1. Using MIS Chapter 12 Information Systems Development 10th Edition
As a future business professional, you will be involved in the development of new technology applications to your business. You may take the lead in developing an IS project, or you might be an office manager who implements procedures and trains people in the use of systems. Or, you might become a business analyst and work as a liaison between users and technical staff.
If nothing else, you may be asked to provide requirements and to test the system to ensure those requirements have been met. Whatever your role, it is important that you understand how processes and systems are developed and managed.

2. “Augmented reality is a dream come true.”
Example of decision making in small company.
Zev owner and source of investment funds.
Team presents options; he listens and makes a decision.
Team is nervous, not really sure what will happen.
“The ad possibilities are huge. We could sell new kinds of ads that people have never seen before.”
Will focus on building a HoloLens prototype.
GOALS
Use the ARES System to:
Demonstrate a typical software development meeting in a small startup.
Show the wide range in development options and costs that can exist.
Illustrate the use of a prototype for reducing risk.
Provide a setting for a discussion of scrum.

3. Bottom Line Startups fun and interesting places to work.
Time and budgets limited.
Decisions made more quickly, but risky if not well managed.
Prototypes used to reduce front-end risk.
Scrum ideal process for creating prototypes.

4. Study Questions
Q12-1 How are business processes, IS, and applications developed? Q12-2 How do organizations use business process management (BPM)? Q12-3 How is business process modeling notation (BPMN) used to model processes? Q12-4 What are the phases in the systems development life cycle (SDLC)? Q12-5 What are the keys for successful SDLC projects? Q12-6 How can scrum overcome the problems of the SDLC? Q ?
As a business professional, you will be involved in the development of new technology applications for the business, and may take the lead in in developing an application.

5. Business Processes and Information Systems
Q12-1 How are business processes, IS, and applications developed?
Knowing the different development methods will make it easier to appreciate the ways that processes, systems, and applications are created. It will help you be more effective as a team member on development projects, as well.
Three different development processes--Steps in Processing an Order
Ensure operations department verifies product is available and can be delivered on requested schedule.
Check with Accounting to verify credit required to process the order.
Check with your boss, a sales manager, to approve any special terms the customer might request (discounts, free shipping, extended return policy, and so forth).
Offline process
Figure 12-1 Activities in a Business Process and the Correlating Information Systems

6. Relationship of Business Processes and Information Systems
Q12-1 How are business processes, IS, and applications developed?
Every information system has at least one application (software).
Figure 12-2 Relationship of Business Processes and Information Systems

7. How Do Business Processes, Information Systems, and Applications Differ and Relate?
Q12-1 How are business processes, IS, and applications developed?
Different characteristics and components.
Business processes to information systems - N:M.
Business process need not relate to any information system, but an information system relates to at least one business process.
At least one application in every IS due to software component.
People confuse these terms. They’ll quickly switch back and forth among processes, systems, and applications without knowing they’ve changed terms and contexts.
With these understandings, you can add value to your team simply by clarifying these differences.

8. How Is Scope Related to Development Processes?
Q12-1 How are business processes, IS, and applications developed?
Development Process
BPM
SDLC
Scrum
Scope
Business Processes ü
Information Systems
Applications
Scope of Development Processes
Three ways to develop applications: BPM, SDLC, scrum.
Scrum is a new development process that was created, in part, to overcome the problems that occur when using the SDLC. See Q6.
Figure 12-3 Scope of Development Processes

9. Role of Development Personnel
Q12-1 How are business processes, IS, and applications developed?
Business analyst is well versed in Porter’s models, organization strategies, and focuses on ensuring business processes and information systems meet organization’s competitive strategies.
In most cases, BPM is used to manage the evolution of existing business processes from one version to an improved version. Discussed further in Q2 and Q3.
Figure 12-4 Role of Development Personnel

10. Business Process Management (BPM)
Q12-2 How do organizations use business process management (BPM)?
Business process
Network of activities, repositories, roles, resources, and flows
Interact to accomplish a business function.
These terms are defined in Ch. 3.

11. Properties of Processes
Q12-2 How do organizations use business process management (BPM)?
Roles
Collections of activities.
Resources
People or computer applications assigned to roles.
Flow
Control flow - directs order of activities.
Data flow - movement of data among activities & repositories.

