Chapter 12 Development Processes

Chapter 12 Development Processes
Jason C. H. Chen, Ph.D. Professor of MIS School of Business Administration Gonzaga University Spokane, WA 99258

"We Think We Can Open the Doors to an Entirely New Market"
Example of decision making in small company. Zev owner and source of investment funds. Team presents options, he listens and makes a decision. Team doesn’t really sure what’s involved. Building an Xbox prototype good, low cost way to learn. GOALS Use the PRIDE System to: Demonstrate a typical software development meeting in a small startup. Show the wide range in development options and costs that can exist. Illustrate the use of a prototype for reducing risk. Provide a setting for a discussion of scrum.

Bottom Line Startups fun and interesting places to work.
Time and budgets limited, Decisions made more quickly, but risky if not well managed. Prototypes used to reduce front-end risk. Scrum ideal process for creating prototypes.

Study Questions Q1: How are business processes, IS, and applications developed? Q2: How do organizations use business process management (BPM)? Q3: How is business process modeling notation (BPMN) used to model processes? Q4: What are the phases in the systems development life cycle (SDLC)? Q5: What are the keys for successful SDLC projects? Q6 :How can scrum overcome the problems of the SDLC? Q7: 2026? As a business professional, you will be involved in the development of new technology applications their business, and may take the lead in in developing an application.

What are Business Process and Business Process Management?
Business process: A set of logically related tasks performed to achieved a defined business outcome Business process management (BPM) is a management approach focused on aligning all aspects of an organization with the wants and needs of clients. It is a holistic management approach[1] that promotes business effectiveness and efficiency while striving for innovation, flexibility, and integration with technology. Dr. Chen, The Trends of the Information Systems Technology TM -5

Q1: How Are Business Processes, IS, and Applications Developed?
Application: combination of hardware, software, data components that accomplish a set of requirements Three different development processes--Steps in Processing an Order Ensure operations department verifies product is available and can be delivered on requested schedule. Check with Accounting to verify credit required to process the order. Check with your boss, a sales manager, to approve any special terms the customer might request (discounts, free shipping, extended return policy, and so forth). Figure 12-1 Activities in a Business Process and the Correlating Information Systems

Relationship of Business Processes and Information Systems
Business processes to information systems - ___: ___ N:M Every information system has at least one business process A business process need ___ relate to any information system not Every IS has at least ______application because every IS has a software component one Figure 12-2 Relationship of Business Processes and Information Systems

Which Development Processes Are Used for Which?
Three ways to develop applications: BPM, SDLC, scrum, steal them. Figure 12-3 Scope of Development Processes

Business and Systems Analysts
Someone who are well versed in Porter’s models, organizational strategy, and system alignment theory and who also understand the proper role for technology. __________ Analysts (IS professionals) IS professionals who understand both business and technology. They are active throughout the systems development process and play a key role in moving the project through the systems development process. Systems analysts integrate the work of the programmers, testers, and users. System

Role of Development Personnel
Business analyst is well versed in Porter’s models, organization strategies, and focuses on ensuring business processes and information systems meet organization’s competitive strategies. Figure 12-4 Role of Development Personnel

Q2: How Do Organizations Use Business Process Management (BPM)?
Activities Repository Inventory Database These terms are defined in Ch. 3.

New Terms ______- _________- Flow Roles Resources
Collections of activities _________- People or computer applications assigned to roles Flow Control flow - directs order of activities Data flow - movement of data among activities & repositories Roles Resources

Why Do Processes Need Management?
Processes are dynamic and often need to be changed Three fundamental reasons: Improve process quality Change in technology Change in business fundamentals Monitor process quality and adjust process design, as appropriate.

