Académique Documents
Professionnel Documents
Culture Documents
WEEK 11
Conclude System Development
A Couple of Voices from The Real World
Skate to Where the Money Will Be (Harvard Business Review, 2001)
Dynamics of Business Information Systems vendors
and Systems Thinking Intro.
Whats the business case for getting the business requirements right, early in the
process of developing a system enhancement?
Logic of an answer:
Hard to know requirementskey is agile learning
Clarify requirements early with examples to create agility
The business case is based on:
Traditional waterfall process only works 10% of the time
More agile methods work 65% of the time
Time to repair one error in financial services software*:
During requirements clarification:
1.2 hours
During coding and unit testing:
8.8 hours (> 7 X)
During integration or system testing:
14.9 hours (> 12 X)
After release:
18.7 hours (> 15 X)
Observed Data
About
Time to repair
Development
Errors
Finding the
Returns
Users and
Developers MisCommunicate
Errors found
early almost 12
x quicker to fix
Adds up to
many hours,
and $
-$
40
1.2
14.9
Difference in Hours/Error
13.7
548
30,000.00
Saves a lot
more than the
cost of an Early
Prototype
$100.00
$54,800.00
$24,800.00
Only two (2006 Census Online and My Account, My Business Account) projects
met all criteria for well-managed projects.
Government made limited progress 1997 2007 audits
Quality of governance varied widely from project to project (see Six Decisions).
In four projects governance responsibilities were not carried out adequately (key
issues either not reported or not resolved)
Five projects were allowed to proceed with business cases that were incomplete,
out-of-date or contained information that could not be supported.
Four of the projects undertaken by departments that lacked the skills and
experience to manage the projects or to use the system effectively.
Initial
Schedule
2010 Budget
Scope Change
Treasury Board
expenditure
management system
$16 million
2000-2007
$51 million
(actual)
Of 4 phases, 2 deferred
indefinitely
Citizenship and
Immigration global
case management
2000-2005
$195 million
2000-2011
$387 million
CRA Integrated
revenue collection
2001-2004
$2.5 million
2001-2014
$144 million
Scope increased
PWSSC and TB
secure channel
1999-2002
$96 million
1999-2004
$377 million
(actual)
Citizenship and
Immigration biometrics
2008-2013
$180 million
http://www.youtube.com/watch?v=PCrBvhTJiAw
U Michigan open
university lecture
50:15
Excel examples
Hardware,
Software (operating system, applications, etc.)
Networks (Local, Metro, Wide Area)
Services (outsourcing, system development)
Example
Business Model
Winning strategy:
Mix and match the best components from top suppliers to meet customers needs
(creating interdependence to meet challenging needs)
Control the the interdependent links in the industrys value chain
Control thru selection of core competencies
Dont outsource interdependent components
Flexibly re-configure them as the industry evolves
Sell the interdependent links in the value chain to other vendors
Example (not from HBR article)
Operating systems
Early 1980s Apple: Motorola Processor + beautifully integrated applications
Microsoft: windows icons pasted onto QDOS + Intel processor + anyones
applications
Choice over-whelmed integration.Apple falls from #1 to <10%
Business Model
Clayton M. Christensen, Michael Raynor, Matthew Verlinden,
Skate to Where the Money Will Be, HBR, November 2001
Winning strategy:
Mix and match the best components from top suppliers to meet customers needs
(creating interdependence to do so)
Control the the interdependent links in the industrys value chain
Control thru selection of core competencies
Dont outsource interdependent components
Flexibly re-configure them as the industry evolves
Sell the interdependent links in the value chain to other vendors
Example
Operating systems
Early 1980s Apple: Motorola Processor + beautifully integrated applications
Microsoft: windows icons pasted onto QDOS + Intel processor + anyones
applications
Choice over-whelmed integration.Apple PCs fall from #1 to almost gone
Business Model
Outsource the modular components
Competency: integration for fast customized delivery, competitive prices
Extraordinary skill at valued, hard to imitate part of product or service
Clayton M. Christensen, Michael Raynor, Matthew Verlinden,
Skate to Where the Money Will Be, HBR, November 2001
Fast hardware customization and delivery with negative working capital needs $$$$
Systems design, implementation, maintenance and management services
$$$$
Microsoft
Intel/AMD
Dell
Fast hardware customization and delivery with negative working capital needs $$$$
Systems design, implementation, maintenance and management services
$$$$
IBM
Ways of Thinking
Vendors about Buyers
Hardware,
Software (operating system, applications, etc.)
Networks (Local, Metro, Wide Area)
Services (outsourcing, system development)
Core
Systems
Environment
Customers
Competitors
Components
Mission/
Strategy
Tasks
Prescribed
Networks
People
Processes
Technical
Political
Cultural
Emergent
Networks
Core
Systems
Environment
Customers
Components
Competitors
Mission/
Strategy
Tasks
Prescribed
Networks
Technical
School 1
Political
School 2
Cultural
People
Processes
Emergent
Networks
Core
Systems
Environment
Customers
Competitors
Components
Mission/
Strategy
Tasks
Prescribed
Networks
E4
E3
Technical
Political
Cultural
E1
People
E2
Processes
Emergent
Networks
Ways of Thinking
Vendors about Buyers
System: a whole of two or more parts that each can effect the whole
The management systems of mainframe vendors and their buyers
Google synthesized Search and Advertizing (and wants to synthesize much more)
Want to make money in an evolving IT industry?