Chapter 9
Systems
Development and
Project Management:
Corporate
Responsibility
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
CHAPTER OVERVIEW
Chapter 9
• 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
9-2
Chapter 9
SECTION 9.1
Developing Enterprise
Applications
9-3
LEARNING OUTCOMES
Chapter 9
1. Explain the business benefits associated with
successful software development
2. Describe the seven phases of the systems
development life cycle
3. Summarize the different software development
methodologies
9-4
DEVELOPING SOFTWARE
Chapter 9
• 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
9-5
DEVELOPING SOFTWARE
Chapter 9
• 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
9-6
THE SYSTEMS DEVELOPMENT LIFE CYCLE
(SDLC)
Chapter 9
• Systems development
life cycle (SDLC) – The
overall process for
developing information
systems from planning
and analysis through
implementation and
maintenance
9-7
THE SYSTEMS DEVELOPMENT LIFE CYCLE
(SDLC)
Chapter 9
1.
Planning phase – Establishes a high-level plan of
the intended project and determines project goals
2.
Analysis phase – Involves analyzing end-user
business requirements and refining project goals
into defined functions and operations of the
intended system
•
Business requirement – Specific business requests the
system must meet to be successful
9-8
THE SYSTEMS DEVELOPMENT LIFE CYCLE
(SDLC)
Chapter 9
3.
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
4.
Development phase – Involves taking all of the
detailed design documents from the design phase
and transforming them into the actual system
9-9
THE SYSTEMS DEVELOPMENT LIFE CYCLE
(SDLC)
Chapter 9
5.
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
6.
Implementation phase – Involves placing the
system into production so users can begin to
perform actual business operations with it
9-10
THE SYSTEMS DEVELOPMENT LIFE CYCLE
(SDLC)
Chapter 9
7.
Maintenance phase – Involves performing
changes, corrections, additions, and upgrades to
ensure the system continues to meet its business
goals
9-11
SOFTWARE DEVELOPMENT
METHODOLOGIES
Chapter 9
There are a number of different
software development
methodologies including
•






Waterfall
Agile
Rapid application development (RAD)
Extreme programming
Rational unified process (RUP)
Scrum
9-12
Waterfall Methodology
Chapter 9
•
Waterfall
methodology – A
sequence of phases
in which the output
of each phase
becomes the input
for the next
9-13
Agile Methodology
Chapter 9

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
9-14
Rapid Application Development
Methodology (RAD)
Chapter 9
•
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
9-15
Extreme Programming Methodology
Chapter 9
•
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
9-16
Rational Unified Process (RUP)
Methodology
Chapter 9
• 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
9-17
SCRUM Methodology
Chapter 9
• 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
9-18
DEVELOPING SUCCESSFUL SOFTWARE
Chapter 9
Primary reasons for project failure
•





Unclear or missing business requirements
Skipping SDLC phases
Failure to manage project scope
o Scope creep
o Feature creep
Failure to manage project plan
Changing technology
9-19
DEVELOPING SUCCESSFUL SOFTWARE
Chapter 9
•
The later in the SDLC an error is found the more
expensive it is to fix!
9-20
Chapter 9
SECTION 9.2
Project Management
9-21
LEARNING OUTCOMES
Chapter 9
4. Explain project management, the triple constraint,
and project stakeholder and executive sponsor’s
roles in choosing strategic projects
5. Explain how project stakeholder’s choose strategic
projects
6. Describe the two primary diagrams most frequently
used in project planning
9-22
LEARNING OUTCOMES
Chapter 9
7.
Identify the three primary areas a project manager
must focus on managing to ensure success
8.
Explain the three different types of outsourcing
along with their benefits and challenges
9-23
MANAGING SOFTWARE
DEVELOPMENT PROJECTS
Chapter 9
• Analysts predict investment in MIS projects worldwide
is more than $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
9-24
MANAGING SOFTWARE DEVELOPMENT
PROJECTS
Chapter 9
• The Project Management Institute (PMI) develops
procedures and concepts necessary to support the
profession of project management (www.pmi.org) and has
three areas of focus
1.
2.
3.
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)
9-25
MANAGING SOFTWARE DEVELOPMENT
PROJECTS
Chapter 9
•
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
9-26
MANAGING SOFTWARE DEVELOPMENT
PROJECTS
Chapter 9
•
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
9-27
The Triple Constraint
Chapter 9
Project Management Interdependent Variables
9-28
The Triple Constraint
Chapter 9
• 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
 3 in 10 major IT projects fail
 21 percent of the companies state that they cannot adjust
rapidly to market changes
 1 in 4 validates a business case for IT projects after completion
9-29
Project Participants
Chapter 9
• 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
9-30
Project Participants
Chapter 9
Project Management Role
9-31
CHOOSING STRATEGIC PROJECTS
Chapter 9
•
Three common techniques for selecting projects
1.
Focus on organizational goals
2.
Categorize projects
3.
Perform a financial analysis
9-32
UNDERSTANDING PROJECT PLANNING
Chapter 9
• 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
9-33
UNDERSTANDING PROJECT PLANNING
Chapter 9
• 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
9-34
UNDERSTANDING PROJECT PLANNING
Chapter 9
•
SMART criteria are
useful reminders on
how to ensure that the
project has created
understandable and
measurable objectives
9-35
UNDERSTANDING PROJECT PLANNING
Chapter 9
•
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
9-36
UNDERSTANDING PROJECT PLANNING
Chapter 9
Two primary diagrams used in project planning
include PERT and Gantt charts
•
PERT chart


o
Dependency
o
Critical path
Gantt chart
9-37
UNDERSTANDING PROJECT PLANNING
Chapter 9
PERT Chart EXPERT – PERT Chart Example
9-38
UNDERSTANDING PROJECT PLANNING
Chapter 9
MS Project – Gantt Chart Example
9-39
MANAGING PROJECTS
Chapter 9
• 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
9-40
MANAGING PROJECTS
Chapter 9
• A project manager must focus on managing three
primary areas to ensure success
1.
People
2.
Communications
3.
Change
9-41
OUTSOURCING PROJECTS
Chapter 9
• 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
9-42
OUTSOURCING PROJECTS
Chapter 9
• Factors driving outsourcing growth include
 Core competencies
 Financial savings
 Rapid growth
 The Internet and globalization
9-43
OUTSOURCING PROJECTS
Chapter 9
• Onshore outsourcing
• Nearshore outsourcing
• Offshore outsourcing
9-44
OUTSOURCING PROJECTS
Chapter 9
• Big selling point for offshore outsourcing
“inexpensive good work”
9-45
OUTSOURCING PROJECTS
Chapter 9
• Most organizations outsource their noncore business
functions, such as payroll and IT
9-46
Outsourcing Benefits
Chapter 9
• 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
9-47
Outsourcing Challenges
Chapter 9
Outsourcing challenges include
•

Length of contract
1.
Difficulties in getting out of a contract
2.
Problems in foreseeing future needs
3.
Problems in reforming an internal IT department after
the contract is finished

Threat to competitive advantage

Loss of confidentiality
9-48