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Systems Development

          MIS 503
Management Information Systems
       MBA Program
SYSTEMS DEVELOPMENT
LIFE CYCLE METHODOLOGY
 Systems development life cycle (SDLC) – a highly
 structured approach for development of new
 customized software applications




                                                    Page 385
SYSTEMS DEVELOPMENT
LIFE CYCLE METHODOLOGY
The SDLC Project Team
•       Usually temporary
•       Includes personnel from IS and business units
•       Has a project manager
    –     Traditionally from IS
    –     Can be from business unit
    –     May be one from each
    –     Responsible for success of project – delivering quality
          system on time and within budget




                                                                    Page 393
SYSTEMS DEVELOPMENT
LIFE CYCLE METHODOLOGY
The SDLC Project Team
•   Includes systems analysts
    –   Have critical roles
    –   Work closely with business managers and end users
    –   Have problem-solving skills, knowledge of IT capabilities, strong
        business understanding
•   Has a business sponsor and a champion




                                                                            Page 394
Managing Change
• The ability to manage change is
  critical to the success of systems
  development.
  – The new or modified systems created
    during systems development will
    inevitably cause change.
  – Managing change requires the ability to
    recognize existing or potential
    problems.
Significant Quote


There is nothing more difficult to plan, more
doubtful of success, nor more dangerous to manage
than the creation of a new information system. For
the initiator has the enmity of all who would profit
from the preservation of the old system and merely
luke warm defenders in those who would gain
from the new one.
Establishing Objectives for
  Systems Development
• Systems development objectives
  should be supportive of, and aligned
  with, organizational goals.
• There are four kinds of objectives
  that should be considered:
  –   Performance objectives.
  –   Cost objectives.
  –   Control objectives.
  –   Complexity objectives.
Systems Development
       Methodologies
• A key factor in completing a
  successful systems development
  project is to adopt a methodology.
• A methodology is a way of doing
  things.
Systems Development
       Methodologies
• A systems development methodology
  is an assortment of rules and standards
  that govern the approach taken to all
  tasks associated with systems
  development.
• In structured systems development the
  systems development tasks are broken
  down into small, easily managed parts.
Systems Development
       Methodologies
• Top-down design means the entire
  system can be viewed as a layered
  set of descriptions, each of which
  could be decomposed, or “peeled
  back,” to reveal more detailed
  specifications for smaller parts of the
  system.
Structured Walkthrough
• A structured walkthrough is a planned
  and pre-announced review of the
  progress of a particular project
  deliverable--a specific project outcome, a
  structure chart, or a human procedure.
• The walkthrough helps team members
  review and evaluate the program of
  components of a structured project.
SYSTEMS DEVELOPMENT
LIFE CYCLE METHODOLOGY
  The SDLC Steps




                                                 ws
                                         al revie
                                    rm
                           nsi ve fo p
                    is exte jor ste
            teristic ach ma
    ch  arac nd of e
Key ed at e
     ir
 requ




                                  Figure 10.1 The Systems Development   Page 386
                                              Life Cycle
SYSTEMS DEVELOPMENT
LIFE CYCLE METHODOLOGY
  The SDLC Steps



                                                            t
                                                     e spen
                                           -front tim later
                                    sive up hanges
                               exten nsive c
                       ro ach: id expe
                LC  app to avo
          o f SD irements
      ark       u
Hallm ining req
     rm
dete




                               Figure 10.2 Cost Breakdown for $1 Million   Page 386
                                           SDLC Project
SYSTEMS DEVELOPMENT
LIFE CYCLE METHODOLOGY
The SDLC Steps


SDLC:
  – Most often requires a lot of documentation
  – Outputs from one step inputs to next
  – Often referred to as the “waterfall” model




                                                 Page 386
SYSTEMS DEVELOPMENT
LIFE CYCLE METHODOLOGY
Definition Phase – Feasibility Analysis
 •   Types of feasibility – economic, operational, and
     technical
 •   Deliverable – 10-20 page document:
     –   Executive overview and recommendations
     –   Description of what system would do and how it would
         operate
     –   Analysis of costs and benefits
     –   Development plan




