Class 8Systems Development
Asper School of Business - MBA6150 Management of Information Systems & Technology
April-June 2009Instructor: Bob Travica
Updated May 2009
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Outline
• System development methodologies
• Feasibility of IS development project
• Risks of IS development project
• Management of IS development project
• Systems’ business value - planning and monitoring
• Messages for change leader
System Development Methodologies
• Structured approach (“waterfall model”), system life cycle (SLC) a as a sequence of stages:
or Installation or
Cons
truc
tion
Systems Planning
Get system requirements
Create system “on paper”
Code, assemblesoftware
Mount software on test hardware and studyperformance
Install software on production hardware;Train users
Business use of system,and upgrading
Decide which system to build. Assess expected value, feasibility, risks. (see slide 12)
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Note: Arrows meanrelationships betweenSLC and organization.
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Rapid Application Development
Analysis & Design (a function,
a part of user interface)
Construction
Installation
User’s Testing
• Build system’s functions & user interface quickly, piece by piece• Keep revising design (iterate) based on user’s
feedback
• IT changes (components, Object-Oriented tech.), business too need of speed in SLC
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• Markus & Tanis: Four-Phase Enterprise Systems Experience Cycle
Phases1. Chartering (Planning)
2. Project (Development, Implementation – configuring of-the-shelf software rather than coding)
3. Shakedown (“Go live” to achieve system’s routine use – process change challenge)
ERP Systems Development
• Cases on Provincial Power Corporation and Dow Corning
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IS Project Feasibility (Making Business Case for IS)
• Economic feasibility (C/B, ROI, Break-Even, Net Present Value… Scoring method often used in selecting alternative projects. mini case on Trucking company)
• Technical feasibility (capability of building or maintaining system)
• Organizational feasibility (capability of adopting system)
• Operational feasibility (capability of maintaining normal operations)
• Schedule feasibility (meeting deadline for system’s roll out)
• Political feasibility (capability of implementing system given political setup)
• Systems are developed via team projects (mini case “A day in life…”)
(Also see Fig. 10-1, p. 368:Leadership, Employees, Project Scope & Urgency)
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IS Project Management
• Managing expectations (dreams, best of possible alternatives) of users and technologists
• Managing nuts & bolts of IS development project (the daily grind) – mini case “A day in life….”) :
- Project tasks
- Time
- People (IS staff, others)
- Money
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Managing Project Tasks
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Managing Project Time
• Critical path method for assessing tasks time and risks: which tasks can/cannot be delayed.
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Managing People – IS Project Team
• Project manager manages/influences:- IS staff (systems analyst, programmer, business analyst, database, network, and content experts)- Others:
• Burnout problem (e.g.: Netscape - 24/7 work vs. SAS Corp. gate closes at 5 pm)
• Management of motivation (e.g.: Microsoft – work space, status, money) More
DevelopmentProject Team
Vendor Executive
DepartmentManager
End-User
SupervisoryManagement
Expert User
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Systems’ Business Value - Planning and Monitoring
• Formal financial and combined methods used for• Planning which systems to build• Monitoring returns (value) from system
• Tangible costs easier to estimate than tangible benefits; Cost savings main tangible benefit (Trucking co.)
• Financial methods:• Cost-Benefit Analysis (CBA, basis to other methods)• ROI, Break-Even Analysis…
• Importance of intangible benefits
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Messages for Change Leader
• Reason for change must be in org. problem - not mere technological change
• Plan system well, assess feasibility thoroughly, and consider alternative development methodologies (if possible)
• If technical expertise is missing, hire a consultant
• Have a dedicated system project team
• For ERP systems, consider alternatives based on the type of organization you are/want to be, and engage in vendor management
• For ERP systems, be aware of organizational change and the need to teach it
• Provide resources for appropriate IT training
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