1. Information Systems Development
Chapter 10
Information Systems Development

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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?
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3. 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
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4. 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
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5. Q2: Why Is Systems Development Difficult and Risky?
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6. 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
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Is It Really So Bleak?
Systems Development Life Cycle is a structured approach to SAD and Project Management.
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8. 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
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Phases in the SDLC
Key Feature – Management Reviews
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10. 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?
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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
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12. Q5: What Is the Users’ Role in the Requirements Phase?
Develop and approve Business requirements (Define “What” is to be accomplished?)
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13. 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
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14. 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
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15. Design and Implementation for the Five IS Components
Figure 10-9
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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
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17. 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
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18. 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
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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?
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20. Information Systems Management
Chapter 11
Information Systems Management

21. 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?
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22. 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
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23. 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
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24. 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
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25. Typical Senior-Level Reporting Relationships
Figure 11-2
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26. 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
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27. 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 system
Compute costs and benefits to determine ROI
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28. 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
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29. 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
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30. 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

31. 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…”
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32. Chapter Extension 20
Outsourcing

33. 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?
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34. 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)

35. 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”

36. 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.
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37. IS/IT Outsourcing Alternatives
Figure CE20-2
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38. Q4: What Are the Risks of Outsourcing?

39. 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?