Four Stages of BPM Stages in BPM Cycle [2] [1] [3]
BPM is a cyclical process for systematically creating, assessing, and altering business processes. Cycle begins by creating models of business processes. Build an as-is model that documents the current situation. See for more information. Four stages of BPM Create model of business process components - Users review and adjust model - “As-is model” documents current process; it is changed to solve process problems Create system components - Uses five elements of IS (hardware, software, data, procedures, people) 3. Implement business process Create policy for ongoing assessment of process effectiveness - Adjust and repeat cycles MRV never designed its processes, had no assessment program [4] policy creation and assessment COBIT (Control Objectives for Information and related Technology) Fig 12-5 Four Stages of BPM

BPM Cyclical process for systematically creating, assessing, altering business processes. Four stages of BPM Create model of business process components Users review and adjust model “As-is model” documents current process; it is changed to solve process problems Create system components Uses five elements of IS (hardware, software, data, procedures, people) Implement business process Create policy for ongoing assessment of process effectiveness Adjust and repeat cycles

In business process management (BPM), once the as-is model is created, the very next step that a team must take is to ________. A) obtain feedback about implementation B) assess the results of the changes C) look for improvement opportunities D) implement changes in the organization Answer: _______ C

Q3: How Is Business Process Modeling Notation (BPMN) Used to Model Processes?
Figure 12-6 Business Process Management Notation (BPMN) Symbols

In a Business Process Modeling Notation (BPMN) diagram, ________ depict the flow or sequence of activities in a process. A) dotted arrows B) diamonds C) solid arrows D) Circles Answer: _______ C

Existing Order Process
Note: role named CRM in this subprocess. This role is performed entirely by an information system, although we cannot determine that from this diagram. Figure 12-7 Existing Order Process

Check Customer Credit Process
Figure 12-8 Check Customer Credit Process

How Can Business Processes Be Improved?
Add more resources Adds costs unless efficiencies of scale Change process structure Reduce work and costs Increase costs and increase effectiveness to offset Do both

Systems Development Life Cycle (SDLC)
Four Phases in SDLC Analysis Define (Plan) Requirements Analysis Design Logical Design (visual, conceptual) Physical Design Implementation Coding Testing Conversion Maintenance Hardware/Software People

Q4: What Are the Phases in the Systems Development Life Cycle (SDLC) (Waterfall)?
Analysis [1] [2] [3] [4] [5] Figure 12-9 Five Phases of the Systems Development Life Cycle (SDLC)

Systems Development Life Cycle
(Waterfall) Analysis Project Identification and Selection Project Initiation and Planning Analysis Physical Design Implementation Maintenance Logical Design Design Problem(s) with SDLC?

Phase One: SDLC Definition Phase
[1] At the start, cost and schedule feasibility are only an approximation or back-of-the-envelope analysis. Eliminate any obviously infeasible ideas as soon as possible. Figure SDLC: System Definition Phase

Dimensions of feasibility
Assess Feasibility Dimensions of feasibility ______ feasibility Approximated, “back-of-the-envelope” analysis Purpose: eliminate infeasible ideas early Consider cost of previous projects, operational and labor costs _________ feasibility Ball park estimate Technical feasibility Is it technically likely to meet needs? _____________ feasibility Fit with customs, culture, charter, legal requirements of organization Cost Schedule Organizational

