MIS40690 – Global Sourcing Marketplace

Since late 1980s there has been a surge in the global sourcing of products & services and lately a key management challenge has been assessing the viability of global sourcing of the firm’s key processes & operations. Among the various factors that have led the firms to source globally are the increasing differences in input costs among countries, improved communication technologies, and geographical skill specialization (Hausman et al. 2005).

The key challenges in global sourcing & it’s management are around relationship development, formulating sourcing contracts & service level agreements, risk management and facilitating effective communication as well as learning in context of cultural diversity & distributed work. Recent years have seen the emergence of a much greater array of options around the sourcing of key product components and services. Now businesses face key strategic decisions about which specific products/services are better provided in-house, and which might be better outsourced to an increasingly global and competitive marketplace of delivery specialists. Moreover, this new ecology of complex inter-organisational arrangements introduces a range of difficult management challenges.

For anyone tasked with addressing these challenges a better understanding of the key terminology used in global sourcing would definitely help.

Sourcing is the act through which work is contracted or delegated to an external or internal entity that could be physically located anywhere. Sourcing encompasses various in-sourcing and outsourcing arrangements such as offshore outsourcing, captive offshoring, nearshoring and onshoring.”

Outsourcing is defined as… “Contracting with a third party for the completion of a certain amount of work, for a specified length of time, cost and quality.”

Offshoring refers to… to the relocation of organizational activities to a wholly owned subsidiary or an independent service provider in another country.

Captive” model of service delivery: where the work is offshored to a centre that is owned by the organization

Offshore outsourcing” model of service delivery: where the work is offshored to an independent third party.

Nearshoring” is when organisational activities are relocated to a neighbouring country e.g. US organisations relocating the work to Canada or Mexico.

In addition, there are various common buzzwords such as best-sourcing or best-shoring, right-shoring and far-shoring (as opposed to near-shoring), usually coined and used by vendor companies. Finally, there is also backsourcing trend, which implies bringing work back in-house.

These definitions include various sourcing models e.g. staff augmentation, domestic and rural sourcing, crowd sourcing, cloud services, microsourcing, insourcing, bundled services, out-tasking and shared services. The major distinction among these models lies in whether the function is performed by a subsidiary business unit of the firm or an external vendor (or by both as a joint effort), and also whether the function is performed on the form’s premises (i.e. on-site) or off-site, which can be onshore, nearshore or in an offshore location.

The figure below shows the Compound Annual Growth Rate – CAGR i.e. the year-over-year growth rate of ITO & BPO over the last decade. There is an obvious slip at the time of the financial crisis (2008-2010) but the overall trend has been upwards.

image

Figure 1 – ITO and BPO Worldwide Growth Rates in U.S. Dollars, 2001-2012 (Source: Gartner Dec 2009)

In 2010 the market for IT Outsourcing worldwide was reported to be $270 billion and for BP Outsourcing it was around $165 billion. As well as the future trend as predicted in the figure below by Gartner shows that ITO growth will be 5 to 8 per cent per annum and BPO growth 8 to 12 per cent per annum, with the BPO market size worldwide overtaking the ITO market. In all probability outsourcing is here to stay and is going to become more and more relevant for the firms in future.

imageOutsourcing trend 2001-2013 (Source: Gartner Dec 2010)

Global Sourcing footprint has been increasing with every passing year.

In the beginning there were 3 Is i.e III, India, Israel & Ireland

Then came BRIC, Brazil, Russia, India & China

Now there are over 120 emerging countries and specialist locations vying to attract outsourced IT and BP services. The choice of sourcing location reflects differing priorities. The sourcing vendor (the supplier) wants to be able to deliver their service to clients, to be able to scale up, satisfying demand, in as controlled and cost-effective a way as possible. To get the contract, keep the contract, to make a profit. In the first instance the client wants the service, doesn’t really care if it is insourced or outsourced. The service must meet/match or exceed their expectations along a variety of dimensions (quality, cost, time, scope, trust…). The distance between the supplier and clients shouldn’t matter (too much).

