AIS Development Strategies

1
AIS Development Strategies

• Chapter 19

2
METHODS FOR OBTAINING A NEW INFORMATION SYSTEM

• Purchasing prewritten software
• Developing software in-house
• Outsourcing

3
PURCHASING PREWRITTEN SOFTWARE

• Canned software is sold on the open market to a
  broad range of users with similar requirements.
• Turnkey systems - hardware and software sold
  together as a package.
• Disadvantages
• Inflexibility
• May not meet all of the companys needs

4
PURCHASING PREWRITTEN SOFTWARE

• Application service providers (ASPs).
• ASPs host web-based software and deliver it to
  clients over the Internet.
• Companies dont have to buy, install, or maintain
  canned software they simply rent it.
• Advantages of ASPs
• Reduction of software costs and administrative
  overhead.
• Automated software upgrades.
• Scalability as the business grows.
• Global access to information.
• Access to skilled IT personnel.
• Ability to focus on core financial competencies
  rather than IT.

5
PURCHASING PREWRITTEN SOFTWARE

• Purchasing Software and the SDLC
• SDLC is still followed for purchased software
• Systems analysis
• Conceptual design
• Physical design
• Implementation and conversion
• Operation and maintenance

6
PURCHASING PREWRITTEN SOFTWARE

• Acquiring Hardware and Software
• Request for proposal (RFP) - invitation to
  bidders to propose a system by a specific date.
• Each proposal is evaluated.
• Finalists are investigated in depth.
• Advantages
• Saves time
• Simplifies the decision-making process
• Reduces errors
• Avoids potential for disagreement

7
PURCHASING PREWRITTEN SOFTWARE

• Evaluating Proposals and Selecting a System
• Eliminate any proposals that
• Are missing important information.
• Fail to meet minimum requirements.
• Are ambiguous.
• Those that pass the preliminary screening should
  be compared with the proposed AIS requirements to
  determine
• If they meet all mandatory requirements.
• How many desirable requirements they meet.

8
PURCHASING PREWRITTEN SOFTWARE

• Criteria to evaluate hardware include

• Cost
• Ability to run required software
• Processing speed and capabilities
• Secondary storage capability
• Input and output speeds
• Communication capabilities
• Expandability
• Recency of technology

• Availability
• Compatibility with existing hardware, software,
  and peripherals
• Performance compared to competitors
• Cost and availability of support and maintenance
• Warrantees and guarantees
• Financing arrangements
• Ability to meet mandatory requirements

9
PURCHASING PREWRITTEN SOFTWARE

• Criteria to evaluate software include

• Conformity with specifications
• Need for modification
• Performance (speed, accuracy, reliability)
• Use by other companies
• Satisfaction of other users
• Documentation
• Compatibility with existing software

• User-friendliness
• Ability to be demonstrated and test-driven
• Warranties
• Flexibility and maintainability
• Capability for online inquiry of files and
  records
• Vendor upgrades

10
PURCHASING PREWRITTEN SOFTWARE

• Criteria to evaluate vendors include

• Size
• Financial stability and security
• Experience
• Quality of support and warranties
• Regularity of updates
• Ability to provide financing
• Willingness to sign contract
• Willingness to provide references

• Reputation for reliability and dependability
• Hardware and software support and maintenance
• Implementation and installation support
• Quality and responsiveness of personnel
• Willingness to provide training
• Responsiveness and timeliness of support

11
PURCHASING PREWRITTEN SOFTWARE

• Approaches to comparing system performance
• Benchmark problem
• Point scoring
• Requirements costing

12
PURCHASING PREWRITTEN SOFTWARE

• EXAMPLE
• Zorba Co. is evaluating systems offered by three
  different vendors Able Co., Baker Co., and Cook
  Co.
• Zorba has determined three criteria that they
  will use to evaluate the different systems
  cost, speed, and vendor reliability.
• They have provided the following weights to each
  criteria, with vendor reliability being the most
  critical
• Vendor reliability9
• Cost6
• Speed4

13
PURCHASING PREWRITTEN SOFTWARE

• Zorba examined the packages offered by the three
  vendors and rated them based on these three
  criteria. Ratings were from 1-5 with 5 being the
  highest score.

14
PURCHASING PREWRITTEN SOFTWARE

• The weighted scores are then computed by
  multiplying the rating given to each vendor on
  each criterion times the weight assigned to that
  criterion.

X

15
PURCHASING PREWRITTEN SOFTWARE

• The weighted scores for each company are summed
• Able 60 points
• Baker 79 points
• Cook 68 points
• Based on the preceding scores, the bid would
  probably be awarded to Baker Co.

16
PURCHASING PREWRITTEN SOFTWARE

• Approaches to comparing system performance
• Benchmark problem
• Point scoring
• Requirements costing

17
DEVELOPING SOFTWARE IN-HOUSE

• Reasons
• Their requirements are unique or
• Their size and complexity necessitates a custom
  package.
• Disadvantages
• Lack of time.
• Complexity of desired system.
• Poor requirements and systems planning.
• Inadequate communication and cooperation between
  departments and users.
• Lack of qualified staff.
• Poor senior executive support.

18
DEVELOPING SOFTWARE IN-HOUSE

• Control the development process and observe the
  following guidelines
• Carefully select a developer
• Sign a contract to clearly define
  responsibilities
• Plan and monitor each step
• Maintain effective and frequent communication
• Control all costs

19
DEVELOPING SOFTWARE IN-HOUSE

• End-User Developed Software
• Hands-on development, use, and control of
  computer-based information systems by users
• Allows individuals use IT to meet their own IS
  needs rather than rely on systems professionals
• Factors contributing to EUC are
• Increased computer literacy.
• Easier-to-use programming languages.
• Inexpensive PCs.
• A variety of powerful and inexpensive software
  packages.

