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

2. © 2003 Prentice Hall, Inc.

3. 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.

4. 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.

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

6. 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.

7. 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.

8. 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.

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

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

11. 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.

12. 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.

13. 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.

14. 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.

15. 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.

16. 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.

17. 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.

18. 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.

19. © 2003 Prentice Hall, Inc.

20. 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.

21. 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.

22. © 2003 Prentice Hall, Inc.

23. 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.

24. 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.

25. 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.

26. 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.

27. 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.

28. 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.

29. 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.