12. Why Do Processes Need Management?
Q12-2 How do organizations use business process management (BPM)?
Improve process quality.
Adapt to change in technology.
Adapt to change in business fundamentals.
Processes dynamic and often need to be changed.
Monitor process quality and adjust process design, as appropriate.
When new technology changes any of a process’s activities in a significant way, the entire process needs to be evaluated. That evaluation is another reason for managing processes.

13. Examples of Change in Business Fundamentals
Q12-2 How do organizations use business process management (BPM)?
Market (new customer category, change in customer characteristics)
Product lines
Supply chain
Company policy
Company organization (merger, acquisition)
Internationalization
Business environment (new priority on credit checking)
A substantial change in any of the following factors might result in the need to modify business processes.

14. Four Stages of BPM Cycle
Q12-2 How do organizations use business process management (BPM)?
BPM is a cyclical process for systematically creating, assessing, and altering business processes.
Cycle begins by creating models of business processes.
Build an as-is model that documents the current situation.
See for more information.
Figure 12-5 Four Stages of BPM
COBIT (Control Objectives for Information and related Technology)

15. Business Process Modeling Notation (BPMN)
Q12-3 How is business process modeling notation (BPMN) used to model processes?
Models are the blueprint for understanding the current process and for designing new versions of processes. They also set the stage for the requirements for any information systems and applications that need to be created or adapted.
Learning this standard notation is important because, as a business professional, you may be involved in creating, reviewing, and approving models.
Figure 12-6 Business Process Management Notation (BPMN) Symbols

16. Existing Order Process (BPMN)
Q12-3 How is business process modeling notation (BPMN) used to model processes?
Note: role named CRM in this subprocess. This role is performed entirely by an information system, although we cannot determine that from this diagram.
BPMN diagrams are used to define process alternatives for discussion and evaluation, employee training, and to provide documentation for systems and application development.
Figure 12-7 Existing Order Process

17. Check Customer Credit Process
Q12-3 How is business process modeling notation (BPMN) used to model processes?
Figure 12-8 Check Customer Credit Process

18. Systems Development Life Cycle (SDLC)
Q12-4 What are the phases in the systems development life cycle (SDLC)?
SDLC is the traditional process used to develop information systems and applications. The IT industry developed the SDLC in the “school of hard knocks.” Many early projects met with disaster, and companies and systems developers sifted through the ashes of those disasters to determine what went wrong.
Different authors and organizations package the tasks into different numbers of phases, such as 5, 7, or 8. Here is a 5-phase SDLC.
Figure 12-9 Five Phases of the Systems Development Life Cycle (SDLC)

19. SDLC Definition Phase
Q12-4 What are the phases in the systems development life cycle (SDLC)?
At the start, cost and schedule feasibility are only an approximation or back-of-the-envelope analysis.
Eliminate any obviously infeasible ideas as soon as possible.
The scope might be defined by specifying the users, or the business processes, or the plants, offices, and factories that will be involved.
Figure SDLC: System Definition Phase

20. Role of a Prototype Direct user experience.
Q12-4 What are the phases in the systems development life cycle (SDLC)?
Direct user experience.
Assess technical and organizational feasibility.
Define requirements and functions.
Parts often reused.
Code for ARES prototype reused in other digital reality devices?
Prototype-funding dilemma. Which comes first?
Expense is often justified for greater clarity and completeness of requirements, and because parts of prototype can be reused in operational system.
“Will we obtain sufficient return to justify these estimated costs?” At ARES, Zev most likely asked for a prototype because he didn’t like the price tag for developing the multiple applications for multiple systems.

