Systems Development Life Cycle
the overall process for developing information systems from planning and analysis through implementation and maintenance.
Phases of SDLC
Planning phase,
Analysis phase,
Design phase,
Development phase,
Testing phase,
Implementation phase,
Maintenance phase
Planning phase
Establishes a high-level plan of the intended project and determines project goals
Analysis phase
Involves analyzing end-user business requirements and refining project goals into defined functions and operations of the intended system
-Business requirement - detailed set of business requests that the system must meet in order to be successful
Design phase
Establishes descriptions of the desired features and operations of the system including screen layouts, business rules, process diagrams, pseudo code, and other documentation
Development phase
Involves taking all of the detailed design documents from the design phase and transforming them into the actual system
Testing phase
Involves bringing all the project pieces together into a special testing environment to eliminate errors and bugs, and verify that the system meets all of the business requirements defined in the analysis phase
Implementation phase
Involves placing the system into production so users can begin to perform actual business operations with it
Maintenance phase
Involves performing changes, corrections, additions, and upgrades to ensure the system continues to meet the business goals
Systems Development Business Challenges
- Systems development is difficult and risky.
- Many projects are never finished.
- Some projects finish 200 or 300 percent over budget.
- Some projects finish on schedule and within budget but do not meet their goals
Software successes and failures
- Increase or decrease revenue
- Repair or damage to brand reputation
- Prevent or incur liabilities
- Increase or decrease productivity
Waterfall Methodology
Sequential, activity-based process or sequence of phases in which the output of each phase becomes the input for the next phase
- Issues: Inflexible and expensive
(RAD) Rapid Application Development Methodology
Emphasizes extensive user involvement in the rapid and evolutionary construction of working prototypes of a system to accelerate the systems development process
Prototype
A smaller-scale representation or working model of the users' requirements or a proposed design for an information system. Prototype is an essential part of the analysis phase when using a RAD methodology
Project Management Strategies
A project manager must focus on managing three primary areas to ensure success. PEOPLE, COMMUNICATIONS and CHANGE
- Identifying requirements
- Establishing clear and achievable objectives.
- Balancing the competing demands of quality, scope, time, and cos
Project Failure Issues
- Poor project management or planning (80%)
- Change goal during project (75%)
- Lack support from management (70%)
- Lack resources (60%)
- Lack support from IT management (50%)
- Change in technology during project (39%)
Future Organizational Trends
- Innovation: finding new
- Social entrepreneurship: going green
- Social networks: who's who
- Virtual worlds: it's a whole new world
Outsourcing
Arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house
Outsourcing Drivers
- Big selling point for offshore outsourcing "inexpensive good work"
- Core competencies
- Financial savings
- Rapid growth
- The Internet
- Globalization
Reasons to Outsource
Source of expertise (70%)
Concentrate on core business (65%)
Reduce head count/expenses (55%)
No need to reinvest in tech (50%)
Reduce cost (40%)
Help better manager internal costs (32%)
Outsourcing Benefits
- Increased quality and efficiency of business processes
- Reduced operating expenses for head count and exposure to risk for large capital investments
- Access to outsourcing service provider's expertise, economies of scale, best practices, and advanced
Outsourcing Challenges
1. Length of contract
- Difficulties in getting out of a contract
- Problems in foreseeing future needs
- Problems in reforming an internal IT department after the contract is finished
2. Threat to competitive advantage
3. Loss of confidentiality
Change Management
- The process of building the capacity, capability, and will of an organization, to move from an entrenched current state to a unfamiliar future state, then leading them through and sustaining them in that change.
Change Management Guidelines
1. Institute change management polices
2. Anticipate change
3. Seek change
Change Management Process
Create a change vision,
Define a change strategy,
Develop leadership,
Build commitment,
Manage people performance,
Deliver business benefits,
Develop culture,
Design organization
Positive Change
- Change viewed as an opportunity
- Requires minimizing pessimism & manage (private/public) checkouts
Negative Change
- Change viewed with fear, anger
- Requires managing active resistance and motivating passive participants.
Change
- Can generate fear and resistance to change
Keys to countering end user resistance:
- Proper education and training
- End user involvement in organizational changes
- End user involvement in the development of new information systems
- Involvement and co
Dell Case
Sells directly to customers, bypassing retailers and passes on the savings =
Less inventory and faster deliveries than its competitors.
Supply Chain Management
The management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability
Three Main Links of SCM
1. Materials flow from suppliers and their "upstream" suppliers at all levels
2. Transformation of materials into semi-finished and finished products through the organization's own production process
3. Distribution of products to customers and their "dow
SCM Activities:
Plan - Prepare to manage all resources required to meet demand
Source - Build relationships with suppliers to procure raw materials
Make - Manufacture products and create production schedules
Deliver - Plan for transportation of goods to customers
Return
SCM Benefits
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SCM Challenges
- Cost - An SCM system can cost millions of dollars for the software and millions more for help implementing the system
- Complexity - The move towards globalization is increasing complexity in the supply chain
Future of SCM
- Supply chain event management (SCEM)
- Selling chain management
- Collaborative engineering
- Collaborative demand planning
- Business analytics
Customer Relationship Management
Involves managing all aspects of a customer's relationship with an organization to increase customer loyalty and retention and an organization's profitability
- Provides customer-facing employees with a single, complete view of every customer at every tou
CRM Benefit
Organizations can find their most valuable customers through "RFM" - Recency, Frequency, and Monetary value
- How recently a customer purchased items
- How frequently a customer purchased items
- The monetary value of each customer purchase
� CRM allows a
Evolution of CRM: Phases
- CRM reporting technology - Help organizations identify their customers across other applications
- CRM analysis technologies - Help organization segment their customers into categories such as best and worst customers
- CRM predicting technologies - Hel
Operational CRM
Supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers
Analytical CRM
Supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers
- Website personalization - Occurs when a website has stored enough data about a person's likes and dislikes to fashion offers mor
Operational CRM Technologies
1. Marketing and operational CRM technology
2. Sales and operational CRM technology
3. Customer service and operational CRM technology
Customer service and operational CRM technology
- Contact center (call center)
- Web-based self-service system
- Call scripting system
Common features : Automatic call distribution, Interactive voice response, Predictive dialing
Sales and operational CRM technology
- Sales management CRM system
- Contact management CRM system
- Opportunity management CRM system
The sales department was the first to begin developing CRM systems with sales force automation a system that automatically tracks all of the steps in the sal
Marketing and operational CRM technology
- List generator
- Campaign management system
- Cross-selling and up-selling
Challenges of CRM
- The customer is always right and now has more power than ever thanks to the Internet
- Lack of understanding and preparation
- Rely on CRM to solve business problem without first developing the business process changes and change management programs tha
Future of CRM
- Supplier relationship management (SRM)
- Partner relationship management (PRM)
- Employee relationship management (ERM)
(ERP) Enterprise Resource Planning
Integrates all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so that employees can make enterprisewide decisions by viewing enterprisewide information on all business operations
Core ERP component
Traditional components included in most ERP systems and they primarily focus on internal operations
Components:
1. Accounting and finance - Manages accounting data and financial processes within the enterprise with functions such as general ledger, accoun
Extended ERP component
Extra components that meet the organizational needs not covered by the core components and primarily focus on external operations
Components:
1. Business intelligence
2. Customer relationship management
3. Supply chain management
4. Ebusiness components i
ERP Benefits
- Serves as a Cross-Functional Enterprise Backbone that Integrates and Automates Many Internal Business Processes and Information Systems
- Helps Companies Gain the Efficiency, Agility, and Responsiveness Needed to Succeed Today
- Gives a Company an Integ