1. Unit Five – Transforming Organizations
Chapter Seventeen – Building Software to Support an Agile Organization
Chapter Eighteen – Outsourcing in the 21st Century
Chapter Nineteen – Developing a 21st Century Organization
Plug In B2 – Business Processes
Plug 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 maintenance
CLASSROOM EXERCISE
Around SDLC
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 cycle
Have 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 old
system to new system.
Fix, maintain, and
improve system.
How can system solve
business 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 cycle
Have your students present their answers to the entire class
How can system solve
business problem?
TECHIE language.
Test the system.
3 times the time and
resources of
programming!!
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 goals
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
The SDLC and its associated phases are discussed in detail in the Systems Development Business Plug-In
CLASSROOM EXERCISE
Space Needle Exercise
Break 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 standpoint
Different types of feasibility studies
Economic feasibility study
Operational feasibility study
Technical feasibility study
Schedule feasibility study
Legal and contractual feasibility study
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

6. Analysis: Examining Business Processes
The process steps are the activities the customer and store personnel do to complete the transaction
Business process - a standardized set of activities that accomplish a specific task, such as processing a customer’s order
Business processes transform a set of inputs into a set of outputs (goods or services) for another person or process by using people and tools
Waiting in line at a grocery store is a great example of the need for process improvement
In this case, the “process” is called checkout, and the purpose is to pay for and bag groceries
The process begins when a customer steps into line and ends when the customer receives the receipt and leaves the store
This simple example describes a customer checkout process
Can you name other business process?
Developing new products
Building a new home
Ordering clothes from mail-order companies
Requesting new telephone service from a telephone company
Administering Social Security payments

7. Business Process Improvement
Continuous process improvement model - attempts to understand and measure the current process, and make performance improvements accordingly
Can you name an organization, product, or service that does not require any improvement?
This would be a perfect organization – does not exist
Is 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 enterprises
What is the difference between continuous process improvement and business process reengineering?
BPR relies on a different school of thought than continuous process improvement
In the extreme, BPR assumes the current process is irrelevant, does not work, or is broken and must be overhauled from scratch
Such a clean slate enables business process designers to disassociate themselves from today’s process and focus on a new process
It 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 sequence
Business process model - a graphic description of a process, showing the sequence of process tasks, which is developed for a specific
As-Is process model
To-Be process model
Why 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 process
What is the difference between the As-Is and To-Be process
As-Is process model - represents the current state of the operation that has been mapped, without any specific improvements or changes to existing processes
To-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 reengineered
Pumping gas (pay at the pump)
Auto checkout at the grocery store
Bar codes

11. Example: Ford - BEFORE and After
Purchase
Order
Purchasing
Vendor
Receiving
Goods
Receiving
Document
Copy of
Purchase
Order
Payment
Invoice
Accounts
Payable
500 AP employees! Most time
spent on mismatches.

12. Example: Ford - Before and AFTER
Purchase
Order
Purchasing
Vendor
Receiving
Goods
Payment
“Don’t send
us invoices”
Accounts
Payable
Database
75% 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 documentation
Development phase – involves taking all of the detailed design documents from the design phase and transforming them into the actual system
The SDLC and its associated phases are discussed in detail in the Business Plug-In Systems Development
CLASSROOM EXERCISE
Campus of the Future
A $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 phase
Implementation phase – involves placing the system into production so users can begin to perform actual business operations with the system
The 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 goals
The 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:
Waterfall
Rapid application development (RAD)
Extreme programming
Agile
Waterfall methodology – a sequential, activity-based process in which each phase in the SDLC is performed sequentially from planning through implementation and maintenance
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
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
Agile 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 maintenance
The waterfall methodology is one of the oldest software development methods and has been around for over 30 years
The success rate for software development projects that follow this approach is only about 10 percent, or 1 in 10
The biggest problem with the waterfall methodology is that it assumes users can specify all business requirements in advance
Ask your students to define another issue with the waterfall methodology
Ans: It also assumes that business requirements do not change over time
Stress 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 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
RAD is a more popular route for system development projects
The fundamentals of RAD include:
Focus initially on creating a prototype that looks and acts like the desired system
Actively involve system users in the analysis, design, and development phases
Accelerate 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 complete
The primary difference between the waterfall and XP methodologies is that XP divides its phases into iterations with user feedback

20. 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
The 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 software
Welcome changing requirements, even late in development
Business people and developers must work together daily throughout the project
Build projects around motivated individuals
The best architectures, requirements, and designs emerge from self-organizing teams
At 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 project
Project management software – supports the long-term and day-to-day management and execution of the steps in a project
Project management offers a strategic framework for coordinating the numerous activities associated with organizational projects

22. Project Managing The Systems Development Effort
Project management interdependent variables
These three variables are interdependent
You cannot change one without changing the others
For 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 deadline
Increasing a project’s scope means either increasing the project’s timeframe or increasing the project’s cost – or both – to meet the increased scope changes
Project 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 fail
A recent survey concluded that the failure rate of IT projects is much higher in organizations that do not exercise disciplined project management
A successful project is typically on time, within budget, meets the business’s requirements, and fulfills the customer’s needs
The Hackett Group analyzed its client database and discovered:
3 in 10 projects failed
21 percent of companies state that they cannot adjust rapidly to market changes
1 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 software
Ask your students how many of them are currently involved in projects or are project mangers
Ask 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”?: Outsourcing
Outsourcing – an arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house
In 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 workstations
This 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 systems
According to Forrester Research, nearly half of all businesses use offshore providers, and two-thirds plan to send work overseas in the near future
Numerous 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 infrastructures
Security
E-business
Integrations
CLASSROOM EXERCISE
Century Turn
Break your students into groups and ask them to rank the four technology areas in order of importance to a business
Have your students present their ranking, along with their justifications, to the entire class
This is a great question for a class debate

29. Increased Focus on Integration
Overall, core business relationships and models are changing
Product-centricity to customer-centricity
Mass production to mass customization
The value in material things to the value of knowledge and intelligence
The past few years have produced a confluence of events that have reshaped the global economy
Around the world, free-market competition has flourished and a new globally interdependent financial system has emerged
Reflecting 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 emerging
Organization agility
Focus on core competencies and processes
Redefinition of the value chain
Instantaneous business response
Ability to scale resources and infrastructure across geographic boundaries
These developments add up to an environment that is vastly more complex than that of even five years ago
This in turn has resulted in organizations increasingly embracing new business models
The new environment requires organizations to focus externally on their business processes and integration architectures
The virtually integrated business model will cause a sharp increase in the number of business partners and the closeness of integration between them