1. Chapter 2 The Origins of Software Modern Systems Analysis and Design Fifth Edition Jeffrey A. Hoffer Joey F. George Joseph S. Valacich

2. © 2008 by Prentice Hall 2 Chapter 2 Learning Objectives Explain outsourcing. Describe six different sources of software. Discuss how to evaluate off-the-shelf software. Explain reuse and its role in software development.

3. © 2008 by Prentice Hall 3 Chapter 2 Introduction There are various sources of software for organizations. There are criteria to evaluate software from different sources. The impact of reuse on software development.

4. © 2008 by Prentice Hall 4 Chapter 2 Systems Acquisition: Outsourcing Outsourcing: Turning over responsibility of some or all of an organization's information systems applications and operations to an outside firm.

5. © 2008 by Prentice Hall 5 Chapter 2 Systems Acquisition: Outsourcing (Cont.) Outsourcing Examples  A company that runs payroll applications for clients.  A company that runs your applications at your site.

6. © 2008 by Prentice Hall 6 Chapter 2 Outsourcing (Cont.) Reasons to outsource  Cost-effective.  Take advantage of economies of scale.  Free up internal resources.

7. © 2008 by Prentice Hall 7 Chapter 2 Outsourcing (Cont.)  Reduce time to market.  Increase process efficiencies.  System development is a non-core activity for the organization.

8. Questions: 5, 8, 10 © 2008 by Prentice Hall 8 Chapter 2

9. © 2008 by Prentice Hall 9 Chapter 2 Sources of Software Information technology services firm.  HP: ranked #4, software 500. For 2003:  Source: http://www.theinquirer.net/en/inquirer/news/2003/11/23/hps-results-pose-far-more-questions-than- answers

10. © 2008 by Prentice Hall 10 Chapter 2 Sources of Software (Cont.) Packaged software producers. Enterprise-wide solutions.

11. © 2008 by Prentice Hall 11 Chapter 2 Sources of Software (Cont.) Application service providers (ASPs) Open source software. In-house developers.

12. © 2008 by Prentice Hall 12 Chapter 2 Sources of Software (Cont.)

13. © 2008 by Prentice Hall 13 Chapter 2 Information Technology (IT) Services Firms Help companies develop custom information systems for internal use. Develop, host, and run applications for customers. Provide other services.

14. © 2008 by Prentice Hall 14 Chapter 2 Packaged Software Producers Serve many market segments. Software ranges from broad-based packages (i.e. general ledger) to niche packages (i.e. day care management).

15. © 2008 by Prentice Hall 15 Chapter 2 Packaged Software Producers Software runs on microcomputers to large mainframes. Prepackaged software is off-the-shelf software.

16. © 2008 by Prentice Hall 16 Chapter 2 Packaged Software Producers (Cont.) Prepackaged software is turnkey software (i.e. not customizable). Off-the-shelf software at best meets 70 percent of organization’s needs.

17. Packaged Software Producers (Cont.) © 2008 by Prentice Hall 17 Chapter 2

18. © 2008 by Prentice Hall 18 Chapter 2 Prepackaged Software Figure 2-2 Microsoft Project

19. © 2008 by Prentice Hall 19 Chapter 2 Enterprise Solutions Software Enterprise Resource Planning (ERP) systems that integrate individual traditional business functions into modules enabling a single seamless transaction to cut across functional boundaries. SAP AG is the leading vendor of ERP systems.

20. © 2008 by Prentice Hall 20 Chapter 2 Enterprise Solutions Software (Cont.) Figure 2-3 Functional areas supported by Oracle’s Business Suite for small to medium businesses

21. © 2008 by Prentice Hall 21 Chapter 2 Application Service Provider (ASP) An organization that remotely hosts and runs computer applications for other companies, typically on a per-use or license basis.

22. © 2008 by Prentice Hall 22 Chapter 2 Application Service Provider (ASP) (Cont.) Application service providers (ASPs) buy, install, maintain, and upgrade the applications. Application service providers (ASPs) purchase or license applications from other software vendors.

23. © 2008 by Prentice Hall 23 Chapter 2 Managed Service Provider (MSP) An organization that remotely provides customized computer applications and network-based services for other companies for a monthly or per-use fee.

24. © 2008 by Prentice Hall 24 Chapter 2 Managed Service Provider (MSP) (Cont.) MSPs provide the ability to gain access to large and complex systems without the expense and time- consuming implementation.

25. © 2008 by Prentice Hall 25 Chapter 2 Open Source Software Freely available including source code. Developed by a community of interested people. Performs the same functions as commercial software. Examples: Linux, mySQL, Firefox.

