9.1

Dr. Honghui DengDr. Honghui Deng

Assistant ProfessorAssistant Professor

MIS DepartmentMIS Department

UNLVUNLV

MIS 746 IS Project Management

9.2

Analyzing & designing systemsAnalyzing & designing systems

PrototypingPrototyping

IS project typesIS project types

Session 9: System DevelopmentSession 9: System Development

9.3

State of the IndustryState of the Industry

• There are many good ideas for There are many good ideas for implementing computer systems in implementing computer systems in businessbusiness

• Bringing in a project:Bringing in a project: on timeon time

within budgetwithin budget

as specifiedas specified

is very difficultis very difficult

9.4

Software Development Software Development AlternativesAlternatives

• Code-and-Fix: Code-and-Fix: laissez fairelaissez faire

• Waterfall: Waterfall: sequentialsequential

• PrototypingPrototyping

• Spiral ModelSpiral Model

• Rapid PrototypingRapid Prototyping

• othersothers

9.5

Waterfall ModelWaterfall Model

• System feasibilitySystem feasibility Boehm (1988)Boehm (1988)

• Software plans & requirementsSoftware plans & requirements• Product designProduct design• Detailed designDetailed design• CodeCode• IntegrationIntegration• ImplementationImplementation• Operations & ManagementOperations & Management

9.6

PrototypingPrototyping

• Develop system on a small scaleDevelop system on a small scale

• let user try the systemlet user try the system

• User identifies needed improvementUser identifies needed improvement

especially good if benefits hard to especially good if benefits hard to identify (“better decision making”)identify (“better decision making”)

also appropriate to compare alternativesalso appropriate to compare alternatives

9.7

Spiral ModelSpiral Model

Boehm (1990)Boehm (1990)

• Iterative prototypesIterative prototypes– risk analysis– prototype– progress

• Operations conceptOperations concept Requirements Requirements planplan

• Software requirementsSoftware requirements Req’ts validation Req’ts validation• Software product designSoftware product design verificationverification• Detailed design, codeDetailed design, code implement implement

9.8

Risks and ResponsesRisks and Responses

• PersonnelPersonnel best talentbest talent trainingtraining

team buildingteam building• Budget & scheduleBudget & schedule multiple estimatesmultiple estimates

design to budgetdesign to budget

requirements requirements scrubbingscrubbing

• Wrong functionsWrong functions user surveys, user surveys, prototypeprototype

• User interfaceUser interface prototyping, scenariosprototyping, scenarios

9.9

Risks and ResponsesRisks and Responses

• Excessive featuresExcessive features requirements scrubbingrequirements scrubbing• Many changesMany changes high change threshholdhigh change threshhold• External problemsExternal problems benchmarkingbenchmarking• Real-time performReal-time perform simulation, benchmarksimulation, benchmark

prototypingprototyping• Technical limitsTechnical limits cost/benefitcost/benefit

prototypingprototyping

9.10

Rapid PrototypingRapid Prototyping

Feedback from usersFeedback from users• Problem AnalysisProblem Analysis• Requirements DescriptionRequirements Description• Requirements SpecificationRequirements Specification• Design/Implement PrototypeDesign/Implement Prototype• Evaluate PrototypeEvaluate Prototype• Formal SpecificationsFormal Specifications

9.11

Other Systems Development Other Systems Development OptionsOptions

• Component Assembly Projects: Component Assembly Projects:

typically object oriented modulestypically object oriented modules

• Rapid Application Development:Rapid Application Development:

compress life cyclecompress life cycle

Computer Aided Software Computer Aided Software EngineeringEngineering

Joint Application DevelopmentJoint Application Development

9.12

Software Development StandardsSoftware Development Standards

• ISO 9000ISO 9000– European set of standards– Focus on process rather than product

• Capability Maturity ModelCapability Maturity Model– From Software Engineering Institute

(Carnegie-Mellon University)– Levels of different competencies

9.13

Effect of CMM LevelEffect of CMM LevelMcConnell [1993]McConnell [1993]

LevelLevel Cost Cost ($mill)($mill)

Time Time (months)(months)

Quality Quality (def/k)(def/k)

LOC/hrLOC/hr

11 3333 4040 9.09.0 11

22 1515 3232 3.03.0 33

33 77 2525 1.01.0 55

44 33 1919 0.30.3 88

55 11 1616 0.10.1 1212

9.14

IS PROJECT TYPESIS PROJECT TYPES

project management project management characteristics of different characteristics of different

