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Ppt 21 ge

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  • 1. Chapter 21 AIS Development Strategies Copyright © 2012 Pearson Education 21-1
  • 2. Learning Objectives  Describe how organizations purchase application software, vendor services, and hardware.  Explain how information system departments develop custom software.  Explain how end users develop, use, and control computer- based information systems.  Explain why organizations outsource their information systems, and evaluate the benefits and risks of this strategy.  Explain the principles and challenges of business process management.  Describe how prototypes are used to develop an AIS, and discuss the advantages and disadvantages of doing so.  Explain what computer-aided software engineering is and how it is used in systems development. Copyright © 2012 Pearson Education 21-2
  • 3. Ways to Obtain an AIS  Purchase the software  Develop software in-house  Hire and external company to develop and maintain new software Copyright © 2012 Pearson Education 21-3
  • 4. Purchasing Software  Off the Shelf (OTS) Canned  System capabilities for users with similar requirements  Turnkey System  Hardware and software sold as a package  Application Service Provider (ASP)  Software is provided to user via the Internet Copyright © 2012 Pearson Education 21-4
  • 5. In-House System Development  Main criteria for in-house development  Provides a significant competitive advantage  Risks of in-house development  Significant amounts of time required  Complexity of the system  Poor requirements defined  Insufficient planning  Inadequate communication and cooperation  Lack of qualified staff  Poor top management support Copyright © 2012 Pearson Education 21-5
  • 6. End-User Computing (EUC)  Hands-on development, use, and control of computer- based information systems by users  Advantages of EUC  User creation, control, and implementation  Users decide whether a system should be developed and what information is important.  Systems that meet user needs  Users discover flaws that IS people do not catch.  Many of the user-analyst-programmer communication problems in traditional program development are avoided.  Timeliness  Time-consuming cost-benefit analyses, detailed requirements definitions, and the delays and red tape of the approval process can be avoided. Copyright © 2012 Pearson Education 21-6
  • 7. End-User Computing (EUC) (cont’d)  Advantages of EUC (cont’d)  Freeing up of systems resources  The more information needs users meet, the more time the IS department can spend on other development and maintenance activities.  Versatility and ease of use  Users can change the information they produce or modify their application any time their requirements change.  Disadvantages to EUC:  Logic and development errors  Inadequately tested applications  Inefficient systems  Poorly controlled systems  Poorly documented systems  Incompatible systems  Redundant data  Wasted resources  Increased costs Copyright © 2012 Pearson Education
  • 8. Outsourcing the System  Hiring an outside company to handle all or part of an organization’s data processing activities  Advantages:  Strategic and economic business solution that allows companies to concentrate on core competencies  Organizations improve their cash position and reduce expenses by selling assets to an outsourcer  Access to greater expertise and better technology  Lower costs by standardizing user applications, buying hardware at bulk prices, splitting development and maintenance costs between projects, and operating at higher volumes  Less development time.  Elimination of peaks-and-valleys  Facilitates downsizing Copyright © 2012 Pearson Education  Disadvantages:  Inflexibility  Reduced competitive advantage  Unfulfilled goals  Poor service  Increased risk 21-8
  • 9. Methods to Develop an AIS  Business Process Redesign  Prototyping  Computer-Aided Software Engineering (CASE) Tools Copyright © 2012 Pearson Education 21-9
  • 10. Business Process Redesign  Drastic, one-time-event approach to improving and automating business processes  Low success rate  Evolved into:  Business Process Management (BPM)  Systematic approach to continuously improving and optimizing an organization’s business processes Copyright © 2012 Pearson Education 21-10
  • 11. Prototyping Copyright © 2012 Pearson Education 21-11
  • 12. Prototyping Advantages  Better definition of user needs  Higher user involvement and satisfaction  Faster development time  Fewer errors  More opportunity for changes Disadvantages  Less efficient use of system resources  Inadequate testing and documentation  Negative behavioral reactions  Never-ending development  Less costly Copyright © 2012 Pearson Education 21-12
  • 13. Computer-Aided Software Engineering (CASE)  Software to help plan, analyze, design, program, and maintain an information system  Strategic planning  Project and system management  Database design  Screen and report layout  Automatic code generation Copyright © 2012 Pearson Education 21-13
  • 14. CASE Advantages vs. Disadvantages  Improved productivity  Incompatibility  Improved program quality  Cost  Cost savings  Unmet expectations  Improved control procedures  Simplified documentation Copyright © 2012 Pearson Education 21-14