2. B. I NFORMATION T ECHNOLOGY (IS) CISB434: D ECISION S UPPORT S YSTEMS Chapter 9: System Development & Acquisition

3. L EARNING O BJECTIVES Describe the basic concepts of systems development Discuss the major steps in developing decision support system (DSS) management support system (MSS) 2

4. L EARNING O BJECTIVES List the major MSS application develop-ment options along with the benefits and limitations describe the four phases of the system development life cycle: planning analysis development implementation 3

5. L EARNING O BJECTIVES Discuss various MSS application out-sourcing options including the use of an application service provider (ASP) utility computing 4

6. L EARNING O BJECTIVES Describe prototyping methodology explain why MSSs are typically developed using these methods describe the factors that lead to success or failure discuss the learning process that occurs during development discuss the concept of end-user computing 5

7. L EARNING O BJECTIVES Give some major MSS software pack-ages and MSS application suites examine the criteria for selection Describe various methods for connect-ing an MSS application to back-end systems and databases discuss the value and technical foundation of Web Services in integrated applications 6

8. L EARNING O BJECTIVES Describe the criteria used in selecting an outsourcing vendor and package 7

9. S YSTEM D EVELOPMENT & A CQUISITION Basic Concepts of Systems Development

10. MSS D EVELOPMENT I NTRODUCTION Types of Support Systems Infrastructure Data Warehouses and Business Intelligence Knowledge Management Systems Enterprise Information Systems Portals 9

11. MSS D EVELOPMENT I NTRODUCTION Types of Support Systems Specific applications Tools and tool kits Platforms 10

12. MSS D EVELOPMENT T HE L ANDSCAPE & F RAMEWORK 11

13. MSS D EVELOPMENT T HE L ANDSCAPE & F RAMEWORK Step 1: Planning, identifying, and justifying MSS Step 2: Creating an MSS architecture MSS architecture A plan for organizing the underlying infrastruc-ture and applications of the MSS project 12

14. MSS D EVELOPMENT T HE L ANDSCAPE & F RAMEWORK Step 3: Selecting a development option Build the system in house Have a vendor build a custom-made system Buy an existing application and install it, with or without modifications, by yourself or through a vendor 13

15. MSS D EVELOPMENT T HE L ANDSCAPE & F RAMEWORK Step 3: Selecting a development option Lease standard software from an ASP, utility computing, or set up a software-as-a-service arrangement Enter into a partnership or an alliance that will enable the company to use someone else's application Use a combination of these approaches 14

16. MSS D EVELOPMENT T HE L ANDSCAPE & F RAMEWORK Step 4: Installing, testing, connecting, and deploy-ing MSS applications Step 5: Operations, maintenance, and updating 15

17. MSS D EVELOPMENT T HE L ANDSCAPE & F RAMEWORK Managing the development process The development process can be fairly complex and must be managed properly For medium to large applications, a project team is usually created to manage the process and the vendors Project management software 16

18. S YSTEM D EVELOPMENT & A CQUISITION Development Options

19. MSS D EVELOPMENT D EVELOPMENT O PTIONS In-house development - Insourcing Development options for in-house develop-ment Building from scratch Building from components Integrating applications Need to have the expertise/ skills in house Good for specialized application 18

20. MSS D EVELOPMENT D EVELOPMENT O PTIONS Methods used in in-house development System Development Life Cycle (SDLC) A systematic process for the effective construc-tion of large information systems 19

21. MSS D EVELOPMENT D EVELOPMENT O PTIONS 20

22. MSS D EVELOPMENT D EVELOPMENT O PTIONS Rapid application development (RAD) A development methodology that adjusts a system development life-cycle so that parts of the system can be develo-ped quickly enabling users to obtain some functionality as soon as possible Includes methods of phased development e.g. prototyping, and throwaway prototyping 21

23. MSS D EVELOPMENT D EVELOPMENT O PTIONS Prototyping A strategy in which a scaled-down system or portion of a system is constructed in a short time, tested, and improved in several iterations 22

24. MSS D EVELOPMENT D EVELOPMENT O PTIONS Buying applications - cost, maintenance/support provided… Leasing applications Lease from an outsourcer and then install it on the company’s premises Lease from an ASP that hosts the applica-tion at its data center 23

25. MSS D EVELOPMENT D EVELOPMENT O PTIONS Methods used in in-house development Software-as-a-service (SaaS) Software that is rented instead of sold 24

26. MSS D EVELOPMENT D EVELOPMENT O PTIONS Factors driving the switch to software-as-a-service : Reducing the risks involved in acquiring new software Influencing product and service quality via an ongoing relationship with vendors 25

27. MSS D EVELOPMENT D EVELOPMENT O PTIONS Factors driving the switch to software-as-a- service: Changing usage commitments as business circumstances change Preparing financially justifiable business cases More accurately predicting ongoing expen-ses 26

28. D EVELOPMENT O PTIONS If custom software is required, the alternatives of insourcing and outsourcing should be compared. A key consideration is the availability of in-house resources. 27

29. D EVELOPMENT O PTIONS If do not have the resources to build in- house, need to consider buy off the shelf (package) or lease from vendor: if the application is sufficiently popular that packages and/or ASPs exist for it their total cost of ownership (TOC) should be compared for the firm’s planning horizon. The cost of using a package should include any component integration costs. The cost of using an ASP should include estimated price increases. 28

30. S YSTEM D EVELOPMENT & A CQUISITION MSS Application Outsourcing Options

31. MSS D EVELOPMENT O UTSOURCING O PTIONS Application Service Providers (ASP) A software vendor that offers leased soft-ware applications to organizations 30

32. MSS D EVELOPMENT O UTSOURCING O PTIONS Utility (on-demand) computing Unlimited computing power and storage capacity that, like electricity, water, telephone services, can be obtained on demand, used, and reallocated for any application, and billed on a pay-per-use basis 31

33. Service-level-management tools Resource-management tools Virtualized infrastructures Multi-sourcing delivery & financing services Customer access & management services Utility Computing Value Figure 15.3 Tools and Value-Added Services of Utility Computing Multi-sourcing delivery & financing services Customer access & management services Utility Computing Value

34. MSS D EVELOPMENT O UTSOURCING O PTIONS Utility computing value proposition con-sists of Three layers of Tools Policy-based service-level-management tools Policy-based resource-management tools Virtualization tools Two types of Value-added Services Multisourcing delivery and framework services Customer access and management services 33 30

35. MSS D EVELOPMENT O UTSOURCING O PTIONS A hybrid approach to MSS development Hybrid models work best when the out-sourced partner offers: A high level of security Fast time to market Service-level agreements 34

36. S YSTEM D EVELOPMENT & A CQUISITION Prototyping

37. P ROTOTYPING A DVANTAGES Short development time Short user reaction time i.e. feedback from user Improved user understanding of the system its information needs, and its capabilities Low cost 36

38. P ROTOTYPING L IMITATIONS Gains obtained from cautiously stepping through each of the system’s lifecycle stages might be lost including: A thorough understanding of the informa-tion system’s benefits and costs A detailed description of the business’s information needs 37

39. P ROTOTYPING L IMITATIONS Gains obtained from cautiously stepping through each of the system’s lifecycle stages might be lost including: An easy-to-maintain information system design A well-tested information system Well-prepared users 38

40. P ROTOTYPING D EVELOPMENT P ROCESS Users and managers, as well as an exe-cutive sponsor, must be involved The analysis, design, and prototype im- plementation phases are iteratively per-formed until a small prototype is sufficiently deve-loped 39

41. P ROTOTYPING D EVELOPMENT P ROCESS The final implementation takes place Simultaneously, further iterations occur as other subsystems or capabilities are added to the deployed system until a fairly stable, comprehensive system evolves 40

42. P ROTOTYPING D EVELOPMENT P ROCESS 41

43. P ROTOTYPING D EVELOPMENT P ROCESS 42

44. P ROTOTYPING C OLLABORATION IN P ROTOTYPING The interaction of user, developer, and technology is extremely important in the prototyping process 43

45. P ROTOTYPING E VALUATION IN P ROTOTYPING Iterative design A systematic process for system develop-ment that is used in MSS produce a first version of MSS then revise it and produce the second design version and so on is an iterative design 44

46. P ROTOTYPING I MPLEMENTING P ROTOTYPING Target small, tactical applications that show quick results Use software components Make application deployment iterative and open to customization Use commodity hardware Use object technology including tools such as Java 45

47. P ROTOTYPING I MPLEMENTING P ROTOTYPING Break major projects into manageable, deliverable chunks Use packaged applications whenever justifiable Consider IT service providers as well as utility and grid computing Use Web services, if possible 46

48. P ROTOTYPING S UCCESSES F ACTORS Users and managers should be invol-ved in every phase and iteration Learning should be explicitly integrated into the design process Prototyping should essentially bypass the formal information requirement defi-nition in the SDLC 47

49. P ROTOTYPING S UCCESSES F ACTORS A key criterion associated with proto-typing is the short interval between iterations The initial prototype must be low cost 48

50. P ROTOTYPING F AILURES No prelaunch objectives or metrics Too many major projects were conduc-ted simultaneously The CEO set budgets and deadlines before the project team was involved The budget and deadlines were not rea-listic 49

51. P ROTOTYPING F AILURES There was no insider presence on the data warehouse project team An overburdened project manager was involved The availability of source data was un-confirmed at the outset 50

52. P ROTOTYPING F AILURES No user demand for sophisticated data analysis was considered No routine meetings of executive spon-sors and the project manager Business managers were not initially involved 51

53. P ROTOTYPING L ESSONS L EARNED FROM F AILURE Most critical success factors for develo-ping a data warehouse executive sponsorship partnership of the IT staff and end users Unclear understanding of the business objectives and how they are measured 52

54. P ROTOTYPING L ESSONS L EARNED FROM F AILURE An incremental pilot project should occur to determine whether it is possi-ble to obtain the projected benefits An organization should expect to make a major investment in ongoing manage-ment of the data warehouse When all else fails, an organization should cut its losses and run 53

55. U SER -D EVELOPED MSS End-user computing Developing one’s own information system 54

56. U SER -D EVELOPED MSS An MSS developed by one user or by a few users in one department including decision makers and professionals e.g. knowledge workers, like financial or tax analysts and engineers who build or use computers to solve problems or enhance their productivity 55

57. U SER -D EVELOPED MSS A DVANTAGES Short delivery time Eliminates prerequisites of extensive and formal user requirements specifica-tions Reduces some MSS implementation problems Usually very low cost 56

58. U SER -D EVELOPED MSS R ISKS User-developed MSS can be of poor quality Three categories of potential quality risks Substandard or inappropriate tools and facilities used in MSS development Risks associated with the development process Data management risks 57

59. U SER -D EVELOPED MSS R ISKS Security risks Lack of documentation Lack of maintenance procedures 58

60. U SER -D EVELOPED MSS G ETTING U SERS I NVOLVMENT Get management buy-in Understand the users’ business Consider the users’ priorities Assign good communicators Talk with users along the business pro-cess 59

61. U SER -D EVELOPED MSS G ETTING U SERS I NVOLVMENT Don’t meet at users' offices Turn off mobile phones Focus on users’ problems not on technology Listen well Use prototypes 60

62. U SER -D EVELOPED MSS R EDUCING R ISKS Factors that contribute to spreadsheet errors include Developer inexperience Poor design approaches Application types Problem complexity Time pressure Presence or absence of review procedures Team-developed MSS 61

63. S YSTEM D EVELOPMENT & A CQUISITION MSS Software Packages & Suites

64. MSS D EVELOPMENT C RITERIA FOR S ELECTION Selection criteria to buy or lease deci-sion Flexibility Information requirements User friendliness Hardware and software resources Installation 63

65. MSS D EVELOPMENT C RITERIA FOR S ELECTION Selection criteria for buy or lease deci-sion Maintenance services Vendor quality and track record Estimating costs Personnel Technological evolution 64

66. MSS D EVELOPMENT C RITERIA FOR S ELECTION Selection criteria for buy or lease deci-sion Scalability Sizing Performance Reliability Security 65

67. MSS S OFTWARE P ACKAGES & S UITES T HIRD - PARTY P ROVIDERS Specialized and functional software packages MSS suite An integrated collection of a large number of MSS tools that work together for applica-tions development 66

68. MSS S OFTWARE P ACKAGES & S UITES T HIRD - PARTY P ROVIDERS Representative MSS suites MicroStrategy 8 Hyperion System 9 BI+ BusinessObjects XI Microsoft BizTalk Server 2004 Oracle’s MSS Products IBM’s WebSphere Commerce Suite 67

69. MSS S OFTWARE P ACKAGES & S UITES T HIRD - PARTY P ROVIDERS 68

70. THE END T HANK YOU FOR LISTENING

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