McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved Business Driven Information Systems 2e CHAPTER 11 SYSTEMS DEVELOPMENT AND PROJECT MANAGEMENT CHAPTER 11 SYSTEMS DEVELOPMENT AND PROJECT MANAGEMENT

McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved SECTION 11.1

11-3 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

11-4 How Much? Investment in IT projects worldwide in 2010 will be over $1 trillion 70 % will be lost due to failed projects –30% of projects fail (estimated)

11-5 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

11-6 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)

11-7 Choosing the Predictive vs. Adaptive Approach to the SDLC 7

11-8 Waterfall Methodology

11-9 Agile Methodology Agile methodology – aims for customer satisfaction through early and continuous delivery of components developed by an iterative process –Iterative development – consists of a series of tiny projects

Prototyping

11-11 Rapid Application Development Methodology (RAD) 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 –Prototype – a smaller-scale representation or working model of the users’ requirements or a proposed design for an information system

11-12 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

11-13 Why Do Projects Fail?

McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved SECTION 11.2 PROJECT MANAGEMENT

11-15 You had this in Dr. Rosen’s Class So review the key terms in the book for the exam!

11-16 OUTSOURCING PROJECTS Onshore outsourcing – engaging another company within the same country for services Nearshore outsourcing – contracting an outsourcing arrangement with a company in a nearby country Offshore outsourcing – using organizations from developing countries to write code and develop systems

11-17 OUTSOURCING PROJECTS

11-18 Reasons companies outsource

11-19 OUTSOURCING PROJECTS Factors driving outsourcing growth include: –Core competencies –Financial savings –Rapid growth –Industry changes –The Internet –Globalization

11-20 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