1. IS312 Information Systems for Business
Lecture 8
Information Systems Development
(Ch. 9)

2. LEARNING OBJECTIVES Systems Development Life Cycle
Application Development Methodologies
Project Management
Systems Acquisition
Development Phases in a Structured Process

3. APPLICATION DEVELOPMENT
Application that is built correctly can transform as the organization and its business transforms
Application that effectively meets employee needs will help an organization become more productive and enhance decision making
Application that does not meet employee needs may have a damaging effect on productivity and can even cause a business to fail

4. APPLICATION DEVELOPMENT . . .
As organizations’ reliance on application software grows, so do the business-related consequences of application software successes and failures including:
Increase or decrease revenue
Repair or damage to brand reputation
Prevent or incur liabilities
Increase or decrease productivity

5. The Need for Structured Systems Development Process
The process of defining requirements, designing, building, and maintaining information systems
Standardized development methods
Best practices to follow
Consistent quality
Software engineering

6. 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

7. The Systems Development Life Cycle
Planning phase – Establishes a high-level plan of the intended project and determines project goals
Analysis phase – Involves analyzing end- user business requirements and refining project goals into defined functions and operations of the intended system (WHAT)
Business requirements – Specific business requests the system must meet to be successful
CLASSROOM EXERCISE
Space Needle Exercise
Break your students into groups and give them equal materials from a Tinker Toy set, a Zome set, or a product of your choice. Give them each the following instructions and observe the groups as they build their prototypes.
Review the IM for details on the project

8. The Systems Development Life Cycle . . .
Design phase – Establishes descriptions of the desired features and operations of the system including screen layouts, business rules, process diagrams, pseudo code, and other documentation (HOW)
Development phase – Involves taking all of the detailed design documents from the design phase and transforming them into the actual system

9. The Systems Development Life Cycle . . .
Testing phase – Involves bringing all the project pieces together into a special testing environment to eliminate errors and bugs, and verify that the system meets all of the business requirements defined in the analysis phase
Implementation phase – Involves placing the system into production so users can begin to perform actual business operations with it

10. The Systems Development Life Cycle . . .
Maintenance phase – Involves performing changes, corrections, additions, and upgrades to ensure the system continues to meet its business goals

11. APPLICATION DEVELOPMENT METHODOLOGIES
Waterfall (Structured Process)
Agile
Rapid application development (RAD)
Extreme programming
Rational unified process (RUP)
SCRUM

12. Waterfall Methodology
Waterfall methodology – A structured sequence of phases in which the output of each phase becomes the input for the next

13. Agile Methodology
Iterative development – Consists of a series of tiny projects
Agile methodology – Aims for customer satisfaction through early and continuous delivery of useful application software components developed by an iterative process using the bare minimum requirements

14. Rapid Application Development (RAD) Methodology
Rapid application development methodology– 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
The prototype is an essential part of the analysis phase when using a RAD methodology

15. Extreme Programming Methodology
Extreme programming (XP) methodology – Breaks a project into tiny phases, and developers cannot continue on to the next phase until the first phase is complete

16. Rational Unified Process (RUP) Methodology
Rational Unified Process (RUP) – 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

17. SCRUM Methodology
SCRUM – 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

18. DEVELOPING SUCCESSFUL APPLICATION
Primary reasons for project failure
Unclear or missing business requirements
Skipping SDLC phases
Failure to manage project scope
Scope creep
Feature creep
Failure to manage project plan
Changing technology

19. Developing Successful Application . . .
The later in the SDLC an error is found the more expensive it is to fix!

20. MANAGING SOFTWARE DEVELOPMENT PROJECTS
Analysts predict investment in MIS projects worldwide is 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

21. Managing Software Development Projects
Project – Temporary activities undertaken to create a unique product or service
Project management – The application of knowledge, skills, tools, and techniques to project activities to meet project requirements
Project manager – An individual who is an expert in project planning and management, defines and develops the project plan, and tracks the plan to ensure the project is completed on time and on budget

22. Managing Software Development Projects . . .
Project deliverable – Any measurable, tangible, verifiable outcome, result, or item that is produced to complete a project or part of a project
Project milestone – Represents key dates when a certain group of activities must be performed
Project management office (PMO) – An internal department that oversees all organizational projects

23. PROJECT CONSTRAINTS 23

24. The Triple Constraint
Benjamin Franklin’s timeless advice - by failing to prepare, you prepare to fail - applies to software development projects
The Hackett Group analyzed 2,000 companies and discovered
Three in 10 major IT projects fail
21 percent of the companies state that they cannot adjust rapidly to market changes
One in four validates a business case for IT projects after completion

25. PROJECT PARTICIPANTS
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
Owner (What information system can provide)
User (What tasks to be done)
Designer (What to do to build system, How IT do it)
Developer (Build system according to specs)
Executive sponsor - The person or group who provides the financial resources for the project

26. Role of Users in Systems Development Process
User Requirement Discovery: What the system should do to assist users
User Participation: Develop “system ownership”: the system is theirs
User Acceptance: The system does what users need effectively, efficiently
User Satisfaction: The success of a system !!!

