Information Systems in Organizations 3.2 Systems Management

? What is the Systems Development Life Cycle (SDLC)? Testing Waterfall Maintenance Design Requirements Go Live What is the Systems Development Life Cycle (SDLC)? Buy vs. Build Analysis Training Agile Coding

Wikipedia: Systems Development Lifecycle Systems Development Lifecycle is also referred to as the development life-cycle Not every project will require that the phases of SDLC be executed. The oldest SDLC model, and the best known, is the : a sequence of stages in which the output of each stage becomes the input for the next. , requirements definition: the process of gathering and interpreting facts, diagnosing problems and recommending improvements to the system. The first phase of the SDLC is .

SDLC Phases: Waterfall Methodology Requirements Gathering and the BRD Conept Map & Architecture Diagram; Build vs. Buy Decision Modeling: Swim Lanes & Entity Relationship Diagrams Engineering & Implementation Acceptance Testing, Training Go Live Maintenance, Upgrade & Support

Build vs. Buy: How to Know When You Should Build Custom Software Over Canned Solutions businesses in particular may benefit more from canned solutions. software can help make your business more scalable. If your business has needs, custom software may be better qualified to meet them. The vast majority of software will not allow you to modify its functionality in a meaningful way Building your own software that is specifically tailored to your company’s needs can mean the difference between offering a commoditized service and offering a highly one at a better price.

Compliance Considerations Sarbanes-Oxley HIPAA HITECH FDA CMS Safe Harbor Agreement

Sarbanes-Oxley (2002) Enacted in response to major accounting scandals involving Enron and WorldCom Designed to prevent accounting fraud, increase corporate transparency, eliminate conflicts of interest, and protect whistle-blowers Has major impact on ERP systems and business software

Sarbanes-Oxley (2002) Public Company Accounting Oversight Board (PCAOB) Auditor Independence Corporate Responsibility Enhanced Financial Disclosures Analyst Conflicts of Interest Studies and Reports Corporate and Criminal Fraud Accountability White Collar Crime Penalty Enhancement Corporate Tax Returns (CEO) Corporate Fraud Accountability

HIPAA (1996) Title I: Health Care Access, Portability, and Renewability Title II: Preventing Health Care Fraud and Abuse; Administrative Simplification; Medical Liability Reform HIPAA Privacy Rule (2003) Transactions and Code Sets Rule Security Rule Unique Identifiers Rule (National Provider Identifier) Enforcement Rule

HITECH Act (2009) Health Information Technology for Economic and Clinical Health Act "the most important piece of health care legislation to be passed in the last 20 to 30 years” "foundation for health care reform” Electronic Health Record (EHR)

Redefining the Rules of Business The Information Age Redefining the Rules of Business

What We Know, Now, About the Internet’s Disruptive Power What was important about the Internet from a strategic point of view was that it eliminated the between the amount of information that can be shared (its richness) and the number of people you can share it with (its reach). The only reliable measure of economic value for a company is not the size of its user base or its stock price or even its revenues but only sustained . , digital and otherwise, is less a single event than a process that plays out over time. Every business is an business. The Internet intensifies competition and decreases .

The disruptive Power of the Internet How has the internet changed the way business operates? How we market products and services How we process payment How we discover new prospects Virtual reality driven businesses New opportunities for crime

How has the photographic equipment industry been disrupted?

Effects of the Internet Increase in competition Decrease in margins Increase in caliber and quality Increase in rate of change

CEA’s 5 Tech Trends for 2015: From Big Entertainment to Small Business Five Tech trends to watch are: , Robotics, Digital Health and the Quantified Self, Entertainment and Immersive Content, and Business Models in the Innovation Economy. New technologies and innovation economies demand new , and they are emerging. The bottom line is the ability to “connect needs with .” Five “characters of disruption in the second digital era”: Scale, , Compressing Diffusion Cycles, Shift to Services, Multi-sided Platforms.

1) Big Data Insurance underwriting based on monitoring Credit rating based on indicators Purchase habits iBeacon – shopping behavior How we talk about it (plain English, please!) Unstructured data So many sources

2) Robotics Autonomous cars Drones Cleaning robots (Roomba) MobileEye Automated pet care Lawn and garden robots Robots for child care? Roads? Where we’re going, we don’t need roads.

3) Digital Health & Self Monitoring FitBit Apple Watch Insulin pump Seizure-monitoring app

4) Entertainment, Gaming, & Immersion D-Box entertainment theatres simulate motion & feel Guitammer Company and ESPN2 broadcast in 4D Simulate feel, look, sound, and vibration of the experience Experience the game from the player’s perspective Kinect Wii Project Holodeck Oculus Rift virtual reality ^ Click image to view link

5) Business Innovation Driven By : Take form of: Scalability Big companies need to think about how they innovate Lower barriers of entry Open Innovation as a model Lower switching costs Multi-sided platforms (ex : Uber) Network effect Increasing returns to scale Reverse Innovation Shift to services Think of SaaS Software > hardware

Leagues see real benefits in daily fantasy sports Daily fantasy sports consumption will have a steroid effect on television . Fans consume 40% more sports content — across all media — once they start playing . . With money on the line every day, daily fantasy participants watch more live games until the end, boosting advertising and television viewership, which fatten the golden goose of American sports: . The rise of better computers, broadband and mobile phones led to more instant . and more ways to play.

Fantasy Sports Great for: Live viewership Advertising Content Providers Real money in imaginary games

Hidden in the long tail When commerce began to move online, economists predicted two big benefits for consumers: _________would become lower and more uniform. And the available to consumers would increase. Users seemed to find almost costless, since they were willing to conduct an additional search to achieve an average saving of just 25 cents. are a sign that buyers are being better matched to the products they want. These benefits are less likely to hold for products; online prices of popular, usually in-print, books were less dispersed and closer to offline prices.

Normal Distribution J. C. F. Gauss Central Limit Theorem Symmetry around μ μ is the confluence of the mean, median, and mode of the data μ splits the data in half

Pareto Principle (20/80 Rule) 20% of producers produce 80% of output 20% of peapods produce 80% of peas 20% of inventory produces 80% of sales 20% of customers produce 80% of sales 20% of people own 80% of wealth 20% of people consume 80% of resources 20% of time spent working produces 80% of work produced (time management)

Long Tail Distribution Variety > bestsellers Netflix Amazon iTunes There’s money in the tail Advertising products Google Yahoo Bing Travel bookings How does a company “fatten the tail?”

Netflix Long Tail “…gets most of its profits from a large number of infrequently requested movies rather than from few large and profitable movies.”