Agile Methodologies, IT Strategy, and Bank Case Study Analysis

This report examines agile methodologies, focusing on their impact on IT strategy and organizational management. It begins with an introduction to agile software development, highlighting its advantages over traditional methods like the waterfall model, especially in terms of flexibility, customer f...Read More

Running head: AGILE METHODOLOGIES AND AGILE SYSTEMS 1
Agile Methodologies and Agile Systems
[Student name]
[Institution]
Author Note

AGILE METHODOLOGIES AND AGILE SYSTEMS 2
Table of Contents
Introduction.................................................................................................................................................3
Topic Illustration.........................................................................................................................................3
Topic Influence............................................................................................................................................5
Critique of an IT Plan- for a Bank that used SCRUM Agile........................................................................6
IT Strategy Implications..............................................................................................................................8
IT Plan.........................................................................................................................................................9

AGILE METHODOLOGIES AND AGILE SYSTEMS 3
Agile Methodologies and Agile Systems
Introduction
The past two decades has seen the discovery and use of new and innovative models for
software development, such as the waterfall model, stage wise models, the transform, spiral, and
evolutionary models. Among the most innovative models is the Agile software development
method ; it is currently used widely because it has features that enable rapid software
development and flexibility, as well as the ability to result in very high quality software. Agile
systems is relevant to IT management with respect to software development because it enables
better quality software development as it anticipates and incorporates evolving user
requirements. The evolution of solutions and requirements guarantees fast and high quality
software development through the collaborative efforts of cross functional self-organizing
development teams (Kansal & Gupta, 2012). As such, Agile is considered among the major
aspects that help in giving organizations a competitive advantage and is far superior to the linear
system of development, given IT management has become a critical component of organization
competitiveness (Idzikowski & Perechuda, 2018). This paper discusses the agile software
development method in the context of IT management in organizations and its implications and
value on IT strategies.
Topic Illustration
In the modern software development era, the use of traditional software development
methodologies such as the waterfall and in general, linear development methods give project
developers numerous problems and challenges not least of which is resource (cost, people, time)
wastage and the now familiar perception that most software projects, especially large scale ones
fail. Hence, software developers have adapted the new agile methodology where priority is given

AGILE METHODOLOGIES AND AGILE SYSTEMS 4
to the customer and the use needs at all stages and involves iterative software development to
ensure fast software development with as few problems as possible (Kotaiah & Khalil, 2017). In
the software life-cycle, among the most difficult and challenging phases is the maintenance
phase. It is a tedious, complex, and resource consuming phase because of the changing IT
environment, such as changing operating environments and rapidly advancing technologies. A
lot of expenses are used in the maintenance phase because of the difficulties in achieving the
desired software quality, especially when traditional methods are used during development.
The waterfall model was used to overcome this problem; However, its sequential nature
resulted in drawbacks that include developing requirements upfront that invariably increases
costs when new requirements pop up during development and especially, maintenance. The
waterfall model resulted in 70% of software being unable to meet their objectives and
maintenance is particularly costly because moving to the previous stage, due to the sequential
nature of the model, is difficult (Tarwani & Chug, 2016). Introducing agile into non-agile
projects also have their challenges including lack of fit and failure to meet project objectives
(Bose & Thakur, 2013). Because of these challenges, the agile methodology was developed and
adopted, due to its many advantages because of its flexible nature, customer and user focus,
iterative nature and high quality end product (software). Methodologies of software development
are constantly evolving as new demands arise and technologies change. The modern business
environment has created organizations that constantly seek to adapt their policies, strategies, and
structures to meet changing needs and remain relevant and these organizations require
information systems that meet these needs.
Linear OO (object oriented) approaches have been used, but these have their challenges
and the result has been the development of agile methodologies such as XP and scrum. While

