SYSTEM DEVELOPMENT AND ACQUISITION Chapter 15 SYSTEM DEVELOPMENT AND ACQUISITION

Learning Objectives Understand the basic concepts of systems development Discuss the major steps in developing a decision support system (DSS) and management support system (MSS) application Describe the major MSS applications and list their major functionalities List the major MSS application development options, along with their benefits and limitations

Learning Objectives Describe the four phases of the system development life cycle: planning, analysis, development, and implementation (PADI) Understand prototyping and throwaway prototyping and why MSS are typically developed using these methods Discuss various MSS application outsourcing options, including the use of an application service provider (ASP) and utility computing

Learning Objectives Describe some major MSS software packages and MSS application suites Describe various methods for connecting an MSS application to back-end systems and databases Discuss the value and technical foundation of Web services in integrated applications Understand the service-oriented architecture (SOA) and its relationship to MSS

Learning Objectives Describe the criteria used in selecting an outsourcing vendor and package Describe the factors that lead to MSS success or failure Discuss the importance of project management and the skills a good project manager needs to have Understand the learning process that occurs during MSS development

What Types of Support Systems Should You Build? Introduction to MSS development Types of Support Systems Infrastructure Data warehouses and business intelligence systems Knowledge management systems Enterprise information systems Portals The gateways to Web sites; they can be public (like Yahoo!), or private (corporate portals)

What Types of Support Systems Should You Build? Introduction to MSS development Types of Support Systems Specific applications Tools and tool kits Platforms

The Landscape and Framework of MSS Application Development

The Landscape and Framework of MSS Application Development Step 1: Planning, identifying, and justifying MSS Step 2: Creating an MSS architecture MSS architecture A plan for organizing the underlying infrastructure and applications of the MSS project

The Landscape and Framework of MSS Application Development Step 3: Selecting a development option Build the system in house Have a vendor build a custom-made system Buy an existing application and install it, with or without modifications, by yourself or through a vendor Lease standard software from an ASP, utility computing, or set up a software-as-a-service arrangement Enter into a partnership or an alliance that will enable the company to use someone else's application Use a combination of these approaches

The Landscape and Framework of MSS Application Development Step 4: Installing, testing, connecting, and deploying MSS applications Step 5: Operations, maintenance, and updating

The Landscape and Framework of MSS Application Development Managing the development process The development process can be fairly complex and must be managed properly For medium to large applications, a project team is usually created to manage the process and the vendors Project management software

Development Options for MSS Applications In-house development: Insourcing Development options for in-house development Building from scratch Building from components Integrating applications

Development Options for MSS Applications Methods used in in-house development System development life cycle (SDLC)   A systematic process for the effective construction of large information systems

Development Options for MSS Applications

Development Options for MSS Applications Rapid application development (RAD)   A development methodology that adjusts a system development life-cycle so that parts of the system can be developed quickly, thereby enabling users to obtain some functionality as soon as possible. It includes methods of phased development, prototyping, and throwaway prototyping

Development Options for MSS Applications Prototyping In system development, a strategy in which a scaled-down system or portion of a system is constructed in a short time, tested, and improved in several iterations

Development Options for MSS Applications Buying applications Leasing applications Lease from an outsourcer and then install it on the company’s premises Lease from an ASP that hosts the application at its data center

Development Options for MSS Applications Methods used in in-house development Software-as-a-service (SaaS) Software that is rented instead of sold Factors driving the switch to software-as-a-service: Reducing the risks involved in acquiring new software Influencing product and service quality via an ongoing relationship with vendors Changing usage commitments as business circumstances change Preparing financially justifiable business cases More accurately predicting ongoing expenses

Development Options for MSS Applications Outsourcing development options Outsourcing Application Service Providers (ASP) A software vendor that offers leased software applications to organizations Utility (on-demand) computing Unlimited computing power and storage capacity that, like electricity, water, and telephone services, can be obtained on demand, used, and reallocated for any application, and billed on a pay-per-use basis

Utility Computing Value Utility Computing Value Figure 15.3 Tools and Value-Added Services of Utility Computing Utility Computing Value Utility Computing Value Multi-sourcing delivery & financing services Customer access & management services Multi-sourcing delivery & financing services Customer access & management services Service-level-management tools Resource-management tools Virtualized infrastructures

Development Options for MSS Applications Utility computing value proposition consists of three layers of tools and two types of value-added services Tools Policy-based service-level-management tools Policy-based resource-management tools Virtualization tools Value-added services Multisourcing delivery and framework services Customer access and management services

Development Options for MSS Applications A hybrid approach to MSS development Hybrid models work best when the outsourced partner offers: A high level of security Fast time to market Service-level agreements

Prototyping: A Practical MSS Development Methodology Advantages of prototyping Short development time Short user reaction time (i.e., feedback from user) Improved user understanding of the system, its information needs, and its capabilities Low cost

Prototyping: A Practical MSS Development Methodology Limitations of prototyping Gains obtained from cautiously stepping through each of the system’s lifecycle stages might be lost including: A thorough understanding of the information system’s benefits and costs A detailed description of the business’s information needs An easy-to-maintain information system design A well-tested information system Well-prepared users

Prototyping: A Practical MSS Development Methodology The prototyping development process Users and managers, as well as an executive sponsor, must be involved The analysis, design, and prototype implementation phases are iteratively performed until a small prototype is sufficiently developed The final implementation takes place Simultaneously, further iterations occur as other subsystems or capabilities are added to the deployed system until a fairly stable, comprehensive system evolves

