Chapter 6 SYSTEMS DEVELOPMENT Phases, Tools, and Techniques

1. BA325 Competing with Information Technology Behzad Hosseini Chapter 6SYSTEMS DEVELOPMENTPhases, Tools, and Techniques

2. LEARNING OUTCOMES • Define the traditional systems development life cycle (SDLC) and describe the 7 major phases within it. • Compare and contrast the various component-based development methodologies. • Describe the selfsourcing process as an alternative to the traditional SDLC. • Discuss the importance of prototyping and prototyping within any systems development methodology • Describe the outsourcing environment and how outsourcing works.

3. INTRODUCTION • Information systems are the support structure for meeting the company’s strategies and goals • New systems are created because employees request them • New systems are created to obtain a competitive advantage

4. INTRODUCTION • When developing a new system, you have 3 “who” choices… • Insourcing – IT specialists inside your organization • Selfsourcing – do-it-yourself approach many end users take with little or no help from IT specialists • Outsourcing – a third-party organization (i.e., let someone do the work and pay them for it)

5. INSOURCING AND THE SDLC • Systems development life cycle (SDLC) - a structured step-by-step approach for developing information systems • 7 distinct phases, each with well-defined activities • Also called a waterfall methodology, an approach in which each phase of the SDLC is followed by another, from planning through implementation

6. SDLC Phases & Major Activities

7. SDLC as a Waterfall Methodology

8. Phase 1: Planning • Planning phase - create a solid plan for developing your information system • Three primary planning activities: • Define the system to be developed • Set the project scope • Develop the project plan including tasks, resources, and timeframes

9. Phase 2: Analysis • Analysis phase - involves end users and IT specialists working together to gather, understand, and document the business requirements for the proposed system • Two primary analysis activities: • Gather the business requirements • Prioritize the requirements

10. Phase 2: Analysis Take time during analysis to get the business requirements correct. If you find errors, fix them immediately. The cost to fix an error in the early stages of the SDLC is relatively small. In later stages, the cost is huge.

11. Phase 3: Design • Design phase - build a technical blueprint of how the proposed system will work • Two primary design activities: • Design the technical architecture • Technical architecture - defines the hardware, software, and telecommunications equipment required to run the system • Design system models • This includes GUI screens that users will interface with, database designs (see XLM/C), report formats, software steps, etc

12. Phase 4: Development • Development phase - take all of your detailed design documents from the design phase and transform them into an actual system • Two primary development activities: • Build the technical architecture • Build the database and programs • Both of these activities are mostly performed by IT specialists

13. Phase 5: Testing • Testing phase - verifies that the system works and meets all of the business requirements defined in the analysis phase • Two primary testing activities: • Write the test conditions • Perform the testing of the system

14. Phase 6: Implementation • Implementation phase - distribute the system to all of the knowledge workers and they begin using the system to perform their everyday jobs • Two primary implementation activities • Write detailed user documentation • Provide training for the system users

15. Phase 6: Implementation • Choose the right implementation method • Parallel implementation – use both the old and new system simultaneously • Plunge implementation – discard the old system completely and use the new • Pilot implementation – start with small groups of people on the new system and gradually add more users • Phased implementation – implement the new system in phases

16. Phase 7: Maintenance • Maintenance phase - monitor and support the new system to ensure it continues to meet the business goals • Two primary maintenance activities: • Build a help desk to support the system users • Help desk - a group of people who responds to knowledge workers’ questions • Provide an environment to support system changes

17. INTRODUCTION When developing a new system, you have 3 “who” choices… Insourcing – IT specialists inside your organization Selfsourcing – do-it-yourself approach many end users take with little or no help from IT specialists Outsourcing – a third-party organization (i.e., let someone do the work and pay them for it)

18. SELFSOURCING • Selfsourcing (end-user development) – the development and support of IT systems by end users with little or no help from IT specialists • Do-it-yourself systems development approach • Can relieve IT specialists of the burden of developing many smaller systems

19. Selfsourcing Approach

20. Selfsourcing Advantages • Improves requirements determination • Increases end user participation and sense of ownership • Increases speed of systems development • Reduces invisible backlog • Invisible backlog – list of all systems that an organization needs to develop but – because of the prioritization of systems development needs – never get funded because of the lack of organizational resources

21. Selfsourcing Disadvantages • Inadequate end user expertise leads to inadequately developed systems • Lack of organizational focus creates “privatized” IT systems • Insufficient analysis of design alternatives leads to subpar IT systems • Lack of documentation and external support leads to short-lived systems

22. PROTOTYPING • Prototype – a model of a proposed product, service, or system • Prototyping - the process of building a model that demonstrates the features of a proposed product, service, or system • Proof-of-concept prototype - used to prove the technical feasibility of a proposed system • Selling prototype - used to convince people of the worth of a proposed system

23. The Prototyping Process

24. Advantages of Prototyping • Encourages active user participation  • Helps resolve discrepancies among users • Gives users a feel for the final system • Helps determine technical feasibility  • Helps sell the idea of a proposed system

25. Disadvantages of Prototyping • Leads people to believe the final system will follow • Gives no indication of performance under operational conditions • Leads the project team to forgo proper testing and documentation

26. INTRODUCTION When developing a new system, you have 3 “who” choices… Insourcing – IT specialists inside your organization Selfsourcing – do-it-yourself approach many end users take with little or no help from IT specialists Outsourcing – a third-party organization (i.e., let someone do the work and pay them for it)

27. OUTSOURCING • Outsourcing – the delegation of specified work to a third party for a specified length of time, at a specified cost, and at a specified level of service • IT outsourcing for software development can take one of four forms: • Purchase existing software • Purchase existing software and pay the publisher to make certain modifications • Purchase existing software and pay the publisher for the right to make modifications yourself • Outsource the development of an entirely new and unique system for which no software exists

28. Outsourcing Process When outsourcing, you’ll develop two vitally important documents – a request for proposal and a service level agreement

29. Outsourcing – RFP & SLA • Request for proposal (RFP) – formal document that describes in excruciating detail your logical requirements for a proposed system and invites outsourcing organizations (vendors) to submit bids for its development • Service level agreement (SLA) - formal contractually obligated agreement between two parties

30. Outsourcing Options • There are three different forms of outsourcing: • Onshore outsourcing -the process of engaging another company within the same country for services • Nearshore outsourcing - contracting an outsourcing arrangement with a company in a nearby country • Offshore outsourcing - contracting with a company that is geographically far away

31. The Advantages and Disadvantages of Outsourcing • Advantages: • Focus on unique core competencies • Exploit the intellect of another organization • Better predict future costs • Acquire leading-edge technology • Reduce costs • Improve performance accountability

32. The Advantages and Disadvantages of Outsourcing • Disadvantages: • Reduces technical know-how for future innovation • Reduces degree of control • Increases vulnerability of your strategic information • Increases dependency on other organizations