8-1 Chapter 8 Information Systems Development & Acquisition

8-2 Chapter 8 Objectives Understand the process of IS management Understand the process of IS management Understand the system development life cycle (SDLC) Understand the system development life cycle (SDLC) Understand alternative approaches to system development Understand alternative approaches to system development Understand in-house system development Understand in-house system development Understand external acquisition, outsourcing, and end-user development Understand external acquisition, outsourcing, and end-user development

8-3 The Need for Structured Systems Development Systems analysis and design – the process of designing, building, and maintaining information systems Systems analysis and design – the process of designing, building, and maintaining information systems  Systems analyst  Blending technical and managerial expertise

8-4 The Need for Structured Systems Development Evolution of IS development Evolution of IS development  From “art” to a “discipline”  Standardized development methods  Software engineering

8-5 The Need for Structured Systems Development Options for Obtaining Information Systems 1.Build your own 2.Buy a prepackaged system 3.Outsource development to a 3 rd party 4.End user development

8-6 The Need for Structured Systems Development Information Systems Development in Action Information Systems Development in Action  Breaking large complex problems into manageable pieces  Decomposing large, complex problems

8-7 The Need for Structured Systems Development System Construction Process 1.Identify a large IT problem to solve 2.Break the large problem into several smaller, more manageable pieces 3.Translate each “piece” (small problem) into computer programs 4.Piece together each program into an overall comprehensive IS that solves the problem

8-8 The Need for Structured Systems Development The Role of Users in the Systems Development Process The Role of Users in the Systems Development Process  Knowledgeable of needs  Effective partnership

8-9 Steps in the Systems Development Process

8-10 Systems Development Life Cycle 1.System identification, selection, and planning 2.System analysis 3.System design 4.System implementation 5.System maintenance Steps in the Systems Development Process

8-11 Phase 1: System Identification, Selection, and Planning 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 Steps in the Systems Development Process

8-12 Phase 1: System Identification, Selection, and Planning Phase 1: System Identification, Selection, and Planning  Evaluation criteria  Strategic alignment  Potential benefits  Potential costs and resource availability  Project size / duration  Technical difficulty / risks Steps in the Systems Development Process

8-13 Phase 2: System Analysis Phase 2: System Analysis  Collecting System Requirements  Requirements collection InterviewsInterviews QuestionnairesQuestionnaires ObservationsObservations Document analysisDocument analysis  Critical Success Factors (CSF)  Joint Application Design (JAD) Steps in the Systems Development Process

8-14 Phase 2: System Analysis Phase 2: System Analysis  Modeling Organizational Data  Entity Relationship Diagram (ERD)  Modeling Organizational Processes and Logic  Data flows  Processing logic Steps in the Systems Development Process

8-15 Phase 3: System Design Phase 3: System Design  Designing forms and reports  Designing interfaces and dialogues  Designing databases and files  Designing processing and logic Steps in the Systems Development Process

8-16 Phase 4: System Implementation Phase 4: System Implementation  Software programming  Software testing  Developmental  Alpha  Beta Steps in the Systems Development Process

8-17 Phase 4: System Implementation 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 Steps in the Systems Development Process

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8-19 Phase 5: System Maintenance Phase 5: System Maintenance  Maintenance process steps: 1.Obtain maintenance request 2.Transform requests into changes 3.Design changes 4.Implement changes Steps in the Systems Development Process

8-20 Phase 5: System Maintenance Phase 5: System Maintenance  Maintenance types: 1.Corrective maintenance 2.Adaptive maintenance 3.Perfective maintenance 4.Preventive maintenance Steps in the Systems Development Process

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8-22 Prototyping Prototyping 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

Limited IS staff 2.IS staff has limited skill set 3.IS staff is overworked 4.Problems with performance of IS staff Need for Alternatives to Building Systems Yourself

8-24 External acquisition External acquisition 1. System identification, selection and planning 2. Systems analysis 3. Development of a request for proposal (RFP) 4. Proposal evaluation 5. Vendor selection Common Alternatives to In-house Systems Development

8-25 Outsourcing – the practice of turning over responsibility of some to all of an organization’s information systems development and operations to an outside firm Outsourcing – the practice of turning over responsibility of some to all of an organization’s information systems development and operations to an outside firm Common Alternatives to In-house Systems Development

8-26 Why Outsource? Why Outsource?  Cost and quality concerns  Problems in IS performance  Supplier pressures  Simplifying, downsizing, and reengineering  Financial factors  Organizational culture  Internal irritants Common Alternatives to In-house Systems Development

8-27 Managing the IS outsourcing relationship Managing the IS outsourcing relationship  Strong CIO oversight  Measurement of milestones, costs, and benefits  Customer relationship management Not all outsourcing relationships are the same Not all outsourcing relationships are the same  Basic relationship  Preferred relationship  Strategic relationship Common Alternatives to In-house Systems Development

8-28 End-user development End-user development  Benefits of end-user development  Encouraging end-user development  End-user development pitfalls Common Alternatives to In-house Systems Development