21. SDLC Requirements Analysis Phase
Q12-4 What are the phases in the systems development life cycle (SDLC)?
This is the most important phase in the systems development. If the requirements are wrong, the system will be wrong. If the requirements are determined completely and correctly, then design and implementation will be easier and more likely to result in system success.
Figure SDLC: Requirements Analysis Phase

22. SDLC Component Design Phase
Q12-4 What are the phases in the systems development life cycle (SDLC)?
Team determines hardware specifications required for the application.
Program design depends on the source of the programs. For off-the-shelf software, team must determine candidate products and evaluate them against the requirements. For off-the-shelf with alteration programs, team identifies products to be acquired off-the-shelf, then determines alterations required. For custom-developed programs, team produces design documentation for writing program code.
The prototype can be useful in this phase also.
Design involves developing job descriptions for the various roles. These descriptions detail responsibilities, skills needed, training required, and so forth.
Figure SDLC: Component Design Phase

23. SDLC System Implementation Phase
Q12-4 What are the phases in the systems development life cycle (SDLC)?
Implementation has two meanings. It could mean to implement the information systems components only, or it could mean to implement the information system and the business processes that use the system.
A test plan, which is a formal description of the system’s response to use and misuse scenarios, is written. Professional test engineers, called product quality assurance (PQA) test engineers, are hired for this task. Teams of these engineers are augmented by users as well.
Figure SDLC: Implementation Phase

24. System Conversion Approaches
Q12-4 What are the phases in the systems development life cycle (SDLC)?
Pilot
Implement entire system in limited portion of business
Limits exposure to business if system fails
Phased
System installed in phases or modules
Each piece installed and tested
Parallel
Complete new and old systems run simultaneously
Very safe, but expensive
Plunge
High risk if new system fails
Only used if new system not vital to company operations
IS professionals recommend any of first three, depending on circumstances. In most cases, avoid “taking the plunge!”

25. Design and Implementation for the Five Components
Q12-4 What are the phases in the systems development life cycle (SDLC)?
This table summarizes the tasks for five IS components during the design and implementation phases.
Figure Design and Implementation for the Five Components

26. SDLC System Maintenance Phase
Q12-4 What are the phases in the systems development life cycle (SDLC)?
There needs to be a means for tracking both failures and requests for enhancements to meet new requirements. Many organizations find it necessary to develop a tracking database. This database contains a description of failures and enhancements, who reported them, who made the fix or enhancement, status of that work, and whether the fix or enhancement was tested and verified by the originator.
IS personnel prioritize system problems according to their severity.
Figure SDLC: System Maintenance Phase

27. Successful SDLC Projects
Q12-5 What are the keys for successful SDLC projects?
Create work-breakdown structure (WBS).
Estimate time and costs.
Create project plan.
Adjust plan via trade-offs.
Manage development challenges.

28. Work Breakdown Structure (WBS)
Q12-5 What are the keys for successful SDLC projects?
The key strategy for SDLC projects is to divide and conquer.
Break the project into smaller and smaller tasks until each task is small enough to estimate and to manage. Every task should culminate in one or more results called deliverables.
Figure Example Work Breakdown Structure (WBS)

29. Partial Gantt Chart for Definition Phase of Project
Q12-5 What are the keys for successful SDLC projects?
Notice the bars indicate the date an activity should begin and end, labor hours budgeted, and dependencies of activities. Critical path is red.
Figure Gantt Chart of the WBS for the Definition Phase of a Project
Source: Microsoft Corporation

30. Partial Gantt Chart with Resources (People) Assigned
Q12-5 What are the keys for successful SDLC projects?
The final WBS plan is denoted as the baseline WBS. This baseline shows the planned tasks, dependencies, durations, and resource assignments.
The WSB chart names the individuals responsible for performing the activity.
Figure Gantt Chart with Resources (People) Assigned
Source: Microsoft Corporation

31. Primary Drivers of Systems Development
Q12-5 What are the keys for successful SDLC projects?
Development involves inherent trade-offs between time and scope, cost and scope, and time and cost.
Figure Primary Drivers of Systems Development

32. Manage Development Challenges
Q12-5 What are the keys for successful SDLC projects?
Four critical factors
Coordination
Diseconomies of scale
Brooks’ Law
Configuration control
Unexpected events
No project ever proceeds exactly in accordance with the WBS. Delays occur, and unknown or unexpected dependencies develop among tasks.
The coordination problem is increased because software is just thought-stuff.

33. Diseconomies of Scale Brooks’ Law
Q12-5 What are the keys for successful SDLC projects?
Brooks’ Law
“Adding more people to a late project makes the project later.”
Productive workers train new people, and productivity decreases.
Schedules compress only so far.
Once late and over budget, no good choice exists.
“Nine women cannot gestate a baby in one month.”

