1. Development Strategies
Chapter 7
Development Strategies

2. Introduction
Chapter 7 describes the remaining activities in the systems analysis phase
The chapter also describes the transition to systems design, prototyping, and systems design guidelines 4

3. Development Strategies Overview
Selecting the best development path is an important decision that requires companies to consider three key topics
The impact of the Internet
Software outsourcing options
In-house software development alternatives

4. The Impact of the Internet
The Internet has triggered enormous changes in business methods and operations, and software acquisition is no exception
This section examines a trend that views software as a service, the changing market-place for software, and how Web-based development compares to traditional methods

5. The Impact of the Internet
Software as a Service
The Software and Information Industry Association (SIIA) is an industry group that focuses on the digital economy
SIIA believes that the concept of software as a service is redefining the way that companies develop and deploy their information systems
Cloud computing would be an ultimate form of SaaS
Web 2.0
Enable people to collaborate, interact, and share information more easily

6. The Impact of the Internet
The Changing Software Marketplace
In the traditional model, software vendors develop and sell application packages to customers
In addition to traditional vendors, the marketplace now includes many forms of outsourcing, including application service providers and firms that offer Internet business services

7. The Impact of the Internet
The Impact of the Internet on Systems Development
Developers will focus on Web-based application development, where the Web becomes an integral part of the application rather than just a communication channel

8. The Impact of the Internet
The Impact of the Internet on Systems Development
Traditional development
Systems design is influenced by compatibility issues
Systems are designed to run on local and wide-area company networks
Web-based features are treated as enhancements rather than core elements of the design

9. The Impact of the Internet
The Impact of the Internet on Systems Development
Web-based development
Internet-based development treats the Web as the platform, rather than just a communication channel
Easily scalable and hardware independent
Treat software as a service, not a commodity
Web-based software usually requires additional layers, called middleware, to communicate with existing software and legacy system

10. Salesforce.com: What is Cloud Computing?

11. Outsourcing
Can refer to relatively minor programming tasks, the rental of software from a service provider, the outsourcing of a basic business process (often called business process outsourcing, or BPO), or the handling of a company’s entire IT function

12. Outsourcing The Growth of Outsourcing
Traditionally, firms outsourced IT tasks as a way of controlling costs and dealing with rapid technological change
Outsourcing has become part of an overall IT strategy for many organizations

13. Outsourcing Outsourcing Fees
A fixed fee model uses a set fee based on a specified level of service and user support
A subscription model has a variable fee based on the number of users or workstations that have access to the application
A usage model or transaction model charges a variable fee based on the volume of transactions or operations performed by the application

14. Outsourcing Outsourcing Issues and Concerns
Mission-critical IT systems should be out-sourced only if the result is a cost-attractive, reliable, business solution that fits the company’s long-term business strategy
Outsourcing can be especially attractive to a company whose volume fluctuates widely, Ex. 處理全國考試業務

15. Outsourcing Offshore Outsourcing
Offshore outsourcing – global outsourcing
Many firms are sending IT work overseas at an increasing rate
Gartner, a leading IT research and consulting firm, predicts that by 2005 one in 10 IT jobs at U.S. IT companies and one in 20 at non-IT companies will move offshore
Read “The World Is Flat”

16. In-House Software Development Options
A company can choose to develop its own systems, or purchase, possibly customize, and implement a software package
The most important consideration is total cost of ownership (TCO)
Companies also develop user applications designed around commercial software packages, e.g. Excel, Word

17. In-House Software Development Options
Make or Buy Decision (Fig. 7-10, p. 291)
The choice between developing versus purchasing software often is called a make or buy, or build or buy decision
Companies that develop software for sale are called software vendors
Value-added reseller (VAR): add custom features on a commercial package

18. In-House Software Development Options
Reasons for Developing Software In-House
Satisfy unique business requirements
Minimize changes in business procedures and policies
Meet constraints of existing systems
Meet constraints of existing technology
Develop internal resources and capabilities

