1. McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 6 Systems Development: Phases, Tools, and Techniques

2. 6-2 INTRODUCTION  When developing a new system, you have 3 “who” choices… 1. Insourcing – IT specialists inside your organization 2. Selfsourcing – do-it-yourself approach many end users take with little or no help from IT specialists 3. Outsourcing – a third-party organization (i.e., let someone do the work and pay them for it)

3. 6-3 INSOURCING AND THE SDLC  Systems development life cycle (SDLC) - a structured step-by-step approach for developing information systems  7 distinct phases  Also called a waterfall methodology, an approach in which each phase of the SDLC is followed by another, from planning through implementation

4. 6-4 SDLC Phases & Major Activities

5. 6-5 COMPONENT-BASED DEVELOPMENT  The SDLC focuses only on the project at hand  Component-based development (CBD) – focuses on building small self-contained blocks of code (components) that can be reused across a variety of applications 1. Using already-developed components 2. Building new components as needed

6. 6-6 RAD and Extreme Programming RAD Extreme Programming

7. 6-7 SELFSOURCING  Selfsourcing (end-user development) – the development and support of IT systems by end users with little or no help from IT specialists  Do-it-yourself systems development approach  Can relieve IT specialists of the burden of developing many smaller systems

8. 6-8 Selfsourcing Approach

9. 6-9 PROTOTYPING  Prototype – a model of a proposed product, service, or system  Prototyping - the process of building a model that demonstrates the features of a proposed product, service, or system  Proof-of-concept prototype - prove the technical feasibility of a proposed system  Selling prototype - used to convince people of the worth of a proposed system

10. 6-10 The Prototyping Process

11. 6-11 OUTSOURCING  Outsourcing – the delegation of specified work to a third party for a specified length of time, at a specified cost, and at a specified level of service  The third “who” option of systems development, after insourcing and selfsourcing

12. 6-12 Outsourcing Options

13. 6-13 Outsourcing Process When outsourcing, you’ll develop two vitally important documents – a request for proposal and a service level agreement

14. 6-14 Outsourcing – RFP  Request for proposal (RFP) – formal document that describes in excruciating detail your logical requirements for a proposed system and invites outsourcing organizations to submit bids for its development  In outsourcing, you must tell another organization what you want developed; you do that with an RFP  Therefore, the RFP must be very detailed  Some RFPs can take years to develop

15. 6-15 Outsourcing Options  There are three different forms of outsourcing: 1. Onshore outsourcing - the process of engaging another company within the same country for services 2. Nearshore outsourcing - contracting an outsourcing arrangement with a company in a nearby country 3. Offshore outsourcing - contracting with a company that is geographically far away