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1 Systems Development and
Chapter 11 Systems Development and Opening Case: Project Management

2 Chapter Eleven Overview
SECTION 11.1 – SYSTEMS DEVELOPMENT Introduction Developing Information Systems The Systems Development Life Cycle (SDLC) Systems Development Methodologies Developing Successful Systems Organizations must learn how to build and implement systems to remain competitive. Software that is built correctly can support agile organizations and 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. Employee involvement along with using the right implementation methodology when developing software is critical to the success of an organization.

3 Chapter Eleven Overview
SECTION 11.2 – PROJECT MANAGEMENT & GOVERNANCE Introduction Managing Software Development Projects Project Management Fundamentals Choosing Strategic Projects and IT Governance Understanding Project Planning Managing Projects Measuring Project Value Outsourcing Projects Organizations must learn how to build and implement disruptive technologies, such as software for wireless devices, to remain competitive. Software that is built correctly can support agile organizations and 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.

4 Learning Outcomes Explain the business benefits associated with successful systems development and how the issues and challenges developing domestic information systems amplify with global systems development. Describe and understand the relationships between each of the seven phases of the systems development life cycle. Summarize and compare different systems development methodologies. Explain the importance of good project management practice. Describe the benefits and challenges of outsourcing systems development projects. A detailed review of the learning outcomes can be found at the end of the chapter in the textbook in the section headed, “Summary of Key Themes”.

5 SECTION 11.1 SYSTEMS DEVELOPMENT CLASSROOM OPENER
GREAT BUSINESS DECISIONS – Johnson & Johnson Decides to Pull Tylenol from Store Shelves In 1982, Johnson & Johnson exemplified ethics in its decision to pull Tylenol from store shelves across the United States because a psychopath put cyanide into some of the Tylenol capsules. Eight people died. In response, Johnson & Johnson quickly pulled all Tylenol products from store shelves; a total of 31 million bottles were returned to J&J costing the company over $100 million. The company’s agility and ability to act quickly to the threat by changing its processes and developing more secure products allowed the company to remain as one of the best-selling over-the-counter drug producers. Organizations must be agile and ready for the unexpected. Tylenol had no idea a vandal would go to such an extreme extent, but the company was ready to move and quick to react to the situation. Perhaps if Tylenol had anticipated such an event the company would have designed a tamper-proof product in the beginning. It would have been cheaper than having to react to the situation and the damage done to the brand.

6 Introduction Poor processes IS solutions allow companies to:
Improve cost structure, manage people better, bring new products to market faster, solve complex problems Effective systems development processes can: Transform an organization as its business transforms Make an organization more responsive to customers and competition Poor processes Can damage productivity and morale Cause a business to fail 11.1 Many companies start out with great ideas and high hopes for their information systems. A lot of money, time and human resources ride on successful planning, design and implementation. Projects are risky even with good planning…without it, they are doomed to failure. Hydro Ontario’s Smart Meters seemed like an upbeatable idea. Students can access for a summary of its planned benefits. But it ended up as an information system gone wrong. This blog from the Windor Star articulates many of the complaints from thousands of hydro subscribers across the province:

7 Developing Information Systems
Consequences of System Success and Failure 11.1 In 2001, Nike posted earnings of $97 million, $48 million below forecast. The company blamed its Supply Chain management system which was to reduce the amount of raw materials Nike used and manage demand so that the desired shoes were at the appropriate retailers. Instead, Nike found itself buried in unsold inventory and out of stock on its hottest sellers. Have students browse the Internet for commentaries about the Nike disaster. What did Nike do wrong? Can this happen today? Figure 11.1

