Systems Analysis and Design 11th

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Chapter 7: Development Strategies
Chapter 7 – Development Strategies: Chapter 7 considers various development strategies for the new
system, and plans for the transition to the systems design phase.

Questions
1. Describe the concept of software as a service rather than a product. Is this an important trend? Why
or why not?
This certainly is an important trend! Students might refer to the Software and Information Industry
Association (SIIA) statement that the concept of software as a service is redefining the way that
companies develop and deploy their information systems. SIIA also stated that many observers
expect traditional packaged applications to be replaced by Web-based services that remove the
responsibility for installation, maintenance, and upgrades from a company’s in-house staff.

2. Explain the difference between horizontal and vertical application software. Suggest two examples
of each type.
A software package that can be used by many different types of organizations is called a horizontal
application. An accounting package or a payroll program is a good example of a horizontal
application because it can be utilized by many different businesses.
In contrast, a software package developed to handle information requirements for a specific type of
business is called a vertical application. Example might include software specifically designed for
auto dealerships, medical practices, and rental management firms.

3. What are three typical reasons why companies develop their own information systems?
The most common reason for a company to choose to develop its own information system is that
the company has unique requirements that no software package can satisfy. Other typical reasons
for in-house development include the following: a software package could cause major changes to
current operations, procedures, or data processing; the new software must work with the company's
existing information systems; the software must be compatible with the company's existing
hardware and systems software; in-house IT resources provide a competitive edge and an in-house
IT staff has a better understanding of the organization’s information needs.

4. What are user applications? Suggest three examples that could boost user productivity.
Business requirements sometimes can be fulfilled by a user application, rather than a formal
information system or commercial package. A user application utilizes standard business software,
such as Microsoft Word, Microsoft Excel, or tablet/cell phone apps, which have been configured
enhance user productivity. For example, to help a sales rep respond rapidly to customer price
requests, an IT support person can set up a form letter with links to a spreadsheet that calculates
incentives and discounts.
5. What are main steps in the software acquisition process?
The process of acquiring software involves a series of steps: evaluate the system requirements,
consider network and Web-related issues, identify potential software vendors or outsourcing
options, evaluate the alternatives, perform cost-benefit analysis, prepare a recommendation, and
implement the solution. During software acquisition, a company can use a request for proposal (RFP)
or a request for quotation (RFQ). An RFP invites vendors to respond to a list of system requirements
and features; an RFQ seeks bids for a specific product or service.

6. What is an RFP, and how does it differ from an RFQ?

A request for proposal (RFP) is a written list of the information system requirements that you give to
prospective software vendors before you decide on a specific package. RFPs help the vendors
determine whether they have a product that is a possible software solution. A request for quotation
(RFQ) solicits price and related information from vendors for the particular hardware and/or
software products you specify in the proposal. The RFP tends to be open-ended in terms of the
possible solutions sought by the organization, while the RFQ usually identifies a specific solution.

7. What is the purpose of a benchmark test? Suggest at least two examples of benchmarks.
A benchmark test measures the time a software package takes to process a set number of
transactions to ensure that the software package will be able to handle the required processing load.
Benchmarks might measure input, output, or throughput – or all three.

8. What is an evaluation model? How would you create a weighted evaluation model?
When you evaluate several responses to an RFP, you might find it helpful to use an evaluation model.
An evaluation model is a technique that uses a common yardstick to measure and compare vendor
ratings. To create a weighted model, you assign each element receives a rating based on its relative
importance.

9. What decisions might management reach at the end of the systems analysis phase, and what would
be the next step in each case?
At the end of the systems analysis phase, management might decide to develop an in-house system
(the next step is systems design), modify the current information system (the next step is systems
design), purchase and/or customize a software package (the next step might be systems
implementation, systems design, or planning for testing and documentation of modifications made
by the vendor), perform additional work on the systems analysis phase (the next step is to do further
systems analysis work), or terminate further work on the information system (the next step is to
begin work on another information systems alternative).

10. Explain the relationship between logical and physical design.

You develop the logical design of an information system during the systems analysis phase of the
SDLC. The logical design defines the functions and features of the system and the relationships
among its components. The logical design includes the output that must be produced by the system,
 the input needed by the system, and the processes that must be performed by the system without
regard to how tasks will be accomplished physically. Logical design defines what must take place,
not how it is to be accomplished. In contrast, the physical design of an information system is a plan
for the actual implementation of the system. You develop the physical design during the systems
design phase of the SDLC. The physical design is built on the system’s logical design and describes a
specific implementation, much like a working blueprint describes the actual construction of a
building.

Discussion Topics
1. As more companies outsource systems development, will there be less need for in-house systems
analysts? Why or why not?
Answers will vary. Outsourcing might result in less need for in-house developers, but even more need
for analysts who can understand business requirements, plan, acquire, and configure outsourced
applications. Also, many firms are reluctant to outsource mission-critical IT systems or systems that
might involve sensitive data. Because of these considerations, it is unlikely that outsourcing will
result in a decline in systems analyst employment.

