Information Systems Development Chapter 10 Information Systems Development

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Study Questions Q1: What is systems development? Q2: Why is systems development difficult and risky? Q3: What are the five phases of the SDLC? Q4: How is system definition accomplished? Q5: What is the users’ role in the requirements phase? Q6: How are the five components designed? Q7: How is an information system implemented? Q8: What are the tasks for system maintenance? Q9: What are some of the problems with the SDLC? Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Q1: What Is Systems Development? AKA. - systems analysis and design (SAD) Process of creating and maintaining information systems that involves all five IS components Hardware, Software, Data, Procedures, People Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Q1: What Is Systems Development? (cont’d) SAD requires more than programming and technical expertise, it requires: Establishing system goals Setting up project Determining requirements Business knowledge and management skill Human relations skills Technical skills Data modeling Ability to interview users Designing procedures Understanding group dynamics Developing job descriptions, staffing, training Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Q2: Why Is Systems Development Difficult and Risky? Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Q2: Why Is Systems Development Difficult and Risky? (cont’d) Diseconomies of scale Brooks’s Law “Adding more people to a project makes the project later.” Some tasks simply can’t be speeded up Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Is It Really So Bleak? Systems Development Life Cycle is a structured approach to SAD and Project Management. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Q3: What Are the Five Phases of the SDLC? Systems definition Feasibility Study Management’s statement of objective and goals for new system (Cost and Benefit Analysis) Requirements analysis (What?) Business Requirements Document Identify features and functions Component design (How?) System Architecture Hardware, Software, Network Based on approved user requirements Implementation Operational System Purchase, build, test, and convert to new system System maintenance System Improvements Repair, add new features, maintain Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Phases in the SDLC Key Feature – Management Reviews Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Q4: How Is System Definition Accomplished? Team of users and IT professionals assigned to assess feasibility. a.) Define system goals for new system Facilitate competitive strategy Improve decision making b.) Define scope for new system Defined by customers, users involved, business processes impacted, physical location, functional area What is included? What is excluded? Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Assess Feasibility Dimensions of feasibility Cost feasibility Approximated - consider cost of previous projects Purpose: eliminate infeasible ideas early Schedule feasibility Is timeframe acceptable Technical feasibility Is technology available to meet needs? Organizational feasibility Fits with customs, culture, charter, legal requirements of organization Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Q5: What Is the Users’ Role in the Requirements Phase? Develop and approve Business requirements (Define “What” is to be accomplished?) Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Q6: How Are the Five Components Designed? Hardware design Purchase it, lease it, or lease time from hosting service Software design Off-the-shelf or custom developed Database design Convert data model to a database design (E-R-D) Procedure design Users and operations personnel Normal, backup, failure recovery procedures Design of job descriptions (People) Duties and responsibilities for new jobs and revised jobs coordinated with human resources policies Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Q7: How Is an Information System Implemented? System testing Test plan (User actions and errors) Product Quality Assurance (PQA) IT specialist constructs test plan with advice and assistance of users Users Develop test plans and test cases Final say on whether system is “production ready” Beta testing Last stage of testing Complete, fully functioning Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Design and Implementation for the Five IS Components Figure 10-9 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall System Conversion Conversion options Pilot Implement entire system in limited portion of business Use system for selected customers Advantage: limits exposure to business if system fails Phased System installed in phases or modules Each piece is installed and tested Parallel Complete new and old systems run simultaneously Very safe, but expensive Plunge (or direct) High risk if new system fails, no old system to fall back on Only used if new system is not vital to company operation Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Q8: What Are the Tasks for System Maintenance? System problems priorities (Business vs. Technical) Patch (HW/SW) Applied to all copies of a software product Patches fix security and other critical problems Usually bundled as “service packs” Shipping software with defects is software industry practice Business Requirement Changes Acquisitions Divestitures Product Introductions/Eliminations Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Q9: What Are Some of the Problems with the SDLC? SDLC Waterfall Sequence of non-repeated phases It rarely works smoothly, causing development team to go back and forth, raising costs and delaying project Requirements documentation difficulty Business requirements sometimes change making documented requirements incomplete or obsolete “Analysis paralysis” – projects spend so much time on documentation that it hampers progress Scheduling and budgeting difficulties Time and cost estimates for large project are usually way off People who make initial estimates know little about how long it will take or cost Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Active Review Q1: What is systems development? Q2: Why is systems development difficult and risky? Q3: What are the five phases of the SDLC? Q4: How is systems definition accomplished? Q5: What is the users’ role in the requirements phase? Q6: How are the five components designed? Q7: How is an information system implemented? Q8: What are the tasks for system maintenance? Q9: What are some of the problems with the SDLC? Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Information Systems Management Chapter 11 Information Systems Management

