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Chapter 8

Information SystemsDevelopment & Acquisition

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Chapter 8 Objectives

Understand the process of IS managementUnderstand the process of IS management Understand the system development life Understand the system development life

cycle (SDLC)cycle (SDLC) Understand alternative approaches to Understand alternative approaches to

system developmentsystem development Understand in-house system developmentUnderstand in-house system development Understand external acquisition, Understand external acquisition,

outsourcing, and end-user developmentoutsourcing, and end-user development

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The Need for Structured Systems Development

Systems analysis and designSystems analysis and design – the process – the process of designing, building, and maintaining of designing, building, and maintaining information systemsinformation systems Systems analystSystems analyst Blending technical and managerial expertiseBlending technical and managerial expertise

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The Need for Structured Systems Development

Evolution of IS developmentEvolution of IS development From “art” to a “discipline”From “art” to a “discipline” Standardized development methodsStandardized development methods Software engineeringSoftware engineering

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The Need for Structured Systems Development

Options for Obtaining Information SystemsOptions for Obtaining Information Systems1.1. Build your ownBuild your own

2.2. Buy a prepackaged systemBuy a prepackaged system

3.3. Outsource development to a 3Outsource development to a 3rdrd party party

4.4. End user developmentEnd user development

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The Need for Structured Systems Development

Information Systems Development in ActionInformation Systems Development in Action Breaking large complex problems into Breaking large complex problems into

manageable piecesmanageable pieces Decomposing large, complex problemsDecomposing large, complex problems

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The Need for Structured Systems Development

System Construction ProcessSystem Construction Process1.1. Identify a large IT problem to solve Identify a large IT problem to solve

2.2. Break the large problem into several smaller, Break the large problem into several smaller, more manageable piecesmore manageable pieces

3.3. Translate each “piece” (small problem) into Translate each “piece” (small problem) into computer programscomputer programs

4.4. Piece together each program into an overall Piece together each program into an overall comprehensive IS that solves the problemcomprehensive IS that solves the problem

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The Need for Structured Systems Development

The Role of Users in the Systems Development The Role of Users in the Systems Development ProcessProcess Knowledgeable of needsKnowledgeable of needs Effective partnershipEffective partnership

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Steps in the Systems Development Process

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Systems Development Life CycleSystems Development Life Cycle1.1. System identification, selection, and planningSystem identification, selection, and planning2.2. System analysisSystem analysis3.3. System designSystem design4.4. System implementationSystem implementation5.5. System maintenanceSystem maintenance

Steps in the Systems Development Process

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Phase 1: System Identification, Selection, Phase 1: System Identification, Selection, and Planningand Planning Undertake only those projects critical to Undertake only those projects critical to

mission, goals, and objectivesmission, goals, and objectives Select a development project from all possible Select a development project from all possible

projects that could be performedprojects that could be performed Different evaluation criteria used to rank Different evaluation criteria used to rank

potential projectspotential projects

Steps in the Systems Development Process

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Phase 1: System Identification, Selection, Phase 1: System Identification, Selection, and Planningand Planning Evaluation criteriaEvaluation criteria

Strategic alignmentStrategic alignment Potential benefitsPotential benefits Potential costs and resource availabilityPotential costs and resource availability Project size / durationProject size / duration Technical difficulty / risksTechnical difficulty / risks

Steps in the Systems Development Process

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Phase 2: System AnalysisPhase 2: System Analysis Collecting System RequirementsCollecting System Requirements

Requirements collectionRequirements collection• InterviewsInterviews

• QuestionnairesQuestionnaires

• ObservationsObservations

• Document analysisDocument analysisCritical Success Factors (CSF)Critical Success Factors (CSF)Joint Application Design (JAD)Joint Application Design (JAD)

Steps in the Systems Development Process

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Phase 2: System AnalysisPhase 2: System Analysis Modeling Organizational DataModeling Organizational Data

Entity Relationship Diagram (ERD)Entity Relationship Diagram (ERD) Modeling Organizational Processes and LogicModeling Organizational Processes and Logic

