1. AIS Development Strategies

2. Lecture 4-2 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart Introduction This lecture discusses three ways to obtain a new information system: purchasing prewritten software, developing software in house, and hiring an outside company (outsourcing). It also presents ways of speeding up or improving the development process.

3. Lecture 4-3 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart Systems Implementation Conversion: There are four conversion approaches. 1. Direct conversion 2. Parallel conversion 3. Phase-in conversion 4. Pilot conversion

4. Lecture 4-4 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart Systems Implementation Old system New system Direct Conversion Method

5. Lecture 4-5 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart Systems Implementation Old system New system Parallel Conversion Method

6. Lecture 4-6 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart Systems Implementation Phase-in Conversion Method Old system New system

7. Lecture 4-7 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart Systems Implementation Pilot Conversion Method 12 3 312 3 3 2 2 1 1 Old New OldNew

8. Lecture 4-8 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart Ways to obtain an AIS Purchase (Pre-written Build (Customized) Lease (Pre-written) Canned Software Turnkey (H/W & S/W) In-house Developed Out-sourced (External) Application Service Provider (ASP) “Modified” Canned Software I.S. Developed End-user Developed (EUD)

9. Lecture 4-9 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart Purchase Software Canned software is written by computer manufacturers or software development companies. It is sold on the open market to a broad range of users with similar requirements. Turnkey systems are a combination of software and hardware sold as a package.

10. Lecture 4-10 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart Purchasing Software and The SDLC Companies that buy rather than develop AIS software still go through the systems development life cycle (SDLC). 1. Systems analysis 2. Conceptual design 3. Physical design 4. Implementation and conversion 5. Operation and maintenance

11. The Systems Acquisition Process Will package meet needs ? Develop software internally Send RFP for hardware, if necessary Evaluate proposal No Yes Investigate software packages Can package be modified ? Send RFP for software and hardware No Yes Select best combination

12. Lecture 4-12 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart Development by In-House IS Department In the past, most organizations had their information system departments develop custom software, because canned software that fit their specific needs was not available. Developing custom software is difficult and error-prone. It also consumes a great deal of time and resources.

13. Lecture 4-13 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart Development by In-House IS Department Custom software is usually developed and written in house. Alternatively, organizations may engage an outside company to develop a package or assemble it from their inventory of program modules. When contracting with an outside organization, a company should maintain control over the development process.

14. Lecture 4-14 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart Development by In-House IS Department What guidelines are recommended? – carefully select a developer – sign a contract – plan and monitor each step – maintain effective communication – control all costs

15. Lecture 4-15 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart End-User-Developed Software End-user computing (EUC) is the hands-on development, use, and control of computer- based information systems by users. When end users began to meet their initial information needs two things happened: 1 Users realized computers could be used to meet more and more information needs. 2 Increased access to data created many new uses and needs for information.

16. Lecture 4-16 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart End-User-Developed Software What are some examples of end-user development uses? – retrieving information from company databases to produce simple reports or to answer one-time queries – performing “what if” sensitivity or statistical analyses – developing applications using prewritten software (spreadsheet or database system)

17. End-User-Developed Software Benefits of End-User Computing User creation, control, and implementation Systems that meet user needs Timeliness Freeing up IS resources Versatility and ease of use

18. Lecture 4-18 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart End-User-Developed Software Risks of End-User Computing Logic and development errors Inadequately tested applications Inefficient systems Poorly controlled and documented systems Systems incompatibility Duplication of systems Increased costs

19. Lecture 4-19 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart Outsource the System What is outsourcing? It is hiring an outside company to handle all or part of an organization’s data processing activities. In a mainframe outsourcing agreement, the outsourcers buy their client’s computers and hire all or most of the client’s employees.

20. Lecture 4-20 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart Outsource the System In a client/server or PC outsourcing agreement, an organization outsources a particular service, a segment of its business, a particular function, or PC support.

21. Lecture 4-21 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart Outsource the System Benefits of Outsourcing A business solution Asset utilization Access to greater expertise and more advanced technology Lower costs Improved development time Elimination of peaks and valleys usage Facilitation of downsizing

22. Lecture 4-22 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart Outsource the System Risks of Outsourcing Inflexibility Loss of control Reduced competitive advantage Locked-in system Unfulfilled goals

23. Lecture 4-23 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart ASPs An Application Service Provider (ASP) is a company that provides access to and use of application programs via the Internet. The ASP owns and hosts the software; the contracting organization accesses the software via the Internet.

24. Lecture 4-24 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart Factors to Consider When Evaluating ASPs Advantages Lower costs Automatic upgrading to current version of software Need fewer in-house IT staff Reduced hardware needs Flexibility Knowledge support Security and privacy of data Disadvantages Viability of ASP Security and privacy of data Availability and reliability of service Inadequate support or poor responsiveness to problems Standard software that may not meet all customized needs

25. Lecture 4-25 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart Business Processes Reengineering What is business process reengineering (BPR)? It is the thorough analysis and complete redesign of business process and information systems to achieve performance improvements. It is a process that challenges traditional organizational values and cultures associated with underperformance.

26. Lecture 4-26 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart Prototyping What is prototyping? – an approach to systems design in which a simplified working model of a system is developed. A prototype, or “first draft,” is quickly and inexpensively built and provided to users for testing.

27. Lecture 4-27 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart Prototyping What four steps are involved in developing a prototype? 1. Identify basic systems requirements. 2. Develop an initial prototype that meets the agreed-on requirements. 3. Users identify changes, developers make changes, and the system is turned over to the user. 4. Use the system approved by the users.

28. Lecture 4-28 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart Prototyping Advantages of Prototyping Better definition of user needs Higher user involvement and satisfaction Faster development time Fewer errors More opportunity for changes Less costly

29. Lecture 4-29 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart End-User-Developed Software Disadvantages of Prototyping Significant user time Less efficient use of system resources Incomplete systems development Inadequately tested and documented systems Negative behavioral reactions Unending development

30. Lecture 4-30 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart Computer-Aided Software Engineering (CASE) CASE is an integrated package of computer-based tools that automate important aspects of the software development process. CASE tools are used to plan, analyze, design, program, and maintain an information system. They are also used to enhance the efforts of managers, users, and programmers in understanding information needs.

31. Lecture 4-31 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart Computer-Aided Software Engineering (CASE) CASE tools do not replace skilled designers; instead they provide a host of self-integrated tools that give developers effective support for all SDLC phases. CASE software typically has tools for strategic planning, project and system management, database design, screen and report layout, and automatic code generation.

32. Lecture 4-32 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart Computer-Aided Software Engineering (CASE) Advantages of CASE Technology Improved productivity Improved program quality Cost savings Improved control procedures Simplified documentation

33. Lecture 4-33 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart Computer-Aided Software Engineering (CASE) Disadvantages of CASE Technology Incompatibility Unmet expectations

34. Lecture 4-34 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart End of Lecture