                                                                Page 387-388
SYSTEMS DEVELOPMENT
LIFE CYCLE METHODOLOGY
    Definition Phase – Requirements Definition
•        Focuses on logical design: processes, data flows, and data
         interrelationships – not specific physical implementation
•        Deliverable – system requirements document:
     –      Detailed descriptions of inputs and outputs, processes used
            to convert input data to outputs
     –      Formal diagrams and output layouts
     –      Revised cost/benefit analysis
     –      Revised plan for remainder of project




                                                                          Page 388
Significant Quote
              Brook’s Law:
Adding manpower to a late software project makes
it later!
                          (Frederick P Brooks Jr.)

Hofstadter's Law: It always takes longer than you
think, even when you take Hofstadter's Law into
account.
                             (Douglas Hofstadter)
SYSTEMS DEVELOPMENT
LIFE CYCLE METHODOLOGY
Construction Phase                                        ism
                                                              of
                                                       han       ss
                                                  r mec nt proce
•   System Design                          sa majo lopme
                                    ti on i ing deve
•                               enta n dur
    System Building          um
                          Doc unicatio
                              m
•                         com
    System Testing




                      Figure 10.3 Characteristics              Page 389
                                  of High Quality Systems
SYSTEMS DEVELOPMENT
LIFE CYCLE
METHODOLOGY
Implementation Phase

•   Installation
•   Operations
•   Maintenance




                       Page 390
Implementation Phase – Installation

Parallel Strategy




Parallel Strategy



Parallel Strategy




Parallel Strategy



                     Figure 10.4 Implementation Strategies   Page 391
Implementation Phase – Maintenance




                 Figure 10.5 Percent of Development             Page 392
                             Resources Devoted to Maintenance
Implementation Phase – Maintenance




                 Figure 10.6 The Widening Gap Between          Page 392
                 Organization’s Needs and System’s Performance
Significant Quote
              Bove’s Theorem:
The remaining work to finish in order to reach
your goal increases as the deadline approaches.


Walking on water and developing software from
a specification are easy if both are frozen.
                              (Edward V Berard)
SYSTEMS DEVELOPMENT
LIFE CYCLE METHODOLOGY
SDLC Advantages and Disadvantages




               Figure 10.8 Advantages and Disadvantages   Page 395
                           of Traditional SDLC Approach
Significant Quote

                Deadline Dan’s Demon:
Every task takes twice as long as you think it will
take. If you double the time you think it will take,
it will actually take four times as long.


                  Meskimens Law
There is never time to do it right, but there is
always time to do it over
Causes of Maintenance
• Some major causes of program
  maintenance are:
  – New requests from stakeholders,
    users, and managers.
  – Bugs or errors in the program.
  – Technical and hardware problems.
  – Corporate mergers and acquisitions.
  – Governmental regulations.
Significant Quote
Nixons Law
The man who can smile when things go
wrong has thought of someone to blame.


Flon's axiom
There does not now, nor will there ever, exist
a programming language in which it is the
least bit hard to write bad programs.
                             (Lawrence Flon)
Trends in Systems
  Development
Operational and Rapid
        Prototyping
• An operational prototype is a prototype
  that works.
• A partially operational prototype has
  some components that are operational.
• A rapid prototype allows system
  stakeholders and users to see a mockup
  of the subsystem much faster, which
  enables earlier changes.
PROTOTYPING
METHODOLOGY
•   Prototyping approach:
    –   Takes advantage of availability of fourth generation
        procedural languages and relational database
        management systems
    –   Enables creation of system (or part of system) more
        quickly, then revise after users have tried it
    –   Is a type of evolutionary development process




                                                               Page 396
PROTOTYPING
METHODOLOGY
•   Prototyping examples:
    –   Input and output screens developed for users to test as part of
        requirements definition
    –   “First-of-a-series” – a completely operational prototype used as a pilot
    –   “Selected features” – only some essential features included in prototype,
        more added later
    –   Prototyping used as a complete alternative to traditional SDLC
        methodology




