Presentation on theme: "Unit Five – Transforming Organizations"— Presentation transcript:
1 Unit Five – Transforming Organizations Chapter Seventeen – Building Software to Support an Agile OrganizationChapter Eighteen – Outsourcing in the 21st CenturyChapter Nineteen – Developing a 21st Century OrganizationPlug In B2 – Business ProcessesPlug In B14 – Systems Development
2 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 maintenanceCLASSROOM EXERCISEAround SDLCBreak your students into groups and have them correlate the SDLC to building a house.This activity helps students understand the different types of activities that occur during each phase of the systems development life cycleHave your students present their answers to the entire class
3 DEVELOPING SOFTWARE – The Systems Development Life Cycle (SDLC) Does system make sense?Feasibility.Convert from oldsystem to new system.Fix, maintain, andimprove system.How can system solvebusiness problem?LAYPERSON language.Class Activity: Break your students into groups and have them correlate the SDLC to building a house.This activity helps students understand the different types of activities that occur during each phase of the systems development life cycleHave your students present their answers to the entire classHow can system solvebusiness problem?TECHIE language.Test the system.3 times the time andresources ofprogramming!!Build the system.
4 Developing Software – The Systems Development Life Cycle (SDLC) Planning phase – involves establishing a high-level plan of the intended project and determining project goalsAnalysis phase – involves analyzing end-user business requirements and refining project goals into defined functions and operations of the intended systemBusiness requirement – detailed set of business requests that the system must meet in order to be successfulThe SDLC and its associated phases are discussed in detail in the Systems Development Business Plug-InCLASSROOM EXERCISESpace Needle ExerciseBreak your students into groups and give them equal materials from a Tinker Toy set, a Zome set, or a product of your choice. Give them each the following instructions and observe the groups as they build their prototypes.Review the IM for details on the project
5 PLANNING: Assess Project Feasibility Feasibility study – determines if the proposed solution is feasible and achievable from a financial, technical, and organizational standpointDifferent types of feasibility studiesEconomic feasibility studyOperational feasibility studyTechnical feasibility studySchedule feasibility studyLegal and contractual feasibility studyEconomic feasibility study – (cost-benefit analysis) – identifies the financial benefits and costs associated with the systems development projectOperational feasibility study – examines the likelihood that the project will attain its desired objectivesTechnical feasibility study – determines the organization’s ability to build and integrate the proposed systemSchedule feasibility study – assesses the likelihood that all potential time frames and completion dates will be metLegal and contractual feasibility study – examines all potential legal and contractual ramifications of the proposed systemWhich type of feasibility study would be appropriate for each of the following:Implementation of a new payroll systemImplementation of a new CRM systemImplementation of a new module to an existing CRM systemImplementation of a new ERP systemImplementation of a additional functionality to an existing KM system
6 Analysis: Examining Business Processes The process steps are the activities the customer and store personnel do to complete the transactionBusiness process - a standardized set of activities that accomplish a specific task, such as processing a customer’s orderBusiness processes transform a set of inputs into a set of outputs (goods or services) for another person or process by using people and toolsWaiting in line at a grocery store is a great example of the need for process improvementIn this case, the “process” is called checkout, and the purpose is to pay for and bag groceriesThe process begins when a customer steps into line and ends when the customer receives the receipt and leaves the storeThis simple example describes a customer checkout processCan you name other business process?Developing new productsBuilding a new homeOrdering clothes from mail-order companiesRequesting new telephone service from a telephone companyAdministering Social Security payments
7 Business Process Improvement Continuous process improvement model - attempts to understand and measure the current process, and make performance improvements accordinglyCan you name an organization, product, or service that does not require any improvement?This would be a perfect organization – does not existIs continuous process improvement a one-time event?No, it is continuous
8 BUSINESS PROCESS REENGINEERING Business process reengineering (BPR) - analysis and redesign of workflow within and between enterprisesWhat is the difference between continuous process improvement and business process reengineering?BPR relies on a different school of thought than continuous process improvementIn the extreme, BPR assumes the current process is irrelevant, does not work, or is broken and must be overhauled from scratchSuch a clean slate enables business process designers to disassociate themselves from today’s process and focus on a new processIt is like the designers projecting themselves into the future and asking: What should the process look like? What do customers want it to look like? What do other employees want it to look like? How do best-in-class companies do it? How can new technology facilitate the process?