34. Configuration Control and Unexpected Events
Q12-5 What are the keys for successful SDLC projects?
Configuration control
Set of management policies, practices, and tools.
Used to maintain control over project resources.
Unexpected events
New management
Technology, competitor changes
Disasters
Loss of critical people
Team morale fades

35. Banking on IoT Immediate access to analytics allows for
So What?
Immediate access to analytics allows for
Better strategic decision making
New strategic competitive opportunities
Sensor technologies and the ability to rapidly transmit, store, and analyze large data sets have redefined operations and industries.
As more smart devices (IoT) are connected to the Internet, increasing amounts of data are captured and transmitted by these devices.
In-class exercise.
The article looked at the enhanced functionality that could come from a smart refrigerator with Internet connectivity.
Identify any potential drawbacks or complications that may arise from this connectivity.

36. Banking on IoT (cont’d)
So What?
IoT is generally defined as the proliferation of Internet-connected devices.
By 2020 there will be roughly 25 billion Internet- connected devices.
Banks want to manage automated transactions conducted by IoT devices.
Huge potential for loyalty programs paired with these transactions.
Debit card charged several times a day when your refrigerator orders groceries for you.
What are the potential pitfalls of drastically increasing the number of financial transactions you or a company is responsible for in a given period of time (e.g., buying groceries or raw materials in very small quantities)?

37. Estimation Ethics Estimating just a “theory.” Buy-in game.
Ethics Guide
Estimating just a “theory.”
Average of many people’s guesses.
Buy-in game.
Projects start with overly optimistic schedules and cost estimates.
When is a buy-in within accepted boundaries of conduct?
GOALS
Introduce concept of buy-in as it pertains to information systems.
Assess ethics of buy-ins in different settings.
A buy-in occurs when a company agrees to produce a system or product for less money than it knows the project will require. You can buy-in on schedule as well as cost.

38. Estimation Ethics (cont’d)
Ethics Guide
Be aware of “buy-ins” – some vendors make a practice of it.
Carefully scrutinize unbelievably low bids.
No substitute for experience.
Hire expertise to evaluate bids.
Consider your position on buy-ins.
Can you ever justify a buy-in? If so, when?
One major goal is to see how buy-ins apply to information systems projects. Future managers need to know this to guard against, or at least consider, possibility of a buy-in.
Future managers need to consider their own values and principles.

39. Alternatives to SDL Alternatives to SDLC
Q12-6 How can scrum overcome the problems of the SDLC?
Alternatives to SDLC
Rapid Application Development (RAD)
Unified Process (UP)
Extreme programming (XP)
Scrum
Other agile methods
SDLC is falling out of favor for two reasons. First, the nature of the SDLC denies what every experienced developer knows to be true: systems requirements are fuzzy and always changing. They change because they need to be corrected, or more is known, or users change their minds about what they want after they use part of the system, or business needs change, or technology offers other possibilities.
Second, SDLC is falling out of favor because it is very risky. It assumes that requirements don’t change.

40. Principles of Agile (Scrum) Development
Q12-6 How can scrum overcome the problems of the SDLC?
Scrum is an agile technique and conforms to these principles.
Scrum is a rugby term for a gathering of team players into a circle to restart play after a foul or other interruption. Think of it as a huddle in American football.
Figure Principles of Agile (Scrum) Development

41. Scrum Essentials
Q12-6 How can scrum overcome the problems of the SDLC?
The process is driven by a prioritized list of requirements created by the users and business sponsors of the new system.
Figure Scrum Essentials

42. Scrum Process Q12-6 How can scrum overcome the problems of the SDLC?
Each workday begins with a stand-up, which is a 15-minute meeting. The purpose is to achieve accountability for team members’ progress and to give a public forum for blocking factors.
Paired programming is used where two team members share the same computer and write a computer program together. Sometimes, one programmer will provide a test, and the other will either demonstrate that the code passes that test or alter the code so that it will. Then, the two members switch roles.
Figure Scrum Process

43. When Are We Done? Scrum periods continue until:
Q12-6 How can scrum overcome the problems of the SDLC?
Scrum periods continue until:
Customer satisfied and accepts it.
Project runs out of time.
Project runs out of money.
The project might not be the fully functioning version that was desired, but it is something that, assuming requirements are defined and prioritized correctly, can generate value for the project sponsors.
Scrum is distinguished from other agile development methodologies by the way it uses requirements to drive planning and scheduling. Requirements are specified in a particular manner. One common format is to express requirements in terms of who does what and why.