                                                                                    Page 396
PROTOTYPING
METHODOLOGY
•   Prototyping used as a complete alternative to
    traditional SDLC methodology:
    –   Good when requirements hard to define
    –   Good when system needed quickly
    –   Impractical for large, complex applications




                                                      Page 396
The Prototyping Steps




                    Figure 10.9 The Prototyping Life Cycle   Page 397
PROTOTYPING
    METHODOLOGY
    Prototyping Advantages and Disadvantages
•        Advantages:
     –     Only basic requirements needed at front end
     –     Used to develop systems that radically change how work is done, so users can
           evaluate
     –     Allows firms to explore use of new technology
     –     Working system available for testing more quickly
     –     Less strong top-down commitment needed at front end
     –     Costs and benefits can be derived after experience with initial prototype
     –     Initial user acceptance likely higher




                                                                                          Page 398-399
PROTOTYPING
METHODOLOGY
Prototyping Advantages and Disadvantages
•   Disadvantages:
    –   End prototype often lacks security and control
        features
    –   May not undergo as rigorous testing
    –   Final documentation may be less complete
    –   More difficult to manage user expectations




                                                         Page 399
PROTOTYPING
METHODOLOGY
Prototyping within an SDLC Process




                    Figure 10.10 SDLC with Prototyping    Page 399
                                 to Define Requirements
PROTOTYPING
METHODOLOGY
Prototyping within an SDLC Process




                  Figure 10.11 Prototyping/Piloting Replaces   Page 399
                               SDLC Definition Phase
NEWER APPROACHES
    Rapid Application Development (RAD)

•     Hybrid methodology –
      aspects of SDLC and
      prototyping
•     Goal is to produce a
      system in less than a
      year




                          Figure 10.12 Four-Step RAD Cycle   Page 400
NEWER APPROACHES
Rapid Application Development (RAD)

Joint application design (JAD) – a technique in
which a team of users and IS specialists engage in
an intense and structured process in order to
minimize the total time required for gathering
information from multiple participants




                                                     Page 400-401
NEWER APPROACHES
Rapid Application Development (RAD)

Joint application design (JAD) – a technique in
which a team of users and IS specialists engage in
an intense and structured process in order to
minimize the total time required for gathering
information from multiple participants

Computer-aided software engineering (CASE) –
any software tool used to automate one or more
steps of a software development methodology


                                                     Page 400-401
NEWER APPROACHES
Rapid Application Development (RAD)




             (Adapted from Valacich, George, and Hoffer, 2001)



                          Figure 10.13 Types of CASE Tools       Page 401
NEWER APPROACHES
Rapid Application Development (RAD)




                   Figure 10.14 RAD Advantages      Page 402
                                and Disadvantages
NEWER APPROACHES
Agile Software Development Discipline
•   Alternative methodology for smaller projects
•   Based on four key values:
    –   Simplicity
    –   Communication
    –   Feedback
    –   Courage
•   One type: Extreme Programming (XP)
    –   Programmers write code in pairs
    –   Use simple design and frequent testing




                                                   Page 402
THE MAKE-OR-BUY DECISION
 •   Decision should be made jointly by business managers
     and IS professionals
 •   Advantages of purchasing:
     –   Cost savings
     –   Faster speed of implementation
 •   Disadvantages of purchasing:
     –   Seldom exactly fits a company’s needs
     –   Often forces trade-offs




                                                            Page 406
PURCHASING METHODOLOGY
 The Purchasing Steps




                        Figure 11.1 The Purchasing Process   Page 407
PURCHASING METHODOLOGY
 Initiating the Purchasing Process




                      Figure 11.2 Comparison of Costs and            Page 407
                                  Building vs. Purchasing a System
PURCHASING METHODOLOGY
 Establish Criteria for Selection




                         Figure 11.3 Key Criteria for             Page 408
                                     Software Package Selection
PURCHASING METHODOLOGY
 Develop and Distribute the RFP


 Request for proposal (RFP) – a formal document
 sent to potential vendors inviting them to submit a
 proposal describing their software package and
 how it would meet the company’s needs