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Study Questions Q1: Why do you need to know about the IT department? Q2: What are the responsibilities of the IT department? Q3: How is the IT department organized? Q4: What IS-related job positions exist? Q5: How do organizations decide how much to spend on IT? Q6: What are your IS rights and responsibilities? Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Q1: Why Do You Need to Know About the IT Department? Need to understand responsibilities and duties of IT department To obtain services, equipment, and systems needed Need to know about functions of IT department to be IS-savvy manager To better understand how to integrate disparate companies or offices To raise IT issues early in merger or acquisition To better understand needs of IT department in supporting new initiatives Manager of small company needs to ensure functions of IT department are performed Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Q2: What Are the Responsibilities of the IT Department? Plan for information systems and IT infrastructure Develop and adapt information systems Maintain Information Systems infrastructures Protect infrastructure and data from threats Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Q3: How Is the IT Department Organized? Chief Information Officer (CIO) Principal manager – Company Officer Technology office Head: Chief Technology Officer (CTO) Operations Manages computing infrastructure Development Creating new information systems Maintains existing system Outsourcing relations Data administration staff functions Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Typical Senior-Level Reporting Relationships Figure 11-2 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Q4: What IS-Related Job Positions Exist? Systems analyst Programmer PQA test engineer Technical writer User support representative Computer technician Network administrator Consultant Salesperson Small-scale project manager Large-scale project manager Database administrator CTO CIO Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Q5: How Do Organizations Decide How Much to Spend on IT? Analyze costs and benefits of system (ROI) Estimate dollar costs Value tangible benefits Lifetime value of customers lost by not having support system Value intangible benefits Value of email system Compute costs and benefits to determine ROI Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Q6: What Are Your IS Rights and Responsibilities? Users’ Rights include: Resources to perform work proficiently Reliable network and Internet services Secure computing environment Participating in requirements definition for applications Reliable systems development and maintenance Prompt attention to problems Effective training Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Q6: What Are Your IS Rights and Responsibilities? (cont’d) Users’ Responsibilities include: Learning basic computer skills and techniques Following security and backup procedures Using computer resources in a manner consistent with employer’s policies Making no unauthorized hardware modifications Installing only authorized programs Installing computer patches and fixes Treating information systems workers professionally Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Active Review Q1: Why do you need to know about the IT department? Q2: What are the responsibilities of the IT department? Q3: How is the IT department organized? Q4: What IS-related job positions exist? Q5: How do organizations decide how much to spend on IT? Q6: What are your IS rights and responsibilities? Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Guide: Jumping Aboard the Bulldozer Recent media reports blame overseas outsourcing on U.S. job loss Real culprit is increased productivity because of information technology “Creative destruction—Cleansers of the free market” (Joseph Schumpeter) What should you do? Build your skill set Adapt to Change “The only thing that is constant is change…” Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Extension 20 Outsourcing

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Study Questions Q1: What is outsourcing? Q2: Why do organizations outsource IS and IT services? Q3: What are popular outsourcing alternatives? Q4: What are the risks of outsourcing? Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Q1: What Is Outsourcing? Process of hiring another organization to perform services Any value chain business activity can be outsourced Vendor can be domestic or international Overseas outsourcing for: Cheaper labor Taking advantage of time differences “Your back room is someone else’s front room.” (Peter Drucker)

Q2: Why Do Organizations Outsource IS and IT? Management advantages Easy way to gain expertise Avoid management problems Save management time and attention Cost reduction Part-time services and economies of scale Risk reduction Caps financial risk, budget stability (fixed cost contracts) Ensures level of quality Reduces implementation risk (Risk shifts to vendor) “Outsource non-core/distinctive competencies”

Q3: What Are Popular Outsourcing Alternatives? Acquisition and operation of computer hardware Acquiring licensed software Software as a Service (SaaS) Entire information system Application outsourcing Web storefront or Web Hosting Business function outsourcing Accounting, Human Resources, etc. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

IS/IT Outsourcing Alternatives Figure CE20-2 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Q4: What Are the Risks of Outsourcing?

Active Review Q1: What is outsourcing? Q2: Why do organizations outsource IS and IT services? Q3: What are popular outsourcing alternatives? Q4: What are the risks of outsourcing?