IS projectsIS projects

9.15

IS ProjectsIS Projects

• programming more automatedprogramming more automated– CASE tools, code generators, 4GL,

systems re-engineering tools, OOL

• focus therefore on focus therefore on – systems design– development– implementation

9.16

IS Project TypesIS Project Types

• maintenancemaintenance

• conversionconversion

• new systems developmentnew systems development

9.17

Maintenance Maintenance ProjectsProjects

by far the most commonby far the most common

• durationduration

• trainingtraining

• categoriescategories– fixing errors– minor enhancements– major enhancements

9.18

Duration of Duration of MaintenanceMaintenance ProjectsProjects

• Impact on Organization’s Master Plan Impact on Organization’s Master Plan biggest factorbiggest factor– if significant contribution to revenue,

more likely to have established maintenance team

– can contribute as revenue source (royalties) or as a production tool

– if less revenue impact, MORE LIKELY TO HAVE PROJECT TEAM for maintenance

9.19

Training & Training & MaintenanceMaintenance ProjectsProjects

• some companies use some companies use maintenance maintenance as a training groundas a training ground

• exposure to exposure to maintenancemaintenance can can make an organization’s operations make an organization’s operations much clearermuch clearer

9.20

FIXING ERRORSFIXING ERRORS

• clear objective - complexity clear objective - complexity depends ondepends on– nature of the system, error, personnel

• BEST CASE: BEST CASE: – small system, easily traced– can assign to someone familiar with it

• WORST CASE:WORST CASE:– nobody familiar with system– very large & complex system– system evolved from earlier versions

9.21

MINOR MINOR ENHANCEMENTSENHANCEMENTS

• adding, modifying, deleting data or adding, modifying, deleting data or reportsreports

• a degree of original designa degree of original design• constrained by original designconstrained by original design• usually not under critical conditionsusually not under critical conditions• therefore, more likely to examine therefore, more likely to examine

alternative approachesalternative approaches• more likely assigned to those with design more likely assigned to those with design

capabilities, knowledge of the capabilities, knowledge of the organizationorganization

9.22

MAJOR ENHANCEMENTSMAJOR ENHANCEMENTS

• design & implementation scope highdesign & implementation scope high

• wide-scale modification of existing wide-scale modification of existing module, or development of new module, or development of new modulemodule

• can be a collection of minor can be a collection of minor enhancements with some common enhancements with some common characteristiccharacteristic

• need experienced personnelneed experienced personnel

9.23

MAJOR ENHANCEMENTSMAJOR ENHANCEMENTS

• EASIEST IFEASIEST IF– personnel know system– clear connection to a corporate goal– straightforward processes– CASE tool used to develop

• DIFFICULT WHENDIFFICULT WHEN– new personnel– hard to assess criticality of system– no design & implementation standards

9.24

CONVERSION PROJECTSCONVERSION PROJECTS

• change an existing systemchange an existing system

(not necessarily (not necessarily computerized)computerized)– manual to computer-based– one computer platform to another

9.25

Convert Manual to Convert Manual to AutomatedAutomated

• closest to pure design & closest to pure design & developmentdevelopment

• major pitfallsmajor pitfalls– improper specification– failure to accommodate changes

• need knowledge of existing system, need knowledge of existing system, desired system, how to make desired system, how to make transitiontransition

9.26

Conversion Change Conversion Change ManagementManagement

• need senior management supportneed senior management support

• need to convince affected need to convince affected employees that the change will lead employees that the change will lead to better working environmentto better working environment

• JOB REDEFINITIONJOB REDEFINITION

• MAY DISPLACE EMPLOYEESMAY DISPLACE EMPLOYEES - - need retrainingneed retraining

9.27

Convert to New Convert to New TechnologiesTechnologies

• from one computer system to anotherfrom one computer system to another

• NEW JOB DESCRIPTIONSNEW JOB DESCRIPTIONS– example - text only to text & image

keyboard only to scanning, working with keyboard only to scanning, working with objectsobjects

• DATA RETRIEVAL changesDATA RETRIEVAL changes

• Conversion to new or emerging Conversion to new or emerging technologies much more involvedtechnologies much more involved

9.28

Convert to New Convert to New TechnologiesTechnologies

• SIMPLESTSIMPLEST– new hardware similar to old– new operating system similar to old– existing applications modular– vendor supplied routines for conversion

• WORSTWORST– major change: single task to multi-task– line-oriented to icon-oriented– keyboard to mouse

