1. Chapter 8 Information Systems Development & Acquisition

2. Chapter 8 Objectives Understand the process of IS management
Understand the system development life cycle (SDLC)
Understand alternative approaches to system development
Understand in-house system development
Understand external acquisition, outsourcing, and end-user development

3. The Need for Structured Systems Development
Systems analysis and design – the process of designing, building, and maintaining information systems
The individual who performs this task is called Systems analyst
Organization wants to hire System analyst because they have both technical and managerial expertise.

4. The Need for Structured Systems Development
Evolution of IS development
From “art” to a “discipline”: In the early days of computing it was considered an art that a very few people could master
Standardized development methods: The techniques used to build an IS varies greatly from individual to individual. It was very difficult to integrate and maintain. To address this problem, info. Sys. professionals decided to use a disciplined approach of introducing common methods, techniques, and tools for building information systems
Software engineering: This evolution led to the use of the term software engineering to define what system analyst & programmer do.

5. The Need for Structured Systems Development
Options for Obtaining Information Systems
Build your own
Buy a prepackaged system from a software development company or consulting firm. Example: Payroll system.
Outsource development to a 3rd party: outside organization custom build a system to an organization’s specifications. Good option when an organization does not have adequate resources or expertise.
End user development: Individual users and departments build their own custom systems to support their individuals. Example MS. Excel.

6. The Need for Structured Systems Development

7. The Need for Structured Systems Development
System Construction Process
Identify a large IT problem to solve
Break the large problem into several smaller, more manageable pieces
Translate each “piece” (small problem) into computer programs
Piece together each program into an overall comprehensive IS that solves the problem

8. The Need for Structured Systems Development
The Role of Users in the Systems Development Process
It is important for all members of the organization to understand what is meant by system development and what activities occur.
Effective partnership: A close and mutually respectful working relationship between analysts and users is a key to project success.

9. Steps in the Systems Development Process

10. Steps in the Systems Development Process
Systems Development Life Cycle (SDLC)
- describes the life of an information system from conception to retirement.
System identification, selection, and planning
System analysis
System design
System implementation
System maintenance

11. Steps in the Systems Development Process
Phase 1: System Identification, Selection, and Planning
Undertake only those projects critical to mission, goals, and objectives
Select a development project from all possible projects that could be performed
Different evaluation criteria used to rank potential projects
An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build.
After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development.
Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty.

12. Steps in the Systems Development Process
Phase 1: System Identification, Selection, and Planning
Evaluation criteria
Strategic alignment: The extent to which the project is viewed as helping the organization achieve its strategic objectives an d long-term goal.
Potential benefits: The extent to which the project is viewed as improving profits, customer service, and the duration of the benefits
Potential costs and resource availability: The number and types of resources the project requires and their availability
Project size / duration: The number of individuals and the length of time needed to complete the project
Technical difficulty / risks: The level of technical difficulty involved to complete the project within a given time and resources
An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build.
After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development.
Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty.

13. Steps in the Systems Development Process
Phase 2: System Analysis
Collecting System Requirements: Requirement collection is process of gathering and organizing information from users, managers, business processes, an documents to understand how a proposed system should work
System analysts use a variety of techniques to collect system requirements
Interviews: analysts interview people
Questionnaires: analysts design and administer surveys.
Observations: analysts observe workers at selected times
Document analysis: analysts study business documents
Critical Success Factors (CSF): analysts ask each person to define her own personal CSFs.
Joint Application Design (JAD): Special type of a group meeting where all users and analysts meet at the same time
An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build.
After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development.
Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty.

14. Steps in the Systems Development Process
Phase 2: System Analysis
Modeling Organizational Data: To construct an information system, systems analysts must understand what data the information system needs in order to accomplish the intended tasks. To do this they use data modeling tools to collect and describe data to users.
Entity Relationship Diagram (ERD)
Modeling Organizational Processes and Logic
Data flows
Processing logic
An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build.
After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development.
Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty.

15. A sample ERD for students

16. Steps in the Systems Development Process
Phase 3: System Design
Designing forms and reports
Designing interfaces and dialogues
Designing databases and files
Designing processing and logic
An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build.
After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development.
Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty.

17. Steps in the Systems Development Process
Phase 4: System Implementation
Software programming
Software testing
Developmental: Programmers test the correctness of individual modules and the integration of multiple modules
Alpha: Software tester tests whether it meets design specifications
Beta: Actual system users test the capability of the system in the user environment with actual data
An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build.
After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development.
Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty.

18. Steps in the Systems Development Process
Phase 4: System Implementation
System conversion
Parallel
Direct
Phased
Pilot
System documentation, training, and support
User and reference guides
Training and tutorials
Installation procedures and troubleshooting guides
An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build.
After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development.
Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty.

20. Steps in the Systems Development Process
Phase 5: System Maintenance
Maintenance process steps:
Obtain maintenance request
Transform requests into changes
Design changes
Implement changes
An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build.
After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development.
Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty.

21. Steps in the Systems Development Process
Phase 5: System Maintenance
Maintenance types:
Corrective maintenance
Adaptive maintenance
Perfective maintenance
Preventive maintenance
An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build.
After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development.
Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty.

23. Other Approaches to Designing and Building Systems
Prototyping
Rapid Application Development (RAD)
Object-Oriented Analysis & Design (OOA&D)
An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build.
After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development.
Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty.

24. Prototyping

25. Need for Alternatives to Building Systems Yourself
Limited IS staff
IS staff has limited skill set
IS staff is overworked
Problems with performance of IS staff
An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build.
After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development.
Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty.

26. Common Alternatives to In-house Systems Development
External acquisition
System identification, selection and planning
Systems analysis
Development of a request for proposal (RFP)
Proposal evaluation
Vendor selection
An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build.
After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development.
Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty.

27. Common Alternatives to In-house Systems Development
Outsourcing – the practice of turning over responsibility of some to all of an organization’s information systems development and operations to an outside firm
An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build.
After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development.
Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty.

28. Common Alternatives to In-house Systems Development
Why Outsource?
Cost and quality concerns
Problems in IS performance
Supplier pressures
Simplifying, downsizing, and reengineering
Financial factors
Organizational culture
Internal irritants
An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build.
After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development.
Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty.

29. Common Alternatives to In-house Systems Development
Managing the IS outsourcing relationship
Strong CIO oversight
Measurement of milestones, costs, and benefits
Customer relationship management
Not all outsourcing relationships are the same
Basic relationship
Preferred relationship
Strategic relationship
An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build.
After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development.
Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty.

30. Common Alternatives to In-house Systems Development
End-user development
Benefits of end-user development
Encouraging end-user development
End-user development pitfalls
An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build.
After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development.
Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty.