1. System Analysis and Design
- Mr. Ahmad Al-Ghoul
Hi students how are you doing
This is the nineteenth sequence from the analysis chapter
In this sequence and the next three, we will describes the remaining activities in the systems analysis phase, which include evolution of alternative solutions, preparation of the system requirements document, and presentation to management

2. System Analysis and Design System Analysis
Learning Objectives
Describe software trends, including the concept of software as a service
Explain software acquisition alternatives, including traditional versus Web-based software development strategies
Describe software outsourcing options
Explain advantages and disadvantages of developing software in-house versus other alternatives
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System Analysis and Design System Analysis

3. Development Strategies Overview
Selecting the best development path is an important decision that requires companies to consider three key topics
The impact of the Internet
Software outsourcing options
In-house software development alternatives
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System Analysis and Design System Analysis

4. The Impact of the Internet
The Internet has triggered enormous changes in business methods and operations, and software acquisition is no exception
The Software and Information Industry Association (SIIA) is an industry group that focuses on the digital economy
SIIA believes that the concept of software as a service is redefining the way that companies develop and deploy their information systems
Web-based services remove the responsibility for installation, maintenance, and upgrades from a company’s in house staff
The Changing Software Marketplace
In the traditional model, software vendors develop and sell application packages to customers
In addition to traditional vendors, the marketplace now includes many forms of outsourcing, including application service providers and firms that offer Internet business services
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System Analysis and Design System Analysis

5. The Impact of the Internet on Systems Development
As analyst, you must consider whether development will take place in a web-centric framework, or in traditional environment
the web becomes an integral part of the application, rather than just a communication channel
Let’s consider the differences between traditional and web-based systems
Traditional development
System design is influenced by compatibility issues, including existing hardware and software platforms and legacy systems
Systems are designed to run on local and wide-area company networks
Web-based features are treated as enhancements rather than core elements of the design
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System Analysis and Design System Analysis

6. The Impact of the Internet on Systems Development
Traditional development
Development follows one of three main paths
In-house development
Purchase of a software package
Use of outside consultant
Many applications require substantial desktop computing power and resources
Security issues are less complex than with Web-based systems, because the system operates on a private telecommunication network, rather than internet
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System Analysis and Design System Analysis

7. The Impact of the Internet on Systems Development
Web-based development
Systems are developed and delivered in an Internet-based framework such as .NET or WebSphere
Internet-based development treats the Web as the platform, rather than just a communication channel
Web-based systems are easily scalable, and can run on multiple hardware environment
Web-based software treats the software application as a service that is less dependent on desktop computing power and resources
Limit in –house involvement to minimum, and have the vendor install, configure, and maintain the system
Web-based software usually requires additional layers, called middleware, to communicate with existing software and legacy systems
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System Analysis and Design System Analysis

8. System Analysis and Design System Analysis
Outsourcing
Outsourcing
Is the transfer of information systems development, operation, or maintenance to an outside firm that provides these services, for a fee
Can refer to relatively minor programming tasks, the rental of software from a service provider, the outsourcing of a basic business process (often called business process outsourcing, or BPO), or the handling of a company’s entire IT function
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System Analysis and Design System Analysis

9. System Analysis and Design System Analysis
Outsourcing
A firm that offers outsourcing solutions is called a service provider
Application service providers (ASP)
ASP is a firm that delivers a software application, or access to an application
ASP rents commercially available software such as databases and accounting packages
ASPs design, develop, implement, or maintain the package
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System Analysis and Design System Analysis

10. System Analysis and Design System Analysis
Outsourcing
Outsourcing issues and concerns
Mission-critical systems should be out-sourced only if the result is a cost-attractive, reliable, business solution that fits the company’s long-term business strategy
Outsourcing raises issues such as control, culture, communication
A company must plan outsourcing carefully issues relating to insurance, potential liability, licensing and information ownership, warranties, and disaster recovery
Outsourcing can be especially attractive to a company whose volume fluctuates widely, such as a defense contractor
Risks include possibly
Losing confidential information
Losing control over future development
Losing learning opportunities
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System Analysis and Design System Analysis

11. System Analysis and Design System Analysis
Outsourcing
Outsourcing guidelines
Keep lines of communication open between you and your outsource
Define and stabilize requirements before signing a contract
View the outsourcing relationship as a partnership
Select the vendor, or service provider carefully
Assign a person to manage the relationship with the outsource
Don’t outsource what you don’t understand
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System Analysis and Design System Analysis

12. In-House Software Development Options
A company can choose to develop its own systems, or purchase, possibly customize, and implement a software package
The most important consideration is total cost of ownership (TCO)
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System Analysis and Design System Analysis

13. In-House Software Development Options
Make or Buy Decision
The choice between developing versus purchasing software often is called a make or buy, or build or buy decision
The company’s IT department makes, builds, and develops in-house software
Companies that develop software for sale are called software vendors
A firm that enhances a commercial package by adding custom features and configuring it for a particular industry is called a value-added reseller (VAR)
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System Analysis and Design System Analysis

