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SYSTEM LIFE CYCLE

Pertemuan 3 SIM By Eko Darwiyanto

Case : Sterngold.com
90 employees, offices in Europe and South

America More than 4000 products sold to 400000 dental professionals or through distributors to another 5 million consumer Orders come in small quantities, from repeat customers with frequent demand for same day shipment. The company had a Web site, but without selling capabilities. How to solve this problem? Develop in house or outsourcing?

Case (contnd)
The choosed is outsourcing. Which one? Surebridge Inc. (from advise of

parent company, Cookson Group) Surebridge followed its own proprietary eMethodology approach : evaluating needs, goals, timetables were created, create architecture : front-end ordering system (phase I), integration with back-end ordering system (phase 2)

Case (contnd)
Results : 2006, by free shipping Sterngold has

encouraged more and more customers to order online. More product promotion Increase efficiencies and saving administration costs Much fax and snail mail have been eliminated Greater exposure to business partner Strong relationship with technology partners has been created.

COBIT
stands for Control Objectives for
Information and related Technology provides good practices across a domain and process framework and presents activities in a manageable and logical structure.

Basic COBIT Principle


Business Requirements

IT Processes IT Resources

Defining IT Goals and Enterprise Architecture


Enterprise Strategy Business Goals For IT metrics direct

IT Goals
metrics

direct Enterprise Architecture For IT IT Scorecard

Enterprise Architecture for IT: -need : infrastructure and people -run : applications -deliver : information

IT Architecture
is a plan for organizing the underlying

infrastructure and applications of the IT project. The architecture plan includes :


the information and data required the application modules the specific hardware and software security, scalability, and reliability of applications the human resources and procedures

Managing IT Resources to deliver IT Goals


BUSINESS GOALS Governance Driver Business Outcomes
A P P L I C A T I O N I N F O R M A T I O N
I N F R A S T R U C T U R E

Information Criteria

P E O P L E

IT Resources

IT Processes IT Goals

Key Performance Indicators Key Goal Indicators High level Control Objectives

Overall COBIT Framework


Business Objectives Governance Objectives INFORMATION MONITOR AND EVALUATE PLAN AND ORGANIZE

DELIVER AND SUPPORT

ACQUIRE AND IMPLEMENT

IT Application Acquisition
Acquisition is all approaches to obtaining
systems : buying, leasing or building. There is a large variety of IT applications, they keep changing over time, and they may involve several business partners. No single way to acquire IT applications.

Which one is better?


Lease if :
- Expense budget larger
than capital budget - Limited IT support - Sales-or serviceoriented business model -Ever-changing computing needs and requirements -Focus on critical business operation

Buy if:
-Requires a fair degree of
customization or integration -Have a team of experienced IT personnel -Have already invested significantly in internal IT operations -Require data security -Need stable computing resources -Application is tied to a major function of your business

Build if:
-Application is unique -Reward your dedicated
internal IT staff -Have very expensive investment in legacy systems -Need absolute control of your data -Need a fixed amount of computing resources -Application is critical

Build option
The options :
Build from scratch Build from components (bean, web service, etc) Integrating applications

Offshoring : migrating business process

overseas. Methods option :


System development life cycle (SDLC) Prototyping methodology Rapid Application Development

System Life Cycle


is an application of the system approach to the
development of computer-based information system.

4. Implementation

2. Analysis

3. Design

Planning, Analysis, Design and Implementation is known as System Development Life Cycle (SDLC)

Planning
MIS steering committee Manager
1. Recognize the problem 2. Define the problem 3. Set system objectives 4. Identify system constraints

System analyst

Consult

5. Conduct a feasibility study 6. Prepare a system study proposal

7. Approve or disapprove the study project 8. Establish a control mechanism

Planning (contd)
Six dimensions of feasibility :
Technical Economic return Noneconomic return Legal and ethical Operational Schedule

Planning (contd)
Outline of System Study Proposal
1. 2. 3. 4. 5. Executive summary Introduction System objectives and constraints Possible system alternatives Expected impact of the system

6.

7. 8.

The recommended system study project 6.1 Task to be performed 6.2 Human resource requirements 6.3 Schedule of work 6.4 Estimated cost General development plan (design and implementation phase) Summary

5.1 Impact on the firms organization structure 5.2 Impact on the firms operations 5.3 Impact on the firms resources

A Project Schedule
SUBTASK RESPONSIBILITY PERSON-MONTHS
0.75 0.25 0.5 2.00 1.5 0.5 0.25 1.00 1.25 0.75 0.50 2.00 0.5 0.75 1. Identify deletion criteria Syst. analyst, product mgr 2. Identify output information Syst. Analyst, network spclst, requirements product mgr 3. Identify input data requirements Syst. Analyst, DBA 4. Prepare new system Systems analyst documentation 5. Design network Network specialist 6. Design database Database administrator 7. Review design Product Manager, Syst. Analyst 8. Prepare program documentation Programmer 9. Code program Programmer 10. Test program Programmer, Operation staff 11. Approve program Product Manager, VP of Marketing 12. Prepare database Database administrator 13. Educate users System analyst 14. Cut over to model Operation staff

Managing the Development Process

Time A Resources
Performance

Cost

Time B Resources

Cost

Performance
B : an IT Project is not managed

A : an IT Project is managed

Analysis
MIS steering committee Manager System analyst 1. Announce the system study 2. Organize the project team 3. Define information needs 4. Define system performance criteria 5. Prepare the design proposal 6. Approve or disapprove the design project

Analysis (contd)
Outline of a Design Proposal
1. 2. 3. 4. 5. 6. 7. Executive summary Introduction Problem definition System objectives and constraints Performance criteria Possible system alternatives Expected impact of the system

8.