Systems Definition/Investigation (Feasibility Study)
What are new from the last slide? Economic Feasibility Operational Feasibility Can we afford it? Will it be accepted? Schedule Feasibility Technical Feasibility iTeaching Tip: Consider redisplaying slide 5 “Traditional Systems Development Life Cycle”, before beginning discussion of this lecture slide. As pointed out earlier, all application development methodologies share certain common activities. During the remainder of this lecture we will discuss these activities. We will begin by discussing systems investigation. The Investigation Phase begins the preliminary study of the proposed information system solution to meet the E-Business needs. Its focus is to seek to answer the questions: What are our opportunities, what are our priorities, and can IS be used to address these needs? Because the process of application development can be costly both in time and resources, the system investigation phase begins with a Feasibility Study. The goal of feasibility studies is to evaluate alternative systems and to propose the most feasible and desirable systems. Feasibility is assessed across four major categories: Organizational Feasibility. This focuses on how well a proposed information system supports the objectives of the organization. Technical Feasibility. This ascertains whether reliable hardware and software capable of meeting the needs of the proposed system can be acquired or developed. Operational Feasibility. This refers to the willingness and ability of the management, employees, customers, suppliers, and others to operate, use, and support a proposed system. Economic Feasibility. This is concerned with whether the proposed IS benefits are greater than its costs. This area is particularly concerned with financial affordability -- whether the firm can pay to develop the system. A cost/benefit analysis is used to weigh the total costs a new system is likely to incur against the total anticipated benefits to be gained. This includes determining tangible costs (such as hardware and software purchases and employee salaries) and intangible costs such as effects on employee morale and disruptions in productivity during the installation of the new system. Benefits too can be either tangible (such as reduced inventory and carrying costs) or intangible (higher customer satisfaction). Economic feasibility study – (cost-benefit analysis) – identifies the financial benefits and costs associated with the systems development project Operational feasibility study – examines the likelihood that the project will attain its desired objectives Technical feasibility study – determines the organization’s ability to build and integrate the proposed system Schedule feasibility study – assesses the likelihood that all potential time frames and completion dates will be met Legal and contractual feasibility study – examines all potential legal and contractual ramifications of the proposed system Which type of feasibility study would be appropriate for each of the following: Implementation of a new payroll system Implementation of a new CRM system Implementation of a new module to an existing CRM system Implementation of a new ERP system Implementation of a additional functionality to an existing KM system Will it be completed by the deadline? Does the IT capability exist? Organizational Feasibility Legal and Contractual Feasibility (Is it a good fit – objective of the organization Is the proposed system legally?

Form a Project Team Typical three personnel on a development team are:
Manager (or mangers for larger projects) Specialist: System analysts Programmers Software testers or, other functional specialist such as accounting, finance, and marketing Users: Users must be involved in most of SDLC phases Depending on nature of project, team may also include hardware and communications specialists, database designers and administrators, and other IT specialists.

Role of a Prototype Provides direct experience for user
Can be expensive to create Parts often reused PRIDE code generates Xbox may be reused in operational system Cost occurs early, sometimes before full project funding available Expense is often justified not only for greater clarity and completeness of requirements, and because parts of prototype can be reused in operational system

Phase Two: Requirements Analysis
System Analysts are IS professionals who understand both business and technology. The most important phase in the SDLC process is to determine system requirements. If the requirements are wrong, the system will be wrong. Seven activities occur in this phase as the diagram shows. Users are a critical part of this phase. They must approve the requirements before moving to the next phase. Most important phase in the systems development process. If requirements are wrong, the system will be wrong. If requirements are determined completely and correctly, then design and implementation will be easier and more likely to result in success. Figure SDLC: Requirements Analysis Phase

During the requirements definition stage of developing an information system, the project team will consist mostly of ________. A) finance and account managers B) test engineers and business users C) business and systems analysts D) database designers and administrators Answer: ______ C

Phase Three: Component Design: Design Tasks Pertain to Each of the Five IS Components
All five components require attention in the design phase: Hardware—Determine the specifications and evaluate alternatives against the requirements. Purchase it, lease it, or lease time from hosting service Programs—Decide whether to use off-the-shelf software, off-the-shelf with alterations, or custom-developed software. Database—Convert the data model to a database design. Procedures—Design procedures for users, operations personnel, and for normal, backup, and failure recovery tasks. People—Design job descriptions for users and operations personnel. You may have to add new jobs or alter existing jobs. Team determines specifications for the hardware that they want to acquire. Program design depends on the source of the programs. For off-the-shelf software, team must determine candidate products and evaluate them against the requirements. For off-the-shelf with alteration programs, team identifies products to be acquired off-the-shelf, then determines alterations required. For custom-developed programs, team produces design documentation for writing program code. Figure SDLC: Component Design Phase

Phase Four: SDLC System Implementation
Focuses on implementing the system and includes the tasks of building each of the five system components testing the system and converting users to the new system. [4] Needs to be a means for tracking both failures and requests for enhancements to meet new requirements. Many organizations find it necessary to develop a tracking database. This database contains a descriptions of failures and enhancements , who reported them, who will make the fix or enhancement, status of that work, and whether the fix or enhancement has been tested and verified by the originator. Figure SDLC: Implementation Phase