AGILE METHODOLOGIES AND AGILE SYSTEMS 5
these approaches provide better approaches that result in better software quality with objectives
being met at least 90%, their successful adoption provide challenges that decision makers must
be cognizant of in order to ensure success of their software development projects, especially for
organizations steeped in the traditional models for software development (Nerur, Mahapatra &
Mangalaraj, 2005). There are various approaches to agile software development and the choice
of using agile, as well as the agile model used depends on various factors including delivery
strategies (short cycles), techniques of software engineering, team capability, process of project
management, the team environment, and the involvement of the customer (Rajagopalan &
Mathew, 2016). Their use determines the success of the agile methodology in achieving the
software project objectives since each has its merits and demerits; for instance, SCRUM has
weak engineering practices, while XP lacks suitable management practices, and this has led to
the development of new novel models such as the Agile XScrum Model which has all the
attributes of XP and SCRUM (Rizwan & Qureshi, 2017). .
Topic Influence
Agile methodologies inevitably impact IT planning and its management because it does
not just impact IT in isolation; it impacts management processes, culture, and how organizations
respond to change. Agile promotes a shift from traditional communication paradigms that are
document driven to face to face communications that are more informal, such as during stand up
meetings as its success (Agile) largely depends of effective communication and feedback
(Hummel, Rosenkranz & Holten, 2013). During project execution, a change in the linear model
to an agile model requires a change in management style; organizations realize that IT is just a
tool for adapting to changes in the environment and hence there is need to align management
approaches and styles as well as organizational cultures to fit with the agile model. Firms have to

AGILE METHODOLOGIES AND AGILE SYSTEMS 6
adopt fast to fast changes in the environment and so IT planning and management using agile
methods must be aligned with an equally agile management approach (Gablas, Ruzicky &
Ondrouchova, 2018). A system of indicators and metrics must be put in place as well to measure
and evaluate agile teams and their performance (Budacu & Pocatilu, 2018).
Critique of an IT Plan- for a Bank that used SCRUM Agile
This is a critique of bank that implemented an agile methodology to develop a software
system for mortgages over a ten week period. The project entailed changing from traditional
classical methodologies to adapting Agile and this required a culture change and the need for
employees to adapt to the agile methodology. The approach to first familiarize the employees
involved in the project and have them adapt and internalize it was a masterstroke because
changing from traditional to agile methods has its challenges (Tarwani & Chug, 2016), and agile
requires a change in outlook and changing how things are done, from having specified roles to
greater collaboration and interaction (Kansal & Gupta, 2012). The bank ensured the team
members spent a month in an on-boarding program to better understand the requirements and the
‘client’ to have a deeper knowledge of the bank and its operations (Olteanu, 2018). the board
then went on to select the most suitable agile methodology to use for the project, considering the
domain features and projects as well as the team, and this was not an easy process. Again, this
step is very important because while agile has its benefits, the right agile methodology must be
used in order to achieve the desired objectives and outcomes as project success depends on the
right tool (Rajagopalan & Mathew, 2016). Rather than develop a new method, the bank board
selected and adapted an existing agile method; again this is an important and correct approach
because it ensures the process and method chosen is not made more complex (Olteanu, 2018).

AGILE METHODOLOGIES AND AGILE SYSTEMS 7
After choosing the methodology (Agile), it had to be adapted to the team and bank and
this is an equally critical step because the method is as successful as how well it is adapted and
applied. The methodology was then implemented based on the chosen model and organizational
needs and again, this is important in ensuring the successful use of agile methodologies. The
bank used the Deming cycle in implementing the agile method, and this again helps ensure
successful agile project delivery because agile does not work in isolation but within an enabling
organizational and cultural framework that support its implementation. The training, adaptation,
and implementation method ensured that the management and organizational culture and
methods at the bank changed as well; successful agile implementation requires equally
successful paradigm change in as far as management is concerned (Olteanu, 2018). The
adoption, adaptation, and use of the Agile SCRUM methodology by the bank, using other
enabling tools for effective communication, collaboration, and tracking, helped ensure the
project was a success and imparted several benefits to the bank. The whole bank changed, from
its operations to how employees and systems interact; there was a significant increase in time to
market (84%), significant increases in productivity (77%), increased transparency and
predictability (70%), efficiency increased by 68%, while long term organizational culture
learning improved by 48% (See Appendix I) (Olteanu, 2018). This process was also helpful in
enhancing the adaptation and use of the agile method by the agile team and the bank staff. Its
adoption resulted in many of the benefits associated with agile methods including clear methods,
better user experience, and culture change.
The approach to adopting the agile methodology ensured successful software
development at the bank went successfully and that it resulted in the envisaged benefits being
achieved, including imparting competitive advantages to the bank, which is one of the important