9. 10.

The recommended design project 8.1 Task to be performed 8.2 Human resource requirements 8.3 Schedule of work 8.4 Estimated cost General development plan (design and implementation phase) Summary

7.1 Impact on the firms organization structure 7.2 Impact on the firms operations 7.3 Impact on the firms resources

Design
MIS steering committee Manager System analyst
1. Prepare the detailed system design 2. Identify alternative system configurations Control 3. Evaluate alternative system configurations 4. Select the best configuration 5. Prepare the implementation proposal 6. Approve or disapprove the design project

Design (contd)
Popular Documentation Tools
Data Modelling Entity Relationship Diagram Data Dictionary Screen/printer layout form System Flowchart Program Flowchart Data Flow Diagram Structured English Class Diagram Use Case Diagram Sequence Diagram Deployment Diagram

Process Modelling

Object Modelling

Design (contd)
Outline of a Implementation Proposal
1. 2. 3. 4. 5. 6. 7. Executive summary Introduction Problem definition System objectives and constraints Performance criteria System design 6.1 Summary description 6.2 Equipment configuration Expected impact of the system

8.

7.1 Impact on the firms organization structure 7.2 Impact on the firms operations 7.3 Impact on the firms resources

9. 10.

The recommended implementation project 8.1 Task to be performed 8.2 Human resource requirements 8.3 Schedule of work 8.4 Estimated cost General implementation plan Summary

Implementation
MIS steering committee Manager
1. Plan the implementation 2. Announce the implementation 3. Obtain the hardware resource 4. Obtain the software resource 5. Prepare the database 6. Prepare the physical facilities 7. Educate the participants and users 8. Prepare the cutover proposal 9. Approve or disapprove cutover to the new system 10. Cutover to the new system

System analyst

Implementation (contd)
To obtain the hardware resources, send request for proposal to
suppliers. Outline of a Request for Proposal 1. Letter of transmittal 2. System Objectives and applicable constraints 3. System design 3.1 Summary description 3.2 Performance criteria 3.3 Equipment configuration 3.4 Summary system documentation 3.5 Estimated transaction volume 3.6 Estimated file size 4. Installation schedule

Implementation (contd)
Outline of Supplier Proposal
1. 2. 3. 4. 5. Letter of transmittal Summary of recommendations Advantages Equipment configuration Equipment specifications 5.1 Performance data 5.2 Prices 6. Satisfaction of performance criteria 7. Delivery schedule

Cutover Approaches
Immediate Old System New System

Phased

Old System

New System

Parallel

Old System New System

Pilot

Old System
Pilot system Immediate cutover Phased cutover Parallel cutover

Use
MIS steering committee Manager System analyst
Control 1. Use the system 2. Audit the system 3. Maintain the system 4. Prepare reengineering proposal

5. Approve or disapprove the reengineering of the system

Prototyping
is process of producing a prototype, model
that show how the system will function. There are two types of prototype :
Type I prototype, is a throwaway model that serves as the blueprint for the operational system. Type II prototype, eventually becomes the operational system

Rapid Application Development


Is methodology that quickly response the user needs in
enterprise scope.

Information strategy planning Business area analysis Rapid application development

Data

Activities

RAD (contd)
RAD needs :
Management : experimenter or quickly adapter. People : SWAT team, Skilled with advanced tools. Methodologies : requirements planning, user design, construction, cutover Tools : CASE (Computer Aided Software Engineering)

Business Process Redesign


Business process is a collection of activities that convert inputs into
outputs. Business process redesign needed because:
Adding commercial software Restructuring or eliminating old processes prior to automation Need for information integration Reducing cycle time Need for customization Streamlining the supply chain Improving customer service and implementing CRM Participating in private or public e-marketplaces Conducting e-procurement Enabling direct online marketing Transforming to e-business

Reverse Engineering
is the process of analyzing a system to identify its elements and
their relationships, as well as to create documentation in a higher level of abstraction than currently exists.

Reverse engineering

Reverse engineering

Reverse engineering

Planning phase

Analysis phase

Design phase

Implementation phase

Restructuring
is the transformation of a system into another form
(more structured system) without changing its functionality.

Restructuring Restructuring Restructuring

Restructuring

Planning phase

Analysis phase

Design phase

Implementation phase

Reengineering
is the complete redesign of a system with the objective
of changing its functionality. It was done by reverse engineering followed forward engineering.

Reverse engineering

Reverse engineering Reverse engineering

Reverse engineering

Forward engineering

Forward engineering Forward engineering Forward engineering

Planning phase

Analysis phase

Design phase

Implementation phase

Which one should be selected?


Reverse engineering Restructure Do nothing

Functional quality

Forward engineer -

Reengineer +

Technical quality

Exercise
Choose one project from
www.getacoder.com. What will you do to win bidding of that project? Show your project schedule to assure delivery of project on time.

Reference:
Turban, et all, IT for Managements, chapter
15

McLeod, Schell, Management Information


System, chapter 6