The Global Sourcing Trends 2010-2014 as sourced from Willcocks, Lacity, Griffiths and Kotlarsky 2009 highlight the growing importance of  global sourcing as well the challenges that firms should address in order to stay ahead of competition.

•Trend 1: Spending will continue to rise in all global sourcing markets. But BPO will soon overtake ITO.

•Trend 2: The ITO and BPO outsourcing markets will continue to grow through what has always been the dominant trend, multiple supplier sourcing.

•Trend 3: Global clients will stop viewing India primarily as a destination to lower costs, but rather as a destination for excellence.

•Trend 4: China’s investment in ITO/BPO services signal promise, but Western clients will still be wary. Developing countries beyond India and China will become important players in the global business and IT services markets.

•Trend 5: Emerging country competition will accelerate.

•Trend 6: Firms will take a second look at ‘software as a service’

•Trend 7: Outsourcing will help insourcing. But backsourcing will be minimal. Outsourcing is here to stay.

•Trend 8: Nearshoring will be a strong trend.

•Trend 9: Knowledge Process Outsourcing (KPO) which is the outsourcing of knowledge-intensive processes such as business, market and industry research etc. will increase.

•Trend 10: Captives will continue to be built….. And sold

•Trend 11: Outsourcing will continue to have successes .. and disappointments.

•Trend 12: Global economic cycles will have mixed but deep impacts on these trends.

Global Sourcing is no longer a corporate buzzword and has slowly metamorphosed into the core corporate strategy at the forefront of boardroom discussions. It offers a number of benefits for a firm like cost advantage through creation of economies of scale, access of vendor skill sets and the reduction of overhead costs. Furthermore, global sourcing allows a firm to concentrate on core activities, organisational specializations, or focussing on key strategic objectives.

But the firms should also bear in mind that adopting sourcing strategies poses several disadvantages like loss of critical skills, overdependence on an outside organisation and security & confidentiality of data. Another concern is losing control over the timing and quality of outputs since these will be undertaken by an outside vendor.

In this era of interconnect world with vanishing boundaries, organizations quest for new ways to gain competitive advantage, the development of progressive global strategies & approaches becomes an absolute necessity. And weighing the pros & cons of integrated global sourcing it more than any other alternative strategy offers the panacea for major corporate ills and a shorter path towards accelerated growth.

Tarun Rattan

References: Global Outsourcing And Offshoring 2nd Edition by Ilan Oshri, Julia Kotlarsky And Leslife P. Willcocks

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MIS40690 – Managing Global Sourcing: Syllabus

Course Title: Managing Global Sourcing
Lecturer: Allen Higgins,

CITO: Centre for Innovation, Technology & Organisation
Rm Q223, Quinn Building
UCD School of Business
University College Dublin
Belfield, D4
Ireland

Course Blog: http://managingglobalsourcing.blogspot.com/
Lectures are held Tuesdays in room D104, “D Block”(link to map).
Course slides and readings will be posted in Blackboard (elearning.ucd.ie).
Students must abide by UCD’s policies and regulations concerning academic conduct, respect and dignity.

Links to UCD’s policies; conduct, dignity and respect, and plagiarism (definition and policy).

Required Text
The Handbook of Global Outsourcing and Offshoring by Ilan Oshri, Julia Kotlarsky and Leslie P. Willcocks.  2nd Edition (ISBN 9780230293526) n.b. 1st Edition (ISBN 9780230235502) can be used but it does not include some content in 2nd Ed. Published by Palgrave Macmillan (link)

Module Description
Recent years have seen the emergence of a greater array of options around the sourcing of key product components and services. Business and organizations face strategic decisions surrounding which specific products/services are better provided in-house, and which may be better outsourced to an increasingly global and competitive marketplace of delivery specialists. Moreover, this new ecology of complex inter-organisational arrangements introduces a range of difficult management challenges.
This module will introduce the language and knowledge to better understand the diverse range of global sourcing options, the attendant opportunities and challenges, and approaches to addressing these in practice. Themes covered include: ongoing relationship development; the formulation of sourcing contracts and service level agreements; relationship governance structures and practices; risk management and resilience; balancing in-house and outsourced capabilities; the facilitation of effective communication and learning in context of cultural diversity and distributed work; the use of ICT; and identifying and addressing emerging relationship problems.

