Chapter 8 Information Systems Development & Acquisition Information Systems Today Leonard Jessup & Joseph Valacich © 2003 Prentice Hall, Inc.

© 2003 Prentice Hall, Inc.

Chapter 8 Objectives Understand the process of IS management Understand the system development life cycle (SDLC) Understand alternative approaches to system development Understand in-house system development Understand external acquisition, outsourcing, and end-user development © 2003 Prentice Hall, Inc.

The Need for Structured Systems Development Systems analysis and design – the process of designing, building, and maintaining information systems Systems analyst Blending technical and managerial expertise © 2003 Prentice Hall, Inc.

The Need for Structured Systems Development Evolution of IS development From “art” to a “discipline” Standardized development methods Software engineering © 2003 Prentice Hall, Inc.

The Need for Structured Systems Development Options for Obtaining Information Systems Build your own Buy a prepackaged system Outsource development to a 3rd party End user development © 2003 Prentice Hall, Inc.

The Need for Structured Systems Development Information Systems Development in Action Breaking large complex problems into manageable pieces Decomposing large, complex problems © 2003 Prentice Hall, Inc.

The Need for Structured Systems Development System Construction Process Identify a large IT problem to solve Break the large problem into several smaller, more manageable pieces Translate each “piece” (small problem) into computer programs Piece together each program into an overall comprehensive IS that solves the problem © 2003 Prentice Hall, Inc.

The Need for Structured Systems Development The Role of Users in the Systems Development Process Knowledgeable of needs Effective partnership © 2003 Prentice Hall, Inc.

Steps in the Systems Development Process © 2003 Prentice Hall, Inc.

Steps in the Systems Development Process Systems Development Life Cycle System identification, selection, and planning System analysis System design System implementation System maintenance © 2003 Prentice Hall, Inc.

Steps in the Systems Development Process Phase 1: System Identification, Selection, and Planning Undertake only those projects critical to mission, goals, and objectives Select a development project from all possible projects that could be performed Different evaluation criteria used to rank potential projects An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build. After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development. Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty. © 2003 Prentice Hall, Inc.

Steps in the Systems Development Process Phase 1: System Identification, Selection, and Planning Evaluation criteria Strategic alignment Potential benefits Potential costs and resource availability Project size / duration Technical difficulty / risks An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build. After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development. Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty. © 2003 Prentice Hall, Inc.

Steps in the Systems Development Process Phase 2: System Analysis Collecting System Requirements Requirements collection Interviews Questionnaires Observations Document analysis Critical Success Factors (CSF) Joint Application Design (JAD) An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build. After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development. Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty. © 2003 Prentice Hall, Inc.

Steps in the Systems Development Process Phase 2: System Analysis Modeling Organizational Data Entity Relationship Diagram (ERD) Modeling Organizational Processes and Logic Data flows Processing logic An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build. After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development. Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty. © 2003 Prentice Hall, Inc.

Steps in the Systems Development Process Phase 3: System Design Designing forms and reports Designing interfaces and dialogues Designing databases and files Designing processing and logic An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build. After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development. Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty. © 2003 Prentice Hall, Inc.

Steps in the Systems Development Process Phase 4: System Implementation Software programming Software testing Developmental Alpha Beta An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build. After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development. Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty. © 2003 Prentice Hall, Inc.

Steps in the Systems Development Process Phase 4: System Implementation System conversion Parallel Direct Phased Pilot System documentation, training, and support User and reference guides Training and tutorials Installation procedures and troubleshooting guides An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build. After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development. Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty. © 2003 Prentice Hall, Inc.

© 2003 Prentice Hall, Inc.

Steps in the Systems Development Process Phase 5: System Maintenance Maintenance process steps: Obtain maintenance request Transform requests into changes Design changes Implement changes An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build. After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development. Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty. © 2003 Prentice Hall, Inc.

Steps in the Systems Development Process Phase 5: System Maintenance Maintenance types: Corrective maintenance Adaptive maintenance Perfective maintenance Preventive maintenance An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build. After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development. Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty. © 2003 Prentice Hall, Inc.

© 2003 Prentice Hall, Inc.

Other Approaches to Designing and Building Systems Prototyping Rapid Application Development (RAD) Object-Oriented Analysis & Design (OOA&D) An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build. After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development. Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty. © 2003 Prentice Hall, Inc.

Need for Alternatives to Building Systems Yourself Limited IS staff IS staff has limited skill set IS staff is overworked Problems with performance of IS staff An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build. After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development. Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty. © 2003 Prentice Hall, Inc.

Common Alternatives to In-house Systems Development External acquisition System identification, selection and planning Systems analysis Development of a request for proposal (RFP) Proposal evaluation Vendor selection An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build. After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development. Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty. © 2003 Prentice Hall, Inc.

Common Alternatives to In-house Systems Development Outsourcing – the practice of turning over responsibility of some to all of an organization’s information systems development and operations to an outside firm An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build. After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development. Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty. © 2003 Prentice Hall, Inc.

Common Alternatives to In-house Systems Development Why Outsource? Cost and quality concerns Problems in IS performance Supplier pressures Simplifying, downsizing, and reengineering Financial factors Organizational culture Internal irritants An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build. After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development. Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty. © 2003 Prentice Hall, Inc.

Common Alternatives to In-house Systems Development Managing the IS outsourcing relationship Strong CIO oversight Measurement of milestones, costs, and benefits Customer relationship management Not all outsourcing relationships are the same Basic relationship Preferred relationship Strategic relationship An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build. After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development. Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty. © 2003 Prentice Hall, Inc.

Common Alternatives to In-house Systems Development End-user development Benefits of end-user development Encouraging end-user development End-user development pitfalls An organization can only work on only a limited number of projects at a given time due to limited resources so care must be taken when selecting the projects to build. After all possible projects are identified, those deemed most likely to yield significant organizational benefits, given available resources, are selected for subsequent development. Some possible evaluation criteria for ranking potential projects are: strategic alignment, potential benefits, potential costs and resource availability, project size and duration, and technical difficulty. © 2003 Prentice Hall, Inc.