Risk management in the application of the Systems Development Life Cycle

Transcription

1 Risk management in the application of the Systems Development Life Cycle Submitted in Partial Fulfilment of the Requirements for the Degree " Master of Business Administration To the Graduate Business School in the Faculty of Economic and Management SCiences of the University of Pretoria BY Danie Cronje tudi:,-.i. ;" Study leader Dr. A. leonard October 2000 University of Pretoria

2 - II - I, Danie Cronje, herewith declare that the language of this management report has been edited by Danel Hanekom from the South African Post Office Language Services. D. Cronje LIB RA RY SE RYICWBIBlIO TH KOI EH STE UNIVERSITY OF PRETORIA Shelf Nok{ '~H :. 4 ~Q.~.~... C f( () ry-f 6 Item NO H I HH ~L4b'1..4:...

3 - III - INDEX 1 INTRODUCTION 1.1 BACKGROUND HISTORICAL PROJECTS Point-ot-sales project Track and Trace project PROBLEM STATEMENT OBJECTIVES AND METHODOLOGY OF THE REPORT THE SYSTEMS DEVELOPMENT LIFE CYCLE - A PERSPECTIVE 2.1 INTRODUCTION DEFINITION OF THE SYSTEMS DEVELOPMENT LIFE CYCLE THE SYSTEMS DEVELOPMENT LIFE CYCLE MODEL Introduction System classification Comparison models The waterfall model- A perspective CONCLUSION

4 - IV - 3 SYSTEMS DEVELOPMENT LIFE CYCLE RISKS - A PERSPECTIVE 3.1 INTRODUCTION THE PROCESS OF MANAGEMENT CERTAINTY, RISK, UNCERTAINTY AND AMBIGUiTy RISK DEFINED MANAGING RISKS IN THE LIFE CyCLE A perspective Risk factors Internal factors External factors MOST COMMON SOFTWARE RiSKS RISK MANAGEMENT IN THE SYSTEM DEVELOPMENT LIFE CYCLE IN THE SOUTH AFRICAN POST OFFICE 4.1 INTRODUCTION BACKGROUND TO THE SYSTEM SYSTEM FEASiBILITy SOFTWARE PLANS AND REQUIREMENTS PRODUCT DESiGN CODING, UNIT TESTING AND INTEGRATION IMPLEMENTATION (TRANSITION) OPERATIONS CONCLUSiON

5 - v - MANAGING RISKS IN THE SYSTEM DEVELOPMENT LIFE CYCLE PROPOSED MODEL FOR IMPLEMENTATION 5.1 INTRODUCTION PROJECT FAILURES RISK MINIMIZATION RISK MANAGEMENT - THE METHOD Identify risks Prioritise risks Develop risk management action plans Measure and monitor action plans Risk minimization Risk minimization for contract management Risk minimization measures for preparing work plans Risk minimization measures for organised project start-up Risk minimization - Managing the customer relationship Risk minimization measures for managing performance Risk minimization measures for managing quality Client/server risk minimization measures RISK MANAGEMENT ADVANTAGES CONSEQUENCES OR NEGATIVES OF RISK MANAGEMENT CONCLUSiON

6 - VI - ADDENDA A. SYSTEM DEVELOPMENT ISSUES (Yeats) B. CONDITIONS FOR SUCCESS AND FAILURE IN SEVEN MAJOR INFORMATION TECHNOLOGY PROJECTS C. GENERIC PROJECT RISK FACTORS D. ROLE PLAYERS IN RISK MANAGEMENT E. EXAMPLE OF RISK CHECK LlST F. BIBLIOGRAPHy

7 - VII - ABSTRACT RISK MANAGEMENT IN THE APPLICATION OF THE SYSTEMS DEVELOPMENT LIFE CYCLE By DANIE CRONJE STUDY LEADER: CO-LEADER: DEGREE: DR. A. LEONARD MR. L. DALTON MBA The purpose of this report is to make a contribution to the South African Post Office Technology division. This is achieved by starting with a number of fundamental theoretical principles in related disciplines. Risk management is proposed to the management in an attempt to increase the success rate of information technology projects. Concentrating on methodology is not the only answer. Management should accept that risks are part of the development process and should be managed. Even though risks appear throughout the development life cycle, management should realise that the starting phase of any systems development life cycle is one of the most crucial events. There is a saying in Afrikaans: "Goed begin is half gewin". Meaning that if a project starts on a healthy basis, the rest should be clean sailing. This report should provide a useful starting point for further empirical analysis since it provides an overall theoretical framework for the systems development life cycle.