Learning Outcomes
On completing this module students should be able to:

  • Demonstrate a sound understanding of how the outsourcing market has developed over time, and of the types of processes/services that should be considered for sourcing.
  • Describe the common modes of sourcing (e.g. in-sourcing, outsourcing, offshoring, nearshoring) and their associated advantages and disadvantages.
  • Describe how to approach strategic sourcing decisions and the choice of appropriate sourcing partners.
  • Demonstrate a sophisticated understanding of how sourcing relationships may be better managed and how this might vary according to the sourcing mode.
  • Critically assess emerging trends in sourcing that are likely to be important in the future.

The lecture syllabus below follows the structure of the recommended text (Oishri et al., 2011).

Assessment & Involvement
Marks given during term will be provisional.

  1. Case studies, weekly – analysis report and discussion – group output
    • (not graded)
  2. Readings, weekly – individual questions posted as comments to blog before class
    • (not graded)
  3. 50% Combined Term-Paper (5,000 words) and Video Presentation (up to 5 minutes max) – in groups of three or two. Notes on the term paper here (link).
    • Title and abstract identifying topic due by end week 3 – only one author to submit using SafeAssign in Blackboard (not graded), latest Friday 7th Feb midnight.
    • Presentation video or slides; due at the end of week 10, link sent by email.
    • The Term Paper is due at the end of week 12 submitted by SafeAssign in Blackboard.
  4. 50% Final Exam
    • 1x (letter grade)

Course Material
Consists of Power Point slides, case studies, video clips, journal and magazine articles. The readings list and topic/themes will be refined by the lecturer during term.

Syllabus (subject to revision)

Lecture 1; Introduction to the course: structure, assessment, interaction, timetable.

Lecture 2; Topic/theme: Sourcing models and decisions

  • Chapter 2 of textbook
  • Reading: Abbott, P. & Jones, M. (2012) Everywhere and Nowhere: Nearshore software development in the context of globalisation. European Journal of Information Systems 21, 529-551
  • In-class: Analyse and respond to case in textbook: “Global Pharma” pp 30-36  2nd Ed only.

Lecture 3; Topic/theme: Country attractiveness

  • Chapter 3 of textbook
  • Reading: A.T. Kearney 2011. Offshoring Opportunities Amid Economic Turbulence: The A.T. Kearney Global Services Location Index, 2011. New York: A.T. Kearney. (link)
  • Reading: Carmel, E. Eisenberg, J. Narratives that Software Nations Tell Themselves: An exploration and taxonomy, 2006. Communications of the AIS, 17, 851-872.
  • In-class: Analyse and respond to mini-case: “Symantec moves off-shore

Lecture 4; Topic/theme: Supplier capabilities and strategies

  • Chapter 4 of textbook
  • Reading: Keeni, G. (2000) The Evolution of Quality Processes at Tata Consultancy Services. IEEE Software, 17, 79-88.
  • Reading: Nath 2011. Aesthetic and emotional labour through stigma: national identity management and racial abuse in offshored Indian call centres. Work Employment Society. 25(4) 709–725
  • In-class: Analyse and respond to case in textbook: “Tata Consultancy Services” pp 104-108  2nd Ed only.

