1. 1 Managing the ISD (Chapter 10) The Issues: 1) What systems should be developed 2) In-house or Out-Source development 3) Buy or make 4) How do assess systems benefit 5) How to manage development process 6) How to manage ISD department 7) How to maintain Information Systems

2. 2 Managing the ISD (Chapter 10) What systems should be developed? 1) Top management systems 2) Back office systems 3) Systems requested by users 4) Steering Committee involvement 5) Create Applications Portfolio: Transaction Interpersonal work Supporting knowledge work

3. 3 Managing the ISD (Chapter 10) Sourcing of ISD 1) Develop In-house Advantages/Disadvantages 2) Develop by outside software house Advantages/Disadvantages 3) Buy packaged software Advantages/Disadvantages

4. 4 Managing the ISD (Chapter 10) System Benefit 1) Help units to do an existing job better Efficiency 2) Help organization implement new strategy EDI - ATM 3) Help provide a new service Selling on the Web

5. 5 Managing the ISD (Chapter 10) Measure Performance Classical case study at RCA A comparative case study involving two types of HRM systems: 1) Manual 2) Automated Over a multiyear stretch, the cost for the automated HRM system was lower than the manual HRM system.

6. 6 Managing the ISD (Chapter 10) Measure the Service 1) What is ROI on a web-based sales system? 2) Does the company need to deliver the product/service regardless of cost? 3) What does Top Management want? 4) Consider system impact on the entire organization.

7. 7 Managing the ISD (Chapter 10) Whatever happened to systems quality? 1) Lack of system quality leads to Spaghetti code. 2) Low quality systems deteriorate over time. 3) Low quality systems are difficult to maintain. 4) Low quality systems have many breakdowns. 5) Low quality systems don’t perform the functions intended.

8. 8 Managing the ISD (Chapter 10) Quality Components 1) Provides the user’s information needs 2) Are adaptable to evolving user’s information needs 3) Are clearly documented - this enhances maintainability 4) Low error frequency 5) Work at intended under all situations 6) Easy to use 7) Outputs are easy to understand

9. 9 Managing the ISD (Chapter 10) Quality Data 1) No errors 2) Consistent data descriptions 3) Meaningful data names 4) No redundancy 5) Data validation procedures 6) Data contest - different cultures have diverging ideas about privacy. This impacts data flow.

10. 10 Managing the ISD (Chapter 10) Data Quality How do we ensure data quality? 1) Fix data errors through data validation techniques 2) Update data lease in response to new user information needs 3) Install and maintain DBMS

11. 11 Managing the ISD (Chapter 10) Legacy Systems 1) Upgrade? Usually the preferred approach 2) Replace? When technology is totally outmodeled 3) Restructure? Turn into structured code 4) Re-engineer? Extract underlying knowledge and reprogram

12. 12 Managing the ISD (Chapter 10) Cont’d 5) Forward Engineer Start with the program specifications and design the program. 6) Refurbish Add new features to an existing program. 7) Purchase a package - especially useful When we are dealing with a standard business need.

13. 13 Managing the ISD (Chapter 10) Y2K Question 1) Basic idea - 00 implies 1800 2) Many industrial applications and components use microprocessors with a data-based function. These applications are often impossible to identify, let alone correct. It may cause many breakdowns of important systems such as water, sewer, electricity distributions, etc. 3) It has been suggested that compliance is expensive, up to $600 billion.