26. © 2008 by Prentice Hall 26 Chapter 2 In-House Development If sufficient system development expertise with the chosen platform exists in-house, then some or all of the system can be developed by the organization’s own staff. Hybrid solutions involving some purchased and some in-house components are common.

27. In-House Development (Cont.) © 2008 by Prentice Hall 27 Chapter 2

28. Questions: 51, 54, 56, 60, 61, 62, 64, 65, 66 © 2008 by Prentice Hall 28 Chapter 2

29. © 2008 by Prentice Hall 29 Chapter 2 Off-the-Shelf Software Most common criteria for selecting: Cost: comparing the cost of developing the same system in-house with the cost of purchasing or licensing the software package.

30. © 2008 by Prentice Hall 30 Chapter 2 Off-the-Shelf Software Functionality: the tasks that the software can perform and the mandatory, essential, and desired system features.

31. © 2008 by Prentice Hall 31 Chapter 2 Off-the-Shelf Software (Cont.) Vendor support: whether or how much support the vendor can provide and at what cost.

32. © 2008 by Prentice Hall 32 Chapter 2 Off-the-Shelf Software (Cont.) Viability of vendor: can the software adapt to changes in systems software and hardware.

33. © 2008 by Prentice Hall 33 Chapter 2 Off-the-Shelf Software (Cont.) Flexibility: how easy it is to customize the software. Documentation: is the user’s manual and technical documentation understandable and up-to-date.

34. © 2008 by Prentice Hall 34 Chapter 2 Off-the-Shelf Software (Cont.) Response time: how long it takes the software package to respond to the user’s requests in an interactive session. Ease of installation: a measure of the difficulty of loading the software and making it operational.

35. Exercise: decision matrix http://www.rfp-templates.com/What-is-a-Decision-Matrix.html © 2008 by Prentice Hall 35 Chapter 2

36. Questions: 76, 101, 102, 103, 106, 107, 131-135 © 2008 by Prentice Hall 36 Chapter 2

37. © 2008 by Prentice Hall 37 Chapter 2 Validating Purchased Software Information Use a variety of information sources: Collect information from vendor. Software documentation. Technical marketing literature.

38. © 2008 by Prentice Hall 38 Chapter 2 Request For Proposal (RFP) Request for proposal (RFP) is a document provided to vendors to ask them to propose hardware and system software that will meet the requirements of a new system.

39. © 2008 by Prentice Hall 39 Chapter 2 Request For Proposal (RFP) (Cont.) Sometimes called a Request For Quote (RFQ). Based on vendor bids, analyst selects best candidates. Use a variety of information sources.

40. © 2008 by Prentice Hall 40 Chapter 2 Information Sources For RFP Vendor’s proposal Running software through a series of tests Feedback from other users of the vendor’s product Independent software testing services Articles in trade publications

41. © 2008 by Prentice Hall 41 Chapter 2 Reuse The use of previously written software resources, especially objects and components, in new applications. Commonly applied to two different development technologies:  Object-oriented development  Component-based development

42. © 2008 by Prentice Hall 42 Chapter 2 Reuse (Cont.) Commonly applied to two different development technologies:  Object-oriented development  Component-based development

43. © 2008 by Prentice Hall 43 Chapter 2 Reuse (Cont.) Object-oriented development  Object class encapsulates data and behavior of common organizational entities (e.g. employees) Component-based development  Components can be as small as objects or as large as pieces of software that handle single business functions.

44. © 2008 by Prentice Hall 44 Chapter 2 Reuse (Cont.) Object-oriented development reuse is using object classes in more than one application (e.g. Employee).

45. © 2008 by Prentice Hall 45 Chapter 2 Reuse (Cont.) Component-based development reuse is the assembly of an application from many different components at many different levels of complexity and size (e.g. Currency conversion).

46. © 2008 by Prentice Hall 46 Chapter 2 Costs and Benefits of Reuse

47. © 2008 by Prentice Hall 47 Chapter 2 Approaches to Reuse Ad-hoc: individuals are free to find or develop reusable assets on their own. Facilitated: developers are encouraged to practice reuse.

48. © 2008 by Prentice Hall 48 Chapter 2 Approaches to Reuse (Cont.) Managed: the development, sharing, and adoption of reusable assets is mandated. Designed: mandating assets be designed for reuse as they are being designed for specific applications.

49. Approaches to Reuse (Cont.) © 2008 by Prentice Hall 49 Chapter 2

50. © 2008 by Prentice Hall 50 Chapter 2 Summary In this chapter you learned how to: Explain outsourcing. Describe six different sources of software. Discuss how to evaluate off-the-shelf software. Explain reuse and its role in software development.