Systems Development 13.02

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12 - 1Copyright 2006, The McGraw-Hill Companies, Inc. All rights reserved.

Case #1: Development Challenges

Good Web-based Self-service:

Customer satisfaction soars

Call center costs plummet as customersanswer their own questions, enter theirown credit card numbers and change their

own passwords without extensive live help


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Bad Web-Based Self-Service:

Frustrated customers click to acompetitors site

Frustrated customers dial up your callcenter

Customer is unhappy

You have paid both for self service website and for a call center


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1. Why do more than a third of all Web self-service customers get frustrated and end upcalling a help center? Use the experiences ofBlue Cross-Blue Shield and AT&T Wireless to

help you answer.A: A poorly designed web interface with a

confusing sequence of options or asking themQuestions they cannot answer

A: Cumbersome drop down boxesA: Wording hard to understand

A: Requiring customers to indicate which networkthey are using, which most did not know


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2. What are some solutions to the problemsusers may have with Web self-service? Usethe experiences of the companies in this caseto propose several solutions.

A: Using a focus group of end users to test theprototype

A: Redesign the web site to automatically sendcustomers to the correct network site

A: Setting aside money and time for maintaining

the siteA: Designing flexibility into application interfaces

and business rules so the site can be changedas needed


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Case #1: Take away

Web self service should be good

Bad web based self service will havefrustrated customers, who may switch tocompetitors

Some major customers dont do business withyou if you do not have a good web based selfservice capabilities

Important to communicate with business units& end users during the design phase

Testing the prototype by a focus group of endusers


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Case #1: Take away

Do not ask questions to customers ofwhich they do not know the answers

Setting aside money and time for

maintaining the site Designing flexibility into application

interface and business rules so the site

can be changed as needed Software helps speed up the

development process e.g. JRules


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What is the Systems Approach?

A problem solving technique that uses asystems orientation to define problems andopportunities and develop solutions.

Analyzing a problem and formulating a solutioninvolves the following interrelated activities: Recognize and define a problem or opportunity using

systems thinking Develop and evaluate alternative system solutions

Select the system solution that best meets yourrequirements Design the selected system solution Implement and evaluate the success of the designed

system


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Systems Thinking Example


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Systems Development Lifecycle (SDLC)


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Prototyping

Prototyping is the rapid development andtesting of working models

An interactive, iterative process used duringthe design phase

Makes development faster and easier, especiallywhen end user requirements are hard to define

Has enlarged the role of business stakeholders

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Prototyping Life Cycle


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Systems Development Life Cycle - PHASE1: PLANNING

Planning phase involves establishinga high-level plan of the intended project

and determining project goals

Primary planning activities include

1. Identify and select the system fordevelopment

2. Assess project feasibility

3. Develop the project plan


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PLANNING 1: Identify and Select theSystem for Development

Organizations use different forms ofevaluation criteria to determine which

systems to develop Critical success factor(CSF) a factor

that is critical to an organizations success


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PLANNING 2: Assess Project Feasibility

Feasibility study determines if theproposed solution is feasible andachievable from a financial, technical,

and organizational standpoint Different types of feasibility studies

Operational feasibility

Economic feasibility Technical feasibility

Human Factors feasibility

Legal and Political feasibility


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Feasibilty Study

Feasibility Studies: a preliminary studyto determine the

Information needs of prospective users

Resource requirements

Costs

Benefits

Feasibility

In some cases, a feasibility study isunnecessary


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Operational Feasibility

How well the proposed system will

Support the business priorities of theorganization

Solve the identified problem

Fit with the existing organizational structure


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Economic Feasibility

An assessment of

Cost savings

Increased revenue

Decreased investment requirements

Increased profits

Cost/benefit analysis


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Technical Feasibility

Determine the following can meet theneeds of a proposed system and can beacquired or developed in the required time

Hardware

Software

Network

Technical competence of the Developers Technical competence of the users


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Human Factors Feasibility

Assess the acceptance level of

Employees

Customers

Suppliers

Management support

Determine the right people for the variousnew or revised roles


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Legal/Political Feasibility

Assess

Possible patent or copyright violations

Software licensing for developer side only

Governmental restrictions

Changes to existing reporting structure


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Feasibility


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Cost/Benefit Analysis

Tangible costs or benefits that can bequantified

Intangible costs or benefits that can notbe quantified


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Examples of Benefits


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PLANNING 3: Develop the Project Plan

Developing the project plan is a difficultand important activity

The project plan is the guiding forcebehind on-time delivery of a completeand successful system

Continuous updating of the project planmust be performed during everysubsequent phase during the SDLC