Lecture 5; Topic/theme: Leveraging Knowledge

  • Chapter 5 of textbook
  • Reading: Kelly, S. & Jones, M. (2001) Groupware and the Social Infrastructure of Communication: Communication technologies can supplement, but never supplant the value of social bonds and trusting relationships. Communications of the ACM. 44(12) 77-79.
  • Reading: Rottman, J. (2008) Successful knowledge transfer within offshore supplier networks: a case study exploring social capital in strategic alliances. Journal of Information Technology, 23, 31–43.
  • In-class: Analyse and respond to mini-case: “We have a problem Heuston

Lecture 6; Topic/theme: The client perspective

  • Chapter 6 of textbook
  • Reading: Kelly, S. & Noonan, C. (2008) Anxiety and psychological security in offshoring relationships: the role and development of trust as emotional commitment. Journal of Information Technology, 23, 232–248.
  • In-class: Analyse and respond to mini-case: “Happy Hollowing Customs

Lecture 7; Topic/theme: The IT outsourcing lifecycle

  • Chapter 7 of textbook
  • Reading: Tiwari, V. (2009) Transition During Offshore Outsourcing: A Process Model. ICIS 2009. Phoenix, Arizona, USA., International Conference on Information Systems.
  • In-class: Analyse and respond to mini-case: “Keeping Pace with the local

Lecture 8; Governance

  • Chapter 8 of textbook
  • Reading: Vlaar et al. (2008) Cocreating Understanding and Value in Distributed Work: How members of onsite and offshore vendor teams Give, make, demand, and break sense. MIS Quarterly, 32/2, pp. 227-255
  • In-class: Analyse and respond to mini-case: “Core banking source

Lecture 9; Topic/theme: Global, distributed, teams

  • Chapter 9 of textbook
  • Reading: Malhotra, A., Majchrzak, A. & Rosen, B. (2007) Leading Virtual Teams. Academy of Management Perspectives, 21, 60-70.
  • Reading: Krishna et al. (2004) Managing Cross-Cultural Issues in Global Software Outsourcing. Communications of the ACM. 47(4), 62-66
  • In-class: Analyse and respond to mini-case: “Managing Global Local

Lecture 10; Topic/theme: Emerging issues for sourcing

  • Chapter 10 of textbook
  • Reading: Gefen, D. & Carmel, E. (2008) Is the World Really Flat? A Look at Offshoring at an Online Programming Marketplace. MIS Quarterly, 32, 367-84.
  • In-class: Analyse and respond to mini-case: “Celtic Tiger, Chinese Dragon

Lecture 11

  • Presentations, discussion and commentary.

Lecture 12

  • Presentations, discussion and commentary.
  • Summary and review of module

http://managingglobalsourcing.blogspot.ie/p/course-title-managing-global-sourcing.html

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Meaningless Friendships…

image

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MIS40910 – Skills for Business Enquiry – Research Proposal

Which contextual, behavioural & social factors are responsible for producing technically efficient innovations?

Project Paper

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MIS40910 – Skills for Business Enquiry – Personal Blog Learning Report

MSc. iBusiness – Smurfit UCD – Tarun Rattan

First I would like to thank our course co-coordinator Prof. Donncha Kavanagh who introduced the class to so many of these new concepts around business & research enquiry. I found all the readings introduced during the module quite interesting and thought provoking. This was the first time I attended a seminar based module and I really enjoyed the format and discourses during the class.

Week 1

The first class went pretty quickly but after discussing the syllabus & project paper requirements, Donncha was able to bring some sense into the course. He explained that the objective here was to develop the skills of enquiry in the students and journal reading and critique will be used for this throughout the module.

Week 2

I found the first presentations on the readings on Geertz & Gursky very thought provoking. The readings were a good introduction on how to frame research question and what skill sets are required to answer these questions. The Balinese cockfight article was in particular helpful to understand how interconnections between social norms & game play work and how researching game play can make evident the underlying societal customs & hierarchical structures.

Week 3

In the next class Brannick’s & Huff’s readings introduced me for the first time into the interplay & disconnect between academicians & practitioners. The articles were a good introduction into different research paradigms and highlighted the challenges in bringing the academics & practitioners together to solve common contextual issues. Particularly the interference to Plato’s cave made by Donncha brought the clarity around disconnect between the two worlds.