8 Global Information Systems Development
Unlike domestic systems, global IS must support a diverse base of customers, users, products, languages, currencies, laws, etc. 11.1 Strategies to solve some global IS development problems: Transform domestic system for global use. Established business processes and end-users will be supported. Set up multi-national development team to articulate the needs of local sites. Assign system development to the particular subsidiary which is the centre of excellence for the required business or technical skills. Outsource to global or offshore development countries that have the required skills and experience. All of the approaches will require a development team , collaboration and managerial oversight to meet global needs of the business. Have students who have families overseas share how they communicate with them and how they manage language, time zones and other barriers that make simple, individual, person-to-person communication difficult. Are things ever misunderstood? What kind of delays and problems are caused because of geographic distance? What strategies help? Data definition is critical for global understanding. A “Sale” in Canada may be an “order scheduled” in Germany. An “order scheduled” in Canada is not the same in Germany. How dynamic this process is reflected in the practice of implementing corporate wikis where employees can post and update business definitions.

9 The Systems Development Life Cycle (SDLC)
The overall process for developing an IS from planning to implementation and maintenance Begins with the business needs and ends when the benefits of the system no longer outweighs its maintenance costs Referred to as a cycle as the final maintenance stage leads into planning for a new development The systems Development Life Cycle and Its Associated Activities 11.2 Planning phase – involves establishing a high-level plan of the intended project and determining project goals Identify and select the system for development Assess project feasibility Develop the project plan Analysis phase – involves analyzing end-user business requirements and refining project goals into defined functions and operations of the intended system Gather business requirements Create process diagrams Perform a buy versus build analysis Design phase – involves describing the desired features and operations of the system including screen layouts, business rules, process diagrams, pseudo code, and other documentation Design the IT infrastructure Design system models Development phase – involves taking all of the detailed design documents from the design phase and transforming them into the actual system Develop the IT infrastructure Develop the database and programs Testing phase – involves bringing all the project pieces together into a special testing environment to test for errors, bugs, and interoperability, in order to verify that the system meets all the business requirements defined in the analysis phase Write the test conditions Perform the system testing Implementation phase – involves placing the system into production so users can begin to perform actual business operations with the system Determine implementation method Provide training for the system users Write detailed user documentation Maintenance phase – involves performing changes, corrections, additions, and upgrades to ensure the system continues to meet the business goals Build a help desk to support the system users Perform system maintenance Provide an environment to support system changes CLASSROOM EXERCISE Around SDLC Break your students into groups and have them correlate the SDLC to building a house. This activity helps students understand the different types of activities that occur during each phase of the systems development life cycle. Have your students present their answers to the entire class. From Figure 11.2

10 The Systems Development Life Cycle and Its Associated Activities
11.2 Systems development was, at one time, felt to be best left to the information technology staff. After many high profile disasters in the late 1990’s and the turn of the millennium (Nike being only one such example), the importance of the user in SDLC was recognized. Have students consider why the user is so important. Where in the life cycle should the user have a role? What role should that be? Answers will vary but should include the fact that the user is usually the functional expert so they are the ones that have to describe what the results of the process should look like. They should have a say in the “user interface” – what the input screens look like and how to do the process as they are the ones who will have to operate the system. Change is difficult and by bringing users on side early, they are likely to be less afraid and more supportive than otherwise. From Figure 11.2

11 Systems Development Methodologies
Methodology Set of policies, procedures, standards, processes, practices, tools, techniques, and tasks applied to technical and management challenges. Method of managing the information systems deployment Formal methodology can include coding standards, code libraries, development practices and much more Types Waterfall Agile Software Development Participatory Design Self-Sourcing 11.3 Systems development methodologies are “carved in stone”. This text reviews the major types of systems development processes. Companies may create their own hybrid. The key element that underpins all methodologies is that a disciplined, inclusive approach is taken that stresses planning and stakeholder contributions.