44. How Do Requirements Drive the Scrum Process?
Q12-6 How can scrum overcome the problems of the SDLC?
Tasks are created in a team meeting so the whole team can iterate and give feedback. One team member will think of a task that needs to be done, of which other members are not aware. Or the team member will realize a particular task is incomplete, or is doable in some other way, or doesn’t really need to be done.
Figure Example Requirement and Tasks

45. Summary of Scrum Estimation Techniques
Q12-6 How can scrum overcome the problems of the SDLC?
What makes scrum innovative is the way tasks are scheduled. Scrum methodology recognizes developers are terrible at determining how long a task will take. However, they are quite good at determining how long something will take in comparison to something else.
Once the tasks are known for a given set of requirements, the next step is to assign each task a difficulty score, called points.
Scrum includes several different techniques for assigning points. Team estimation and planning poker are two.
Velocity is the total number of points of work the team can accomplish each scrum period. The team uses its velocity to determine how many requirements it can commit to accomplishing in the next scrum period.
Figure Summary of Scrum Estimation Techniques

46. Hocus-Pocus?
Q12-6 How can scrum overcome the problems of the SDLC?
Incorporates team iteration and feedback for scheduling and tasking.
Team exceeds what members can do individually.
Framework for team learning.
Learns how to assign points and what team’s true velocity is.

47. Information Systems Development in 2027
Q ?
AI, machine learning, and deep neural networks are reshaping the way systems are developed.
Systems will be “trained” rather than “created.”
Developers will become more like architects rather than builders
Nature of IT industry changes—more agile using SOA and Web services.
New systems will come online fast, the limiting factor will be humans’ ability to cope.

48. Psst. There’s Another Way, You Know . . .
Security Guide
Code sent copies of engineering drawings on host machine to one of several servers in China.
Original infection on server of a Peruvian manufacturer whose suppliers needed manufacturer’s engineering designs to create component parts.
Tens of thousands of engineering drawings were leaked.
GOALS
Sensitize students to possibility of industrial espionage.
Set up need for IS management (next chapter).
Give yet another example of why strong passwords are necessary.
ACAD/Medre.A was spread by unsuspecting engineers.

49. Developing Your Personal Brand
Career Guide
Professionals use social media, such as LinkedIn, to build their personal brand.
Personal brand is the means by which you conduct authentic relationships with the market for your talents and abilities.
That market might be your professional colleagues, your employer, your fellow employees, your competition, or anyone who cares about what you care about.

50. Developing Your Personal Brand (cont’d)
Career Guide
What is your personal competitive advantage?
Why would someone choose you, your expertise, or your work products over others?
How could you use social media (like LinkedIn) to make an existing professional contact more personal in nature while still maintaining your privacy?

51. Active Review
Q12-1 How are business processes, IS, and applications developed? Q12-2 How do organizations use business process management (BPM)? Q12-3 How is business process modeling notation (BPMN) used to model processes? Q12-4 What are the phases in the systems development life cycle (SDLC)? Q12-5 What are the keys for successful SDLC projects? Q12-6 How can scrum overcome the problems of the SDLC? Q ?

52. When Will We Learn? 1974: Cause of failure
Case Study 12
1974: Cause of failure
Lack of user involvement in creating and managing system requirements.
Access CT project (2013) successful.
If schedule fixed, funding fixed, what factors can be traded off to reduce project difficulty and risk?
Requirements. Reduce to bare minimum, get system running, add to it.
GOALS
Illustrate difference between application development and systems development.
Motivate need for the SDLC or other development process.
Illustrate some difficulties in creating and managing an inter-enterprise system.

53. When Will We Learn? (cont’d)
Case Study 12
Failure: State of Oregon wasted $248+ million attempting to develop an information system to support healthcare exchange.
Very early in project, consulting firm hired to provide quality assurance, warned requirements were vague, changing, and inconsistent.
Warnings made no difference. Why?
Software and systems made of “pure thought- stuff.”