System Conversion Approaches (4Ps)
_______ Complete new and old systems run simultaneously Very safe, but expensive ________ Implement entire system in limited portion of business Advantage: limits exposure to business if system fails System is installed in phases or modules. Each piece is installed and tested. ________ (or direct) High risk if new system fails, no old system to fall back on Only used if new system is not vital to company operation Parallel Pilot Phased Plunge

Installation Conversion Methods: 4 Ps
Cut-over time Old System New System Parallel Old System New System Pilot When the development of a system will replace or improve a current system, a conversion process will be needed. Conversion methods are used for managing system change and managing both the cost and risk associated with a failure of the new system.. Four major forms of system conversion are common: Parallel. This involves operating both the old and the new system at the same time for some period until the project development team and end user management agree to switch over completely to the new system. This is the least risky approach but the most costly, since resources must be used to keep both the new and old system operational. Pilot. Here one department or often an off-site office gives the new system a trial run to see how it works and to catch any problems before the system is implemented company-wide. This is a less costly approach. Risk of failure is isolated to the department or office which receives the new system. Phased. Here the new system is implemented gradually throughout the organization according to some diffusion plan, such as department by department, section by section, or even floor by floor. This approach exposes the organization to more risk, but is less costly. Plunge. This "cold turkey" approach ends use of the old system and begins use of the new system all at once. This approach has the highest risk, but is the least costly to implement. Can be considered for non-critical applications, or application improvements that are marginal. Old System New System Phased Old System New System Plunge/ Direct

System Conversion Approaches
Pilot Implement entire system in limited portion of business Limits exposure to business if system fails Phased System installed in phases or modules Each piece installed and tested Parallel Complete new and old systems run simultaneously Very safe, but expensive Plunge High risk if new system fails Only used if new system not vital to company operations IS professionals recommend any of first three, depending on circumstances. In most cases, avoid “taking the plunge!”

In the system implementation phase of the systems development life cycle (SDLC), with ________ installation, the new system runs alongside the old one until it has been tested and is fully operational. A) pilot B) phased C) parallel D) plunge Answer: ______ C

Design and Implementation for the Five Components
This table summarizes the tasks for five IS components during the design and implementation phases. Figure Design and Implementation for the Five Components

Phase Five: SDLC System Maintenance
[5] Figure SDLC System Maintenance Phase

The project plan which results from defining the system is the input to ________, which is the second phase of the SDLC. A) system design B) requirement collection C) requirements analysis D) system maintenance Answer: ______ C

Q5: What Are the Keys for Successful SDLC Projects?
Create a work-breakdown structure (WBS) Break project into smaller tasks until each task is small enough to estimate and manage Every task results in deliverables Estimate time and costs Create a project plan Adjust the plan via trade-offs Manage development challenges Coordination; Diseconomies of scale Unexpected events; Team morale

Work Breakdown Structure (WBS)
Figure Example Work Breakdown Structure (WBS)

Partial Gantt Chart for Definition Phase of Project
Critical path is red. Note, start date-stop dates of activities, dependencies of activities. Figure Gantt Chart of the WBS for the Definition Phase of a Project

Partial Gantt Chart with Resources (People) Assigned
Adds resources to chart. Figure Gantt Chart with Resources (People) Assigned

Figure 12-Extra: Project Triangle (Project Management Trade-offs)
Time Cost The center of project triangle is QUALITY Scope The objective of the PM is to define project’s scope realistically and ultimately deliver quality of product/service on time, on budget and within scope.

Trade-Offs in Requirements, Cost, and Time?
Balancing development drivers Requirements (_______) ________ Trade-offs Elaborate requirements increase costs and time Time can be reduced to a point w/o adding costs Increasing time may reduce or increase costs If schedule needs to be shortened, two alternatives available: reduce requirements or add labor Adding more people creates diseconomies of scale (Brooks’ Law) “Adding more people to a late project makes the project later.” scope QUALITY Cost Time

Primary Drivers of Systems Development
Inherent in trade offs involve risks. Figure Primary Drivers of Systems Development

Manage Development Challenges
1. Coordination 2. Diseconomies of scale Brook's Law 3. Configuration control 4. Unexpected events Team morale Brooks's law is a claim about software project management according to which "adding manpower to a late software project makes it later". It was coined by Fred Brooks in his 1975 book The Mythical Man-Month.