12 The Traditional Waterfall Methodology
11.3 A sequential, activity-based process in which each phase of the SDLC is performed. The Traditional Waterfall Methodology is the oldest and still one of the most common form of systems design. It has been used across a wide range of industries and a large collection of best-practices can be drawn upon. It’s other advantages include roles and processes to include input from all stakeholders and predictable tasks taking some of the risk out of missing an important design factor or potential impact. It has, however, several significant disadvantages summarized in the next slide. Figure 11.3

13 Issues Related to the Waterfall Methodology
11.3 Additional to the stated problems above, is that the traditional waterfall method is laborious, time-consuming and, thus, expensive. Some studies have posted its success rate in delivering on-time and on-budget systems as 1-in-10, or only 10% of the time. Figure 11.4

14 Agile Software Development Methodologies
Agile Methodology Aims for customer satisfaction with early and continuous delivery of useful system or software components meeting bare minimum requirements. Iterative Development The basis for Agile Methodologies Consists of a series of fast, efficient, short, lower cost projects that achieve rapid feedback and acceptance Speed, size and focus account for end user satisfaction 11.3 Primary forms of agile methodologies include: Rapid prototyping or rapid application development methodology. Extreme programming methodology. Rational unified process (RUP) methodology. SCRUM methodology. CLASSROOM VIDEO If Programmers Made Planes An interesting analogy using building an aircraft as an example of what an iterative process might look like.

15 Agile Software Development Methodologies
The Iterative Approach 11.3 The overall systems project is broken out into a series of components that are mini-projects in themselves. Each component can be developed and implemented quickly. It is a fairly intuitive way to work. Ask students to consider how they work. It they are going to throw a birthday party, clean the house or do a school project, they tend to break the task into smaller components and work on the components as time, materials or other resources become available and then put the whole system together. Figure 11.5

16 Rapid Application Development Methodology (RAD)
Emphasizes extensive user involvement in the rapid and evolutionary construction of working prototypes that accelerate systems development. A prototype is a smaller-scale working model of the user’s requirements. The RAD Approach 11.3 RAD is a popular route for system development projects that is overtaking the traditional Waterfall Method. The fundamentals of RAD include: Focus initially on creating a prototype that looks and acts like the desired system Actively involve system users in the analysis, design, and development phases Accelerate collecting the business requirements through an interactive and iterative construction approach A simple example might be installing new ordering and shipping software linking the district sales offices with their closest warehouse locations. A prototype of the order taking software might first be developed and sent to selected sales offices for testing. Feedback would correct the most obvious errors and improve general performance. It might then be rolled out to all the sales offices. These offices would provide feedback and this software component would be re-issued. Have students “walk” through the shipping software side and also linking the two initiatives together. What advantages are there in the iterative process? What disadvantages would potentially exist? Consider building the house example used in Slide 9. Figure 11.6

17 Rational Unified Process (RUP)
Each gate consists of executable iterations of the software. Software moves on when designers are satisfied. At any time the software can be send back to Gate One. Gate One: Inception Ensures stakeholders share an understanding of the system Gate Two: Elaboration What are the agreed-upon details of the system? Do we have the architecture to support & build the system? Gate Three: Construction Building and Developing the product Gate Four: Who owns the system? Establish the training of key personnel 11.3 Have students design a process for submission of on-line projects including policies regarding format, software, delivery portal, due dates, dealing with plagiarism etc. Gate One might be an understanding of what the system is supposed to do and a shared understanding of what system is in place. Have students describe what the further gates would be and illustrate it with the example in the exercise.