                                                       Page 409
PURCHASING METHODOLOGY
Evaluate Vendor Responses to RFP and Choose Package
 •   Evaluation steps:
     –   Review vendors’ responses from RFPs
     –   Request demonstrations of leading packages
     –   Request references from users of software packages in other companies
     –   Assess how well package capabilities satisfy company’s needs
     –   Understand extent of any additional development efforts or costs to tailor software
     –   Make decision




                                                                                               Page 410-411
PURCHASING METHODOLOGY
Evaluate Vendor Responses to RFP and Choose Package




                    Figure 11.6 Matching Company Needs             Page 411
                                with Capabilities of the Package
PURCHASING METHODOLOGY
 Construction Phase
 •   If no software package modifications required:
     –   Skip system design and building steps
     –   Move directly to system testing
     –   Develop any necessary process changes
 •   If software package is modified:
     –   Consider contracting with vendor or a third party for changes versus modifying
         in-house
     –   Determine if changes are required to other existing company systems




                                                                                          Page 413
PURCHASING METHODOLOGY
Project Team for Purchasing Packages

  –   Business managers and users
  –   IS professionals
  –   Project manager – usually a business manager
  –   Software vendor personnel
  –   Sometimes includes a third-party implementation partner
  –   Purchasing specialists
  –   Attorneys




                                                                Page 414-415
PURCHASING METHODOLOGY
 Purchasing Advantages and Disadvantages




                   Figure 11.7 Advantages and Disadvantages      Page 416
                               of Purchasing Packaged Software
NEW PURCHASING OPTION:
APPLICATION SERVICE
PROVIDERS (ASPs)
•   New trend beginning 2000s
•   Purchasing option: purchaser elects to use a “hosted” application rather than to purchase
    the software application and host it on its own equipment
•   ASP is an ongoing service provider
•   Company pays third party (ASP) for delivering the software functionality over the Internet to
    company employees and sometimes business partners




                                                                                                    Page 418
NEW PURCHASING OPTION:
APPLICATION SERVICE
PROVIDERS (ASPs)
•       Some advantages:
    –     Cost savings and faster speed of implementation
    –     Usually involves monthly fees rather than large infrastructure investment
•       Disadvantages:
    –     Dependence on an external vendor for both software and ongoing operations
    –     Good assessment of required service levels even more critical




                                                                                      Page 418-419
Potential Problems for
   Systems Development
• Solving the wrong problem.
• Poor problem definition and
  analysis.
• Poor communication.
• A project that is too ambitious.
• A lack of top management support.
• A lack of management and user
  involvement.
Potential Problems for
   Systems Development
• Failure to use a standard systems
  development approach.
• Inadequate or improper systems
  design.
• Poor testing and implementation.
• A lack of concern for maintenance.
Success Factors in
       Systems Development
•   Clearly defined organizational goals.
•   A sharp focus on, and clear understanding of, the most
    important business problems or opportunities.
•   Clearly defined systems development objectives.
•   Support of top-level managers. Involvement of users at all
    stages.
•   Use of a proven systems development method.
•   Creating or aligning incremental systems benefits with
    normal user work activities so as to provide incentives for
    effective system interaction.
•   Managing change.
•   A simple and straightforward design.
•   Good training programs for all involved.
Global Sourcing
• The process of deciding where in
  the world a firm’s activities will be
  performed and who will perform the
  activities.
  – Fundamentally any activities that does
    not require direct customer contact,
    extensive local knowledge, or complex
    interactions can be sourced anywhere
Global Resourcing
Outshoring and Outsourcing
Definition of Outsourcing
• IS outsourcing is the commissioning of part or all
  of the IS activities an organization needs, and/or
  transferring the associated human and other IS
  resources, to one or more external IS suppliers
• IS Offshoring is the commissioning of part or all
  of the IS activities an organization needs to one
  or more other countries
• IS Insourcing is the sourcing of a business
  function within the firm (e.g., Kingland Systems)
IS Outsourcing
• Four Types of Outsourcing
  Relationships:
    Support
    Reliance
    Alignment
    Alliance
Outsourcing Grid
Extent of Substitution by Vendors