9.29

Language-Based Language-Based ConversionsConversions

• translate from one language to translate from one language to anotheranother

• most from 3GL (COBOL) to 4GLmost from 3GL (COBOL) to 4GL

• need experts in both old & new need experts in both old & new languageslanguages– impact on data & code structure– take full advantage of 4GL

9.30

Non-procedural Non-procedural ConversionsConversions

• instead of sequential control, instead of sequential control, statements written as rules fired statements written as rules fired when all conditions satisfiedwhen all conditions satisfied

• object-orientedobject-oriented approaches approaches– objects control processing

• need expertise in old & new need expertise in old & new languageslanguages

• more code more code reusereuse in object-oriented in object-oriented

9.31

Hardware-based Hardware-based ConversionsConversions

• causescauses– convert to new platform for marketing

purposes– bring in-house a formerly time-shared

system– purchase new computing platform

• most effort in converting low-level most effort in converting low-level input & output processing routinesinput & output processing routines

9.32

Hardware-based Hardware-based ConversionsConversions

• same vendor - little problemsame vendor - little problem– IBM 32 bit words with 8 bit bytes– CDC 60 bit words with 6 bit bytes– code (even in same language) won’t

run same– vendors may supply different codes

• BEST CASE - BEST CASE - vendor specific I/O localized vendor specific I/O localized in routines supplied by vendorin routines supplied by vendor

• USUALLY USUALLY some adjustments requiredsome adjustments required

9.33

New Systems New Systems DevelopmentDevelopment

each type of system has different each type of system has different project management characteristicsproject management characteristics

• transaction processingtransaction processing

• management controlmanagement control

• decision support systemsdecision support systems

• group support systemsgroup support systems

• executive information systemsexecutive information systems

9.34

Transaction Transaction ProcessingProcessing

• high volumes of quantitative data, high volumes of quantitative data, variety of input sourcesvariety of input sources

• drive standard reports, basis for drive standard reports, basis for other systemsother systems

• complexity arises from volumecomplexity arises from volume– may involve complex calculations

9.35

Management Management ControlControl

more specialized than transaction more specialized than transaction processingprocessing

• monitor manpower allocationsmonitor manpower allocations• monitor project progressmonitor project progress• monitor production levelsmonitor production levels• monitor salesmonitor sales

compare expected with actualcompare expected with actualif variance too great, trigger actionif variance too great, trigger action

9.36

Major Types of Systems

9.37

Decision Support Decision Support SystemsSystems

• explore decision alternativesexplore decision alternatives

• data from a variety of sourcesdata from a variety of sources

• may include modelsmay include models

• Project Team needs expertise in Project Team needs expertise in modelsmodels

9.38

Group Support Group Support SystemsSystems

• allow multiple decision makers to allow multiple decision makers to work on decision problemwork on decision problem

• PROCESS oriented (communicate)PROCESS oriented (communicate)– can be different time, place

• FeaturesFeatures– anonymity– brainstorming– consensus building

9.39

Executive Support Executive Support SystemsSystems

• access to data of all typesaccess to data of all types

• much more subjective data, long much more subjective data, long rangerange

• INTERFACE criticalINTERFACE critical

• drill-down data toolsdrill-down data tools

• trend analysis - graphics & statisticstrend analysis - graphics & statistics

• exception reportsexception reports

9.40

What is ERP? ERP stands for Enterprise Resources Planning, which represents an information technology system that support business operations throughout an entire enterprise by optimizing, planning, maintaining, and tracking the use of company resources….

Enterprise Resource Planning

Human ResourcesFacilities

Raw MaterialsEquipmentFinished Goods

9.41

ERP systems have the capability to integrate the functions that make up the backbone of most businesses, such as financials, manufacturing, distribution, and human resources…..

Enterprise Resource Planning

Human ResourcesBenefitsPayrollRecruitingPensionsTime & LaborTraining

FinancialsGeneral LedgerAccounts PayableReceivablesAsset ManagementExpense ReportingCash Management

Manufacturing & DistributionInventory ControlDemand PlanningSchedulingEngineeringBills of MaterialsProduction

9.42

1960 1985 1992 1997 2000

MRP Systems ERP Systems

The Next Big Thing

The origin of ERP systems can be traced back to the early 1960’s when businesses began looking at improving their operations by automating basic shop-floor systems…..

1975

MRP II Systems

2005

Enterprise Resource Planning

Manufacturing Systems Lifecycle

9.43

The top tier ERP suppliers include the following software companies…….