9 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 sequenceBusiness process model - a graphic description of a process, showing the sequence of process tasks, which is developed for a specificAs-Is process modelTo-Be process modelWhy is it important to diagram the As-Is process prior to diagramming the To-Be process?It is important to understand the entire process from end-to-end before determining how to fix the processWhat is the difference between the As-Is and To-Be processAs-Is process model - represents the current state of the operation that has been mapped, without any specific improvements or changes to existing processesTo-Be process model - shows the results of applying change improvement opportunities to the current (As-Is) process model
10 Business Process Design Ask your students if they can think of any other processes that have been reengineeredPumping gas (pay at the pump)Auto checkout at the grocery storeBar codes
11 Example: Ford - BEFORE and After PurchaseOrderPurchasingVendorReceivingGoodsReceivingDocumentCopy ofPurchaseOrderPaymentInvoiceAccountsPayable500 AP employees! Most timespent on mismatches.
12 Example: Ford - Before and AFTER PurchaseOrderPurchasingVendorReceivingGoodsPayment“Don’t sendus invoices”AccountsPayableDatabase75% reduction in head count.
13 Developing Software – The Systems Development Life Cycle (SDLC) Design phase – involves describing the desired features and operations of the system including screen layouts, business rules, process diagrams, pseudo code, and other documentationDevelopment phase – involves taking all of the detailed design documents from the design phase and transforming them into the actual systemThe SDLC and its associated phases are discussed in detail in the Business Plug-In Systems DevelopmentCLASSROOM EXERCISECampus of the FutureA $61 million dorm development project at the University of Hawai'i-Manoa is being called an example of "the future of residence halls" at a local gathering of national higher education officials.As the demolition of Frear Hall began yesterday on the UH-Manoa campus, plans for its replacement received praise from some members of the Association of College and University Housing Officers, made up of campus housing officials from across the nation, for its sustainable and student-friendly design.For the rest of the article follow this link:
14 Developing Software – The Systems Development Life Cycle (SDLC) 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 phaseImplementation phase – involves placing the system into production so users can begin to perform actual business operations with the systemThe SDLC and its associated phases are discussed in detail in the Business Plug-In Systems Development
15 Developing Software – The Systems Development Life Cycle (SDLC) Maintenance phase – involves performing changes, corrections, additions, and upgrades to ensure the system continues to meet the business goalsThe SDLC and its associated phases are discussed in detail in the Business Plug-In Systems Development
16 Software Development Methodologies There are a number of different software development methodologies including:WaterfallRapid application development (RAD)Extreme programmingAgileWaterfall methodology – a sequential, activity-based process in which each phase in the SDLC is performed sequentially from planning through implementation and maintenanceRapid 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 processExtreme programming (XP) methodology – breaks a project into tiny phases, and developers cannot continue on to the next phase until the first phase is completeAgile methodology – a form of XP, aims for customer satisfaction through early and continuous delivery of useful software components
17 Waterfall Methodology Waterfall methodology – a sequential, activity-based process in which each phase in the SDLC is performed sequentially from planning through implementation and maintenanceThe waterfall methodology is one of the oldest software development methods and has been around for over 30 yearsThe success rate for software development projects that follow this approach is only about 10 percent, or 1 in 10The biggest problem with the waterfall methodology is that it assumes users can specify all business requirements in advanceAsk your students to define another issue with the waterfall methodologyAns: It also assumes that business requirements do not change over timeStress to your students that if they ever find themselves on a software development project that is using the waterfall methodology they should do everything they can to change the methodology
18 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 processThe prototype is an essential part of the analysis phase when using a RAD methodologyPrototype – a smaller-scale representation or working model of the users’ requirements or a proposed design for an information systemRAD is a more popular route for system development projectsThe fundamentals of RAD include:Focus initially on creating a prototype that looks and acts like the desired systemActively involve system users in the analysis, design, and development phasesAccelerate collecting the business requirements through an interactive and iterative construction approach
19 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 completeThe primary difference between the waterfall and XP methodologies is that XP divides its phases into iterations with user feedback