20
DEVELOPING SOFTWARE IN-HOUSE

• EUCs allows users to develop their own systems
  to
• Create and store data.
• Access and download company data.
• Share data and computer resources in networks.

21
DEVELOPING SOFTWARE IN-HOUSE

• EUD may be most appropriate for tasks such as
• Querying company databases to produce simple
  reports
• Performing what if, sensitivity or other
  statistical analyses
• Developing applications for prewritten software
• Preparing schedules and lists

22
DEVELOPING SOFTWARE IN-HOUSE

• Benefits of end-user computing
• User creation, control, and implementation
• Systems that meet user needs
• Timeliness
• Freeing up systems resources
• Versatility and ease of use

23
DEVELOPING SOFTWARE IN-HOUSE

• Risks of end-user computing
• Logic and development errors
• Inadequately tested applications
• Inefficient systems
• Poorly controlled and documented systems
• System incompatibilities
• Duplication of systems and data and wasted
  resources
• Increased costs

24
OUTSOURCE THE SYSTEM

• Outsourcing is hiring an outside company to
  handle all or part of an organizations data
  processing activities.
• Examples of outsourced activities
• Installation
• Training
• Maintenance
• Help desk
• Technical support

25
OUTSOURCE THE SYSTEM

• Multiple companies are used in order to
• Increase flexibility
• Increase competition
• Reduce costs
• Activities that are not outsourced
• Strategic management of their IT environment
• Business process management
• IT architecture

26
OUTSOURCE THE SYSTEM

• Benefits of outsourcing
• Provides a business solution
• Asset utilization
• Access to greater experience and more advanced
  technology
• Lower costs
• Improved development time
• Elimination of peaks-and-valleys usage
• Facilitation of downsizing

27
OUTSOURCE THE SYSTEM

• Risks of outsourcing
• Inflexibility
• Loss of control
• Reduced competitive advantage
• Locked in system
• Unfulfilled goals
• Poor service

28
METHODS FOR IMPROVING THE DEVELOPMENT PROCESS

• Business process reengineering
• Prototyping
• Computer-aided software engineering (CASE) tools

29
BUSINESS PROCESS REENGINEERING

• Business process reengineering (BPR) is the
  analysis and redesign of business processes and
  information systems to achieve significant
  performance improvements.
• Reduces a company to its essential business
  processes
• Reshapes organizational work practices and
  information flows to take advantage of
  technological advancements.

30
BUSINESS PROCESS REENGINEERING

• Michael Hammers principles for reengineering
  business processes
• Organize around outcomes, not tasks.
• Require those who use the output to perform the
  process.
• Require those who produce information to process
  it.
• Centralize AND disperse data.
• Integrate parallel activities.
• Empower workers, use built-in controls, and
  flatten the organization chart.
• Capture data onceat its source.

31
BUSINESS PROCESS REENGINEERING

• Challenges Faced by Reengineering Efforts
• Tradition
• Resistance
• Time and cost requirements
• Lack of management support
• Skepticism
• Retraining
• Controls

32
PROTOTYPING

• Prototyping is an iterative approach to systems
  design in which a simplified working model of a
  system is developed.
• Developers who use prototyping still go through
  the systems development life cycle.

33
PROTOTYPING

• Four steps are involved in developing a
  prototype
• STEP ONE Identify basic requirements
• STEP TWO Develop an initial prototype
• STEP THREE Repeated iterations
• STEP FOUR Use the system

34
PROTOTYPING

• Changes may be necessary to allow the program to
• Accept real input.
• Access real data files.
• Process data.
• Make necessary computations and calculations.
• Produce real output.

35
PROTOTYPING

• When to Use Prototyping
• Users dont fully understand their needs, or the
  needs change rapidly
• System requirements are difficult to define
• System inputs and outputs are not known
• The task to be performed is unstructured or
  semi-structured
• Designers are uncertain about what technology to
  use
• The system is crucial and needed quickly
• The risk of developing the wrong system is high
• The users reactions to the new system are
  important development considerations
• Many design strategies must be tested
• The design staff has little experience developing
  this type of system or application
• The system will be used infrequently so that
  processing efficiency is not crucial

36
PROTOTYPING

• Advantages of Prototyping
• Better definition of user needs
• Higher user involvement and satisfaction
• Faster development time
• Fewer errors
• More opportunity for changes
• Less costly

37
PROTOTYPING

• Disadvantages of Prototyping
• Significant user time
• Less efficient use of system resources
• Incomplete system development
• Inadequately tested and documented systems
• Negative behavioral reactions
• Never-ending development

38
Computer-Aided Software Engineering (CASE) Tools

• Computer-aided software (or systems) engineering
  (CASE) tools are an integrated package of
  computer-based tools that automate important
  aspects of the software development process.
• Used to plan, analyze, design, program, and
  maintain an information system

39
Computer-Aided Software Engineering (CASE) Tools

• Advantages of CASE technology
• Increased productivity
• Improved program quality
• Cost savings
• Improved control procedures
• Simplified documentation

40
Computer-Aided Software Engineering (CASE) Tools

• Problems with CASE technology
• Incompatibility
• Cost
• Unmet expectations

41
SUMMARY

• We have
• Discussed how organizations buy software,
  hardware, and vendor services.
• Explained how information systems departments
  develop custom software.
• Identified how end users develop, use and control
  computer-based information systems.
• Explained why organizations outsource their
  information systems, as well as the benefits and
  risks of doing so.
• Discussed what reengineering processes entail and
  when they are appropriate.
• Explained how prototypes are used to develop an
  AIS and when it is advantageous to do so.
• Described what computer-aided software
  engineering is and how its used in systems
  development.