18 Scrum Methodology 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 11.3 CLASSROOM EXERCISE Understanding Business Requirements One of the primary reasons why projects fail is due to missing or inaccurate business requirements. This is a great exercise to demonstrate to your students why it is so difficult to gather complete and accurate business requirements. Break your students into groups and provide your students with the instructions below, a piece of blank paper, and two different coloured markers. Please create the following picture using the materials provided Frame 3 inches by 5 inches Use two different colors Use one color for the 3 inches and the other color for the 5 inches Object 1 - Sun Using one color create a solid circle in the top right corner of your frame Create five small lines using the same color coming out from the sun Create five even smaller lines using a different color and place them coming out of the sun Object 2 – Ground The ground should be one color and one inch along the bottom of the picture Place one long line of along the top of the ground Place five circles ½ inch apart along the bottom of the grass Object 3 – Snowman Using one color create three different shaped circles The first circle should be the size of a quarter The second circle should be the size of a nickel The third circle should be the size of a dime Place the first circle in the middle of the picture on top of the ground Place the second circle in the middle of the picture on top of the first circle Place the third circle in the middle of the picture on top of the second circle Using a different color create two small eyes and place them in the middle of the third circle Using the same color as mentioned above, create three small buttons and place two on the second circle and one on the first circle Use four 2 inch pieces to create the snowman’s arms Object 4 – Broom Place 10 small pieces on top of a small circle Create the broom handle by attaching two long pieces to the top of the broom Once everyone has completed their pictures, have them take a walk around the class to see what the other groups created. You can be guaranteed that no two pictures will look alike although they were all working off the exact same requirements. This was a simple picture and there was so much ambiguity in the requirements that all of the pictures are different. If this were representative of a real system, then the requirements would have to be so perfect and detailed that all of the pictures would have turned out identical. The biggest issues with business requirements are ambiguity and interpretation.

19 The Agile Alliance Manifesto
11.3 Source: The Agile Alliance is a group of software developers whose mission is to improve software development processes and whose manifesto includes the following: Satisfy the customer through early and continuous delivery of valuable software Welcome changing requirements, even late in development Business people and developers must work together daily throughout the project Build projects around motivated individuals The best architectures, requirements, and designs emerge from self-organizing teams At regular intervals, the team reflects on how to become more effective, then tunes and adjusts its behavior accordingly Figure 11.7

20 Participatory Design (PD)
Promotes the active involvement of users Sees users as the experts Tenets The design process makes a difference for participants Implementing the results from the design process is likely It’s fun to participate 11.3 To encourage healthy cooperation between user and designer, PD advocates suggest: Creating opportunities for mutual learning between users and traditional systems designers (e.g., each has knowledge that the other can benefit from) Utilizing design tools that are familiar to users (e.g., using pens, papers, flipcharts instead of entity-relationship or data-flow diagrams) Employing language that end-users know (no computer techno-babble allowed!) Starting the design process with the current practice of users, that is, understand how users currently conduct activities that the future system will help users perform, and use that knowledge as a springboard for determining ways to make improvements Facilitating other design activities in a way that encourages users to envision future situations of working with the final system—this will allow users to experience and contemplate how the emerging design may affect their lives in practice Are there any tips that can be gleaned from these guidelines to facilitate group work on school projects.

21 Self-Sourcing (End-User Design)
Development is by people who use the system End users build and maintain the system without much support from IT Ranges from simple Excel worksheet templates to complex systems including prototypes Advantages: Meeting user requirements Sense of ownership by users Faster development Disadvantages Problems due to lack of development expertise Not consistent with organizational goals Lack of alternatives and documentation 11.3 An interesting article on self-sourcing that can be used as a basis for class discussion:

22 Developing Successful Systems
Slash the Budget Focusses designers on essentials; easier to kill small projects If it doesn’t work, kill it Bring key stakeholders together at the beginning to eliminate anything that won’t meet expectations. Keep Requirements to a Minimum Identify “must haves” and work to achieve these Feature Creep developers add new features as they go Scope Creep project gets bigger or broader Test and deliver frequently Assign Non-IT executives to software projects Liaise between user groups and IT Test iterations to ensure they work 11.3 An excellent video as to what should be at the heart of any information systems development if the company wishes it to succeeed (2 min 34 sec)

23 Outsourcing Projects Insourcing (In-house development) Outsourcing
Uses the professional expertise within the organization itself Outsourcing An arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house. 11.5 Can students provide examples of functions that are outsourced by their educational institution? Can they provide examples from work? Examples from an educational institution might include: food (cafeteria, vending machines), residence (usually run by companies specializing in the hospitality business), snow removal and, possibly, parking. Other answers may apply. Departments Commonly Outsourced by Organizations Figure 11.18

