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McGraw
-
Hill/Irwin

© 2008 The McGraw
-
Hill Companies, All Rights Reserved

Unit Five

Transforming
Organizations

17
-
2

Unit Five


Chapter Seventeen



Building Software
to Support an Agile Organization



Chapter Eighteen



Outsourcing in the
21
st

Century



Chapter Nineteen



Developing a 21st
Century Organization

McGraw
-
Hill/Irwin

© 2008 The McGraw
-
Hill Companies, All Rights Reserved

Chapter 17

Building Software to Support
an Agile Organization

17
-
4

Learning Outcomes

17.1


Identify the business benefits



associated with successful



software development


17.2

Describe the seven phases of the



systems development life cycle


17
-
5

Learning Outcomes

17.3

Summarize the different software


development methodologies


17.4


Explain project management and


its three interdependent variables

17
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6

Systems Development


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

17
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7

Systems Development


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

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8

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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9

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

17
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10

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

17
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11

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

17
-
12

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



17
-
13

Software Development
Methodologies


There are a number of different software
development methodologies including:


Waterfall


Rapid application development (RAD)


Extreme programming


Agile


17
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14

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



17
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15

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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16

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







17
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17

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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18

Developing Successful Software


Primary principles for successful agile
software development include:


Slash the budget


If it doesn’t work, kill it


Keep requirements to a minimum


Test and deliver frequently


Assign non
-
IT executives to software
projects

17
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19

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

17
-
20

Project Managing The Systems
Development Effort


Project management interdependent variables


17
-
21

Project Managing The Systems
Development Effort


Common reasons why IT projects fall
behind schedule or fail


17
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22

Project Managing The Systems
Development Effort


Expected growth for project management software



17
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23

CHAPTER SEVENTEEN

Opening Case Study Questions

1.
How are hospitals using new software to
improve their operations?


2.
List and describe the seven phases in the
systems development life cycle and determine
which phase is most important to a hospital
when it is developing software

17
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24

CHAPTER SEVENTEEN

Opening Case Study Questions

3.
Review the primary principles of successful
software development and list them in order of
importance for Hackensack University Medical
Center’s business strategy


4.
Why is building agile software important to
Hackensack University Medical Center


5.
Assess the impact to a hospital if it decided to
use the waterfall methodology to build its
customers’ information systems

17
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25

CHAPTER SEVENTEEN CASE

Transforming the Entertainment Industry
-

Netflix


Netflix is transforming the way people rent
videos with its online all you can rent for $20 a
month



Netflix attributes its success to its proprietary
software, Netflix Recommendation System,
which constantly suggests movies a customer
might like, based on how the customer rates
any of the 15,000 titles in the company’s
catalog

17
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26

Chapter Seventeen Case Questions

1.
Assess the business
-
related consequences of a
failure in Netflix’s proprietary supply chain
management system


2.
List and describe the seven phases in the
systems development life cycle and determine
which phase you think is most important to Netflix
when it is developing software


3.
Determine the primary differences between the
waterfall development methodology and the agile
development methodology. Which methodology
would you recommend Netflix use and why?


17
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27

Chapter Seventeen Case Questions


4.
Why would prototyping be a good idea for Netflix
if it decides to build a CRM system?


5.
Given $10,000, would you recommend
purchasing Netflix or Blockbuster stock?