Week 4

Abrahamson & Pfeffer’s readings were for the defining moment of the module and I was in particular fascinated by the arguments raised by Abrahamson on diffusion & rejection of innovations. The readings were a great introduction to the art of collecting & analysing evidences as well as acted as a primer for critical thinking. As this was our turn for presentation, so we were driving the discussion and I felt afterwards that we did a good job at it.

Week 5

Levy’s reading on effective literature review was very helpful in understanding the literature review process and how IO based simple approach can be used to review the journal articles. Rosenzweig’s article on Halo effect introduced me to challenges of dealing with rhetoric & fallacies while answering research questions.

Week 6

Stern’s article on history of happiness was an enjoyable read. I felt it was US focused but is none the less an interesting insight into the epicurean school of philosophy in an approachable societal / magazine format. Sutton paper, particularly around the implicit social agreements that guide behavior make also for interesting reading. I found it admirable that when the hypothesis they set out to confirm was debunked that they utilized the quantitative / qualitative data gathered to develop a revised position.

Week 7

I found Wacker’s definition of theory around Operation management a bit out of focus. The article lacked any framework on the measurement and analysis of internal processes while building the theories on Operations Management. Dahlander’s artcile on open innovation raised the question on if open source technologies in software, a fair & accurate representation of open innovation? Later Donncha’s discourse on theory & theorizing and reflection on the articles brought a new insight into the discussions.

Week 8, 9 & 10

Unfortunately I had a personal grievance at home and had to rush to India and could not attend the classes on these weeks. But I did read the articles for the weeks and found in particular Scherer’s article on Innovation Lottery interesting.

Week 11

Ghosal & Stein’s articles brought the important topic of ethics in corporate culture to the fore and the class had a passionate discussions around it. One of the conclusions was that defining ethical choices are difficult and that there cannot be any compromise with ethics.

Week 12

On Gordon’s article, I’m not sure if his basic premise is right i.e. that innovation does not have the same potential to create growth in the future and in the past. Who after all can predict future? Perhaps the next big innovation is round the corner. Parker’s article introduced me for the first time to the challenges faced by journal editors and how commercialization of knowledge is putting all of us at a disadvantage.

Overall I thoroughly enjoyed the module.

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Oscar Wilde who died on this day in 1900

“Yes, death. Death must be so beautiful. To lie in the soft brown earth, with the grasses waving above one’s head, and listen to silence. To have no yesterday, and no to-morrow. To forget time, to forget life, to be at peace. You can help me. You can open for me the portals of death’s house, for love is always with you, and love is stronger than death is.”

― Oscar Wilde, The Canterville Ghost

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MIS40910 – Skills for Business Enquiry – Research Design and Project Management

1.   Gordon, R. (2012) Is U.S. Economic growth over? Faltering innovation confronts the six headwinds. Cambridge MA. National Bureau of Economic Research.

1.Gordon2012 – Is US growth over?

2.   Parker, M. (2013) Becoming Editor: Or, Pinocchio finally notices the Strings.  Unpublished work, due to be published in Organization.

2.Parker2014 – Becoming Editor

1.   Gordon, R. (2012) Is U.S. Economic growth over? Faltering innovation confronts the six headwinds. Cambridge MA. National Bureau of Economic Research
Gordon’s paper establishes a strong causal link between innovation and economic growth in the US. However when discussing the six headwinds that are lowering long-term growth, it is strange that he does not mention military spending. The US consistently spends 4-5% of it’s GDP on military budgets. Only countries in the troubled areas of the middle-east and Africa have a bigger percentage. This strange situation where the world’s largest debtor has the largest military budget is surely something which must be resolved before other economic concerns such as education, inequality and environmental are ever successfully resolved. Is it this that the author has in mind when conceding that a Canadian or Swedish economist would not be so alarmed when looking at their own respective countries?

On Gordon’s article, I’m not sure if his basic premise is right i.e. that innovation does not have the same potential to create growth in the future and in the past.

Who after all can predict future? perhaps the next big innovation is round the corner.

For example recent developments in genetics are very promising to provide singularity by the middle of this century, which means we might be able to live healthy for almost double the life span human’s have ever lived in history. In Japan lot of work is going on in robotics to provide each & everybody with a robotic servant to do household chores and other mundane work. That would be a development which might change the way we live. Also organisations have already explored plans to extract resources from meteors & other planets etc..

2.   Parker, M. (2013) Becoming Editor: Or, Pinocchio finally notices the Strings.  Unpublished work, due to be published in Organization.
The Wire is really about the American city, and about how we live together. It’s about how institutions have an effect on individuals, and how … you are ultimately compromised and must contend with whatever institution you’ve committed to.
David Simon
It is interesting that the author references Foucault in his paper. Foucault put forward the idea that institutions are a way of freezing particular relations of power so that a certain number of people are advantaged. In the same way that David Simon so successfully explored these themes looking at American society in The Wire, is Parker’s paper just an extension of this work focussing on academic journals and how as a journal editor you are similarly compromised? By being clear on the diagnosis of the problem but only briefly summarising potential sources of resistance is the author conceding that Academic publications have no reason to expect to be different?

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MIS40670 – PAYE Anytime Redesign Project

Video montage & Project Paper on PAYE Anytime redesign proposal, produced and edited by Fiona Walsh, Tarun Rattan and Guillaume Poznanski, UCD MSc iBusiness Students – 2013 as part of Managing System Development module.

Video montage:

http://youtu.be/qybfF1sBm0c

Project Paper:

PAYE Anytime Paper – Final Version

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MIS40910 – Skills for Business Enquiry – Good Management Practices

1.  Ghoshal, S. (2005) ‘Bad Management Theories Are Destroying Good Management Practices’, Academy Of Management Learning & Education, 4(1): 75-91.

1.Ghoshal2005-Bad Management Theories

2.  Stein, M. & Pinto, J. (2011) The Dark Side of Groups: A “Gang at Work” in Enron. Group & Organization Management, 36, 692–721.

2.Stein2011-Dark Side of Groups

1.  Ghoshal, S. (2005) ‘Bad Management Theories Are Destroying Good Management Practices’, Academy Of Management Learning & Education, 4(1): 75-91.
Ghoshal’s paper is very firm on putting the onus of responsibility on academia, but is it overly so? Those not obeying the rules will always prosper when left unchecked and unrestrained whereas the moral well intentioned company will get left behind in comparison. The travelling expedition who ruthlessly abandons struggling companions will get there faster than more compassionate rivals. In addition the question should be asked if the situation as it is now is actually reversible. Friedman influenced politicians such as Thatcher and Reagan have surely opened the stable door so wide that the horse has well and truly bolted. Would a change in academic teachings and publications, however dramatic, really see a comprehensive re-introduction of the systematic checks and balances, regulatory bodies, trade unions and trade barriers which have now all but been dismantled by successive governments?
2.  Stein, M. & Pinto, J. (2011) The Dark Side of Groups: A “Gang at Work” in Enron. Group & Organization Management, 36, 692–721.
The Stein and Pinto paper introduces us to some interesting topics around psychoanalysis but is there a feeling that all we having explained to us is an elaborate explanation of what is simply peer pressure? Also, the discussions on Enron and Lehman Bros seem to be very much a reverse of the Halo theory. The line from that paper that if we were to discuss what characteristics these companies have in common you might conclude that they all reside in buildings seems particularly apt. In the same way that Rosenzweig compellingly argues that we tend to prefer simple notions and that complexities are set aside in our desire to tell a satisfying story when describing success, surely the same charge can be levelled at Stein and Pinto when discussing failings. After all there are surely companies out there who share some or possibly all of the listed traits who have not gone to ruin in the same way.