20 Agile MethodologyAgile methodology – a form of XP, aims for customer satisfaction through early and continuous delivery of useful software componentsAgile is similar to XP but with less focus on team coding and more on limiting project scopeAn agile project sets a minimum number of requirements and turns them into a deliverable productThe Aglie Alliance is a group of software developers whose mission is to improve software development processes and whose manifesto includes the following:Satisfy the customer through early and continuous delivery of valuable softwareWelcome changing requirements, even late in developmentBusiness people and developers must work together daily throughout the projectBuild projects around motivated individualsThe best architectures, requirements, and designs emerge from self-organizing teamsAt regular intervals, the team reflects on how to become more effective, then tunes and adjusts its behavior accordingly
21 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 projectProject management software – supports the long-term and day-to-day management and execution of the steps in a projectProject management offers a strategic framework for coordinating the numerous activities associated with organizational projects
22 Project Managing The Systems Development Effort Project management interdependent variablesThese three variables are interdependentYou cannot change one without changing the othersFor example, decreasing a project’s timeframe means either increasing the cost of the project or decreasing the scope of the project to meet the new deadlineIncreasing a project’s scope means either increasing the project’s timeframe or increasing the project’s cost – or both – to meet the increased scope changesProject management is the science of making intelligent trade-offs among time, cost, and scope
23 Project Managing The Systems Development Effort Common reasons why IT projects fall behind schedule or failA recent survey concluded that the failure rate of IT projects is much higher in organizations that do not exercise disciplined project managementA successful project is typically on time, within budget, meets the business’s requirements, and fulfills the customer’s needsThe Hackett Group analyzed its client database and discovered:3 in 10 projects failed21 percent of companies state that they cannot adjust rapidly to market changes1 in 4 validate a business case for an IT project after its completion
24 Project Managing The Systems Development Effort Expected growth for project management softwareAsk your students how many of them are currently involved in projects or are project mangersAsk them which types of technologies they use to manage projects
25 What if we can’t / don’t want to build the system “in house” What if we can’t / don’t want to build the system “in house”?: OutsourcingOutsourcing – an arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-houseIn some cases, the entire IT department is outsourced, including planning and business analysis as well as the installation, management, and servicing of the network and workstationsThis is an interesting clip on outsourcing and tutoring kids in the United States
26 Outsourcing Reasons companies outsource Tom Friedman on the Daily Show (takes a while to load).
27 Sourcing’s New Surge - Offshoring Offshore outsourcing – using organizations from developing countries to write code and develop systemsAccording to Forrester Research, nearly half of all businesses use offshore providers, and two-thirds plan to send work overseas in the near futureNumerous countries have substantially well-trained IT professional and clerical staff who have lower salary expectations compared to their U.S. counterparts
28 21st Century Organizational Trends Four technology areas where organizations are focusing:IT infrastructuresSecurityE-businessIntegrationsCLASSROOM EXERCISECentury TurnBreak your students into groups and ask them to rank the four technology areas in order of importance to a businessHave your students present their ranking, along with their justifications, to the entire classThis is a great question for a class debate
29 Increased Focus on Integration Overall, core business relationships and models are changingProduct-centricity to customer-centricityMass production to mass customizationThe value in material things to the value of knowledge and intelligenceThe past few years have produced a confluence of events that have reshaped the global economyAround the world, free-market competition has flourished and a new globally interdependent financial system has emergedReflecting these changes, core business relationships and models are dramatically changing
30 Increased Focus on Integration A new series of business success factors and challenges are emergingOrganization agilityFocus on core competencies and processesRedefinition of the value chainInstantaneous business responseAbility to scale resources and infrastructure across geographic boundariesThese developments add up to an environment that is vastly more complex than that of even five years agoThis in turn has resulted in organizations increasingly embracing new business modelsThe new environment requires organizations to focus externally on their business processes and integration architecturesThe virtually integrated business model will cause a sharp increase in the number of business partners and the closeness of integration between them