19. In-House Software Development Options
Reasons for Purchasing a Software Package
Lower costs
Requires less time to implement
Proven reliability and performance benchmarks
Requires less technical development staff
Future upgrades provided by the vendor
Input from other companies

20. In-House Software Development Options
Customizing a Software Package
You can purchase a basic package that vendors will customize to suit your needs
You can negotiate directly with the software vendor to make enhancements to meet your needs by paying for the changes
You can purchase the package and make your own modifications, if this is permissible under the terms of the software license

21. Role of the Systems Analyst
When selecting hardware and software, systems analysts often work as an evaluation and selection team
The primary objective of the evaluation and selection team is to eliminate system alternatives that will not work, rank the system alternatives that will work, and present the viable alternatives to management for a final decision

22. The Software Acquisition Process
Step 1: Evaluate the Information System Requirements
Prepare a request for proposal or quotation
Request for proposal (RFP) 系統建議邀約, P. 301
Evaluation model, P. 302
Request for quotation (RFQ) 報價書邀約:已知要買的東西, p. 303

23. The Software Acquisition Process
Step 2: Identify Potential Vendors or Outsourcing Options
The Internet is a primary marketplace
Another approach is to work with a consulting firm
Another resource is the Internet bulletin board system that contains thousands of forums, called newsgroups

24. The Software Acquisition Process
Step 3: Evaluate the Alternatives
Existing users
Application testing
Benchmarking – benchmark testing: ex. Testing the time needed to post 1,000 sales transactions
Match each package against the RFP features and rank the choices

25. The Software Acquisition Process
Step 4: Perform Cost-Benefit Analysis
Identify and calculate TCO for each option you are considering
When you purchase software, what you are buying is a software license
If you purchase a software package, consider a supplemental maintenance agreement

26. The Software Acquisition Process
Step 5: Prepare a Recommendation
You should prepare a recommendation that evaluates and describes the alternatives, together with the costs, benefits, advantages, and disadvantages of each option
At this point, you may be required to submit a formal system requirements document and deliver a presentation

27. The Software Acquisition Process
Step 6: Implement the Solution
Implementation tasks will depend on the solution selected
Before the new software becomes operational, you must complete all implementation steps, including loading, configuring, and testing the software; training users; and converting data files to the new system’s format

28. Completion of Systems Analysis Tasks
System Requirements Document
The system requirements document, or software requirements specification, contains the requirements for the new system, describes the alternatives that were considered, and makes a specific recommendation to management
Like a contract
Format and organize it so it is easy to read and use

29. Completion of Systems Analysis Tasks
Presentation to Management
Begin your presentation with a brief overview of the purpose and primary objectives of the system project, the objectives of this presentation, and what decisions need to made
Summarize the primary viable alternatives. For each alternative, describe the costs, advantages, and disadvantages

30. Completion of Systems Analysis Tasks
Presentation to Management
Explain why the evaluation and selection team chose the recommended alternative
Allow time for discussion and for questions and answers
Obtain a final decision from management or agree on a timetable for the next step in the process

31. Completion of Systems Analysis Tasks
Presentation to Management
Based on their decision, your next task will be one of the following
Implement an outsourcing alternative
Develop an in-house system
Purchase or customize a software package
Perform additional systems analysis work
Stop all further work

32. The Transition to Systems Design
If management decides to develop the system in-house, then the transition to the systems design phase begins
Preparing for Systems Design Tasks
It is essential to have an accurate and understandable system requirements document

33. The Transition to Systems Design
The Relationship between Logical and Physical Design
The logical design defines the functions and features of the system and the relationships among its components
The physical design of an information system is a plan for the actual implementation of the system

34. Systems Design Guidelines
The systems analyst must understand the logical design of the system before beginning the physical design of any one component
Data design
User interface
Systems design specification

35. Systems Design Guidelines
Systems Design Objectives
The goal of systems design is to build a system that is effective, reliable, and maintainable
Some considerations examples