1. Chapter 11 McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Chapter 11 11-2 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

3. Chapter 11 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

4. Chapter 11 11-4 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

5. Chapter 11 11-5 WATERFALL METHODOLOGY Waterfall methodology – an activity-based process in which each phase in the SDLC is performed sequentially from planning through implementation and maintenance

6. Chapter 11 11-6 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

7. Chapter 11 11-7 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

8. Chapter 11 11-8 THE TRIPLE CONSTRAINT Project management interdependent variables

9. Chapter 11 11-9 PROJECT MANAGEMENT FUNDAMENTALS Project management role

10. Chapter 11 11-10 CHOOSING STRATEGIC PROJECTS Three common techniques for selecting projects 1. Focus on organizational goals 2. Categorize projects 3. Perform a financial analysis

11. Chapter 11 11-11 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

12. Chapter 11 11-12 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 o Dependency o Critical path  Gantt chart – a simple bar chart that depicts project tasks against a calendar

13. Chapter 11 11-13 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 Primary areas of focus:  Managing people; Managing communications; Managing change

14. Chapter 11 11-14 OUTSOURCING PROJECTS Reasons companies outsource

15. Chapter 11 11-15 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