27. Project Management Role

28. CHOOSING STRATEGIC PROJECTS
Three common techniques for selecting projects
Focus on organizational goals (vision, strategy)
Categorize projects (visibility, urgency, benefit)
Perform a financial analysis (cost/benefit)

29. 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

30. Understanding Project Planning . . .
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 statement
Project objectives
Project constraints
Projects assumptions

31. Understanding Project Planning . . .
SMART criteria are useful reminders on how to ensure that the project has created understandable and measurable objectives

32. Understanding Project Planning . . .
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

33. 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

34. In-Sourcing Vs. Outsourcing Projects
In-sourcing (in-house-development) – Uses the professional expertise within an organization to develop and maintain its 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

35. Outsourcing Projects Factors driving outsourcing growth include
Core competencies
Financial savings
Rapid growth
The Internet and globalization

36. Outsourcing Projects Onshore outsourcing Nearshore outsourcing
Offshore outsourcing

37. Outsourcing Benefits Outsourcing benefits include
Increased quality and efficiency of business processes
Reduced operating expenses for head count and exposure to risk for large capital investments
Access to outsourcing service provider’s expertise, economies of scale, best practices, and advanced technologies
Increased flexibility for faster response to market changes and less time to market for new products or services

38. Outsourcing Challenges
Outsourcing challenges include
Length of contract
Difficulties in getting out of a contract
Problems in foreseeing future needs
Problems in reforming an internal IT department after the contract is finished
Threat to competitive advantage
Loss of confidentiality

39. Project Management Failure
Lack of sufficient planning
Problems with technology compatibility
Lack of commitment by management providing necessary resources
Poorly defined project scope
Lack of sufficient time to complete the project 39

40. Planning for and Justifying Applications
Organizations must analyze the need for the IT application.
Each IT application must be justified in terms of costs and benefits.
The application portfolio 40

41. Information Systems Planning Process41

42. SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC) Overview ( IS 312, IS 431 , IS 531, IS 630 , IS 655 )

43. Where Do Systems Development Projects Come From?
Problem – an actual undesirable situation that prevents the organization from fully achieving its purpose, goals, and/or objectives.
Opportunity – a chance to improve the organization even in the absence of an identified problem.
Directive - a new requirement that is imposed by management, government, or some external influence/parties.

44. System Analysis & Design Approaches in a Nutshell
DEVELOPMENT
Modeling
Prototyping (RAD)
IMPLEMENTATION
Build (In-house)
Buy (COTS)
No additional notes.

45. System Construction Process
Identify an IT problem to solve
Break the large problem into several smaller, more manageable units
Translate each unit (small problem) into computer programs
Piece together each program into an overall comprehensive IS that solves the problem

46. System Construction Process…

47. Strategies for Acquiring IT Applications
Buy the applications (off-the-shelf approach)
Lease the applications
Software-as-a-Service (Cloud Computing)
Use Open-Source Software
Outsourcing
Developing the applications in-house 47

48. SYSTEMS DEVELOPMENT PROCESS
System Identification, Selection, and Planning
System Analysis
System Design
System Implementation
System Maintenance

49. Systems Development Process
Scope Definition Phase
What Business Problem
Analysis Phase
What System Issues (Info / Data, Processes, Communications / Interfaces),
What User Needs,
What to Do - Conceptual Model
What Solution
Design Phase
How to Do - Physical Model
Implementation / MaintenancePhase
Do it, use it, keep it good

50. Systems Development Life Cycle …

51. Systems Development Life Cycle in Practice

52. Phase 1: System Identification, Selection, and Planning

53. Phase 1: System Identification, Selection, and Planning
Undertake only those projects critical to mission, goals, and objectives
Select a development project from all possible projects that could be performed
Different evaluation criteria used to rank potential projects

54. Phase 1: System Identification, Selection, and Planning . . .
Evaluation criteria
Strategic alignment
Potential benefits
Potential costs and resource availability
Project size / duration
Technical difficulty / risks

