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8-1 Chapter 8 Information Systems Development and Acquisition www.pearsoned.ca/jessup Robert Riordan, Carleton University
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Page 1: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

8-1

Chapter 8

Information Systems

Developmentand

Acquisition

www.pearsoned.ca/jessup

Robert Riordan, Carleton University

Page 2: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-2

Developing Systems

Software EngineeringA 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

Software EngineeringA 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

Systems Analysis and DesignA traditional term used to describe the process of designing, building, and maintaining information systems performed by analysts and programmers

Systems Analysis and DesignA traditional term used to describe the process of designing, building, and maintaining information systems performed by analysts and programmers

Problem DecompositionSystems building is a process of decomposing large complex problems to discover and design solutions to support the organization

Problem DecompositionSystems building is a process of decomposing large complex problems to discover and design solutions to support the organization

Page 3: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-3

Problem Decomposition

Page 4: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-4

Options for Acquiring System Capabilities

Page 5: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-5

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

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

Page 6: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-6

System Identification, Selection, and Planning

Page 7: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-7

System Identification, Selection, and Planning

System Identification A process used to identify opportunities for developing systems projects to solve problems. This process varies greatly from organization to organization

System Identification A process used to identify opportunities for developing systems projects to solve problems. This process varies greatly from organization to organization

SelectionThe process of applying evaluation criteria to possible projects to select those that are critical to enabling the organization’s mission, goals, and objectives

SelectionThe process of applying evaluation criteria to possible projects to select those that are critical to enabling the organization’s mission, goals, and objectives

Systems PlanningDeveloping formal plans for creating the information systems project selected. Some organizations call their periodic process of identification, selection, and planning “Information Systems Planning (ISP)”

Systems PlanningDeveloping formal plans for creating the information systems project selected. Some organizations call their periodic process of identification, selection, and planning “Information Systems Planning (ISP)”

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

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-8

System Identification, Selection, and Planning

Criteria for evaluating and selecting a systems projectCriteria for evaluating and selecting a systems project

Page 9: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-9

Systems Analysis

Page 10: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-10

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 (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

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

Page 11: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-11

Systems Analysis - Critical Success Factors

Page 12: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-12

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

• 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

Page 13: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-13

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

The Entity Relationship Diagram (ERD)A tool used to identify the relationships between entities to assist in developing applications and databases

Page 14: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-14

Requirements, Data, Data Flows, Processing Logic

Page 15: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-15

System Design

Page 16: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-16

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

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)

Reports – a system output that contains only predefined data usually in a tabular format (see below)

Page 17: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-17

System Design - Designing Interfaces and Dialogues

User Interface Example – Gov’t of AlbertaUser Interface Example – Gov’t of Alberta

Page 18: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-18

System Design - Designing Databases and Files

Page 19: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-19

System Design – Designing Processing Logic

Processing LogicThe processing and logic operations of an information system are the steps and procedures that transform raw data inputs into new or modified information

Processing LogicThe 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 GPA1. Obtain the prior grade point average, credits hours

earned, and list of prior courses

2. Obtain the list of each current course, final grade, and course credit hours

3. Combine the prior and current credit hours into aggregate sums

4. Calculate the new grade point average

Processing Logic Example

Describes the steps for calculating a GPA1. Obtain the prior grade point average, credits hours

earned, and list of prior courses

2. Obtain the list of each current course, final grade, and course credit hours

3. Combine the prior and current credit hours into aggregate sums

4. Calculate the new grade point average

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Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-20

System Implementation

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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 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)

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)

Page 22: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

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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

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

Page 23: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-23

System Implementation – System Documentation

System DocumentationThe collection of materials produced with an information system to support the ongoing operation and development

System DocumentationThe 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

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

Page 24: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-24

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)

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)

Page 25: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-25

System Maintenance

Page 26: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-26

System Maintenance - Maintenance Types

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

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

Page 27: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-27

Alternative Development Methods - Prototyping

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

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

Page 28: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-28

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

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 PhasesThe following phases are iterated until the requirements and design are completed and approved • Requirements planning• User design• Construction• Move to the new system

RAD PhasesThe following phases are iterated until the requirements and design are completed and approved • Requirements planning• User design• Construction• Move to the new system

Page 29: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-29

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

Page 30: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-30

Alternative Development Methods – A Comparison

Page 31: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-31

Needs for Alternatives to Internal Systems Building

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

Often it is not feasible to consider building an information system internally. Below are four situations that discourage the idea of internal development:

Page 32: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

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Alternatives to Internal Development

OutsourcingTurning over some or all responsibility for an organization’s information systems development and operations to an outside firm

OutsourcingTurning over some or all responsibility for an organization’s information systems development and operations to an outside firm

External AcquisitionThe purchasing of an existing system (hardware, software, databases, network) from an outside vendor such as IBM, EDS, or Accenture

External AcquisitionThe purchasing of an existing system (hardware, software, databases, network) from an outside vendor such as IBM, EDS, or Accenture

End-user DevelopmentCapitalizing on the sophistication of current users, this technique allows the system users to develop their system functions using a variety of tools

End-user DevelopmentCapitalizing on the sophistication of current users, this technique allows the system users to develop their system functions using a variety of tools

Page 33: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-33

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

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

Page 34: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-34

External Acquisition – The RFP (Request for Proposal)

Page 35: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-35

External Acquisition - Proposal Evaluation Criteria

Page 36: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-36

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

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

Page 37: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-37

Outsourcing – Types of Arrangements

Outsourcing ArrangementsNot all outsourcing arrangements are the same. They can vary based on the need of the firm and the supplier.

Outsourcing ArrangementsNot 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

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

Page 38: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-38

Outsourcing – Relationship Management

Managing the IS RelationshipOngoing 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)

Managing the IS RelationshipOngoing 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)

Page 39: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-39

End-User Development – Tools

ToolsMany 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

ToolsMany 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

Page 40: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-40

End-User Development – Benefits

End-User Development BenefitsEmbracing 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

End-User Development BenefitsEmbracing 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

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Information Systems Today, 2/C/e ©2008 Pearson Education Canada8-41

End-User Development – The Benefits

Page 42: 8-1 Chapter 8 Information Systems Development and Acquisition  Robert Riordan, Carleton University.

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End-User Development – Pitfalls

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

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


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