1. CHAPTER ELEVEN OVERVIEW
SECTION 11.1 – DEVELOPING ENTERPRISE APPLICATIONS
Developing Software
The Systems Development Life Cycle
Traditional Software Development Methodology: Waterfall
Agile Software Development Methodologies
Developing Successful Software
SECTION 11.2 – PROJECT MANAGEMENT
Managing Software Development Projects
Project Management Fundamentals
Choosing Strategic Projects
Understanding Project Planning
Managing Projects, Resources, and Change
Outsourcing Projects

2. 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

3. INTRODUCTION When developing a new system, you have 3 “who” choices…
Insourcing – IT specialists inside your organization
Selfsourcing – do-it-yourself approach many end users take with little or no help from IT specialists
Outsourcing – a third-party organization (i.e., let someone do the work and pay them for it)

4. INSOURCING AND THE SDLC
Systems development life cycle (SDLC) - a structured step- by-step approach for developing information systems
7 distinct phases, each with well-defined activities
Also called a waterfall methodology, an approach in which each phase of the SDLC is followed by another, from planning through implementation

5. SDLC Phases & Major Activities

6. SDLC as a Waterfall Methodology

7. Phase 1: Planning
Planning phase - create a solid plan for developing your information system
Three primary planning activities:
Define the system to be developed
You can’t build every system, so you make choices based on your organization’s priorities, which may be expressed as critical success factors
Critical success factor (CSF) - a factor simply critical to your organization’s success

8. Phase 1: Planning Set the project scope
Project scope - clearly defines the high-level system requirements
Scope creep - occurs when the scope of the project increases
Feature creep - occurs when developers add extra features that were not part of the initial requirements
Project scope document - a written definition of the project scope and is usually no longer than a paragraph

9. Phase 1: Planning
Develop the project plan including tasks, resources, and timeframes
Project plan - defines the what, when, and who questions of system development
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 all key project milestones are completed on time
Project milestones - represent key dates for which you need a certain group of activities performed

10. Phase 1: Planning (Gantt chart) Can use MS-Project to create them)
Sample Project Plan

11. Phase 2: Analysis
Analysis phase - involves end users and IT specialists working together to gather, understand, and document the business requirements for the proposed system

12. Phase 2: Analysis Two primary analysis activities:
Gather the business requirements
Business requirements - the detailed set of knowledge worker requests that the system must meet in order to be successful
Business requirements address the “why” and “what” of your development activities
Joint application development (JAD) - knowledge workers and IT specialists meet, sometimes for several days, to define or review the business requirements for the system

13. Phase 2: Analysis Prioritize the requirements
Requirements definition document – prioritizes the business requirements and places them in a formal comprehensive document
Again, you probably can’t do everything, so prioritizing is important
Users sign off on this document which clearly sets the scope for the project

14. Phase 2: Analysis
Take time during analysis to get the business requirements correct. If you find errors, fix them immediately. The cost to fix an error in the early stages of the SDLC is relatively small. In later stages, the cost is huge.

15. Phase 3: Design
Design phase - build a technical blueprint of how the proposed system will work
Two primary design activities:
Design the technical architecture
Technical architecture - defines the hardware, software, and telecommunications equipment required to run the system

16. Phase 3: Design
Design system models
This includes GUI screens that users will interface with, database designs (see XLM/C), report formats, software steps, etc
Starting with design, you take on less of an active participation role and act more as a “quality control” function, ensuring that the IT people are designing a system to meet your needs

17. Phase 4: Development
Development phase - take all of your detailed design documents from the design phase and transform them into an actual system
Two primary development activities:
Build the technical architecture
Build the database and programs
Both of these activities are mostly performed by IT specialists

18. Phase 5: Testing
Testing phase - verifies that the system works and meets all of the business requirements defined in the analysis phase
Two primary testing activities:
Write the test conditions
Test conditions - the detailed steps the system must perform along with the expected results of each step

19. Phase 5: Testing Perform the testing of the system
Unit testing – tests individual units of code
System testing – verifies that the units of code function correctly when integrated
Integration testing – verifies that separate systems work together
User acceptance testing (UAT) – determines if the system satisfies the business requirements

20. Phase 6: Implementation
Implementation phase - distribute the system to all of the knowledge workers and they begin using the system to perform their everyday jobs
Two primary implementation activities
Write detailed user documentation
User documentation - highlights how to use the system

21. Phase 6: Implementation
Provide training for the system users
Online training - runs over the Internet or off a CD-ROM
Workshop training - is held in a classroom environment and lead by an instructor

22. Phase 6: Implementation
Choose the right implementation method
Parallel implementation – use both the old and new system simultaneously
Plunge implementation – discard the old system completely and use the new
Pilot implementation – start with small groups of people on the new system and gradually add more users
Phased implementation – implement the new system in phases

23. Phase 7: Maintenance
Maintenance phase - monitor and support the new system to ensure it continues to meet the business goals
Two primary maintenance activities:
Build a help desk to support the system users
Help desk - a group of people who responds to knowledge workers’ questions
Provide an environment to support system changes

24. COMPONENT-BASED DEVELOPMENT
The SDLC focuses only on the project at hand
Component-based development (CBD) – focuses on building small self-contained blocks of code (components) that can be reused across a variety of applications
CBD focuses on
Using already-developed components to build systems quickly
Building new components as needed that can be used in all future systems

25. Component-Based Development Methodologies
Rapid application development (RAD)
Extreme programming (XP)
Agile methodology

