Systems Development

MIS 503
Management Information Systems
MBA Program
SYSTEMS DEVELOPMENT
LIFE CYCLE METHODOLOGY
Systems development life cycle (SDLC) – a highly
structured approach for development of new
customized software applications

Page 385
SYSTEMS DEVELOPMENT
LIFE CYCLE METHODOLOGY
The SDLC Project Team
• Usually temporary
• Includes personnel from IS and business units
• Has a project manager
– Traditionally from IS
– Can be from business unit
– May be one from each
– Responsible for success of project – delivering quality
system on time and within budget

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SYSTEMS DEVELOPMENT
LIFE CYCLE METHODOLOGY
The SDLC Project Team
• Includes systems analysts
– Have critical roles
– Work closely with business managers and end users
– Have problem-solving skills, knowledge of IT capabilities, strong
business understanding
• Has a business sponsor and a champion

Page 394
 Managing Change
• The ability to manage change is
critical to the success of systems
development.
– The new or modified systems created
during systems development will
inevitably cause change.
– Managing change requires the ability to
recognize existing or potential
problems.
 Significant Quote

There is nothing more difficult to plan, more

doubtful of success, nor more dangerous to manage
than the creation of a new information system. For
the initiator has the enmity of all who would profit
from the preservation of the old system and merely
luke warm defenders in those who would gain
from the new one.
 Establishing Objectives for
Systems Development
• Systems development objectives
should be supportive of, and aligned
with, organizational goals.
• There are four kinds of objectives that
should be considered:
– Performance objectives.
– Cost objectives.
– Control objectives.
– Complexity objectives.
 Systems Development
Methodologies
• A key factor in completing a
successful systems development
project is to adopt a methodology.
• A methodology is a way of doing
things.
 Systems Development
Methodologies
• A systems development methodology
is an assortment of rules and standards
that govern the approach taken to all
tasks associated with systems
development.
• In structured systems development the
systems development tasks are broken
down into small, easily managed parts.
 Systems Development
Methodologies
• Top-down design means the entire
system can be viewed as a layered
set of descriptions, each of which
could be decomposed, or “peeled
back,” to reveal more detailed
specifications for smaller parts of the
system.
 Structured Walkthrough
• A structured walkthrough is a planned
and pre-announced review of the
progress of a particular project
deliverable--a specific project outcome, a
structure chart, or a human procedure.
• The walkthrough helps team members
review and evaluate the program of
components of a structured project.
SYSTEMS DEVELOPMENT
LIFE CYCLE METHODOLOGY
The SDLC Steps

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Figure 10.1 The Systems Development Page 386

Life Cycle
SYSTEMS DEVELOPMENT
LIFE CYCLE METHODOLOGY
The SDLC Steps

spent
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e up-fro nges lat
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ach : e x pens
ap pro avoid e
f SDLC ents to
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m
Hall ini ng re
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Figure 10.2 Cost Breakdown for $1 Million Page 386

SDLC Project
SYSTEMS DEVELOPMENT
LIFE CYCLE METHODOLOGY
The SDLC Steps

SDLC:
– Most often requires a lot of documentation
– Outputs from one step inputs to next
– Often referred to as the “waterfall” model

Page 386
SYSTEMS DEVELOPMENT
LIFE CYCLE METHODOLOGY
Definition Phase – Feasibility Analysis
• Types of feasibility – economic, operational, and
technical
• Deliverable – 10-20 page document:
– Executive overview and recommendations
– Description of what system would do and how it would
operate
– Analysis of costs and benefits
– Development plan

Page 387-388
SYSTEMS DEVELOPMENT
LIFE CYCLE METHODOLOGY
Definition Phase – Requirements Definition
• Focuses on logical design: processes, data flows, and data interrelationships – not
specific physical implementation

• Deliverable – system requirements document:

– Detailed descriptions of inputs and outputs, processes used to convert input data to outputs
– Formal diagrams and output layouts
– Revised cost/benefit analysis
– Revised plan for remainder of project

Page 388
 Significant Quote
Brook’s Law:
Adding manpower to a late software project makes
it later!
(Frederick P Brooks Jr.)