24 Primary Reasons Companies Outsource
11.5 Have students develop a list of disadvantages to outsourcing. Expense, loss of control of process, loss of control of security, complicated integration of outsource service to in-house operations and others will also apply. Figure 11.19

25 Outsourcing Models Onshore outsourcing Nearshore outsourcing
Engaging a company within the country Nearshore outsourcing Engaging a company in a nearby country, example USA Offshore outsourcing Engaging organizations from developing countries or countries far away Often used for code writing and systems development Outsourcing Models and Cost Savings 11.5 Major Canadian companies send significant portions of their software development to vendors in India and China as well as Eastern Europe, Russia, Ireland, Israel and the Philippines. Work is inexpensive and of high quality. While lack of infrastructure and language often prevent other countries from competing for systems development contracts, India has built this industry to where it is growing between 25-30% annually. Figure 11.20

26 Results of Outsourcing
Companies concentrate on Core Competencies using outsourcing as a revenue generation, not cost cutting strategy Financial savings coupled with finding skilled workers Rapid growth due to an enlarged, engaged workforce Industry changes force companies to manage dynamic environment and send structured work out Internet has provided an effective channel to distribute systems work Globalization has opened huge off shore labour markets 11.5 The many benefits associated with outsourcing include: Increased quality and efficiency of a process, service, or function. Reduced operating expenses. Resources focused on core profit-generating competencies. Reduced exposure to risks involved with large capital investments. Access to outsourcing service provider’s economies of scale. Access to outsourcing services provider’s expertise and best-in-class practices. Access to advanced technologies. Increased flexibility with the ability to respond quickly to changing market demands. No costly outlay of capital funds. Reduced head count and associated overhead expense. Reduced frustration and expense related to hiring and retaining employees in an exceptionally tight job market. Reduced time to market for products or service

27 Outsourcing Opportunities
11.5 CLASSROOM EXERCISE The Outsourcing Debate Print and cut out the below companies. Assign the companies to your students. Each company has an argument for or against outsourcing. Have your student’s debate for or against outsourcing. Team size can vary. Company: Zeno: An international telecommunication company Content Management Systems including DMS, DAM and WCM Argument: For outsourcing Argument: Against outsourcing Company: Fields: An international clothing manufacturer Workflow Management Systems Company: Wanders: An international software development company Groupware Systems Company: Excel2: An international film producing company Peer-to-peer (P2P) Systems Company: Intellect: An international automobile manufacturer Knowledge Management Systems Figure 11.21

28 The Challenges of Outsourcing
Contract Length Long-term contracts due to high start up costs Difficulties in getting out of unsuitable contracts Problems in foreseeing business needs over the long term Problems in restructuring IS department after the contract is finished Competitive Edge Competitive focus and edge can be lost if computer system is central to the enterprise’s success and the functions are outsourced 11.5 Loss of competitive edge and focus is analogous to having one student out of a group work on a portion of a project independently and return with work of a different nature than the core group or work that is similar to another group’s work and not unique.

29 The Challenges of Outsourcing
Confidentiality Pricing policies, product mix information, formulas and sales analysis may be less secure Requires additional investment in security and surveillance to ensure there are no problems Scope definition Affects outsourcing contracts as well as in-house development Problems arise from contractual misunderstandings especially dealing with what is considered within the scope and outside of the scope of the agreement 11.5 Ask students for suggestions regarding managing the four challenges to outsourcing mentioned here: Contract Length, Competitive Edge, Confidentiality and Scope Definition.