                                    High
                                            Reliance                 Alliance




                                            Support                  Alignment
                                    Low

                                           Low                                    High
                                            Strategic Impact of IS Applications
Outsourcing Decision
         Variables
• Relationships
• Division Among Suppliers and
  Contracts
• Management Structure
• Operational Structure
• Internal Organization of Outsourcing
  Coordination
Horizontal and Vertical
           Integration
• Diversification -        • Specialization -
  increasing the             reducing the number
  number of products         of products and
  and services               services
• Differentiation -        • Integration -
  aka ‘disintegration’ -     performing a larger
  decreasing the             number of phases in
  number of                  the production chain
  subsequent phases in
  the production chain
Backward Vertical
         Disintegration
• Car manufacturer purchasing pre-
  assembled engines instead of
  purchasing and assembling the
  component parts themselves
• Decreasing the number of phases a
  firm performs by commissioning
  another entity within the production
  chain to perform those functions

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Systems development fall 2006

  • 1. Systems Development MIS 503 Management Information Systems MBA Program
  • 2. SYSTEMS DEVELOPMENT LIFE CYCLE METHODOLOGY Systems development life cycle (SDLC) – a highly structured approach for development of new customized software applications Page 385
  • 3. SYSTEMS DEVELOPMENT LIFE CYCLE METHODOLOGY The SDLC Project Team • Usually temporary • Includes personnel from IS and business units • Has a project manager – Traditionally from IS – Can be from business unit – May be one from each – Responsible for success of project – delivering quality system on time and within budget Page 393
  • 4. SYSTEMS DEVELOPMENT LIFE CYCLE METHODOLOGY The SDLC Project Team • Includes systems analysts – Have critical roles – Work closely with business managers and end users – Have problem-solving skills, knowledge of IT capabilities, strong business understanding • Has a business sponsor and a champion Page 394
  • 5. Managing Change • The ability to manage change is critical to the success of systems development. – The new or modified systems created during systems development will inevitably cause change. – Managing change requires the ability to recognize existing or potential problems.
  • 6. Significant Quote There is nothing more difficult to plan, more doubtful of success, nor more dangerous to manage than the creation of a new information system. For the initiator has the enmity of all who would profit from the preservation of the old system and merely luke warm defenders in those who would gain from the new one.
  • 7. Establishing Objectives for Systems Development • Systems development objectives should be supportive of, and aligned with, organizational goals. • There are four kinds of objectives that should be considered: – Performance objectives. – Cost objectives. – Control objectives. – Complexity objectives.
  • 8. Systems Development Methodologies • A key factor in completing a successful systems development project is to adopt a methodology. • A methodology is a way of doing things.
  • 9. Systems Development Methodologies • A systems development methodology is an assortment of rules and standards that govern the approach taken to all tasks associated with systems development. • In structured systems development the systems development tasks are broken down into small, easily managed parts.
  • 10. Systems Development Methodologies • Top-down design means the entire system can be viewed as a layered set of descriptions, each of which could be decomposed, or “peeled back,” to reveal more detailed specifications for smaller parts of the system.
  • 11. Structured Walkthrough • A structured walkthrough is a planned and pre-announced review of the progress of a particular project deliverable--a specific project outcome, a structure chart, or a human procedure. • The walkthrough helps team members review and evaluate the program of components of a structured project.
  • 12. SYSTEMS DEVELOPMENT LIFE CYCLE METHODOLOGY The SDLC Steps ws al revie rm nsi ve fo p is exte jor ste teristic ach ma ch arac nd of e Key ed at e ir requ Figure 10.1 The Systems Development Page 386 Life Cycle
