1. Chapter 8 Information Systems Development and Acquisition
Robert Riordan, Carleton University

2. Learning Objectives
1. Understand the process used by organizations to manage the development of information systems
2. Describe each major phase of the system development life cycle: systems identification, selection, and planning; system analysis; system design; system implementation; and system maintenance

3. Learning Objectives
3. Describe prototyping, rapid application development, object-oriented analysis, and design methods of systems development along with each approach’s strengths and weaknesses
4. Understand the factors involved in building a system in-house, along with situations in which it is not feasible

4. Learning Objectives
5. Explain three alternative systems development options: external acquisition, outsourcing, and end-user development

5. Developing Systems Systems Analysis and Design
A traditional term used to describe the process of designing, building, and maintaining information systems performed by analysts and programmers
Software Engineering
A newer term given to acknowledge the movement of systems building from art to discipline by professionals using common methods, techniques, and tools for constructing information systems
Problem Decomposition
Systems building is a process of decomposing large complex problems to discover and design solutions to support the organization

6. Problem Decomposition

7. Options for Acquiring System Capabilities

8. The Systems Development Life Cycle
The System Development Life Cycle (SDLC) is a structured method complete with techniques developed to manage the life cycle of an information system

9. System Identification, Selection, and Planning

10. System Identification, Selection, and Planning
A process used to identify opportunities for developing systems projects to solve problems. This process varies greatly from organization to organization
Selection
The process of applying evaluation criteria to possible projects to select those that are critical to enabling the organization’s mission, goals, and objectives
Systems Planning
Developing formal plans for creating the information systems project selected. Some organizations call their periodic process of identification, selection, and planning “Information Systems Planning (ISP)”

11. System Identification, Selection, and Planning
Criteria for evaluating and selecting a systems project

12. Systems Analysis

13. Systems Analysis Collecting System Requirements (Traditional)
A combination of methods are used:
Interviews – discussions with stakeholders (i.e. users)
Questionnaires – surveys to assess use and attitudes
Observations – watch process and systems use
Document Analysis – reviewing current documents
Collecting System Requirements (Alternative)
A combination of traditional methods are used:
Critical Success Factors (CSFs) – a process of interviewing, recoding, analyzing and merging factors defined as critical by personnel at all levels of an organization
Joint Application Design (JAD) - a method that brings together users and analysts in a room to define requirements. This method greatly reduces design time

14. Systems Analysis - Critical Success Factors

15. Systems Analysis - Joint Application Design
JAD is a special type of a group meeting in which all (most) users meet with an analyst at the same time
Users jointly define and agree upon system requirements or design dramatically reducing the design time

16. System Analysis – Modeling Organizational Data
The Entity Relationship Diagram (ERD)
A tool used to identify the relationships between entities to assist in developing applications and databases

17. Requirements, Data, Data Flows, Processing Logic

18. System Design

19. System Design - Designing Forms and Reports
Forms - a business document with predefined data and places to fill in information that is used for system input
Reports – a system output that contains only predefined data usually in a tabular format (see below)

20. System Design - Designing Interfaces and Dialogues
User Interface Example – Gov’t of Alberta

21. System Design - Designing Databases and Files

22. System Design – Designing Processing Logic
The processing and logic operations of an information system are the steps and procedures that transform raw data inputs into new or modified information
Processing Logic Example
Describes the steps for calculating a GPA
Obtain the prior grade point average, credits hours earned, and list of prior courses
Obtain the list of each current course, final grade, and course credit hours
Combine the prior and current credit hours into aggregate sums
Calculate the new grade point average

23. System Implementation

24. System Implementation – Programming and Testing
Software Programming – creating the instructions from the programming logic design using a variety of programming languages often assisted by language editors
Software Testing – a series of tests designed to identify errors and validate logic in parallel with programming. There are multiple types of testing (see below)

25. System Implementation – System Conversion
Conversion Approaches – the process of taking information from an old system to populate a new system. This is accomplished through manual and/or automated methods

26. System Implementation – System Documentation
The collection of materials produced with an information system to support the ongoing operation and development
Documentation Types
User and reference guides – step-by-step instructions for using the system features and functions
User training and tutorials – manuals and exercises designed to educate users and build competence in system use. These training manuals and tutorials can be supported by a database that utilizes realistic data
Installation procedures and trouble-shooting suggestions – manuals and procedures designed to support technical personnel in installing and problem solving during system operation

27. System Implementation – System Training
Training Approaches – the processes used to educate users in new business processes and system features and functions with the goal of building competence to ensure operational success (see possible methods below)

28. System Maintenance

29. System Maintenance - Maintenance Types
The process by which a system is kept in working order and minor enhancements are completed. Some types of system maintenance are shown below:

30. Alternative Development Methods - Prototyping
A systems development method that uses a “trial-and-error” approach for discovering how a system should operate. Steps include:
Collecting requirements
Develop/refine prototype
Review prototype with users
(Repeat the previous steps until correct design is created)
Implement and use system

31. Alternative Development Methods – RAD
Rapid Application Development (RAD)
A rapid four-step iterative systems development method utilizing: prototyping, computer-based development tools, special management practices, and close user involvement
RAD Phases
The following phases are iterated until the requirements and design are completed and approved
Requirements planning
User design
Construction
Move to the new system

32. Alternative Development Methods – Object-Oriented
Object-Oriented Analysis and Design (OOAD)
Similar to SDLA approaches except that it relies on the tight coupling between data and methods and between the conceptual design of a system and its actual implementation.
OOAD Characteristics
The roles of analyst and programmer are combined while thinking about data and the operations to define the relevant objects
The design and implementation of these objects happen quickly and simultaneously
It uses a more integrative prototyping process than does the SDLC

