1. Systems Development MBAA 609 R. Nakatsu

2. Overview of Today’s Lecture Why do IT projects succeed and fail? Two philosophies of systems development –Systems Development Life Cycle (SDLC) –Prototyping Outsourcing and Crowdsourcing

3. Why do IT projects fail? PricewaterhouseCoopers surveyed 200 companies and found that: Over half of IT projects fail. Only 2.5% of corporations consistently meet their targets of scope, time and cost goals for all types of projects.

4. Defining Project Success The project met scope, time and cost goals The project satisfied the customer and sponsor The results of the project met its main objectives. For example: –Saving the company money –Making the firm more efficient/productive –Providing a good return on investment

5. What helps projects succeed? Critical Success Factors 1.User Involvement 2. Executive support 3. Clear business objectives 4. Emotional maturity 5. Optimizing scope 6. Agile process 7. Project management expertise 8.Skilled resources 9.Execution 10. Tools and infrastructure Source: The Standish Group, “Chaos Activity News” (August 2011).

6. The Traditional Systems Development Life Cycle TRADITIONAL SDLC – A traditional method for developing I.S. that partitions the system development process into stages that must be completed sequentially. A key characteristic of the SDLC approach is extensive formal reviews by project team members and business management at the end of each major step.

8. 1. Systems Analysis Analyze the problem that the organization is trying to solve with an information system. Address key business issues during this phase: what is the system supposed to do from a business perspective? Key Tasks During Analysis: –Define the problem and identify its causes. –Specify the solution –Define new information and processing requirements (Create a data flow diagram—see example on Class Notes page).

9. 2. Systems Design Build a technical blueprint of how the proposed system will work. IT specialists complete most of the tasks here. The end user (i.e., the business user) reviews the technical specifications. Issues to consider: programs; user interfaces; database design (e.g., create the ER Diagram); reports; manual procedures; security and controls

10. 3. Implementation Bring the proposed system to life and place it in the organization. Monitor the budget and schedule and look for “runaway” projects. Manage scope creep! Key Tasks During Implementation: –Hardware acquisition and installation –Software development and testing –Training –System documentation

11. 4. Conversion The process of changing from the old system to the new system. DIRECT CUTOVER - immediately using the new PARALLEL - using the old and new simultaneously PILOT - converting only a group of people first PIECEMEAL (or phased) – introduce the new system in phases either by functions or by organizational units

12. 5. Production and Maintenance Production is the stage after the new system is installed and the conversion is complete; during this time the system should be reviewed by user and technical specialists. Maintenance is necessary for failures and problems that arise during the operation of the system. You may need to make minor modifications or completely overhaul the system at some point.

13. Advantages of the SDLC Uses a structured step-by-step approach. Thorough requirements definition in which problems are addressed early on in the analysis stage. Requires key deliverables before proceeding to the next step. Rigorous methods for analysis, design, and testing of a system.

14. Alternative to the SDLC: Prototyping PROTOTYPING involves the building of an experimental system rapidly for end users to evaluate A PROTOTYPE is a model of a proposed product, service, or system. It is an interactive, iterative process in which you get plenty of feedback from users of the system.

15. The Prototyping Process 1.Identify Basic Requirements 2.Develop Working Prototype 3.Get feedback from End Users 4.Revise and Enhance the Prototype Continue the iterative process between steps 3 and 4 until the end user is satisfied with the prototype.

16. Prototyping Advantages Encourages active end-user participation. Can lead to a speedier implementation. Gives end-users a feel for the final system. Helps determine technical feasibility. Helps sell the idea of a proposed system. Question for discussion: What are the disadvantages of prototyping?

17. Outsourcing Forms Of Systems Development Outsourcing 1. Purchase existing application software package. 2. Outsource development of a system for which no application software package exists. Offshore outsourcing of IT development is predicted to grow in size and importance in the coming years. is hiring an outside organization to develop the system.

18. Questions for Discussion: What are the advantages and disadvantages of outsourcing (compared to in-house development)? What does Apple outsource? Why? When do we use outsourcing, and what types of IT projects are most suitable to outsourcing?

19. Crowdsourcing Definition: Crowdsourcing is a distributed problem-solving and production model. Problems are broadcast to an unknown group of solvers in the form of an open call for solutions. Users—also known as the crowd—typically form into online communities, and the crowd submits solutions. The crowd also sorts through the solutions, finding the best ones.

20. Varieties of Crowdsourcing Rote, simple tasks (Mechanical Turk) R&D, solving intractable problems (Innocentive) User-generated content (Wikipedia, istockphoto) New idea generation (Kraft, Cisco) Open source design