55. Evaluation Criteria

56. Phase 2: Systems Analysis

57. Phase 2: System Analysis . . .
Requirements collection
Interviews
Questionnaires
Observations
Document analysis
Critical Success Factors (CSF)
Joint Application Design (JAD)

58. Pros & Cons of CSF

59. Pros & Cons of JAD

60. Phase 2: System Analysis . . .
Modeling Organizational Data
Entity Relationship Diagram (ERD)
Modeling Organizational Processes and Logic
Data Flow Diagram (DFD)
Processing Logic

61. A Process Model

62. A Data Model

63. Phase 3: System Design

64. Phase 3: System Design . . . Designing interfaces and dialogues
Designing forms and reports
Designing interfaces and dialogues
Designing databases and files
Designing processing and logic

65. Phase 4: System Implementation

66. Phase 4: System Implementation . . .
Software programming
Software testing
Developmental (check program logic)
Alpha testing (simulated data)
Beta testing (real data)

67. System Testing

68. Phase 4: System Implementation . . .
System conversion
Parallel
Direct / Cut-off
Phased
Pilot
System documentation, training, and support
User and reference guides
Training and tutorials
Installation procedures and troubleshooting guides

69. System Conversion

70. Conversion Strategies
Direct
Conversion
Risk
Location
Conversion
Phased
Conversion
No additional notes
Parallel
Conversion
Cost

71. User Training

72. Phase 5: System Maintenance . . .
Maintenance process steps:
Obtain maintenance request
Transform requests into changes
Design changes
Implement changes

73. Phase 5: System Maintenance . . .

74. Phase 5: System Maintenance . . .
Maintenance types:
Corrective maintenance
Adaptive maintenance
Perfective maintenance
Preventive maintenance

75. Software Maintenance

76. Need for Alternatives to In-house Development
Limited IS staff
IS staff has limited skill set
IS staff is overworked
Problems with performance of IS staff
Reinvent the wheel (Common business functions)

77. Commercial Off-the-Shelf Software
Advantages
Fast implementation of new system (many functions are similar across businesses, no need to build them from scratch.)
No need for expertise and staff for in-house development
Low development costs (but expensive to customize and implement !!!)
Vendors are responsible for software improvements and error corrections

78. Commercial Off-the-Shelf Software . . .
Disadvantages
Dependent on the vendors
Future upgrade/customization is expensive
A COTS rarely reflects ideal solution developed in-house
Changing current business processes to fit the COTS

79. System Proposal & Project Management
Feasibility Analysis
Alternative (Candidate) System Solutions.
Cost-benefit Analysis
System Proposal Reports
Project Management
No additional notes.

80. Feasibility Analysis
Feasibility is the measure of how beneficial or practical the development of an information system will be to an organization.
Creeping Commitment : feasibility should be measured throughout the life cycle as project scope expands over times.
No additional notes.

81. Feasibility Analysis …
Technical feasibility is a measure of the practicality of a specific technical solution and the availability of technical resources and expertise.
Operational feasibility is a measure of how well the solution will work in the organization. It is also a measure of how people feel about the system/project.
Economic feasibility is a measure of the cost-effectiveness of a project or solution.
Schedule feasibility is a measure of how reasonable the project timetable is.

82. Cost-Benefit Analysis
Costs:
Development costs are one time costs that will not recur after the project has been completed.
Operating costs are costs that tend to recur throughout the lifetime of the system. Such costs can be classified as:
Fixed costs — occur at regular intervals but at relatively fixed rates.
Variable costs — occur in proportion to some usage factor.
Benefits:
Tangible benefits are those that can be easily quantified.
Intangible benefits are those benefits believed to be difficult or impossible to quantify.

83. Costs for a Proposed Systems Solution
No additional notes.

84. Economic Feasibility Payback Analysis
Payback analysis is to determine if and when an investment will pay for itself.
Payback period is the period of time that will lapse before accrued benefits overtake accrued and continuing costs.
Net Present Value
a dollar today is worth more than a dollar one year from now
Discount rate – a percentage that the business earns on investing money in other projects or investments: opportunity cost

85. Economic Feasibility …
Return-on-Investment (ROI) Analysis – a technique that compares the lifetime profitability of alternative solutions.
ROI for a solution or project is a percentage rate that measures the relationship between the amount the business gets back from an investment and the amount invested.
Lifetime ROI = (estimated lifetime benefits – estimated lifetime costs) / estimated lifetime costs
Annual ROI = lifetime ROI / lifetime of the system