33. Alternative Development Methods – Object-Oriented
Analysis
Evaluation
Planning
Implementation

34. Alternative Development Methods – A Comparison

35. Alternative Development Methods – A Comparison

36. Needs for Alternatives to Internal Systems Building
Often it is not feasible to consider building an information system internally. Below are four situations that discourage the idea of internal development:
Limited IS Staff
Limited IS Skill Sets
IS Staff is Overworked
Problem IS Performance
The IS organization does not have the capability to build the system itself
The IS organization does not have personnel with the correct skill sets to build the system
Current IS organization staff demands and priorities make it impossible to build a system
The IS organization does not have the appropriate performance level to build a system

37. Alternatives to Internal Development
External Acquisition
The purchasing of an existing system (hardware, software, databases, network) from an outside vendor such as IBM, EDS, or Accenture
Outsourcing
Turning over some or all responsibility for an organization’s information systems development and operations to an outside firm
End-user Development
Capitalizing on the sophistication of current users, this technique allows the system users to develop their system functions using a variety of tools

38. External Acquisition – Steps to Proceed
Steps in External Acquisition
System identification, selection, and planning (same as internal method)
Systems analysis (same as internal method)
Development of a Request for Proposal (RFP) – a report that is used to tell vendors what the requirements are and how they might be able to meet those requirements (hardware, software, training, etc.)
Proposal evaluation – may include viewing system demonstrations, evaluating the performance of those systems, and examining criteria important to the organization and judging how the proposed systems respond to those criteria
Vendor selection – using a scoring system devised to evaluate the competing proposal and then selecting the proposal that best fits the organization’s needs

39. External Acquisition – Steps to Proceed
Planning Stage
Goals and Outputs
Initiation
Estimate costs, establish objectives, select team
Initial Planning
Initial vendor list and basic features (hardware platform, fees, internationalization, vendor size and stability, industry-specific support and so on.)
Requirements Gathering
Identify business requirements. Detailed list of specifications, unit goals, and critical features. Evaluation criteria.
Demos and Selection
Product demonstrations, ratings, and site visits.
Implementation
Customize applications, convert data, restructure company operations, define new processes and train employees.

40. External Acquisition – The RFP (Request for Proposal)

41. External Acquisition - Proposal Evaluation Criteria

42. Outsourcing – Why Consider?
A firm might outsource some (or all) of its information system service for many reasons:
Cost and quality concerns – current cost and quality of information systems is unacceptable
Problems in IS performance – IS is having trouble meeting acceptable service standards
Supplier pressures – aggressive sales tactics
Simplifying, downsizing, and reengineering – having a need to focus on core processes
Financial factors – turning over IS systems can strengthen a balance sheet
Organizational culture – political or organizational problems that are difficult for IS to overcome
Internal irritants – tension between the IS staff and users

43. Outsourcing – Types of Arrangements
Outsourcing Arrangements
Not all outsourcing arrangements are the same. They can vary based on the need of the firm and the supplier.
Arrangement Types
Basic – A “cash and carry” relationship in which products and services are purchased on the basis of price and convenience
Preferred – Relationships with a few suppliers where the buyer and supplier set preferences and prices based on mutual benefit (e.g. volume pricing)
Strategic – A relationship where the firm and a vendor are each concerned with, and perhaps have a direct stake in, the success of the other

44. Outsourcing – Relationship Management
Managing the IS Relationship
Ongoing management of the outsourcing alliance is the single most important aspect of the outsourcing project’s success. The following are recommendations for best management:
A strong CEO and CIO should continually manage the legal and professional relationship with the outsourcer
Clear, realistic performance measurements of the systems and of the outsourcing arrangement (e.g. tangible and intangible costs and benefits)
The interface between the customer and outsourcer should have multiple levels (i.e. links to deal with policy and relationship issues)

45. End-User Development – Tools
Many tools can be used by end users for business applications including some of the following:
Personal Computer Tools – tools common to PCs (e.g. spreadsheets) that allow the creation of macros or automated routines by users
Query languages/report generators – tools that utilize SQL to extract information from databases and generate reports in user-specified formats
Graphics generators – tools that can extract relevant information from databases and create graphs, charts, etc.
Decision Support and Modeling Tools – tools that support complex decision making utilizing multidimensional models
Application Generators – tools that allow users to specify what is to be done and the application decides how it is to be done and generates the program code

46. End-User Development – Benefits
Embracing end-user development can help address some common issues with IS development, including:
Cost of labour – IS managers can substitute hardware and the systems for users to develop systems for IS staff
Long development time – allowing users to develop, shortens development lead times
Slow modification – users can react to their own needs
Work overload – leveraging the talent of the end-user staff, in effect, increases the size of the IS staff

47. End-User Development – The Benefits

48. End-User Development – Pitfalls
End-user development is not a panacea. Common issues arise as its use becomes more prevalent, including:
Lack of Standards – if users do not adopt standards used by IS professionals (documentation, error checking, testing procedures), the IS staff can experience problems when supporting users, or troubleshooting data integrity and security problems when enterprise systems are involved
Lack of continuity – as users leave the organization or department, new employees may not understand existing programs and lose productivity learning or developing new applications or “reinventing the wheel”
Appropriate Use of Time – there is debate whether it is appropriate for skilled users and managers to be spending time on systems development