14. In-House Software Development Options
Software packages are available for every type of business activity
Horizontal application: a software package that can be used by many different types of organizations, like an accounting package
Vertical application: a software package developed to handle information requirements for a specific type of business, like collage, banks, hospitals, real state, and airlines
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System Analysis and Design System Analysis

15. In-House Software Development Options
Developing a system, buying a software package, or customizing a software package – each choice from above has advantages, disadvantages, and cost consideration
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System Analysis and Design System Analysis

16. In-House Software Development Options
Developing Software In-House
Companies choose in-house development to:
Satisfy unique business requirements
No commercially available software package can meet their unique business requirements
Minimize changes in business procedures and policies
Installing a new software package almost always require changes in how a company does business; however, if the purchased package will be disruptive, it is better to develop the software in-house
Meet constraints of existing systems
if the new system must interface with an existing system, a company could develop its own software to ensure that the new system will interface with the old system
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System Analysis and Design System Analysis

17. In-House Software Development Options
Developing Software In-House
Meet constraints of existing technology
The new system must work with existing hardware and legacy systems. That could require a custom design not commercially available
Develop internal resources and capabilities
When developing the system in-house, the IT staff will understands the organization’s business functions and information support needs so they provide a competitive advantage by responding to business problems or opportunities
Satisfy unique security requirements
In some cases when security and confidently is one of the organization main issues, building in-house software might be the only choice
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System Analysis and Design System Analysis

18. In-House Software Development Options
Purchasing a Software Package
A commercially available software package might be in some cases an attractive to developing in-house software
Lower costs
Compare to software developed in-house, a software package almost always is less expensive
Requires less time to implement
The in-house developed software needs to designed, programmed, tested, and documented, when the purchased package, is already has been designed, programmed, tested, and documented
Proven reliability and performance benchmarks
If the product is popular, it almost certainly has been rated and evaluated by independent reviewers
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System Analysis and Design System Analysis

19. In-House Software Development Options
Purchasing a Software Package
Requires less technical development staff
Future upgrades provided by the vendor
Adding improvements and enhancements regularly by software vendors
Input from other companies
You can contact users in other companies to obtain their input about the package, or you might be able to try the package before making your final decision
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System Analysis and Design System Analysis

20. In-House Software Development Options
Customizing a Software Package
If the standard version of a software product does not satisfy a company’s requirements, the firm can consider adapting the package to meet its needs.
Three ways to customize a software package are:
You can purchase a basic package that vendors will customize to suit your needs
You can negotiate directly with the software vendor to make enhancements to meet your needs by paying for the changes
You can purchase the package and make your own modifications, if this is permissible under the terms of the software license. A disadvantage of this approach is that system analysts and programmers might be unfamiliar with the software.
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System Analysis and Design System Analysis

21. In-House Software Development Options
Customizing a Software Package
Disadvantages
More cost than purchasing the standard package
The customized package will take longer time to obtain than the standard package
Vendors regularly upgrade their standard software packages, they might not upgrade a customized version
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System Analysis and Design System Analysis

22. System Analysis and Design System Analysis
Sequence Summary
An important trend that views software as a service, rather than a product, has created new software acquisition options
Systems analysts must consider Web-based development environments, and various outsourcing options, including application service providers and internet business services
If a company choose to handle its own software development needs, it can create in-house systems, or purchase and possibly customize commercially available software packages
Companies choose in-house development to: Satisfy unique business requirements, Minimize changes in business procedures and policies, Meet constraints of existing systems, Meet constraints of existing technology, Develop internal resources and capabilities, and Satisfy unique security requirements
A commercially available software package might be in some cases an attractive to developing in-house software for, Lower costs, Requires less time to implement, Proven reliability and performance benchmarks, Requires less technical development staff, and Future upgrades provided by the vendor
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System Analysis and Design System Analysis

23. System Analysis and Design System Analysis
Sequence Summary
In this Sequence we have
Described software trends, including the concept of software as a service
Explained software acquisition alternatives, including traditional versus Web-based software development strategies
Described software outsourcing options
Explained why companies choose to develop in-house software or buy one
Defined and distinguished between horizontal and vertical applications
Explain advantages and disadvantages of developing software in-house versus other alternatives
Described the three ways to customize a software package
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System Analysis and Design System Analysis

24. System Analysis and Design System Analysis
Reference
[1] System Analysis and Design, Sixth Edition
Authors: Gary B. Shelly, Thomas J. Cashman and Harry J. Rosenblatt ,
Publisher: SHELLY CASHMAN SEWIES.
[2] system analysis and design, sixth edition
Authors: Kenneth E. Kendall and Julie E. Kendall
Publisher: Prentice Hall
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System Analysis and Design System Analysis