Hofstadter's Law: It always takes longer than you

think, even when you take Hofstadter's Law into
account.
(Douglas Hofstadter)
SYSTEMS DEVELOPMENT
LIFE CYCLE METHODOLOGY
Construction Phase ism of
m echan process
• jor nt
System Design n
m a
is a develop
m e
o
tati during
en
• System Building um
Doc unicatio
n
m
• com
System Testing

Figure 10.3 Characteristics Page 389

of High Quality Systems
SYSTEMS DEVELOPMENT
LIFE CYCLE
METHODOLOGY
Implementation Phase

• Installation
• Operations
• Maintenance

Page 390
Implementation Phase – Installation

Parallel Strategy

Parallel Strategy

Parallel Strategy

Parallel Strategy

Figure 10.4 Implementation Strategies Page 391

Implementation Phase – Maintenance

Figure 10.5 Percent of Development Page 392

Resources Devoted to Maintenance
Implementation Phase – Maintenance

Figure 10.6 The Widening Gap Between Page 392

Organization’s Needs and System’s Performance
 Significant Quote
Bove’s Theorem:
The remaining work to finish in order to reach
your goal increases as the deadline approaches.

Walking on water and developing software from

a specification are easy if both are frozen.
(Edward V Berard)
SYSTEMS DEVELOPMENT
LIFE CYCLE METHODOLOGY
SDLC Advantages and Disadvantages

Figure 10.8 Advantages and Disadvantages Page 395

of Traditional SDLC Approach
 Significant Quote

Deadline Dan’s Demon:

Every task takes twice as long as you think it will
take. If you double the time you think it will take,
it will actually take four times as long.

Meskimens Law
There is never time to do it right, but there is
always time to do it over
 User Acceptance
• User acceptance document - a
formal agreement signed by the user
that a phase of the installation or the
complete system is approved.
• This is a legal document that usually
removes or reduces the IS vendor
from liability or responsibility for
problems that occur after it is signed.
 Causes of Maintenance
• Some major causes of program
maintenance are:
– New requests from stakeholders,
users, and managers.
– Bugs or errors in the program.
– Technical and hardware problems.
– Corporate mergers and acquisitions.
– Governmental regulations.
 Significant Quote
Nixons Law
The man who can smile when things go
wrong has thought of someone to blame.

Flon's axiom
There does not now, nor will there ever, exist
a programming language in which it is the
least bit hard to write bad programs.
(Lawrence Flon)
Trends in Systems
Development
 Operational and Rapid
Prototyping
• An operational prototype is a prototype
that works.
• A partially operational prototype has
some components that are operational.
• A rapid prototype allows system
stakeholders and users to see a mockup
of the subsystem much faster, which
enables earlier changes.
PROTOTYPING
METHODOLOGY
• Prototyping approach:
– Takes advantage of availability of fourth generation
procedural languages and relational database
management systems
– Enables creation of system (or part of system) more
quickly, then revise after users have tried it
– Is a type of evolutionary development process

Page 396
PROTOTYPING
METHODOLOGY
• Prototyping examples:
– Input and output screens developed for users to test as part of
requirements definition
– “First-of-a-series” – a completely operational prototype used as a pilot
– “Selected features” – only some essential features included in prototype,
more added later
– Prototyping used as a complete alternative to traditional SDLC
methodology

Page 396
PROTOTYPING
METHODOLOGY

• Prototyping used as a complete alternative to

traditional SDLC methodology:
– Good when requirements hard to define
– Good when system needed quickly
– Impractical for large, complex applications

Page 396
The Prototyping Steps

Figure 10.9 The Prototyping Life Cycle Page 397

 PROTOTYPING
METHODOLOGY
Prototyping Advantages and Disadvantages
• Advantages:
– Only basic requirements needed at front end
– Used to develop systems that radically change how work is done, so users can evaluate
– Allows firms to explore use of new technology
– Working system available for testing more quickly
– Less strong top-down commitment needed at front end
– Costs and benefits can be derived after experience with initial prototype
– Initial user acceptance likely higher