  • 13. SYSTEMS DEVELOPMENT LIFE CYCLE METHODOLOGY The SDLC Steps t e spen -front tim later sive up hanges exten nsive c ro ach: id expe LC app to avo o f SD irements ark u Hallm ining req rm dete Figure 10.2 Cost Breakdown for $1 Million Page 386 SDLC Project
  • 14. SYSTEMS DEVELOPMENT LIFE CYCLE METHODOLOGY The SDLC Steps SDLC: – Most often requires a lot of documentation – Outputs from one step inputs to next – Often referred to as the “waterfall” model Page 386
  • 15. SYSTEMS DEVELOPMENT LIFE CYCLE METHODOLOGY Definition Phase – Feasibility Analysis • Types of feasibility – economic, operational, and technical • Deliverable – 10-20 page document: – Executive overview and recommendations – Description of what system would do and how it would operate – Analysis of costs and benefits – Development plan Page 387-388
  • 16. SYSTEMS DEVELOPMENT LIFE CYCLE METHODOLOGY Definition Phase – Requirements Definition • Focuses on logical design: processes, data flows, and data interrelationships – not specific physical implementation • Deliverable – system requirements document: – Detailed descriptions of inputs and outputs, processes used to convert input data to outputs – Formal diagrams and output layouts – Revised cost/benefit analysis – Revised plan for remainder of project Page 388
  • 17. Significant Quote Brook’s Law: Adding manpower to a late software project makes it later! (Frederick P Brooks Jr.) Hofstadter's Law: It always takes longer than you think, even when you take Hofstadter's Law into account. (Douglas Hofstadter)
  • 18. SYSTEMS DEVELOPMENT LIFE CYCLE METHODOLOGY Construction Phase ism of han ss r mec nt proce • System Design sa majo lopme ti on i ing deve • enta n dur System Building um Doc unicatio m • com System Testing Figure 10.3 Characteristics Page 389 of High Quality Systems
  • 19. SYSTEMS DEVELOPMENT LIFE CYCLE METHODOLOGY Implementation Phase • Installation • Operations • Maintenance Page 390
  • 20. Implementation Phase – Installation Parallel Strategy Parallel Strategy Parallel Strategy Parallel Strategy Figure 10.4 Implementation Strategies Page 391
  • 21. Implementation Phase – Maintenance Figure 10.5 Percent of Development Page 392 Resources Devoted to Maintenance
  • 22. Implementation Phase – Maintenance Figure 10.6 The Widening Gap Between Page 392 Organization’s Needs and System’s Performance
  • 23. Significant Quote Bove’s Theorem: The remaining work to finish in order to reach your goal increases as the deadline approaches. Walking on water and developing software from a specification are easy if both are frozen. (Edward V Berard)
  • 24. SYSTEMS DEVELOPMENT LIFE CYCLE METHODOLOGY SDLC Advantages and Disadvantages Figure 10.8 Advantages and Disadvantages Page 395 of Traditional SDLC Approach
  • 25. Significant Quote Deadline Dan’s Demon: Every task takes twice as long as you think it will take. If you double the time you think it will take, it will actually take four times as long. Meskimens Law There is never time to do it right, but there is always time to do it over
  • 26. Causes of Maintenance • Some major causes of program maintenance are: – New requests from stakeholders, users, and managers. – Bugs or errors in the program. – Technical and hardware problems. – Corporate mergers and acquisitions. – Governmental regulations.
  • 27. Significant Quote Nixons Law The man who can smile when things go wrong has thought of someone to blame. Flon's axiom There does not now, nor will there ever, exist a programming language in which it is the least bit hard to write bad programs. (Lawrence Flon)
  • 28. Trends in Systems Development
  • 29. Operational and Rapid Prototyping • An operational prototype is a prototype that works. • A partially operational prototype has some components that are operational. • A rapid prototype allows system stakeholders and users to see a mockup of the subsystem much faster, which enables earlier changes.
  • 30. PROTOTYPING METHODOLOGY • Prototyping approach: – Takes advantage of availability of fourth generation procedural languages and relational database management systems – Enables creation of system (or part of system) more quickly, then revise after users have tried it – Is a type of evolutionary development process Page 396
  • 31. PROTOTYPING METHODOLOGY • Prototyping examples: – Input and output screens developed for users to test as part of requirements definition – “First-of-a-series” – a completely operational prototype used as a pilot – “Selected features” – only some essential features included in prototype, more added later – Prototyping used as a complete alternative to traditional SDLC methodology Page 396