Prototyping: A Practical MSS Development Methodology

Prototyping: A Practical MSS Development Methodology

Prototyping: A Practical MSS Development Methodology Collaboration in prototyping The interaction of user, developer, and technology is extremely important in the prototyping process Evaluation in prototyping Iterative design A systematic process for system development that is used in MSS. To produce a first version of MSS, then revise it and produce the second design version, and so on is called an iterative design

Prototyping: A Practical MSS Development Methodology Implementing prototyping Target small, tactical applications that show quick results Use software components Make application deployment iterative and open to customization Use commodity hardware Use object technology, including tools such as Java Break major projects into manageable, deliverable chunks Use packaged applications whenever justifiable Consider IT service providers as well as utility and grid computing Use Web services, if possible

Prototyping: A Practical MSS Development Methodology Successes factors in prototyping Users and managers should be involved in every phase and iteration Learning should be explicitly integrated into the design process Prototyping should essentially bypass the formal information requirement definition in the SDLC A key criterion associated with prototyping is the short interval between iterations The initial prototype must be low cost

Prototyping: A Practical MSS Development Methodology Prototyping failures No prelaunch objectives or metrics Too many major projects were conducted simultaneously The CEO set budgets and deadlines before the project team was involved The budget and deadlines were not realistic There was no insider presence on the data warehouse project team An overburdened project manager was involved The availability of source data was unconfirmed at the outset No user demand for sophisticated data analysis was considered No routine meetings of executive sponsors and the project manager took place Business managers were not initially involved

Prototyping: A Practical MSS Development Methodology Lessons learned from prototyping failure: Executive sponsorship and partnership of the IT staff and end users are the most critical success factors for developing a data warehouse Unclear understanding of the business objectives and how they will be measured An incremental pilot project should occur to determine whether it is possible to obtain the projected benefits An organization should expect to make a major investment in ongoing management of the data warehouse When all else fails, an organization should cut its losses and run

Criteria For Selecting an MSS Development Approach Selection criteria for buy or lease decision: Flexibility Information requirements User friendliness Hardware and software resources Installation Maintenance services Vendor quality and track record Estimating costs Personnel Technological evolution Scalability Sizing Performance Reliability Security

Third-party Providers of MSS Software Packages and Suites Specialized and functional software packages MSS suite An integrated collection of a large number of MSS tools that work together for applications development

Third-party Providers of MSS Software Packages and Suites

Third-party Providers of MSS Software Packages and Suites Representative MSS suites MicroStrategy 8 Hyperion System 9 BI+ BusinessObjects XI Microsoft BizTalk Server 2004 Oracle’s MSS Products IBM’s WebSphere Commerce Suite

Connecting to Databases and Other Enterprise Systems Connecting to databases: Four tier architecture Web browser Web server Application server Database server

Connecting to Databases and Other Enterprise Systems

Connecting to Databases and Other Enterprise Systems Integrating MSS applications and back-end systems Many commercial MSS suites have built-in integration capabilities If a company wants to build its own database interface: Web scripting languages Specialized application servers

Connecting to Databases and Other Enterprise Systems Middleware Software that links application modules from different computer languages and platforms

The Rise of Web Services, XML, and Service-Oriented Architecture The need for integration Platform-specific objects Dynamic environment Security barriers Address these problems with Web Services An architecture enabling assembly of distributed application from software services and tying them together

User-Developed MSS End-user computing Developing one’s own information system User-developed MSS   An MSS developed by one user or by a few users in one department including decision makers and professionals (knowledge workers, like financial or tax analysts and engineers) who build or use computers to solve problems or enhance their productivity

User-Developed MSS User-Developed MSS: Advantages Delivery time is short The prerequisites of extensive and formal user requirements specifications are eliminated Some MSS implementation problems are reduced The cost is usually very low

User-Developed MSS User-Developed MSS: Risks User-developed MSS can be of poor quality. Three categories of potential quality risks: Substandard or inappropriate tools and facilities used in MSS development Risks associated with the development process Data management risks Security risks Lack of documentation and maintenance procedures

User-Developed MSS Steps to get users involved in MSS development: Get management buy-in Understand the users’ business Consider the users’ priorities Assign good communicators Talk with users all along the business process Don’t meet at users' offices Turn off mobile phones Focus on users’ problems, not on technology Listen well Use prototypes

User-Developed MSS Reducing the risks of end-user computing Factors that contribute to spreadsheet errors include: Developer inexperience Poor design approaches Application types Problem complexity Time pressure Presence or absence of review procedures Team-Developed MSS

MSS Vendor and Software Selection MSS development tool selection MSS tools Software elements (e.g., languages) that facilitate the development of a MSS or a MSS generator Hardware selection Software selection

MSS Vendor and Software Selection Selecting vendors and MSS software packages On time On budget Full functionality

MSS Vendor and Software Selection Six steps in selecting a software vendor and a package: Identify potential vendors. Determine the evaluation criteria. Evaluate vendors and packages. Choose a vendor and package. Negotiate a contract. Establish a service-level agreement

Putting Together an MSS MSS implementation issues Managers are more readily accepting MSS tools, techniques, and methods AI tools and methods are being embedded in MSS and in enterprise applications Web technologies continue to enable new developments in MSS/BI GSS continue to proliferate through collaborative computing Computer technology continues its fast-paced evolution Capabilities are increasing and costs are decreasing ERM/ERP systems, although extremely expensive, are proliferating