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MIS40670 – SDLC & SCRUM: How Do They Compare?

SDLC & Scrum are two different approaches to software development that also find use in project management. Both methods have their advantages and disadvantages, and the selection of either method will depend on various project-centric factors.

In both the SDLC & Scrum methods, an iteration or module is not passed on until it’s done but the difference between the two is that in Scrum projects, evaluation of a module is present before it is passed along whereas in traditional SDLC, the project flow passes along without stopping with hopes of a good outcome.

Let’s first understand the basics of the two approaches

SDLC Method

Software Development Life Cycle (SDLC) consists of few phases like planning, analysis, design and implementation. Many number of SDLC models have been created like Waterfall, Spiral and V-model etc. The SDLC model is a sequential design process used in software development, with the development life cycle of Conception, Initiation, Analysis, Design, Construction, Testing, Implementation, and Maintenance progressing steadily downwards. Completion of one stage leads to another, and each stage has its separate goals. It owes its origin to the standard workflow process in the construction and manufacturing industries.

The main characteristics of the SDLC method is the division of the project into tight compartments, reducing the dependency on individuals in the team. Key individuals coming and going at the transition points of stages does not affect project execution. The method also calls for robust documentation, further lessening the dependence on individuals. But its bane is the inflexibility and rigidity. Just as water that flows down a waterfall cannot come back, it is not possible to alter a completed stage or even the project design in any way. Requirements gathering upfront therefore become critical. The logic is that the time spent upfront to ensure comprehensive requirements gathering and design saves considerable time and effort later.

SCRUM Method

Scrum is just one of the many iterative and incremental Agile software development methods. SCRUM was initiated by Ken Swaber in 1995. It was included in agile methodology since it contains the same concepts of agile. A SCRUM is a team pack, where everyone in the team acts together. It delivers the project within time and with minimal cost. Scrum software development bases itself on an iterative and incremental approach. Software developers work on small modules, and respond to users’ changed requirements rather than follow a specific or predetermined plan of action. The basic design is simple, and changes are made as work progresses.

The SCRUM methodology uses a different language to the one used in traditional SDLC methods

1. Different Roles

Scrum has mainly two types of roles inside it, which are:

1. Main/Core Roles: There are three core roles:

a) Scrum Master – Scrum master has a leadership role over team members and is responsible for managing the process

b) Product Owner – Customer representative who works with the team and act as an interface between the team and the business

c) Scrum Team Member – Develops product and each team member is responsible for their work.

2. Ancillary Roles: The ancillary roles in Scrum teams are those with no formal role and infrequent involvement in the Scrum processing but nonetheless, they must be taken into account. Viz. Stakeholders, Managers.

2. Different Meetings

The following types of meetings are conducted in scrum:

1. Daily Scrum

Scrum master and development team members report to each other in a daily meeting of about 15 minutes

Three questions are generated in this sprint

· What they did yesterday?

· What they plan to do till next meeting?

· What difficulties are there in their way?

2. Scrum of Scrums

A technique to scale Scrum up to large groups (over a dozen people), consisting of dividing the groups into Agile teams of 5-10. Each daily scrum within a sub-team ends by designating one member as “ambassador” to participate in a daily meeting with ambassadors from other teams, called the Scrum of Scrums.

3. Sprint planning meeting

Sprint planning meeting is conducted by the product owner, team member and the scrum master and in this decisions are taken to prioritize the items which is more important. The meeting focus is on what to do and how to do

4. Sprint review meeting

Is done after every Sprint and the product owner reviews and revise the sprint planning meeting after this review meeting

5. Sprint retrospective

Is conducted after every sprint and mainly a discussion about the experiences and problems faced, what to be followed and not to be followed to improve further and is typically of 15–30 minutes of duration.

3. Different Characteristics

In the SCRUM methodology a sprint is the basic unit of development. Each sprint is preceded by a planning meeting, where the tasks for the sprint are identified and an estimated commitment for the sprint goal is made, and followed by a review or retrospective meeting where the progress is reviewed and lessons for the next sprint are identified. During each sprint, the team creates finished portions of a product.