Enterprise Resource Planning

9.44

Working as an IT project manager, you’ll find yourself faced with developing and implementing a variety of information technology systems….

Info

rmat

ion

Syst

ems

Transaction Processing Systems

Office Automation Systems

Decision Support Systems

Executive Support Systems

Expert Support Systems

Management Information Systems

Enterprise Resource Planning

Strategic Level

Operational Level

Tactical Level

9.45

It has been estimated that 90% of the fortune 500 companies use ERP systems as the “information technology backbone” to run their business operations…

Enterprise Resource Planning

9.46

RecapRecap

• IS project management can involve a wide IS project management can involve a wide variety of tasksvariety of tasks

• Need to be able to get technical expertise Need to be able to get technical expertise as well as experience with old systemsas well as experience with old systems

• Apply systems approachApply systems approach

9.47

Reengineering ProjectsReengineering Projects

Kralovec (1998)Kralovec (1998)

• USAAUSAA: : high-density storage (optical)high-density storage (optical)

• Picture Tel SystemPicture Tel System: : video video conferencing to save travelconferencing to save travel

• Cellular Automated Transmission Cellular Automated Transmission SystemSystem: : portable communications - portable communications - trucks to HQ, laptops for generating trucks to HQ, laptops for generating paperpaper

• United Parcel ServiceUnited Parcel Service: : pen-based pen-based computing (DIAD)computing (DIAD)

9.48

Babson CollegeBabson College

Kesner (1998)Kesner (1998)

• reengineered business processes - reengineered business processes - 3 year project3 year project

• improve records, advising, improve records, advising, placement, field-learningplacement, field-learning

• Data warehousing, reduced costs Data warehousing, reduced costs 20%20%

• internet accessinternet access

9.49

Systems Development Systems Development ApproachApproach

Life cycleLife cycle

Criteria: Criteria: cost, time, performancecost, time, performance

• SpecificationSpecification

• DesignDesign

• CodeCode

• TestTest

• ImplementationImplementation

9.50

SpecificationSpecification

• User identifies needUser identifies need• Systems analyst plans solutionSystems analyst plans solution• Feasibility studyFeasibility study: clear, concise : clear, concise

statement of the problemstatement of the problem• Statement of workStatement of work: specification of : specification of

what is to be donewhat is to be done• MOST PROJECTS DIE IN THE MOST PROJECTS DIE IN THE

SPECIFICATION PHASESPECIFICATION PHASE

9.51

DesignDesign

• How software will meet requirementsHow software will meet requirements

• OPTIONS:OPTIONS: make or buymake or buy

in-house or outsourcein-house or outsource• Request for Proposal: Request for Proposal: specify for biddingspecify for bidding

• OUTPUT: OUTPUT: detailed list of user requirements detailed list of user requirements and system requirementsand system requirements

9.52

XeroxXerox

Halper (1994)Halper (1994)

• Early 1994 outsourced IS to EDSEarly 1994 outsourced IS to EDS

• had profit of $620 million on 14.6 had profit of $620 million on 14.6 billionbillion

• shed non-core businessshed non-core business

• reduced IS staff by 2,000reduced IS staff by 2,000

9.53

CodeCode

• If acquire, Selection of BuilderIf acquire, Selection of Builder– cost– feasibility– experience– reputation

• cost-benefit studycost-benefit study

9.54

Data ConversionData Conversion

• Important in data warehousing, Important in data warehousing, data miningdata mining

• Useful for decision support, Useful for decision support, executive information systemsexecutive information systems

9.55

TestingTesting

• User evaluates system User evaluates system performanceperformance

• transfer to user (installation)transfer to user (installation)

• TRAININGTRAINING

9.56

ImplementationImplementation

• Install and check systemInstall and check system

• User Training key to successUser Training key to success– Especially for enterprise-wide

systems

9.57

The systems development lifecycle partitions systems development into formal stages, with each stage requiring completion before the next stage can begin.

The Traditional Systems Development LifecycleThe Traditional Systems Development Lifecycle

Alternative Systems-Building Approaches

9.58

SummarySummary

• System analysis & development has System analysis & development has evolved a great distanceevolved a great distance

• Many methodologies existMany methodologies exist– Unimportant which– Helps a great deal to focus on one

• Standards can increase development Standards can increase development productivityproductivity

• Many types of IS projectsMany types of IS projects• Development of a system a sequence of Development of a system a sequence of

functional tasksfunctional tasks

9.59