1. SYSTEMS DEVELOPMENT AND PROJECT MANAGEMENT Corporate Responsibility
CHAPTER NINE
SYSTEMS DEVELOPMENT AND PROJECT MANAGEMENT
Corporate Responsibility

2. CHAPTER OVERVIEW SECTION 9.1 – Developing Enterprise Applications
Developing Software
The Systems Development Life Cycle
Traditional Software Development Methodology: Waterfall
Agile Software Development Methodologies
Developing Successful Software
SECTION 9.2 – Project Management
Managing Software Development Projects
Choosing Strategic Projects
Understanding Project Planning
Managing Projects
Outsourcing Projects

3. SECTION 9.1 Developing Enterprise Applications

4. LEARNING OUTCOMES
Describe the seven phases of the systems development life cycle
Summarize the different software development methodologies

5. DEVELOPING 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

6. 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

7. 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

8. THE SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC)
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

9. THE SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC)
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
Development phase – Involves taking all of the detailed design documents from the design phase and transforming them into the actual system

10. THE SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC)
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

11. THE SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC)

12. THE SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC)

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

14. 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)
Scrum

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

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

17. Rapid Application Development Methodology (RAD)
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

18. 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

19. 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

20. 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

21. DEVELOPING SUCCESSFUL SOFTWARE
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

22. DEVELOPING SUCCESSFUL SOFTWARE

23. DEVELOPING SUCCESSFUL SOFTWARE

24. DEVELOPING SUCCESSFUL SOFTWARE

25. DEVELOPING SUCCESSFUL SOFTWARE
The later in the SDLC an error is found the more expensive it is to fix!

26. SECTION 9.2 Project Management

27. LEARNING OUTCOMES
Explain project management and the primary reasons project fail
Identify the primary project planning diagrams
Identify the three different types of outsourcing along with their benefits and challenges

28. 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

29. MANAGING SOFTWARE DEVELOPMENT PROJECTS
The Project Management Institute (PMI) develops procedures and concepts necessary to support the profession of project management ( and has three areas of focus
The distinguishing characteristics of a practicing professional (ethics)
The content and structure of the profession’s body of knowledge (standards)
Recognition of professional attainment (accreditation)

30. 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

31. 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

32. The Triple Constraint
Project Management Interdependent Variables

33. 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

34. Project Participants
Project stakeholder - 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

35. Project Participants

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

37. 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

38. 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

39. UNDERSTANDING PROJECT PLANNING
SMART criteria are useful reminders on how to ensure that the project has created understandable and measurable objectives

40. 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

41. UNDERSTANDING PROJECT PLANNING
Two primary diagrams used in project planning include PERT and Gantt charts
PERT chart
Dependency
Critical path
Gantt chart

42. UNDERSTANDING PROJECT PLANNING
PERT Chart EXPERT – PERT Chart Example

43. UNDERSTANDING PROJECT PLANNING
MS Project – Gantt Chart Example

44. 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

45. MANAGING PROJECTS
A project manager must focus on managing three primary areas to ensure success
People
Communications
Change

46. 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

47. OUTSOURCING PROJECTS Factors driving outsourcing growth include
Core competencies
Financial savings
Rapid growth
The Internet and globalization

48. OUTSOURCING PROJECTS Onshore outsourcing Nearshore outsourcing
Offshore outsourcing

49. OUTSOURCING PROJECTS
Big selling point for offshore outsourcing “inexpensive good work”

50. OUTSOURCING PROJECTS
Most organizations outsource their noncore business functions, such as payroll and IT

51. 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

52. 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

53. LEARNING OUTCOME REVIEW
Now that you have finished the chapter please review the learning outcomes in your text