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Systems Development Life Cycle PHASE2: ANALYSIS

Analysis phase involves analyzingend-user business requirements andrefining project goals into definedfunctions and operations of the intendedsystem

Primary analysis activities include

1. Gather business requirements

2. Create process diagrams

3. Perform a buy vs. build analysis


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ANALYSIS 1: Gather BusinessRequirements

Business requirements the detailed set ofbusiness requests that the system must meetin order to be successful

Different ways to gather businessrequirements

Joint application development (JAD) sessionwhere employees meet to define or review thebusiness requirements for the system

Interviews Questionnaires

Observations

Review business documents


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ANALYSIS 1: Gather BusinessRequirements

The system users review therequirements definition document anddetermine if they will sign-off on the

business requirements Requirements definition document

contains the final set of businessrequirements, prioritized in order of

business importance Sign-off the system users actual

signatures indicating they approve all of thebusiness requirements


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ANALYSIS 2: Create Process Diagrams

Process modeling graphically representingthe processes that capture, manipulate, store,and distribute information between a systemand its environment

Common process modeling diagrams include

Data flow diagram (DFD) illustrates themovement of information between external entitiesand the processes and data stores within the

system Computer-aided software engineering (CASE)

toolsautomate systems analysis, design, anddevelopment


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ANALYSIS 2: Create Process Diagrams

Sample data flow diagram


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ANALYSIS 3: Perform a Buy vs. BuildAnalysis

An organization faces two primarychoices when deciding to develop aninformation system

1. Buythe information system from a vendor

Commercial off-the shelf (COTS)software package or solution that is

purchased to support one or morebusiness functions and info. systems

SCM, CRM, and ERP solutions aretypically COTS

2. Buildthe information system itself


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Organizations must consider the followingwhen making a buy vs. build decision:

Are there any currently available products that fitthe organizations needs?

Are there features that are not available andimportant enough to warrant the expense of in-house development?

Can the organization customize or modify an

existing COTS to fit its needs? Is there a justification to purchase or develop based

on the cost of acquisition?


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Three key factors an organization shouldalso consider when contemplating thebuy vs. build decision:

1. Time to market

2. Availability of corporate resources

3. Corporate core competencies


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Functional Requirements

Definition: End user information requirements that

are not tied to the hardware, software,

network, data, and people resources thatend users presently use or might use inthe new system


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Functional Requirement Categories

User Interface

Processing

Storage

Control


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Example of Functional Requirements

User Interface: automatic entry of productdata and easy-to-use data entry screens forWeb customers

P

rocessing: fast, automatic calculation of sales totalsand shipping costs

Storage: fast retrieval and update of data from product,pricing, and customer databases

Control: signals for data entry errors and quick e-mailconfirmation for customers

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Systems Development Life Cycle PHASE3: DESIGN

Design phase involves describing thedesired features and operations of thesystem including screen layouts,business rules, process diagrams,pseudo code, and other documentation


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Systems Design

Definition: Design activities that produce system

specifications satisfying the functional

requirements that were developed in thesystems analysis process


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System Design Categories


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User Interface Design

Definition: Focuses on supporting the interactions

between end users and their computer-

based applications


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User Interface Design

Focuses on supporting the interactions betweenend users and their computer-basedapplications

Designers concentrate on the design of attractive andefficient forms of user input and output

Frequently a prototyping process

Produces detailed design specifications forinformation products, such as display screens

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Checklist for Corporate Websites

Remember the customer

Aesthetics

Broadband content

Easy to navigate

Searchability

Incompatibilities Registration forms

Dead links

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System Specifications

Formalizing the design of

User interface methods and products Database structures

Processing procedures

Control procedures

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Remember the customer successful websitesare built solely for the customer, not to makecompany vice presidents happy

Aesthetics successful designs combine fast-loading graphics and simple color palettes forpages that are easy to read

Broadband Content the Webs coolest stuffcant be accessed by most Web surfers; dontmake it the focus of a site


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Easy to navigate make sure its easy toget from one part of site to another

Searchability include a useful searchengine

Incompatibilities test site with target webbrowsers


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Registration forms short registrationforms are a useful way to gather customerdata

Dead links be sure to keep linksupdated


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Examples of System Specifications

User interfacespecifications

Use personalized screens that welcome repeat Webcustomers and that make product recommendations

Databasespecifications

Develop databases that use object/relational databasemanagement software to organize access to all customerand inventory data and to multimedia product information

Softwarespecifications

Acquire an e-commerce software engine to process alle-commerce transactions with fast responses, i.e., retrievenecessary product data and compute all sales amounts inless than one second

