Meeting 2: (Management) of Systems
Development
2.8) In the section on choosing off-the-shelf software, eight criteria are proposed for evaluating
alternative packages. Suppose the choice was between alternative custom software developers
rather than prewritten packages. What criteria would be appropriate to select and compare
among competing bidders for custom development of an application? Define each of these
criteria.
Cost – The total estimated cost of custom software development, including initial development,
testing, deployment, and long-term maintenance. This should also consider potential hidden
costs such as licensing, support, and future modifications.
Functionality – The developer’s ability to deliver all required features and capabilities within
the software. This includes assessing whether they can meet specific business needs, integrate
necessary third-party tools, and ensure the software aligns with company objectives.
Viability of Vendor – The financial stability and long-term sustainability of the development
firm or freelancer. A vendor that may go out of business soon or lacks the resources to
complete the project could be a risk. This criterion assesses their reputation, portfolio, and
financial strength.
Flexibility – The developer’s ability to accommodate changes during the development process.
This includes responsiveness to feedback, adaptability to evolving requirements, and
willingness to make modifications without excessive costs or delays.
2.9) Pedro and Claudia are fashion designers from Spain. They have two stores, one in
Madrid and one in Barcelona, where they sell their self-made designs. Based on the
sources of software discussed in this chapter, what type of solution would you
recommend them to invest in?
Cloud Computing – This would allow them to use applications over the internet without
investing in expensive infrastructure. Cloud-based ERP systems like Shopify, Square, or
Lightspeed could help manage sales, inventory, and customer relationships across both
locations efficiently.
Custom Software Development – If their business has unique requirements that existing
solutions cannot meet, hiring an IT services firm to develop a tailored system could be a viable
option. However, this comes with higher development and maintenance costs.
2.10) ?
3.17) Suppose that you have been contracted by a jewelry store to manage a project to
create a new inventory tracking system. Describe your initial approach to the project.
What should your first activity be? What information would you need? To whom might
you need to speak?
Initial Approach & First Activity
The first activity falls under Project Initiation, which involves assessing the project's size, scope,
and complexity, while also establishing procedures to support later activities. The key activities
at this stage include:
1. Establishing the Project Initiation Team – Form a team that includes key stakeholders
such as store managers, inventory clerks, IT staff, and external consultants if needed.
2. Building a Relationship with the Customer – Understand the store's unique inventory
challenges, such as tracking high-value items, theft prevention, and stock
replenishment.
3. Developing a Project Initiation Plan – Define clear goals, deliverables, milestones, and
responsibilities.
4. Establishing Management Procedures – Determine how decisions will be made, how
communication will flow, and how project funding and resources will be managed.
5. Creating the Project Workbook – Document all correspondence, system requirements,
and deliverables in a central repository.
6. Developing the Project Charter – Outline the project’s objectives, scope, key
stakeholders, and success criteria.
Key Information Needed
To ensure the inventory system meets business needs, you would need:

Current inventory management processes – How inventory is tracked, reordered, and
audited.

Pain points in existing systems – Issues with lost stock, inaccurate reporting, or
inefficient restocking.

Security requirements – Special tracking for expensive jewelry, such as RFID tags or
secure stockroom access.

Integration needs – Whether the system needs to connect with POS software, ecommerce platforms, or accounting tools.

User needs – Ease of use for employees, training requirements, and reporting
capabilities.
People to Speak To
To gather comprehensive requirements, you would need input from:

Store Owners/Managers – Business goals and high-level expectations.

Inventory Clerks – Day-to-day inventory processes and challenges.

Sales Associates – How they interact with inventory systems at the point of sale.

IT Staff or Consultants – Technical feasibility, infrastructure, and security concerns.

Customers (if applicable) – Expectations for online stock availability and purchase
tracking.
Following this structured approach ensures the project is well-planned, reducing risks and
increasing the likelihood of successful system implementation
3.30) ?
ING CASE) In 2015, ING Netherlands initiated a comprehensive agile transformation to
enhance its adaptability and responsiveness in a rapidly evolving financial landscape.
This shift was driven by the need to meet changing customer expectations and to stay
competitive with digital-native companies.
1. Adoption of Agile Methodology:
- ING restructured its organization into multidisciplinary teams known as "squads,"
each comprising members from various functions such as marketing, product
development, user experience design, data analysis, and IT engineering. These squads
were empowered to make decisions and were responsible for specific customer-centric
projects, reducing bureaucracy and enhancing flexibility.
2. Organizational Restructuring:
- The bank organized these squads into larger units called "tribes," each focusing on a
particular domain or customer journey. This structure minimized handovers and fostered
end-to-end responsibility, enabling faster delivery of products and services.
3. Cultural Shift:
- ING emphasized a cultural change towards continuous improvement and customer
focus. By fostering a collaborative environment and encouraging innovation, the bank
aimed to stay ahead of market trends and better serve its customers.
Benefits Realized:
- Improved Time to Market:
- The agile approach allowed ING to develop and launch new products and services
more rapidly, ensuring timely responses to market demands.
- Enhanced Employee Engagement:
- Empowering teams and reducing hierarchical barriers led to increased job
satisfaction and motivation among employees.
- Increased Productivity:
-The multidisciplinary team structure and streamlined processes resulted in more
efficient operations and higher productivity levels.
By embracing agile methodologies, ING transformed its operations to become more
flexible, customer-focused, and competitive in the dynamic financial services market.