30 OPENING CASE QUESTIONS Project Management
Did this project benefit from project management principles and techniques? What project management principles and techniques could have been followed to improve the project? How could the concept of governance be applied to the management of this project? What are the opportunities for outsourcing in this project in both the development and maintenance stages of the project? OPENING CASE QUESTIONS Project Management Did this project benefit from project management principles and techniques? This project started out with minimal project management principles and techniques being implemented but once a few project management principles and techniques were added to the project it became more successful and at the time of writing this saw success with its first module. What project management principles and techniques could have been followed to improve the project? This project would have benefited from proper management principles and techniques to the same extent that all development projects will benefit from proper management. There is a much higher likelihood that projects will fail if not properly managed, so the principles and techniques which have been developed will work toward a successful project to a large degree, and therefore all projects should incorporate management principles. How could the concept of governance be applied to the management of this project? This answer will vary by student but the answers should address project management techniques and principles to be used, especially early in the project. What are the opportunities for outsourcing in this project in both the development and maintenance stages of the project? Again answers will vary by student but in the actual project that has been fictionalized in this case the outsourcing included the initial design, the programming and coding of the site, and the hosting of the actual Web site.

31 CLOSING CASE ONE: HP’s Software Problems
Which of the seven phases of the systems development life cycle is least important to HP? Most important? Why? Which of the different software development methodologies should HP use to implement successful systems? Why? Identify the primary reasons for systems project failure and explain which ones HP experienced on its ERP build. CLOSING CASE ONE HP’s Software Problems Which of the seven phases of the systems development life cycle is least important to HP? The most important? Why? Students should recognize that all of the systems development life cycle phases are important, and that none of them are either more or less important to the success of the project. Skipping any phase in the SDLC, or giving it less importance, will cause software defects and failure. Which of the different software development methodologies should HP use to implement successful systems? Why? HP should avoid the waterfall methodology and use the agile, iterative, or extreme software development methodology to build successful software. Identify the primary reasons for software project failure and explain which ones HP experienced on its ERP build. Primary reasons for project failure include Unclear or missing business requirements Skipping SDLC phases Failure to manage project scope Scope creep – occurs when the scope increases Feature creep – occurs when extra features are added Failure to manage project plan Changing technology HP’s problems were a combination of smaller problems. Programming errors caused significant problems with order entry. The backup plan did not have enough workarounds built in to keep servers flowing fast enough to meet customer demand. This resulted in lost revenues and bad press for the company.

32 CLOSING CASE ONE: HP’s Software Problems
Review the buy-versus-build decision and explain why HP chose to buy its ERP system. Review the project charter and explain how HP could benefit by using one. Review the three outsourcing options and identify the pros and cons HP should consider if it chooses to outsources its systems development effort. CLOSING CASE ONE HP’s Software Problems Review the buy-versus-build decision and explain why HP chose to buy its ERP system. Organizations must consider the following when making a buy vs. build decision: Are there any currently available products that fit the needs? Are there features that are not available and important enough to warrant the expense of in-house development? Can the organization customize or modify an existing COTS to fit its needs? Is there a justification to purchase or develop based on the acquisition cost? HP chose to buy its ERP system because it found a COTS system that could meet the majority of its needs. Building an ERP system from scratch would be extremely expensive and time consuming. Review the project charter and explain how HP could benefit by using one. Based on the case material there does not appear to be a project charter. Although the project scope and objectives seem to be well understood HP could still benefit by having a project charter so that there was a better understanding of the constraints and assumptions that the project faced. Review the three outsourcing options and identify the pros and cons HP should consider if it chooses to outsource its system development effort. The three outsourcing options are: Onshore – engaging another company with in the same country for services Nearshore - engaging another company with in a nearby country for services. Often in a country that shares a border. Offshore - engaging another company with in developing country for services that are geographically far away. If HP chooses to outsource its system development effort it needs to consider the pros and cons for issues such as: The need for those working on the project to be physically close to the migration The complexity of the project. The experience in HP with similar projects

