1. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-1 BUSINESS DRIVEN TECHNOLOGY Chapter Nineteen: Building Software to Support an Agile Organization

2. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-2 LEARNING OUTCOMES 19.1 Identify the business benefits associated with successful software development 19.2 Describe the seven phases of the systems development life cycle 19.3 Summarize the different software development methodologies

3. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-3 LEARNING OUTCOMES 19.4 Define the relationship between the systems development life cycle and software development methodologies 19.5 Compare the waterfall methodology and the agile methodology

4. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-4 CHAPTER NINETEEN OVERVIEW Software that is built correctly can support agile organizations and 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

5. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-5 CHAPTER NINETEEN OVERVIEW 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

6. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-6 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

7. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-7 The Systems Development Life Cycle: Overview Start

8. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-8 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 requirements – the detailed set of business requests that the system must meet in order to be successful

9. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-9 The Systems Development Life Cycle: Planning Start

10. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-10 The Systems Development Life Cycle: Analysis Start

11. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-11 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

12. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-12 The Systems Development Life Cycle: Design Start

13. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-13 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

14. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-14 The Systems Development Life Cycle: Implementation Start

15. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-15 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

16. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-16 The Systems Development Life Cycle: Maintenance Start

17. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-17 SOFTWARE DEVELOPMENT METHODOLOGIES There are a number of different software development methodologies including: – Waterfall – Rapid application development (RAD) – Extreme programming – Agile

18. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-18 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

19. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-19 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

20. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-20 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

21. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-21 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

22. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-22 DEVELOPOING SUCCESSFUL SOFTWARE Primary principles for successful agile software development: – 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

23. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-23 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

24. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-24 PROJECT MANAGING THE SYSTEMS DEVELOPMENT EFFORT Project management interdependent variables

25. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-25 PROJECT MANAGING THE SYSTEMS DEVELOPMENT EFFORT Common reasons why IT projects fall behind schedule or fail

26. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-26 PROJECT MANAGING THE SYSTEMS DEVELOPMENT EFFORT Expected growth for project management software

27. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-27 CHAPTER NINETEEN Opening Case Study Questions 1.List and describe the seven phases in the systems development life cycle and determine which phase is most important to Cisco when it is developing software 2.Review the primary principles of successful software development and prioritize them in order of importance for Amazon.com’s business strategy 3.Explain why building agile software is important to all seven of the companies 4.Assess the impact to IBM’s business if it decided to use the waterfall methodology to build its customers’ information systems

28. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-28 CHAPTER NINETEEN 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

29. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19-29 CHAPTER NINETEEN 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? 4.Explain why prototyping would be a good idea for Netflix if it decides to build a CRM system