26. Rapid Application Development (RAD)
Rapid application development (RAD) (also called rapid prototyping) - emphasizes extensive user involvement in the rapid and evolutionary construction of working prototypes of a system to accelerate the systems development process
Prototypes are models of the software components
The development team continually designs, develops, and tests the component prototypes until they are finished

27. Agile Methodology
Agile methodology - a form of XP, aims for customer satisfaction through early and continuous delivery of useful software components

28. SoA – An Architecture Perspective
Service-oriented architecture (SoA) – perspective that focuses on the development, use, and reuse of small self- contained blocks of code (called services) to meet all application software needs
All CBD methodologies adhere to an SoA
Services are the same as components, which are the same as small self-contained blocks of code
More in Chapter 7

29. SELFSOURCING
Selfsourcing (end-user development) – the development and support of IT systems by end users with little or no help from IT specialists
Do-it-yourself systems development approach
Can relieve IT specialists of the burden of developing many smaller systems

30. Selfsourcing Approach
Is similar to traditional SDLC
Big exception is that design, development, testing, and implementation are replaced by the process of prototyping
Prototyping is the process of building models, and – in this case – continually refining those models until they become the final system

31. Selfsourcing Approach

32. Selfsourcing Advantages
Improves requirements determination
Increases end user participation and sense of ownership
Increases speed of systems development
Reduces invisible backlog
Invisible backlog – list of all systems that an organization needs to develop but – because of the prioritization of systems development needs – never get funded because of the lack of organizational resources

33. Selfsourcing Disadvantages
Inadequate end user expertise leads to inadequately developed systems
Lack of organizational focus creates “privatized” IT systems
Insufficient analysis of design alternatives leads to subpar IT systems
Lack of documentation and external support leads to short-lived systems

34. The Right Tool for the Job
End users must have development tools that:
Are easy to use
Support multiple platforms
Offer low cost of ownership
Support a wide range of data types

35. PROTOTYPING
Prototype – a model of a proposed product, service, or system
Prototyping - the process of building a model that demonstrates the features of a proposed product, service, or system
Proof-of-concept prototype - used to prove the technical feasibility of a proposed system
Selling prototype - used to convince people of the worth of a proposed system

36. The Prototyping Process
The prototyping process involves four steps:
Identify basic requirements
Develop initial prototype
User review
Revise and enhance the prototype

37. Advantages of Prototyping
Encourages active user participation 
Helps resolve discrepancies among users
Gives users a feel for the final system
Helps determine technical feasibility 
Helps sell the idea of a proposed system

38. Disadvantages of Prototyping
Leads people to believe the final system will follow
Gives no indication of performance under operational conditions
Leads the project team to forgo proper testing and documentation

39. OUTSOURCING
Outsourcing – the delegation of specified work to a third party for a specified length of time, at a specified cost, and at a specified level of service
The third “who” option of systems development, after insourcing and selfsourcing

40. OUTSOURCING
The main reasons behind the rapid growth of the outsourcing industry include the following:
Globalization
The Internet
Growing economy and low unemployment rate
Technology
Deregulation

41. Outsourcing Options
IT outsourcing for software development can take one of four forms:
Purchase existing software
Purchase existing software and pay the publisher to make certain modifications
Purchase existing software and pay the publisher for the right to make modifications yourself
Outsource the development of an entirely new and unique system for which no software exists

42. Outsourcing Process
Like selfsourcing, the selfsourcing process looks similar to the traditional SDLC
Big exception here is that you “outsource” most of the work to another company

43. Outsourcing Options There are three different forms of outsourcing:
Onshore outsourcing - the process of engaging another company within the same country for services
Nearshore outsourcing - contracting an outsourcing arrangement with a company in a nearby country
Offshore outsourcing - contracting with a company that is geographically far away

44. Offshore Outsourcing Primary outsourcing countries are: India China
Eastern Europe (including Russia)
Ireland
Israel
Philippines

45. The Advantages and Disadvantages of Outsourcing
Focus on unique core competencies
Exploit the intellect of another organization
Better predict future costs
Acquire leading-edge technology
Reduce costs
Improve performance accountability

46. The Advantages and Disadvantages of Outsourcing
Reduces technical know-how for future innovation
Reduces degree of control
Increases vulnerability of your strategic information
Increases dependency on other organizations

47. THE SYSTEMS DEVELOPMENT LIFE CYCLE
Systems development life cycle (SDLC) – the overall process for developing information systems from planning and analysis through implementation and maintenance

48. WATERFALL METHODOLOGY
Waterfall methodology – an activity-based process in which each phase in the SDLC is performed sequentially from planning through implementation and maintenance

49. AGILE METHODOLOGY
Agile methodology – aims for customer satisfaction through early and continuous delivery of components developed by an iterative process
Rapid application development methodology (RAD)
Extreme programming (XP) methodology
Rational Unified Process (RUP)
SCRUM

50. 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

51. THE TRIPLE CONSTRAINT
Project management interdependent variables

52. PROJECT MANAGEMENT FUNDAMENTALS
Project management role

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

54. UNDERSTANDING PROJECT PLANNING
Building a project plan involves two key components:
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
Project plan – a formal, approved document that manages and controls project execution

55. PROJECT PLAN
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

56. MANAGING PROJECTS Managing a project includes: Primary areas of focus:
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
Primary areas of focus:
Managing people; Managing communications; Managing change

57. OUTSOURCING PROJECTS
Reasons companies outsource

58. OUTSOURCING PROJECTS Outsourcing benefits include:
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
Contract length
Competitive edge
Confidentiality
Scope definition