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Unit Five – Transforming Organizations

• Chapter Seventeen – Building Software to Support an Agile Organization

• Chapter Eighteen – Outsourcing in the 21st Century

• Chapter Nineteen – Developing a 21st Century Organization

• Plug In B2 – Business Processes

• Plug In B14 – Systems Development

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Developing Software – The Systems Development Life Cycle (SDLC)

• Systems development life cycle (SDLC) – the overall process for developing information systems from planning and analysis through implementation and maintenance

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DEVELOPING SOFTWARE – The Systems Development Life Cycle (SDLC)

Does system make sense?Feasibility.

How can system solvebusiness problem?LAYPERSON language.

How can system solvebusiness problem?TECHIE language.

Build the system.

Test the system.3 times the time andresources ofprogramming!!

Convert from oldsystem to new system.

Fix, maintain, andimprove system.

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Developing Software – The Systems Development Life Cycle (SDLC)

1. Planning phase – involves establishing a high-level plan of the intended project and determining 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 – detailed set of business requests that the system must meet in order to be successful

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PLANNING: Assess Project Feasibility

• Feasibility study – determines if the proposed solution is feasible and achievable from a financial, technical, and organizational standpoint

• Different types of feasibility studies– Economic feasibility study– Operational feasibility study– Technical feasibility study– Schedule feasibility study– Legal and contractual feasibility study

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Analysis: Examining Business Processes

• The process steps are the activities the customer and store personnel do to complete the transaction

• Business process - a standardized set of activities that accomplish a specific task, such as processing a customer’s order

• Business processes transform a set of inputs into a set of outputs (goods or services) for another person or process by using people and tools

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Business Process Improvement

• Continuous process improvement model - attempts to understand and measure the current process, and make performance improvements accordingly

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BUSINESS PROCESS REENGINEERING

• Business process reengineering (BPR) - analysis and redesign of workflow within and between enterprises

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Business Process Design

• Business process modeling (or mapping) - the activity of creating a detailed flow chart or process map of a work process showing its inputs, tasks, and activities, in a structured sequence

• Business process model - a graphic description of a process, showing the sequence of process tasks, which is developed for a specific– As-Is process model – To-Be process model

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Business Process Design

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Example: Ford - BEFORE and After

PurchasingVendor

Receiving

AccountsPayable

ReceivingDocument

Goods

PurchaseOrder

Copy ofPurchaseOrder

Invoice

500 AP employees! Most timespent on mismatches.

Payment

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Example: Ford - Before and AFTER

PurchasingVendor

Receiving

AccountsPayable

Goods

PurchaseOrder

Database

Payment

“Don’t sendus invoices”

75% reduction in head count.

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Developing Software – The Systems Development Life Cycle (SDLC)3. Design phase – involves describing 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

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Developing Software – The Systems Development Life Cycle (SDLC)5. Testing phase – involves bringing all the

project pieces together into a special testing environment to test for errors, bugs, and interoperability 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 the system

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Developing Software – The Systems Development Life Cycle (SDLC)

7. Maintenance phase – involves performing changes, corrections, additions, and upgrades to ensure the system continues to meet the business goals

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Software Development Methodologies

• There are a number of different software development methodologies including:

– Waterfall– Rapid application development (RAD)– Extreme programming– Agile

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Waterfall Methodology

• Waterfall methodology – a sequential, activity-based process in which each phase in the SDLC is performed sequentially from planning through implementation and maintenance

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Rapid Application Development Methodology (RAD)

• 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

• The prototype is an essential part of the analysis phase when using a RAD methodology

– Prototype – a smaller-scale representation or working model of the users’ requirements or a proposed design for an information system

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Extreme Programming Methodology

• 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

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Agile Methodology

• Agile methodology – a form of XP, aims for customer satisfaction through early and continuous delivery of useful software components

– Agile is similar to XP but with less focus on team coding and more on limiting project scope

– An agile project sets a minimum number of requirements and turns them into a deliverable product

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Project Managing The Systems Development Effort

• Project management – the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project

• Project management software – supports the long-term and day-to-day management and execution of the steps in a project

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Project Managing The Systems Development Effort

• Project management interdependent variables

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Project Managing The Systems Development Effort

• Common reasons why IT projects fall behind schedule or fail

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Project Managing The Systems Development Effort

• Expected growth for project management software

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What if we can’t / don’t want to build the system “in house”?:

Outsourcing• Outsourcing – an arrangement by which one organization

provides a service or services for another organization that chooses not to perform them in-house

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Outsourcing

• Reasons companies outsource

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Sourcing’s New Surge - Offshoring

• Offshore outsourcing – using organizations from developing countries to write code and develop systems

• According to Forrester Research, nearly half of all businesses use offshore providers, and two-thirds plan to send work overseas in the near future

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21st Century Organizational Trends

• Four technology areas where organizations are focusing:

1. IT infrastructures

2. Security

3. E-business

4. Integrations

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Increased Focus on Integration

• Overall, core business relationships and models are changing

– Product-centricity to customer-centricity– Mass production to mass customization– The value in material things to the value of

knowledge and intelligence

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Increased Focus on Integration

• A new series of business success factors and challenges are emerging

– Organization agility– Focus on core competencies and processes– Redefinition of the value chain– Instantaneous business response– Ability to scale resources and infrastructure

across geographic boundaries