Page 398-399
PROTOTYPING
METHODOLOGY
Prototyping Advantages and Disadvantages
• Disadvantages:
– End prototype often lacks security and control features
– May not undergo as rigorous testing
– Final documentation may be less complete
– More difficult to manage user expectations

Page 399
PROTOTYPING
METHODOLOGY
Prototyping within an SDLC Process

Figure 10.10 SDLC with Prototyping Page 399

to Define Requirements
PROTOTYPING
METHODOLOGY
Prototyping within an SDLC Process

Figure 10.11 Prototyping/Piloting Replaces Page 399

SDLC Definition Phase
NEWER APPROACHES
Rapid Application Development (RAD)

• Hybrid methodology –
aspects of SDLC and
prototyping
• Goal is to produce a
system in less than a
year

Figure 10.12 Four-Step RAD Cycle Page 400

NEWER APPROACHES
Rapid Application Development (RAD)

Joint application design (JAD) – a technique in

which a team of users and IS specialists engage in
an intense and structured process in order to
minimize the total time required for gathering
information from multiple participants

Page 400-401
NEWER APPROACHES
Rapid Application Development (RAD)

Joint application design (JAD) – a technique in

which a team of users and IS specialists engage in
an intense and structured process in order to
minimize the total time required for gathering
information from multiple participants

Computer-aided software engineering (CASE) –

any software tool used to automate one or more
steps of a software development methodology

Page 400-401
NEWER APPROACHES
Rapid Application Development (RAD)

(Adapted from Valacich, George, and Hoffer, 2001)

Figure 10.13 Types of CASE Tools Page 401

NEWER APPROACHES
Rapid Application Development (RAD)

Figure 10.14 RAD Advantages Page 402

and Disadvantages
NEWER APPROACHES
Agile Software Development Discipline
• Alternative methodology for smaller projects
• Based on four key values:
– Simplicity
– Communication
– Feedback
– Courage
• One type: Extreme Programming (XP)
– Programmers write code in pairs
– Use simple design and frequent testing

Page 402
THE MAKE-OR-BUY DECISION
Decision should be made jointly by business managers and IS professionals
• Advantages of purchasing:
Cost savings
•
– Faster speed of implementation
–Disadvantages of purchasing:
Seldom exactly fits a company’s needs
•
– Often forces trade-offs
–

Page 406
PURCHASING METHODOLOGY
The Purchasing Steps

Figure 11.1 The Purchasing Process Page 407

PURCHASING METHODOLOGY
Initiating the Purchasing Process

Figure 11.2 Comparison of Costs and Page 407

Building vs. Purchasing a System
PURCHASING METHODOLOGY
Establish Criteria for Selection

Figure 11.3 Key Criteria for Page 408

Software Package Selection
PURCHASING METHODOLOGY
Develop and Distribute the RFP

Request for proposal (RFP) – a formal document

sent to potential vendors inviting them to submit a
proposal describing their software package and
how it would meet the company’s needs

Page 409
PURCHASING METHODOLOGY
Evaluate Vendor Responses to RFP and Choose Package
• Evaluation steps:
– Review vendors’ responses from RFPs
– Request demonstrations of leading packages
– Request references from users of software packages in other companies
– Assess how well package capabilities satisfy company’s needs
– Understand extent of any additional development efforts or costs to tailor software
– Make decision

Page 410-411
PURCHASING METHODOLOGY
Evaluate Vendor Responses to RFP and Choose Package

Figure 11.6 Matching Company Needs Page 411

with Capabilities of the Package
PURCHASING METHODOLOGY
Construction Phase
• If no software package modifications required:
– Skip system design and building steps
– Move directly to system testing
– Develop any necessary process changes

• If software package is modified:

– Consider contracting with vendor or a third party for changes versus modifying
in-house
– Determine if changes are required to other existing company systems