AGILE METHODOLOGIES AND AGILE SYSTEMS 8
objectives of agile. The management of knowledge and adoption of agile principles resulted in
successful project delivery, but more importantly, it changed the IT planning and management at
the bank, with credible metrics in improvements in processes and organizational performance.
The firm was able to adapt the scrum agile effectively, which is commendable given the complex
but conservative nature of banks. However, I feel there were other practices that should have
been been undertaken to make the process more successful, especially effective change
management strategies and a change in the organizational culture to a loose, matrix
organizational structure rather than a hierarchical one. A strong vision should also have been set
at the initial stages and a road-map (product) developed to guide development.
IT Strategy Implications
Implementing scrum agile can be incorporated into IT planning can be achieved through
an equally agile but structured process where agile is incorporated into organization-wide change
management. The organization vision in terms of its IT infrastructure should be premised on
agile methodologies and aligned with it (Gablas, Ruzicky & Ondrouchova, 2018), to ensure there
are fast changes and adaptation to changing environmental and technology requirements.
Decisions on any IT projects, from procurement, development, enterprise architecture design, to
management should be based on agile principles and internalized. The example (of the bank)
demonstrates how agile can be aligned with organizational culture and strategies through
training, adaptation, planning, and following the agile methodology for successful IT and
organizational transformation.

AGILE METHODOLOGIES AND AGILE SYSTEMS 9
IT Plan

AGILE METHODOLOGIES AND AGILE SYSTEMS 10
References
Bose, L., & Thakur, S. (2013). Introducing Agile into a Non Agile Project: Analysis of Agile
Methodology with its Issues and Challenges. International Journal Of Advanced
Research In Computer Science, 4(2).
Budacu, E., & Pocatilu, P. (2018). Real Time Agile Metrics for Measuring Team
Performance. Informatica Economica, 22(4/2018), 70-79. doi:
10.12948/issn14531305/22.4.2018.06
Gablas, B., Ruzicky, E., & Ondrouchova, M. (2018). The Change in Management Style during
then Course of a Project from the Classical to the Agile Approach. Journal Of
Competitiveness, 10(4), 38-53. doi: 10.7441/joc.2018.04.03
Hummel, M., Rosenkranz, C., & Holten, R. (2013). The Role of Communication in Agile
Systems Development. Business & Information Systems Engineering, 5(5), 343-355. doi:
10.1007/s12599-013-0282-4
Idzikowski, W., & Perechuda, I. (2018). Agile approach in a transforming organization, a
descriptive study of chosen Polish companies with rapid revenue growth. Oeconomia
Copernicana, 9(3), 461-475. doi: 10.24136/oc.2018.023
Kansal, P., & Gupta, S. (2012). A Framework to Introduce Component Based Methodology in
AGILE Software Development. International Journal Of Advanced Research In
Computer Science, 3(1), 186-189.
Kotaiah, B., & Khalil, M. (2017). Approaches for development of Software Projects: Agile
methodology. International Journal Of Advanced Research In Computer Science, 8(1),
237-241.
Nerur, S., Mahapatra, R., & Mangalaraj, G. (2005). Challenges of migrating to agile
methodologies. Communications Of The ACM, 48(5), 72-78. doi:
10.1145/1060710.1060712
Olteanu, C. (2018). IT Agile Transformation. Economy Informatics, 18(1), 23-29.
Rajagopalan, S., & Mathew, S. (2016). Choice of Agile Methodologies in Software
Development: A Vendor Perspective. Journal Of International Technology And
Information Management, 25(1), 39-50.

AGILE METHODOLOGIES AND AGILE SYSTEMS 11
Rizwan, M., & Qureshi, J. (2017). Evaluating the Quality of Proposed Agile XScrum
Model. International Journal Of Modern Education And Computer Science, 9(11), 41-48.
doi: 10.5815/ijmecs.2017.11.05
Tarwani, S., & Chug, A. (2016). Agile Methodologies in Software Maintenance: A Systematic
Review. Informatica, 40, 417–426.