Hardware

and networkspecifications

Install redundant networked Web servers and sufficient

high-bandwidth telecommunications lines to host thecompany e-commerce website

Personnelspecifications

Hire an e-commerce manager and specialists and awebmaster and Web designer to plan, develop, andmanage e-commerce operations

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End User Development

Definition: IS professional plays a consulting role,

while end user does his/her own

application development


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End User Development


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Encouraging End User Web Development

Look for tools that make sense

Spur creativity

Set some limits

Give managers responsibility

Make users comfortable


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Systems Development Life Cycle PHASE4: DEVELOPMENT

Development phase involves takingall of the detailed design documents

from the design phase and transformingthem into the actual system

Primary development activities include:

1. Develop the IT infrastructure

2. Develop the database and programs


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DEVELOPMENT 1: Develop the ITInfrastructure

The platform upon which the system willoperate must be built prior to building the

actual system

In the development phase, the

organization purchases and implementsthe required equipment to support the ITinfrastructure


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DEVELOPMENT 2: Develop the Databaseand Programs

Once the IT infrastructure is built, theorganization can begin to create the

database and write the programsrequired for the system

IT specialists perform the majority of thetasks associated with the developmentphase


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Systems Development Life Cycle PHASE5: TESTING

Testing phase involves bringing allthe project pieces together into a specialtesting environment to test for errors,

bugs, and interoperability, in order toverify that the system meets all thebusiness requirements defined in theanalysis phase

Primary testing activities include:1. Write the test conditions

2. Perform the system testing


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System Testing

Testing and debugging software

Testing website performance

Testing new hardware

Review of prototypes of displays, reportsand other output


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TESTING 1: Write the Test Conditions

Test condition the detailed steps thesystem must perform along with theexpected results of each step


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TESTING 2: Perform the System Testing

Different types of testing: Unit testing tests each unit of code upon

completion

Application (or system) testing verifies that all

units of code work together Integration testing exposes faults in the

integration of software components or units

Backup and recovery testing tests the ability of

an application to be restarted after failure Documentation testing verifies instruction

guides are helpful and accurate

User acceptance testing (UAT) tests if a systemsatisfies its acceptance criteria


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Systems Development Life Cycle PHASE6: IMPLEMENTATION

Implementation phase involvesplacing the system into production sousers can begin to perform actualbusiness operations with the system


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Implementing New Systems

The systems implementation stage involves

Hardware and software acquisition

Software development

Testing of programs and procedures

Conversion of data resources

Conversion alternatives Education/training of end users and

specialists who will operate the new system

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Other Implementation Activities

The keys to successful implementation ofa new business system

Testing

Data conversion

Documentation Training

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Data Conversion

Data conversion includes Converting data elements from the old database to

the new database

Correcting data errors

Filtering out unwanted data Consolidating data from several databases

Organizing data into new data subsets

Improperly organized and formatted data is amajor cause of implementation failures

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Importance of Documentation

Documentation serves as a method ofcommunication among the peopleresponsible for developing, implementing,and maintaining a computer-based

system.

Documentation is extremely important in

diagnosing errors and making changes,especially if the end users or systemsanalysts who developed a system are nolonger with the organization.


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Documentation

User Documentation Sample data entry screens, forms, reports

System operating instructions

Systems Documentation

Method of communication among those developing,implementing, and maintaining

a computer-based system Detailed record of the system design

Extremely important when diagnosingproblems and making system changes

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Training

End users must be trained to operate a new businesssystem or its implementation will fail

May involve only activities, such as data entry,or all aspects of system use

Managers and end users must understand howthe new technology impacts business operations

System training should be supplemented with trainingrelated to

Hardware devices

Software packages

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Major System Conversion Strategies

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Direct Conversion

Direct conversion The simplest conversion strategy

The most disruptive to the organization

Sometimes referred to as the slam dunk or

cold-turkey strategy May be the only viable solution in cases of

emergency implementation or if the old andnew system cannot coexist

Has the highest risk of failure

Involves turning off the old system and turning on thenew one

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Parallel Conversion

Old and new systems are run simultaneously untileveryone is satisfied that The new system functions correctly

The old system is no longer needed

Conversion to new system can be singlecutover or phased cutover

Has the lowest risk, but the highest cost

Can cost 4 times more than using the old system

Best choice where an automated system is replacing amanual one

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Pilot Conversion

Scenarios best suited to a pilot conversion Multiple business locations

Geographically diverse locations

Advantages of single location conversion Can select a location that best represents

the conditions across the organization

Less risky in terms of loss of time or delays

in processing Can be evaluated and changed before further

installations

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Phased Conversion

A phased or gradual conversion Takes advantage of both the direct and parallel

approaches

Minimizes the risks involved

Allows the new system to be brought onlineas logically ordered functional components