Page 413
PURCHASING METHODOLOGY
Project Team for Purchasing Packages

– Business managers and users

– IS professionals
– Project manager – usually a business manager
– Software vendor personnel
– Sometimes includes a third-party implementation partner
– Purchasing specialists
– Attorneys

Page 414-415
PURCHASING METHODOLOGY
Purchasing Advantages and Disadvantages

Figure 11.7 Advantages and Disadvantages Page 416

of Purchasing Packaged Software
NEW PURCHASING OPTION:
APPLICATION SERVICE
PROVIDERS (ASPs)
New trend beginning 2000s
•
Purchasing option: purchaser elects to use a “hosted” application rather than to purchase the software application and host it on
• its own equipment
ASP is an ongoing service provider
•
Company pays third party (ASP) for delivering the software functionality over the Internet to company employees and sometimes
• business partners

Page 418
NEW PURCHASING OPTION:
APPLICATION SERVICE
PROVIDERS (ASPs)
Some advantages:
•
Cost savings and faster speed of implementation
–
Usually involves monthly fees rather than large infrastructure investment
–
Disadvantages:
•
Dependence on an external vendor for both software and ongoing operations
–
Good assessment of required service levels even more critical
–

Page 418-419
 End-User Systems
Development
• End-user systems development is
a term that was originally used to
describe the development of
information systems by individuals
outside of the formal IS planning
and departmental structure.
 Potential Problems for
Systems Development
• Solving the wrong problem.
• Poor problem definition and analysis.
• Poor communication.
• A project that is too ambitious.
• A lack of top management support.
• A lack of management and user
involvement.
 Potential Problems for
Systems Development
• Failure to use a standard systems
development approach.
• Inadequate or improper systems
design.
• Poor testing and implementation.
• A lack of concern for maintenance.
 Success Factors in
Systems Development
• Clearly defined organizational goals.
• A sharp focus on, and clear understanding of, the most
important business problems or opportunities.
• Clearly defined systems development objectives.
• Support of top-level managers. Involvement of users at all
stages.
• Use of a proven systems development method.
• Creating or aligning incremental systems benefits with
normal user work activities so as to provide incentives for
effective system interaction.
• Managing change.
• A simple and straightforward design.
• Good training programs for all involved.
 Global Sourcing
• The process of deciding where in the
world a firm’s activities will be
performed and who will perform the
activities.
– Fundamentally any activities that does
not require direct customer contact,
extensive local knowledge, or complex
interactions can be sourced anywhere
Global Resourcing
Outshoring and Outsourcing
 Definition of Outsourcing
• IS outsourcing is the commissioning of part or all
of the IS activities an organization needs, and/or
transferring the associated human and other IS
resources, to one or more external IS suppliers
• IS Offshoring is the commissioning of part or all
of the IS activities an organization needs to one
or more other countries
• IS Insourcing is the sourcing of a business
function within the firm (e.g., Kingland Systems)
 IS Outsourcing
• Four Types of Outsourcing
Relationships:
❑ Support
❑ Reliance
❑ Alignment
❑ Alliance
 Outsourcing Grid
Extent of Substitution by Vendors

High
Reliance Alliance

Support Alignment
Low

Low High
Strategic Impact of IS Applications
 Outsourcing Decision
Variables
• Relationships
• Division Among Suppliers and
Contracts
• Management Structure
• Operational Structure
• Internal Organization of Outsourcing
Coordination
 Horizontal and Vertical
Integration
• Diversification - • Specialization -
increasing the reducing the number
number of products of products and
and services services
• Differentiation - • Integration -
aka ‘disintegration’ - performing a larger
decreasing the number of phases in
number of the production chain
subsequent phases in
the production chain
 Backward Vertical
Disintegration
• Car manufacturer purchasing pre-
assembled engines instead of
purchasing and assembling the
component parts themselves
• Decreasing the number of phases a
firm performs by commissioning
another entity within the production
chain to perform those functions