33 CLOSING CASE TWO: Disaster at Denver International Airport
One problem with DIA’s baggage system was inadequate testing. Why is testing important to a project’s success? Why do so many projects decide to skip testing? Evaluate the different systems development methodologies. Which one would have most significantly increased the chances of the project’s success? How could more time spent in the analysis and design phase have saved Colorado taxpayers hundreds of millions of dollars? Why could BAE not take an existing IT infrastructure and simply increase its scale and expect it to work? CLOSING CASE TWO Disaster at Denver International Airport One problem with DIA’s baggage system was inadequate testing. Why is testing important to a project’s success? Why do so many projects decide to skip testing? Without testing the risk or errors will surely destroy the project. Different types of testing include: Unit testing – tests each unit of code upon completion Application (or system) testing – verifies that all units of code work together Integration testing – exposes faults in the integration of software components or units Backup and recovery testing – tests the ability of an application to be restarted after failure Documentation testing – verifies instruction guides are helpful and accurate User acceptance testing (UAT) – tests if a system satisfies its acceptance criteria Evaluate the different systems development methodologies. Which one would have most significantly­ increased the chances of the project’s success? Student answers to the type of implementation method that would have improved the success of the system will vary. There are a number of different software development methodologies including: Agile methodology – aims for customer satisfaction through early and continuous delivery of useful software components developed by an iterative process with a design point that uses the bare minimum requirements Waterfall methodology – an activity-based process in which each phase in the SDLC is performed sequentially from planning through implementation and maintenance Rapid application development methodology (RAD) – emphasizes extensive user involvement in the rapid and evolutionary construction of working prototypes of a system to accelerate the systems development process 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 Rational Unified Process (RUP) – provides a framework for breaking down the development of software into four gates. SCRUM – uses small teams to produce small pieces of deliverable software using sprints, or 30-day intervals, to achieve an appointed goal How could more time spent in the analysis and design phase have saved Colorado taxpayers hundreds­ of millions of dollars? An error found during the analysis and design phase is relatively inexpensive to fix. All that is typically required is a change to a Word document. However, exactly the same error found during the testing or implementation phase is going to cost the organization an enormous amount to fix because it has to change the actual system. Find errors early: the later in the SDLC an error is found - the more expensive it is to fix. Why could BAE not take an existing IT infrastructure and simply increase its scale and expect it to work?

34 CLOSING CASE THREE: Staying on Track: Toronto Transit
How was project management software used by the TTC for better project management? Describe Gantt charts and explain how the TTC could have used one to communicate project status. Describe PERT charts and explain how the TTC could have used one to communicate project status. Using this case study of the TTC as a guide, under what circumstances should organizations use project management software to help manage projects? CLOSING CASE THREE Staying on Track – Toronto Transit How is project management software being used by the TTC for project management? In order to keep its 50 individual projects on schedule and on budget, TTC uses Primavera Project Planner to create a single master schedule for all of its engineering and construction projects. This project management software oversees as many as 500 to 600 activities, and allows the schedulers to see the big pictures. It facilitates communication across all involved parties, and is flexible enough to allow for adjustments in schedules. It also allows the project managers to stay on budget, and creates a report that shows positive and negative balances for projects as well as an overview or snapshot picture of all of the projects. Describe Gantt charts and explain how the TTC could use one to communicate project status. A Gantt chart is a simple bar chart that depicts project tasks on a calendar. It works well for representing the project schedule, and shows the actual progress of tasks against the planned duration. TTC could use a Gantt chart to track a project status, particularly to ensure that the tasks are being completed on time. Describe a PERT chart and explain how the TTC could use one to communicate project status. A PERT chart is a graphical network model that depicts a project’s tasks and the relationships between those tasks. It shows dependencies, or logical relationships that exist between project tasks and milestones, and the critical path, which is the path moving through all tasks that are critical to the project. TTC could use a PERT chart to ensure that the critical path is being completed, and that all of the sub-tasks are also being noted and dealt with. A PERT chart can also ensure that the project stays on schedule, and can note actual start and finish times. Using this case study of the TTC as a guide, under what circumstances should organizations utilize project management software to help manage projects? As project management software is relatively inexpensive, it would be in the best interest of all projects to utilize project management software. The TTC case study is a particularly complex case, but it illustrates why it is important to use software to help track the project to its deadline, to support communication among team members and to provide valuable feedback to all of the people involved with the project.


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