1. Copyright © 2015 Pearson Education, Inc. AIS Development Strategies Chapter 21 21-1

2. Copyright © 2015 Pearson Education, Inc. Learning Objectives Describe how organizations purchase application software, vendor services, and hardware Explain how information system departments develop custom software Explain how end users develop, use, and control computer-based information systems Explain why organizations outsource their information systems, and evaluate the benefits and risks of this strategy Explain the principles and challenges of business process management Describe how prototypes are used to develop an AIS, and discuss the advantages and disadvantages of doing so Explain what computer-aided software engineering is and how it is used in systems development 21-2

3. Copyright © 2015 Pearson Education, Inc. How to Obtain an AIS Purchase Develop in-house Outsource to outside organization 21-3

4. Copyright © 2015 Pearson Education, Inc. Purchasing Select a vendor (from referrals, trade shows, etc.) Request for proposal (RFP) that meets needs Evaluate proposals ▫Top vendors invited to give demonstrations on how their system will fit your needs Make a final selection based upon your criteria 21-4

5. Copyright © 2015 Pearson Education, Inc. Develop Software In-House Advantages ▫Provides a significant competitive advantage Risks ▫Requires significant amounts of time ▫Complexity of the system ▫Poor requirements defined ▫Insufficient planning ▫Inadequate communication and cooperation ▫Lack of qualified staff ▫Poor top management support 21-5

6. Copyright © 2015 Pearson Education, Inc. End-User Computing AdvantagesDisadvantages Allows for end-users to create, control, and implement simple systems More likely to meet user needs Saves time Frees up system resources Easy to use and understand Lack of testing of application and possible calculation errors Inefficient systems Poorly controlled Poorly documented System incompatibilities Duplication of data Increase costs in later years with upgrades 21-6

7. Copyright © 2015 Pearson Education, Inc. Outsourcing AdvantagesDisadvantage Allows companies to concentrate on core competencies Asset utilization Access to greater expertise and better technology Lower costs by standardizing user applications and splitting development and maintenance costs between projects Less development time Elimination of peaks-and- valleys usage Facilitates downsizing Inflexibility Loss of control Reduced competitive advantage Locked-in system Unfulfilled goals Poor service Increased risk 21-7

8. Copyright © 2015 Pearson Education, Inc. Business Process Management Systems Automate and facilitate business process improvements using: ▫Process engine to model and execute applications and business rules ▫Business analytics to identify issues, trends, and opportunities ▫Collaboration tools to remove communication barriers ▫Content manager to store electronic documents and images 21-8

9. Copyright © 2015 Pearson Education, Inc. Prototyping AdvantagesDisadvantages Results in well-defined user needs Higher user satisfaction and involvement Faster development time Fewer errors Opportunities to suggest changes Less costly Requires significant user time Resource efficiency may not be achieved Inadequate testing and documentation Negative behavioral reactions Continuous development of iterations leaves a feeling of no project completion 21-9

10. Copyright © 2015 Pearson Education, Inc. Computer-Aided Software Engineering (CASE) AdvantagesDisadvantages Improved productivity Improved program quality Cost savings Improved control procedures Simplified documentation Incompatibility with other systems Unmet expectations 21-10

11. Copyright © 2015 Pearson Education, Inc. Key Terms Canned software Turnkey systems Application service provider (ASP) Request for proposal (RFP) Benchmark problem Point scoring Requirement costing Custom software End-user computing (EUC) Help desk Outsourcing Business process reengineering (BPR) Business process management (BPM) Business Process Management System (BPMS) Prototyping Operational prototype Nonoperational (throwaway) prototype Computer-aided software (or systems) engineering (CASE) 21-11