  • 32. PROTOTYPING METHODOLOGY • Prototyping used as a complete alternative to traditional SDLC methodology: – Good when requirements hard to define – Good when system needed quickly – Impractical for large, complex applications Page 396
  • 33. The Prototyping Steps Figure 10.9 The Prototyping Life Cycle Page 397
  • 34. PROTOTYPING METHODOLOGY Prototyping Advantages and Disadvantages • Advantages: – Only basic requirements needed at front end – Used to develop systems that radically change how work is done, so users can evaluate – Allows firms to explore use of new technology – Working system available for testing more quickly – Less strong top-down commitment needed at front end – Costs and benefits can be derived after experience with initial prototype – Initial user acceptance likely higher Page 398-399
  • 35. PROTOTYPING METHODOLOGY Prototyping Advantages and Disadvantages • Disadvantages: – End prototype often lacks security and control features – May not undergo as rigorous testing – Final documentation may be less complete – More difficult to manage user expectations Page 399
  • 36. PROTOTYPING METHODOLOGY Prototyping within an SDLC Process Figure 10.10 SDLC with Prototyping Page 399 to Define Requirements
  • 37. PROTOTYPING METHODOLOGY Prototyping within an SDLC Process Figure 10.11 Prototyping/Piloting Replaces Page 399 SDLC Definition Phase
  • 38. NEWER APPROACHES Rapid Application Development (RAD) • Hybrid methodology – aspects of SDLC and prototyping • Goal is to produce a system in less than a year Figure 10.12 Four-Step RAD Cycle Page 400
  • 39. NEWER APPROACHES Rapid Application Development (RAD) Joint application design (JAD) – a technique in which a team of users and IS specialists engage in an intense and structured process in order to minimize the total time required for gathering information from multiple participants Page 400-401
  • 40. NEWER APPROACHES Rapid Application Development (RAD) Joint application design (JAD) – a technique in which a team of users and IS specialists engage in an intense and structured process in order to minimize the total time required for gathering information from multiple participants Computer-aided software engineering (CASE) – any software tool used to automate one or more steps of a software development methodology Page 400-401
  • 41. NEWER APPROACHES Rapid Application Development (RAD) (Adapted from Valacich, George, and Hoffer, 2001) Figure 10.13 Types of CASE Tools Page 401
  • 42. NEWER APPROACHES Rapid Application Development (RAD) Figure 10.14 RAD Advantages Page 402 and Disadvantages
  • 43. NEWER APPROACHES Agile Software Development Discipline • Alternative methodology for smaller projects • Based on four key values: – Simplicity – Communication – Feedback – Courage • One type: Extreme Programming (XP) – Programmers write code in pairs – Use simple design and frequent testing Page 402
  • 44. THE MAKE-OR-BUY DECISION • Decision should be made jointly by business managers and IS professionals • Advantages of purchasing: – Cost savings – Faster speed of implementation • Disadvantages of purchasing: – Seldom exactly fits a company’s needs – Often forces trade-offs Page 406
  • 45. PURCHASING METHODOLOGY The Purchasing Steps Figure 11.1 The Purchasing Process Page 407
  • 46. PURCHASING METHODOLOGY Initiating the Purchasing Process Figure 11.2 Comparison of Costs and Page 407 Building vs. Purchasing a System
  • 47. PURCHASING METHODOLOGY Establish Criteria for Selection Figure 11.3 Key Criteria for Page 408 Software Package Selection
  • 48. PURCHASING METHODOLOGY Develop and Distribute the RFP Request for proposal (RFP) – a formal document sent to potential vendors inviting them to submit a proposal describing their software package and how it would meet the company’s needs Page 409
  • 49. PURCHASING METHODOLOGY Evaluate Vendor Responses to RFP and Choose Package • Evaluation steps: – Review vendors’ responses from RFPs – Request demonstrations of leading packages – Request references from users of software packages in other companies – Assess how well package capabilities satisfy company’s needs – Understand extent of any additional development efforts or costs to tailor software – Make decision Page 410-411
  • 50. PURCHASING METHODOLOGY Evaluate Vendor Responses to RFP and Choose Package Figure 11.6 Matching Company Needs Page 411 with Capabilities of the Package
