Role of Senior Management in Implementation

Problems with software development (1/2) • Computerworld magazine* – “Nearly one-third of all projects fail” – “More than half come in over budget” – “Only 16% of all projects come in on time and on budget” • Key factor for success or failure: – “User involvement/input” Problems with software development (2/2) • 70 % of IT and e-commerce projects either fail or are completed over budget with less functionality than planned (Standish Group Report, December 2001). • IT now accounts for 50% of all business equipment spending (reference Bain & Co. Sept 2001 in Business Week). • For example, the UK computer giant ICL confirmed that a multi-million pound crew-scheduling system it was developing for BA had to be junked after a twoyear over-run. 2 Approaches to software development • • • • • • Traditional systems development life cycle Prototyping Packaged software End-user development Outsourcing Open source Traditional systems development life cycle Project definition Systems analysis Design Programming Installation Operation 3 Traditional systems development life cycle • Advantages – For well-understood problems, produces predictable outcomes • Disadvantages – Inflexible – Long delay before any useful results • May be obsolete by then – Often hard to know requirements until actual use Prototyping Project definition Identify basic requirements Develop a working protoype Use the prototype User satisfied? Yes No Revise and enhance prototype Done 4 Prototyping • Advantages – Especially useful when exact requirements are hard to know in advance • user interfaces • decision systems • electronic commerce? – Encourages user involvement • Disadvantages – Hard to predict and control outcomes reliably – If repeated, significant reimplementations are needed, can be very expensive – May result in systems that are inefficient, unreliable, or hard to maintain Packaged software Project definition Identify basic requirements Select package Customize package Redesign organizational processes Train users Operation 5 Packaged software • Advantages – By amortizing development and maintenance costs over many organizations, it is possible to get superior solutions at much lower cost • Disadvantages – Customizing software can be very timeconsuming and expensive – May have to change organization to fit software, rather than vice versa End-user development User recognizes need User acquires development tools User implements solution User uses the solution User satisfied? Yes No User revises and enhances solution Done 6 End-user development • Advantages – Can be much faster – Improved requirements determination – Increased user involvement and satisfaction • Disadvantages – Many problems can’t be solved within the limitations of the tools – Lack of quality assurance and standards for programs and data – Lack of sharing of programs and data Outsourcing • Contract out the performance of any or all of the above steps to another firm • Advantages – – – – Economies of scale Flexibility Predictability Freeing up human resources and capital • Disadvantages – Loss of control – Vulnerability of strategic information – Dependency 7 Open source Someone develops working prototype Use the prototype Some developer wants to do more? No Yes Revise and enhance prototype Project ends Open source • Advantages – Usually lower cost – Sometimes easier to adapt “packaged” software to own needs – “Philosophically” appealing to many people • Disadvantages – Usually lower quality support – Only a few kinds of software are currently available in this format (Linux operating system, Apache web server, etc.) 8