Diseconomies of Scale Brooks’ Law
“Adding more people to a late project makes the project later.” New staff must be trained by productive members who lose productivity while training Schedules can be compressed only so far Once a project is late and over budget, no good choice exists “Nine women cannot make a baby in one month.”

The situation that occurs when the addition of resources creates inefficiencies is known as ________. A) diseconomies of scale B) marginal utility C) marginal returns D) break-even Answer: ________ A

Limitations of SDLC Traditional SDLC methodology for current IT projects are not always appropriate: Sometimes costs are difficult to estimate Sometimes uniqueness makes previous experience hard or impossible to find Objectives may reflect a scope that is Too broad (can’t solve it), or Too narrow (not ambitious enough) Might take too long when the business environment is very dynamic Why (waterfall): the final system wont’ be available until completion of the last phase Newer methodologies designed to address these concerns use an iterative approach (Figure 11.8).

Q6: How Can Scrum Overcome the Problems of the SDLC
Alternatives to SDLC Rapid application development (RAD) Unified process Extreme programming Scrum Others Principles of Agile (Scrum) Development

According to the scrum process, once the tasks are known for a given set of requirements, the next step is to assign each task a difficulty score, called ________. A) scrums B) points C) grades D) Tallies Answer: _______ B

Prototyping Prototpying is one of the most popular rapid application development (RAD) methods. It is an iterative process of system development in which requirements are converted to a working system that is continually revised through close work between analysts and users. A prototype is a small, but working system that contains only those important (not complete) features.

Figure 12-Extra: The prototyping methodology and database development process
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Figure 12-Extra: The prototyping methodology and database development process (cont.)
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Principles of Agile (Scrum) Development
Figure Principles of Agile (Scrum) Development

Scrum Essentials Figure Scrum Essentials

Scrum Process and Points
In agile methodologies (e.g. SCRUM), the complexity/effort needed for user stories are measured in Story points. Story point is a arbitrary measure used by Scrum teams. This is used to measure the effort required to implement a story (i.e., process). In simple terms its a number that tells the team how hard the story is. Hard could be related to complexity, Unknowns and effort. Story points (velocity) are used to calculate how many user stories a team can take in an iteration. What is the advantage of introducing an abstract concept (story points), where we can just use a concrete measurement, like estimated man-days? We can also calculate velocity, estimate coverage of an iteration, etc. using estimated man-day.

Scrum Process The higher number of ‘velocity’ the more difficult the process will be. The total number of points of work a team can accomplish in each scrum period is called ‘velocity’. once the tasks are known for a given set of requirements, the next step is to once the tasks are known for a given set of requirements, the next step is to assign each task a difficulty score, called ‘point’. Figure Scrum Process

When Are We Done? Customer is satisfied with product created and accepts it Project runs out of time Project runs out of money

Scrum Essentials When Are We Done? Figure Scrum Essentials

How Do Requirements Drive the Scrum Process?
Figure Example Requirement and Tasks

Summary of Scrum Estimation Techniques
Figure Summary of Scrum Estimation Techniques

Q7: 2026? SOA and web services make applications more easily changed and adapted. Application development speed accelerates. Applications get better at creating other applications. Singularity (Singularity) Nature of IT industry changes. New business models based on loosely coupled partnerships. New million- and billion-dollar development disasters. The Singularity is an era in which our intelligence will become increasingly nonbiological and trillions of times more powerful than it is today—the dawning of a new civilization that will enable us to transcend our biological limitations and amplify our creativity. At Singularity University We believe our world has the people, technology, and resources to solve any problem, even humanity’s most urgent, persistent challenges. As a catalyst for global change, we help others leverage rapidly accelerating technologies—including artificial intelligence, nanotechnology, robotics, and digital biology—in innovative ways to unlock solutions that can positively impact billions of lives.

END of CHAPTER 12

Chapter 12 Development Processes

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