2. How has the proliferation of mobile devices affected IT professionals?

In the constantly changing world of IT, no area is more dynamic than Internet technology. Three
examples of evolving trends are Web 2.0, cloud computing, and mobile devices. Systems analysts
should be aware of these trends and consider them as they plan large-scale systems.
Mobile devices have become commonplace. Smartphones and tablets are now found in personal use
and across the enterprise in most organizations. Developing apps for mobile devices requires new
platforms, such as IBM’s Bluemix shown in Figure 7-5.
Mobile devices introduce a slew of new challenges for IT professionals. These include managing the
BYOD movement, security concerns, and overall lack of control of employee computing capabilities.
But mobile devices also offer several improvements in the IT professional’s life, such as the ability to
call upon computing resources as needed.

3. Suppose you tried to explain the concept of throwaway prototyping to a manager, and she
responded by asking, “So, is throwaway prototyping a waste of time and money?” How would you
reply?
Students should understand that not every prototype evolves into a finished system. Actually, most
prototypes are used to verify user requirements, after which the prototype is discarded and
implementation continues. Although this method is called design prototyping, or throwaway
prototyping, point out that the objectives are important and can save time and money during
systems development. Students should suggest that regardless of the terminology, the end product
of throwaway prototyping is a user-approved design model that documents and benchmarks the
features of the finished system.
4. Select a specific type of vertical application software to investigate. Visit local computer stores and
use the Internet to determine what software packages are available. Describe the common features
of those packages and the features that distinguish one product from another.
Vertical application software includes packages designed for specific business operations such as
medical offices, colleges, banks, hospitals, insurance companies, construction companies, real estate
firms, airlines, and hotel chains. Have students identify two or three examples and develop a
checklist that shows the common features and unique features (if any) that each package offers.

5. Select a specific type of horizontal application software to investigate. Visit local computer stores
and use the Internet to determine what software packages are available. Describe the common
features of those packages and the features that distinguish one product from another.
Typical horizontal application software for microcomputers includes payroll packages, contact
management systems, personal information management packages, and inventory management
software. Generic point-of-sale (POS) software also is considered a horizontal application. If students
identify two or three examples, have them develop a checklist that shows the common features and
unique features (if any) that each package offers.

Projects
1. The text mentions several firms and organizations that offer IT benchmarking. Locate another
benchmarking firm on the Internet, and write a description of the services it offers.
Students should be able to find many examples of firms that offer benchmark testing. This would be
a good assignment to practice some of the Internet search skills that are described in Part D of the
Systems Analyst’s Toolkit.

2. Investigate the ROI of cloud-based software development environments.

There is a trend towards the increased use of completely online, cloud-based development
environments.
Some of the advantages of a cloud-based development platform include an OS-neutral environment,
automatic maintenance and updates of the platform’s capabilities for all team members, and
ubiquitous access irrespective of device via a web browser interface.
Some of the disadvantages of a cloud-based development platform include potential latency issues
with the user interface if network connectivity is poor, lack of integration with existing tools, and
security and/or privacy concerns with data stored in the cloud.

3. Turn to Part C of the Systems Analyst’s Toolkit and review the concept of net present value (NPV).
Determine the NPV for the following: An information system will cost $95,000 to implement over a
one-year period and will produce no savings during that year. When the system goes online, the
company will save $30,000 during the first year of operation. For the next four years, the savings
will be $20,000 per year. Assuming a 12 percent discount rate, what is the NPV of the system?
An NPV analysis follows:

Project Assignment 2: Net Present Value Analysis

Information System Benefits and Costs:

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Total

Benefits - 30,000 20,000 20,000 20,000 20,000

Factor (12%) 1.000 0.893 0.797 0.712 0.636 0.567

PV of
Benefits - 26,790 15,940 14,240 12,720 11,340 81,030

Costs 95,000

Factor (12%) 1.000 0.893 0.797 0.712 0.636 0.567

PV of Costs 95,000 - - - - - 95,000

Net Present
Value: (13,970)

Notice that the NPV is a negative 13,970. In this example, what looked like an attractive project
turned out not to be economically feasible. Why is this so? If no adjustment factor were used, the
total benefits would exceed the total costs by $15,000. The primary reason for the negative outcome
is the time value of money. Students should recognize that the $95,000 in costs would have to be
spent up front, and paid for with today’s dollars. The benefits, on the other hand, would not be
realized immediately and were worth less in terms of today’s dollars. This is a good example of the
importance of NPV analysis.
4. Visit the IT department at your school or at a local company and determine whether the information
systems were developed in-house or purchased as software packages. If packages were acquired,
determine what customizing was done, if any. Write a brief memo describing the results of your
visit.
Answers will vary. Encourage students to find out why the decisions were made, if possible, and
share the results with the class.

5. To create user applications as described in this chapter, systems analysts often use macros.
Microsoft defines a macro as “a series of commands and instructions that you group together as a
single command to accomplish a task automatically.” Learn more about macros by using the Help
feature in Microsoft Word, and identify three tasks that might be performed by macros.
Answers will vary. Many students are not aware of the power and potential of macros. Explain that
recording a macro is like using a tape recorder to capture a number of keystrokes and mouse clicks,
and then replaying the entire series with a single command, whenever desired. Point out that a
macro can be used instead of a command that requires digging two or three levels deep into the
menu structure.
In the Help section, Microsoft includes the following examples of typical uses for macros:
• To speed up routine editing and formatting
• To combine multiple commands; for example, inserting a table with a specific size and borders,
and with a specific number of rows and columns
• To make an option in a dialog box more accessible
• To automate a complex series of tasks