86. Candidate Systems Matrix
Characteristics
Portion of System Computerized
Brief description of that portion of the system that would be computerized in this candidate.
Benefits
Brief description of the business benefits that would be realized for this candidate.
Servers and Workstations
A description of the servers and workstations needed to support this candidate.
Software Tools Needed
Software tools needed to design and build the candidate (e.g., database management system, emulators, operating systems, languages, etc.). Not generally applicable if applications software packages are to be purchased.
Candidate 1
COTS package from Software Solutions would be purchased and customized to satisfy required functionality.
This solution can be implemented quickly because it’s a purchased solution.
Technically architecture dictates Pentium III, MS Windows 2000 class servers and workstations (clients).
MS Visual C++ and MS Access for customization of package to provide report writing and integration.
Candidate 2
Member Services and warehouse operations in relation to order fulfillment.
Fully supports user required business processes for more efficient interaction with member accounts.
Same as candidate 1.
MS Visual Basic 5.0 System Architect 2001 Internet Explorer
Candidate 3
Same as candidate 2.
MS Visual Basic 5.0
System Architect 2001
Internet Explorer
No additional notes.

87. Candidate Systems Matrix …
Characteristics
Application Software
A description of the software to be purchased, built, accessed, or some combination of these techniques.
Method of Data Processing
Generally some combination of: on-line, batch, deferred batch, remote batch, and real-time.
Output Devices and Implications
A description of output devices that would be used, special output requirements, (e.g., network, preprinted forms, etc.), and output considerations (e.g., timing constratints)
Candidate 1
Package solution
Client/Server
(2) HP4MV department laser printers
(2) HP5SI LAN laser printers
Candidate 2
Custom solution
Same as candidate 1.
(2) HP4MV department laser printers.
(1) PRINTRONIX bar-code printer (includes software & drivers)
Web pages must be designed to VGA resolution. All internal screens will be designed for SVGA resolution.
Candidate 3
Same as candidate 2.
No additional notes.

88. Candidate Systems Matrix …
Characteristics
Input devices and Implications
A description of input methods to be used, input devices (e.g., keyboard, mouse, etc.), special input requirements (e.g., new or revised forms from which data would be input), and input considerations (e.g., timing of actual inputs).
Storage Devices and Implications
Brief description of what data would be stored, what data would be accessed from existing stores, what storage media would be used, how much storage capacity would be needed, and how data would be organized.
Candidate 1
Keyboard & mouse.
MS SQL Server DBMS with 1000GB arrayed capability.
Candidate 2
Apple “Quick Take” digital camera and software
(15) PSC Quickscan laser bar-code scanners
(1) HP Scanjet 4C Flatbed Scanner
Keyboard and mouse
Same as candidate 1.
Candidate 3
Same as candidate 2.
No additional notes.

89. Feasibility Matrix
No additional notes

90. Scheduling Strategies
Forward Scheduling – a project scheduling approach that establishes a project start date and then schedules forward from that date.
Reverse Scheduling – a project scheduling strategy that establishes a project deadline and then schedules backward from that date.

91. PERT Chart Legend Project Initiation Problem Analysis
N/A
Task
Task
N/A
Scheduled
Scheduled
intertask
Scheduled
Scheduled
Start
Finish
dependency
Start
Finish
Actual
Actual
Actual Start
Finish
Actual Start
Preliminary Investigation
Finish
Problem Analysis
Requirements Analysis
Decision Analysis
Design
Construction
In Progress
Implementation
TBD
TBD

92. Critical Path The critical path is highlighted in red Duration
TASK C
Fri 2/9/01
2 days
0 days D
Tue 2/20/01
7 days I
Tue 2/27/01
5 days E
Mon 2/19/01
6 days
1 day B
Wed 2/7/01 A
Mon 2/5/01
3 days H
Thu 2/15/01 F
Wed 2/14/01
Fri 2/16/01 G
Duration
Slack Time
No additional notes

93. Gantt Chart Legend Today ID 1 2 3 4 5 6 7 Preliminary investigation
Incomplete Task
Complete Task
Legend ID 1 2 3 4 5 6 7
Preliminary investigation
Problem analysis
Requirements analysis
Decision analysis
Design
Construction
Implementation
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2001
Task Name
Today

94. Measures of Project Success
The resulting information system is acceptable to the customer.
The system was delivered “on time.”
The system was delivered “within budget.”
The system development process had a minimal impact on ongoing business operations.

95. System Proposal
No additional notes