Asper School of Business - MBA
6150 Management of Information Systems & Technology
April-June 2009
Instructor: Bob Travica
Class 8
Systems Development
Updated May 2009
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
6150 Management of Information
Systems & Technology
2 of 12
System Development Methodologies
• Structured approach (“waterfall model”), system life cycle (SLC) a
as a sequence of stages:
Note: Arrows mean
relationships between
SLC and organization.
Decide which system to build.
Assess expected value,
Systems feasibility, risks. (see slide 12)
Planning
Get system requirements
Create system
“on paper”
Business use of system,
and upgrading
Code, assemble
software
Install software on
production hardware;
Train users
Mount software on
test hardware and study
performance
3 of 12
Rapid Application Development
• IT changes (components, Object-Oriented tech.), business too 
need of speed in SLC
Analysis & Design
(a function,
a part of user interface)
User’s Testing
Construction
Installation
• Build system’s functions & user interface quickly, piece by piece
• Keep revising design (iterate) based on user’s feedback
6150 Management of Information
Systems & Technology
4 of 12
ERP Systems Development
• Markus & Tanis: Four-Phase Enterprise Systems Experience Cycle
1. Chartering (Planning)
Phases
2. Project (Development, Implementation – configuring of-theshelf software rather than coding)
3. Shakedown (“Go live” to achieve system’s routine use –
process change challenge)
• Cases on Provincial Power Corporation and Dow Corning
6150 Management of Information
Systems & Technology
5 of 12
IS Project Feasibility (Making Business Case for IS)
•
Systems are developed via team projects (mini case “A day in life…”)
•
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)
6150 Management of Information
Systems & Technology
6 of 12
F
(Also see Fig. 10-1, p. 368:
Leadership, Employees,
Project Scope & Urgency)
F
F
F
6150 Management of Information
Systems & Technology
7 of 12
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
6150 Management of Information
Systems & Technology
8 of 12
Managing Project Tasks
6150 Management of Information
Systems & Technology
9 of 12
Managing Project Time
• Critical path method for assessing tasks time and risks: which
tasks can/cannot be delayed.
6150 Management of Information
Systems & Technology
10 of 12
Managing People – IS Project Team
• Project manager manages/influences:
- IS staff (systems analyst, programmer, business analyst,
database, network, and content experts)
- Others:
Expert User
Vendor
End-User
Development
Project
Team
Supervisory
Management
Executive
Department
Manager
• 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)
6150 Management of Information
Systems & Technology
More
11 of 12
Systems’ Business Value - Planning and Monitoring
• Formal financial and combined methods used for
• Planning which systems to build
• Monitoring returns (value) from system
• Financial methods:
• Cost-Benefit Analysis (CBA, basis to other methods)
• ROI, Break-Even Analysis…
• Tangible costs easier to estimate than tangible benefits;
Cost savings main tangible benefit (Trucking co.)
• Importance of intangible benefits
6150 Management of Information
Systems & Technology
12 of 12
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
6150 Management of Information
Systems & Technology