  • 51. PURCHASING METHODOLOGY Construction Phase • If no software package modifications required: – Skip system design and building steps – Move directly to system testing – Develop any necessary process changes • If software package is modified: – Consider contracting with vendor or a third party for changes versus modifying in-house – Determine if changes are required to other existing company systems Page 413
  • 52. PURCHASING METHODOLOGY Project Team for Purchasing Packages – Business managers and users – IS professionals – Project manager – usually a business manager – Software vendor personnel – Sometimes includes a third-party implementation partner – Purchasing specialists – Attorneys Page 414-415
  • 53. PURCHASING METHODOLOGY Purchasing Advantages and Disadvantages Figure 11.7 Advantages and Disadvantages Page 416 of Purchasing Packaged Software
  • 54. NEW PURCHASING OPTION: APPLICATION SERVICE PROVIDERS (ASPs) • New trend beginning 2000s • Purchasing option: purchaser elects to use a “hosted” application rather than to purchase the software application and host it on its own equipment • ASP is an ongoing service provider • Company pays third party (ASP) for delivering the software functionality over the Internet to company employees and sometimes business partners Page 418
  • 55. NEW PURCHASING OPTION: APPLICATION SERVICE PROVIDERS (ASPs) • Some advantages: – Cost savings and faster speed of implementation – Usually involves monthly fees rather than large infrastructure investment • Disadvantages: – Dependence on an external vendor for both software and ongoing operations – Good assessment of required service levels even more critical Page 418-419
  • 56. Potential Problems for Systems Development • Solving the wrong problem. • Poor problem definition and analysis. • Poor communication. • A project that is too ambitious. • A lack of top management support. • A lack of management and user involvement.
  • 57. Potential Problems for Systems Development • Failure to use a standard systems development approach. • Inadequate or improper systems design. • Poor testing and implementation. • A lack of concern for maintenance.
  • 58. Success Factors in Systems Development • Clearly defined organizational goals. • A sharp focus on, and clear understanding of, the most important business problems or opportunities. • Clearly defined systems development objectives. • Support of top-level managers. Involvement of users at all stages. • Use of a proven systems development method. • Creating or aligning incremental systems benefits with normal user work activities so as to provide incentives for effective system interaction. • Managing change. • A simple and straightforward design. • Good training programs for all involved.
  • 59. Global Sourcing • The process of deciding where in the world a firm’s activities will be performed and who will perform the activities. – Fundamentally any activities that does not require direct customer contact, extensive local knowledge, or complex interactions can be sourced anywhere
  • 62. Definition of Outsourcing • IS outsourcing is the commissioning of part or all of the IS activities an organization needs, and/or transferring the associated human and other IS resources, to one or more external IS suppliers • IS Offshoring is the commissioning of part or all of the IS activities an organization needs to one or more other countries • IS Insourcing is the sourcing of a business function within the firm (e.g., Kingland Systems)
  • 63. IS Outsourcing • Four Types of Outsourcing Relationships: Support Reliance Alignment Alliance
  • 64. Outsourcing Grid Extent of Substitution by Vendors High Reliance Alliance Support Alignment Low Low High Strategic Impact of IS Applications
  • 65. Outsourcing Decision Variables • Relationships • Division Among Suppliers and Contracts • Management Structure • Operational Structure • Internal Organization of Outsourcing Coordination
  • 66. Horizontal and Vertical Integration • Diversification - • Specialization - increasing the reducing the number number of products of products and and services services • Differentiation - • Integration - aka ‘disintegration’ - performing a larger decreasing the number of phases in number of the production chain subsequent phases in the production chain
  • 67. Backward Vertical Disintegration • Car manufacturer purchasing pre- assembled engines instead of purchasing and assembling the component parts themselves • Decreasing the number of phases a firm performs by commissioning another entity within the production chain to perform those functions

Editor's Notes

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