Disadvantages

Takes the most time

Created the most disruption to the organization overtime

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Implementation Process


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Hardware Evaluation Factors

Performance

Cost

Reliability

Compatibility

Technology

Ergonomics

Connectivity

Scalability

Software

Support


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Software Evaluation Factors

Quality

Efficiency

Flexibility

Security

Connectivity

Maintenance

Documentation

Hardware


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IS Services

Developing acompany website

Installation

Conversion

Employee training

Hardwaremaintenance

System design

Contractprogramming

Consulting services

System integration


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IS Services Evaluation Factors

Performance

Systemsdevelopment

Maintenance

Conversion

Training

Backup

Accessibility

Business Position

Hardware

Software

Systems Development Life Cycle PHASE


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Systems Development Life Cycle PHASE7: MAINTENANCE

Maintenance phase involvesperforming changes, corrections,additions, and upgrades to ensure the

system continues to meet the businessgoal

P I l i A i i i


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Post-Implementation Activities

The single most costly activity

Correcting errors or faults in the system

Improving system performance Adapting the system to changes in the

operating or business environment

Requires more programmers than doesapplication development

May exist for years

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S t M i t


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Systems Maintenance

There are four basic categories of systemmaintenance

Corrective: fix bugs and logical errors

Adaptive: add new functionality

Perfective: improve performance

Preventive: reduce chances of failure

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P t I l t ti R i


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Post-Implementation Review

Ensures that the newly implementedsystem meets the established businessobjectives

Errors must be corrected by the maintenanceprocess

Includes a periodic review/audit of the system

as well as continuous monitoring

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S ft P bl A B i P bl


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Software Problems Are Business Problems

Primary reasons for project failureinclude

Unclear or missing business requirements

Skipping SDLC phases Failure to manage project scope

Scope creep occurs when the scopeincreases

Feature creep occurs when extra features areadded

Failure to manage project plan

Changing technology

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Software Problems Are Business Problems

Find errors early: the later in the SDLCan error is found - the more expensive itis to fix

Bl Rhi C L i


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Blue Rhino Case Learnings

Companies are sometimes forced toredesign their processes and systemsbecause of legislation and statutoryrequirements

Management challenge Fundamentalchange in culture and operatingprocedures

Legislation may bring in lots of controls Challenges Change Management,Technical challenges, Organizationalchallenge etc.

Bl Rhi C L i


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Blue Rhino Case Learnings

Companies are sometimes forced tomaintain the documentation forcompliance purpose

Security flaws were discovered Process improvements were needed e.g.

HR department - new employeeequipment requirement

Redesigning Purchasing and CustomerService systems


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Case 4: Hewlett-Packard: ManagingRadical Change

Some facts about Randy Mott & hisearlier achievements

In Wal-Mart, he had only 30 tech staff

Yet they developed a network ofcomputerized distribution centers that madeit simple to open and run new store withcookie cutter efficiency

In 1990, as a CIO, he persuaded higher upsto invest in Data Warehouse

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With that the company was able to analyzebuying trends of customers as no othercompany had done.

In 2005, he took up the job of CIO in HP

He understood not only technology and howto use it to improve business, but how to

deliver those benefits

In Dell, he meld 100 separate systems into asingle data warehouse.

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Motts team enabled Dell to quickly

spot its inventory for a particular chip,so the company could offer onlinepromotions for devices containing thatpart before the prices fell too steeply.

Most challenging project - 3 year, $1billion plus makeover of HP internaltech systems

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C 4 H l P k d M i


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HP is embarking on a makeover of itsinternal tech systems

Replacing 85 loosely connected data centersaround the world with 6 cutting-edge facilities

Cutting thousands of smaller projects tofocuson a few corporate-wide initiatives

Scrapping 784 databases for one datawarehouse

Laying off thousands of IT workers

Building its own fiber-optic network toconnect the six data centers

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C 4 H l tt P k d M i


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HP is embarking on a makeover ofits internal tech systems

If Mott is successful, HPs annualspending on tech should be cut in halfin the years ahead, from $3.5 billion in2005.