Data flowsData flows Processing logicProcessing logic

Steps in the Systems Development Process

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Phase 3: System DesignPhase 3: System Design Designing forms and reportsDesigning forms and reports Designing interfaces and dialoguesDesigning interfaces and dialogues Designing databases and filesDesigning databases and files Designing processing and logicDesigning processing and logic

Steps in the Systems Development Process

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Phase 4: System ImplementationPhase 4: System Implementation Software programmingSoftware programming Software testingSoftware testing

DevelopmentalDevelopmental AlphaAlpha BetaBeta

Steps in the Systems Development Process

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Phase 4: System ImplementationPhase 4: System Implementation System conversionSystem conversion

ParallelParallel DirectDirect PhasedPhased PilotPilot

System documentation, training, and supportSystem documentation, training, and support User and reference guidesUser and reference guides Training and tutorialsTraining and tutorials Installation procedures and troubleshooting guidesInstallation procedures and troubleshooting guides

Steps in the Systems Development Process

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Phase 5: System MaintenancePhase 5: System Maintenance Maintenance process steps:Maintenance process steps:

1.1. Obtain maintenance requestObtain maintenance request

2.2. Transform requests into changesTransform requests into changes

3.3. Design changesDesign changes

4.4. Implement changesImplement changes

Steps in the Systems Development Process

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Phase 5: System MaintenancePhase 5: System Maintenance Maintenance types:Maintenance types:

1.1. Corrective maintenanceCorrective maintenance

2.2. Adaptive maintenanceAdaptive maintenance

3.3. Perfective maintenancePerfective maintenance

4.4. Preventive maintenancePreventive maintenance

Steps in the Systems Development Process

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PrototypingPrototyping Rapid Application Development (RAD)Rapid Application Development (RAD) Object-Oriented Analysis & Design (OOA&D)Object-Oriented Analysis & Design (OOA&D)

Other Approaches to Designing and Building Systems

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1.1. Limited IS staffLimited IS staff

2.2. IS staff has limited skill setIS staff has limited skill set

3.3. IS staff is overworkedIS staff is overworked

4.4. Problems with performance of IS staffProblems with performance of IS staff

Need for Alternatives to Building Systems Yourself

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External acquisitionExternal acquisition1.1. System identification, selection and planningSystem identification, selection and planning

2.2. Systems analysisSystems analysis

3.3. Development of a request for proposal (RFP)Development of a request for proposal (RFP)

4.4. Proposal evaluationProposal evaluation

5.5. Vendor selectionVendor selection

Common Alternatives to In-house Systems Development

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Outsourcing Outsourcing – – the practice of turning over the practice of turning over responsibility of some to all of an organization’s responsibility of some to all of an organization’s information systems development and information systems development and operations to an outside firmoperations to an outside firm

Common Alternatives to In-house Systems Development

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Why Outsource?Why Outsource? Cost and quality concernsCost and quality concerns Problems in IS performanceProblems in IS performance Supplier pressuresSupplier pressures Simplifying, downsizing, and reengineeringSimplifying, downsizing, and reengineering Financial factorsFinancial factors Organizational cultureOrganizational culture Internal irritantsInternal irritants

Common Alternatives to In-house Systems Development

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Managing the IS outsourcing relationshipManaging the IS outsourcing relationship Strong CIO oversightStrong CIO oversight Measurement of milestones, costs, and Measurement of milestones, costs, and

benefitsbenefits Customer relationship managementCustomer relationship management

Not all outsourcing relationships are the sameNot all outsourcing relationships are the same Basic relationshipBasic relationship Preferred relationshipPreferred relationship Strategic relationshipStrategic relationship

Common Alternatives to In-house Systems Development

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End-user developmentEnd-user development Benefits of end-user developmentBenefits of end-user development Encouraging end-user developmentEncouraging end-user development End-user development pitfallsEnd-user development pitfalls

Common Alternatives to In-house Systems Development