1. Chapter 2 The Origins of Software Modern Systems Analysis and Design Sixth Edition Jeffrey A. Hoffer Joey F. George Joseph S. Valacich

2. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 2 Chapter 2 Learning Objectives Explain outsourcing. Describe six different sources of software. Discuss how to evaluate off-the-shelf software. Explain reuse and its role in software development.

3. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 3 Chapter 2 Introduction There are various sources of software for organizations. There are criteria to evaluate software from different sources.

4. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 Chapter 2 Systems Acquisition: Outsourcing Outsourcing: Turning over responsibility of some or all of an organization's information systems applications and operations to an outside firm

5. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 5 Chapter 2 Systems Acquisition: Outsourcing (Cont.) Outsourcing Examples  A company that runs payroll applications for clients  A company that runs your applications at your site

6. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 6 Chapter 2 Outsourcing (Cont.) Reasons to outsource  Cost-effective  Take advantage of economies of scale  Free up internal resources  Reduce time to market  Increase process efficiencies  System development is a non-core activity for the organization

7. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 7 Chapter 2 Sources of Software Information technology services firm Packaged software producers Enterprise-wide solutions Application service providers (ASPs) Open source software In-house developers

8. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 Chapter 2 Sources of Software (Cont.) FIGURE 2-1 Sources of Application Software

9. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9 Chapter 2 Information Technology (IT) Services Firms Help companies develop custom information systems for internal use. Develop, host, and run applications for customers. Provide other services.  not limited only to operating systems and utilities, within this segment custom software producers, sometimes called consulting firms, develop specific, customized software that matches a client’s particular needs.

10. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 10 Chapter 2 Packaged Software Producers Serve many market segments. Provide software ranging from broad- based packages (i.e. general ledger) to niche packages (i.e. day care management).

11. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11 Chapter 2 Packaged Software Producers (Cont.) Software runs on all size computers, from microcomputers to large mainframes. Prepackaged software is off-the-shelf, turnkey software (i.e. not customizable). Off-the-shelf software at best meets 70 percent of organizations’ needs.

12. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Packaged Software Producers (Cont.) 12 Chapter 2 A group of similar businesses and customers that engage in trade based on specific and specialized needs. Often, participants in a vertical market are very limited to a subset of a larger industry (a niche market)

13. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 13 Chapter 2 Prepackaged Software Figure 2-2 Microsoft Project

14. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 14 Chapter 2 Enterprise Solutions Software Enterprise Resource Planning (ERP) systems integrate individual traditional business functions into modules enabling a single seamless transaction to cut across functional boundaries. SAP AG is the leading vendor of ERP systems.

15. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15 Chapter 2 Enterprise Solutions Software (Cont.) Figure 2-3 SAP’s Business ByDesign, a product designed for medium sized companies. (Source: www.sap.com/usa/solutions/Sme/Businessbydesign/Flash/bsm/A1S.html )

16. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16 Chapter 2 Enterprise Solutions Software (Cont.) An enterprise resource planning (ERP) system might be justified on the following grounds: 1)it is a complete enterprise-wide solution that models all aspects of each transaction, supposedly seamlessly and within a single system; 2)an ERP system is based on a single repository of all corporate data, which implies consistency, accuracy and flexibility of the data; and 3)adding new modules should be relatively painless as all modules are specifically designed to work together. Negatives: 1)ERP systems are very complex and 2)require expensive outside expertise (consultants) for implementation, 3)and the organization itself has to adjust to fit the software’s model of how organizations should operate rather than the reverse.

17. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 17 Chapter 2 Cloud Computing The provision of computing resources, including applications, over the Internet, so customers do not have to invest in the computing infrastructure needed to run and maintain the resources

18. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 18 Chapter 2 Cloud Computing Enables customers (firms) to use software they have not installed on hardware they do not own to access services over the Internet on a pay- for-use basis. Three key advantages of cloud computing  (1) freeing internal IT staff,  (2) gaining access to applications faster than via internal development, and  (3) achieving lower-cost access to corporate-quality applications. cost savings are achieved from not having to purchase and install infrastructure or pay annual licensing or maintenance fees. Another critical aspect is instant scalability; that is customers can temporarily acquire and use more resources than they actually have and thus run very large applications and processes at reasonable costs and in reasonable time frames.

19. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 19 Chapter 2 Open Source Software Freely available including source code Developed by a community of interested people Performs the same functions as commercial software Examples: Linux, mySQL, Firefox

20. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20 Chapter 2 In-House Development If sufficient system development expertise with the chosen platform exists in-house, then some or all of the system can be developed by the organization’s own staff. Hybrid solutions involving some purchased and some in-house components are common.

21. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Sources of Software Components 21 Chapter 2

22. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 22 Chapter 2 Selecting Off-the-Shelf Software Cost: comparing the cost of developing the same system in-house with the cost of purchasing or licensing the software package

23. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 23 Chapter 2 Functionality: the tasks that the software can perform and the mandatory, essential, and desired system features Selecting Off-the-Shelf Software

24. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 24 Chapter 2 Selecting Off-the-Shelf Software Vendor support: whether or how much support the vendor can provide and at what cost

25. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 25 Chapter 2 Viability of vendor: can the software adapt to changes in systems software and hardware Selecting Off-the-Shelf Software

26. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 26 Chapter 2 Selecting Off-the-Shelf Software Flexibility: how easy it is to customize the software Documentation: is the user’s manual and technical documentation understandable and up-to-date

27. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 27 Chapter 2 Selecting Off-the-Shelf Software Response time: how long it takes the software package to respond to the user’s requests in an interactive session Ease of installation: a measure of the difficulty of loading the software and making it operational

28. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 28 Chapter 2 Selecting Off-the-Shelf Software Additional criteria include:  compatibility with currently used application software (so, for example, data can be shared),  compatibility with existing hardware and system software,  ability to support a range from novice to experienced (or power) users,  and appeal of the user interface (ease of use).

29. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 29 Chapter 2 Validating Purchased Software Information Use a variety of information sources:  Collect information from vendor  Software documentation  Technical marketing literature

30. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 30 Chapter 2 Request For Proposal (RFP) Request for proposal (RFP) is a document provided to vendors to ask them to propose hardware and system software that will meet the requirements of a new system. An RFP is a formal document that provides detailed specifications about a target information system and asks vendors for information on how they would develop the system. Analysts use RFPs as a way to get vendors to perform the research to determine what application design will meet user requirements and the hardware and systems software vendors believe are necessary for developing the new system.

31. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 31 Chapter 2 Request For Proposal (RFP) (Cont.) Sometimes called a Request For Quote (RFQ) Use a variety of information sources Based on vendor bids, analyst selects best candidates.

32. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 32 Chapter 2 Information Sources For RFP Vendor’s proposal Running software through a series of tests Feedback from other users of the vendor’s product Independent software testing services Articles in trade publications

33. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 33 Chapter 2 Reuse The use of previously written software resources, especially objects and components, in new applications Commonly applied to two different development technologies:  Object-oriented development  Component-based development

34. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 34 Chapter 2 Reuse (Cont.) Object-oriented development  Object class encapsulates data and behavior of common organizational entities (e.g. employees) Component-based development  Components can be as small as objects or as large as pieces of software that handle single business functions.

35. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 35 Chapter 2 Reuse (Cont.) Object-oriented development reuse is the use of object classes in more than one application (e.g. Employee).

36. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 36 Chapter 2 Reuse (Cont.) Component-based development reuse is the assembly of an application from many different components at many different levels of complexity and size (e.g. Currency conversion).

37. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 37 Chapter 2 Costs and Benefits of Reuse FIGURE 2-5 Investments necessary to achieve reusable components (Source: Royce, 1998, used by permission.) Note the high initial startup costs when a high level of reuse is planned. As more organizations achieve success and as more componentization takes place in the for purchase arena more organizations will have incentive to integrate reuse into their business strategy.

38. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 38 Chapter 2 More About Reuse Reuse should in theory increase programmer productivity, decrease development time, minimize errors and schedule overruns. Ultimately it should produce higher quality work with fewer defects and thus reduce overall implementation and maintenance time. In current practice, due to high initial start up costs, lack of good quality methods for labeling, storage, combined with lack of senior management commitment, reuse is not practiced as often as it could be. Additionally, lack of incentives and rewards to design for and apply reuse concepts and the overall difficulty in measuring economic gain from its application all conspire against reuse in the real world

39. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 39 Chapter 2 Approaches to Reuse (Cont.) Managed: the development, sharing, and adoption of reusable assets is mandated. Designed: assets mandated for reuse as they are being designed for specific applications.

40. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Approaches to Reuse (Cont.) 40 Chapter 2

41. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 41 Chapter 2 Summary In this chapter you learned how to: Explain outsourcing. Describe six different sources of software. Discuss how to evaluate off-the-shelf software. Explain reuse and its role in software development.