Data warehouse could help HP makeheadway on how to capitalize on itsvast breadth

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If all information about HPs shipment

of printers, PCs and servers can beintegrated, it will enable HP to knowexactly, what each location is doing ona given day

Mott had the advantage at Wal-Mart &Dell of building infrastructure fromscratch

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He will need support of the remainingstaffers who have resisted centralizedcontrol

Mott is testing the limits of the HP

culture, taking away the rights ofthousands of IT workers to purchasetheir own tech equipments

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Tearing up the IT infrastructure &

putting many IT initiatives on hold CEO Hurd is demanding revamp of

everything from sales to product lines

Everyone is averaging 60 hours aweek

At some point you hit a breaking point

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Motts greatest strength is while atechnologist, he has managementskills to make IT actually take root in acompanys culture

Moot championed the deployment ofIT by showing how it achieved Wal-Marts business goals

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HP is embarking on a makeover of itsinternal tech systems

The idea of data warehousing is to make

sure that all of HPs businesses are workingof the same set of data, and to give themtools to quickly make the best decisions forthe entire company say a single customermanagement system, so executives can

know the full breadth of what any accountbuys from HP

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Case 4 He lett Packard Managing


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Hurd & Mott believed in speed overendless analysis

Benefits achieved

Trimmed 1200 individual projects such as e learning application for newhires to only 500

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Case 4: Hewlett Packard: Managing


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Benefits achieved

He also imposed real deadlines tomake that the Projects were

completed in time.

HP had 5 or more IT workers in 100different locations, he decided to

reduce them to 25

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Case 4: Hewlett Packard: Managing


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Strategy adopted by Mott to breakthe news of impending layoffs

He held close to 20 Coffee talks with

HP employees in various countries. This could lead to some trying times

next year, but the benefits may besurprising

Cut monthly networking bill to phonecompanies by 40%

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Case Study Questions

1. Will the initiatives being undertaken byCIO Randy Mott to implement majorchanges to the IT function at HP make IT

a more efficient and vital contributor toHPs business success?

Defend your position on each of the majorinitiatives he is implementing

Initiatives Consolidate data centers

May cut HPs IT costs in half

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Consolidation will reduce significant amountof facility maintenance expenses

This cost reduction will help HP improve itsbottom line

Databases consolidation

Will allow data analysis

Benefits can range from improved supplier &

inventory management to better customerrelations

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2. Do you approve of the changemanagement job Mott is doing,including his meetings with HP

employees throughout the world,and having coffee talks with them?

HP employees both on IT side & onthe business side need to learn Motts

strategy, buy into business objectivesand understand their role in HPsfuture

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This will reduce employees doubtsand uncertainties and help each onemake a more informed decision

Employee may choose to stay or leavefor right reasons

These meetings give Mott theopportunity to learn about HP, its

employees & its culture He will find this useful as develops its

plans

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These meetings will open new channelof communications, which can supplyMott with information during the course

of restructuring

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3. Assume you have been hired as amanagement consultant or coachto CIO Mott

What are several suggestions youmight give him to help himsuccessfully implement his

ambitious plans for IT changes atHP?

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Mott has to succeed in each of the threemajor disciplines in order to make thisproject a success, business, technology &HRM.

Mott has experience of achieving businesssuccess in his previous companies

He also has the technical experience tounderstand and manage the technicalchallenges created by these projects

The key difference between his priorexperience & HP falls on the HumanResource side

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Both Dell & Wal-Mart were relativelynew & heavily centralizedorganizations

Centralizing their data services didnot pose much challenge to theirfundamental business model

While with HP, it will.

In order to succeed Mott will fullsupport & dedication of CEO & itsboard of directors

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He will need this support becausethese changes will promptconsiderable internal backlash & this

backlash must be met with resolutedetermination

Resistance to change must be metwith an adapt or leave message

that only top leadership can makestick.

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C S d Q i


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Mott must ensure that only rightpeople stay & the right people leaveboth on the business side and ITside in HP

To do this, he must first clearlycommunicate what these changeswill mean both to business units andto the IT staff.

People should stay or leave for theright reasons

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He should also explain the benefitsto the individuals who fullyparticipate in this changeover

Employees fully participating in thechangeover will have a meaningfulfuture with HP

HP needs to offer early retirement

packages to senior & mid levelmanagers both within business unitsand his own IT staff

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C St d Q ti


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HP also needs to assure managersthat those facing layoffs will receivegenerous separation packages

This will encourage employees whowish to participate in the change totake a chance & stay

This is important because Mott needexperienced and willing HP hands onboard with his program

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Lastly Mott needs to identify failingmanagers and terminate theiremployment

This will help managers learn aboutcentralization plans and its benefits

This will also give chance to somemanagers to accept early retirement

Systems Development 13.02

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