS Analysts predict investment in IT projects worldwide through 2010 will be over $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

The Triple Constraint Project management interdependent variables

PROJECT MANAGEMENT FUNDAMENTALS Project – temporary endeavor undertaken to create a unique product, service, or result Project management – the application of knowledge, skills, tools, and techniques to project activities to meet project requirements

PROJECT MANAGEMENT FUNDAMENTALS The Project Management Institute (PMI) develops procedures and concepts necessary to support the profession of project management ( 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)

PROJECT MANAGEMENT FUNDAMENTALS Project deliverable – any measurable, tangible, verifiable outcome, result, or item that is produced to complete a project Project milestone – represents key dates when a certain group of activities must be performed Project manager – an individual who is an expert in project planning and management Project management office (PMO) – an internal department that oversees all organizational projects

PROJECT MANAGEMENT Activities Project management role

CHOOSING STRATEGIC PROJECTS Project stakeholders - 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

CHOOSING STRATEGIC PROJECTS Three common techniques for selecting projects 1. Focus on organizational goals 2. Categorize projects 3. Perform a financial analysis

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

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 Project objectives Project constraints Projects assumptions

A Guide to Project Charter Development SMART criteria are useful reminders on how to ensure that the project has created understandable and measurable objectives

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

Project Plan – Scheduling Tools Two primary diagrams used in project planning include PERT and Gantt charts PERT chart – a graphical network model that depicts a project’s tasks and the relationships between those tasks Dependency Critical path Gantt chart – a simple bar chart that depicts project tasks against a calendar

A PERT Chart Example

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

Three Critical Areas in MANAGING PROJECTS A project manager must focus on managing three primary areas to ensure success: Managing people Managing communications Managing change

Change Management 1. Concerns requests for changes in the content of software – this should be carefully managed. Change management system – a collection of procedures to document a change request and define the steps necessary to consider the change based on the expected impact of the change Change control board (CCB) – responsible for approving or rejecting all change requests 2. Concerns the effect on employees due to installation of new technology/software

Preparing for Change Three important guidelines for effectively dealing with change management 1. Institute change management polices 2. Anticipate change 3. Seek change

OUTSOURCING PROJECTS Insourcing (in-house-development) – a common approach using the professional expertise within an organization to develop and maintain the organization's 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; it may be classified into one of: Onshore Nearshore Offshore

Why OUTSOURCING PROJECTS? Factors driving outsourcing growth include: Core competencies Financial savings Rapid growth Industry changes The Internet Globalization According to PricewaterhouseCoopers “Businesses that outsource are growing faster, larger, and more profitable than those that do not”

Outsourcing Benefits Increased quality and efficiency Reduced operating expenses Outsourcing non-core processes Reduced exposure to risk Economies of scale, expertise, and best practices Access to advanced technologies Increased flexibility Avoid costly outlay of capital funds Reduced headcount and associated overhead expense Reduced time to market for products or services

Outsourcing Challenges Outsourcing challenges include Contract length 1. Difficulties in getting out of a contract 2. Problems in foreseeing future needs 3. Problems in reforming an internal IT department after the contract is finished Competitive edge Confidentiality Scope definition