4. Different Artefacts

Product Backlog

The product backlog is an ordered list of “requirements” that is maintained for a product. It contains Product Backlog Items that are ordered by the Product Owner. Product owner decides about the priorities of the user stories. Product owner can re-prioritize the list during or end of the sprint. It is transparent to all stakeholders.

Sprint backlog

The sprint backlog is the list of work the Development Team must address during the next sprint. Requirement should not be changed during sprint execution.

Burn-down chart

The sprint burn down chart is a displayed chart showing remaining work in the sprint backlog. Updated every day, it gives a simple view of the sprint progress. It also provides quick visualizations for reference.

Unlike with the Waterfall method, testing and customer feedback occurs simultaneously with development. This method gives priority to collaboration over design. Interactions among stakeholders take priority over processes and tools, and working software takes priority over documenting procedures. Different developers may work on different modules, and integrate all modules together at the end.

Agile methods of software development gained popularity in the 1990s as a reaction to the drawbacks of the traditional Waterfall methods. Critics considered the Waterfall method heavily regulated, regimented, and micromanaged to suit many needs, and have been working on various incremental approaches experimented since 1957.

Comparison

Both the SDLC & Scrum method of software development have their uses. Although Scrum arose as a reaction to the limitations imposed by the SDLC method, SDLC still retains its relevance as a better method when the environment is stable with no room for changes, when frequent interactions with ends users and other stakeholders are not possible, or when there is a risk of key developers quitting the project midway.

Advantages of SDLC

· It is sequential model, so it’s easy to implement.

· The amount of resources required to implement this model are minimal.

· Proper documentation is followed for the quality of the development.

Disadvantages of SDLC

· The problems with one phase are never solved completely during that phase and it leads to many problems

· If client want the requirement to be changed, it will not be implemented

· Freezes scope – Customer requirements contract

· Estimates schedule – Delivery time is intended

Scrum is a lightweight method. As software developers focus on smaller work areas, overhead becomes less, and the project costs considerably less than when using the SDLC methods. When customer requirements are hazy, or the business environment is uncertain, Agile methods like SCRUM that allow making frequent changes, and testing during the construction stage remains the best choice. Successful execution of SCRUM projects nevertheless requires highly skilled and competent developers, and stakeholders who know what they want. With the scope to accommodate changes, a SCRUM project can easily lose its way.

Advantages of Scrum

· Scrum provides customer satisfaction by optimizing turnaround time and responsiveness to requests.

· Increase the quality

· Accept and expect the changes

· Provide better estimates while spending less time creating them

· Be more in control of the project schedule

· Scrum is ideal for rapidly changing, accumulating requirements.

· Benefits to customer and project manager

· Scrum is fast, quick and can adapt changes easily

· Freezes schedule – Short Sprint by short Sprint

· Estimates scope – Top feature, then next feature

· Never changes the schedule, or Sprint

· Adjusts the scope if needed to meet release dates

· Work estimates are much easier.

· Work proceeds and completes more logically.

Disadvantages of Scrum

· Documentation is very less

· Team members dedication is very important

· Team work is highly essential

· If team members does not cooperate well, the project will face failure

A comparative summary is tabulated below

SDLC SCRUM
Suited for project Suited for product
Traditional model consists of different phases SCRUM methodology consists of different sprints
Does not expect changes Expect changes and accept the changes
More documentation Less documentation
Project cost determined during planning Project cost set during project
Probability of success is low Probability of success is high
Team flexibility and creativity is limited Team flexibility and creativity is unlimited
Sequential Overlapping

References:

1. http://guide.agilealliance.org/guide/scrumofscrums.html

2. Traditional SDLC Vs. Scrum Methodology – A Comparative Study M. Mahalakshmi, DR. M. Sundararajan (2013)

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