This chapter discusses acquiring and developing information systems and applications. It covers planning and justifying IT applications, traditional systems development life cycles, and alternative development methods. The chapter also addresses outsourcing options like application service providers. When acquiring systems, organizations should identify needs, evaluate costs/benefits, and prioritize applications. The traditional systems development life cycle (SDLC) involves phases from investigation to maintenance. Alternative agile methods provide more flexibility. Outsourcing, application service providers, and vendor/software selection are also reviewed.
This chapter discusses acquiring and developing information systems and applications. It covers planning and justifying IT applications, traditional systems development life cycles, and alternative development methods. The chapter also addresses outsourcing options like application service providers. When acquiring systems, organizations should identify needs, evaluate costs/benefits, and prioritize applications. The traditional systems development life cycle (SDLC) involves phases from investigation to maintenance. Alternative agile methods provide more flexibility. Outsourcing, application service providers, and vendor/software selection are also reviewed.
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This chapter discusses acquiring and developing information systems and applications. It covers planning and justifying IT applications, traditional systems development life cycles, and alternative development methods. The chapter also addresses outsourcing options like application service providers. When acquiring systems, organizations should identify needs, evaluate costs/benefits, and prioritize applications. The traditional systems development life cycle (SDLC) involves phases from investigation to maintenance. Alternative agile methods provide more flexibility. Outsourcing, application service providers, and vendor/software selection are also reviewed.
Copyright:
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Download as PPT, PDF, TXT or read online from Scribd
Applications CHAPTER OUTLINE 10.1 Planning for and Justifying IT Applications 10.2 Strategies for acquiring IT Applications 10.3 Traditional Systems Development Life Cycle 10.4 Alternative Methods and Tools for Systems Development 10.5 Outsourcing and Application Service Providers 10.6 Vendor and Software Selection LEARNING OBJECTIVES Describe the IT planning process. Describe the IT justification process and methods. Describe the SDLC and its advantages and limitations. Describe the major alternative methods and tools for building information systems. LEARNING OBJECTIVES (continued) List the major IT acquisition options and the criteria for option selection. Describe the roles of hosting vendors. Describe the process of vendor and software selection. Chapter Opening Case 10.1 Planning of and Justifying IT Applications Organizations must analyze the need for the IT application. Each IT application must be justified in terms of costs and benefits. The application portfolio is a prioritized list of both existing and potential IT applications of a company. Information Systems Planning Process Information Systems Planning (continued)
Organizational strategic plan states the
firm’s overall mission, the goals that follow from that mission, and the broad steps necessary to reach these goals. IT architecture delineates the way an organization’s information resources should be used to accomplish its mission. Both are inputs in developing the IT strategic plan. IT Strategic Plan IT strategic plan is a set of long-range goals that describe the IT infrastructure and major IT initiatives needed to achieve the goals of the organization. IT Steering Committee The IT Steering Committee, comprised of managers and staff representing various organizational units, establishes IT priorities and ensures that the MIS function meets the needs of the enterprise. IT Operational Plan Consists of a clear set of projects that the IT department and functional area managers will execute in support of the IT strategic plan Contains the following elements: Mission IT environment Objectives of the IT function Constraints of the IT function Application portfolio Resource allocation and project management Evaluating & Justifying IT Investment: Benefits, Costs & Issues Assessing the costs Fixed costs Total cost of ownership (TCO) Assessing the benefits (Values) Intangible benefits: Benefits from IT that may be very desirable but difficult to place an accurate monetary value on. Comparing the two Conducting the Cost-Benefit Analysis Using Net Present Value (NPV) Return on investment Breakeven analysis The business case approach 10.2 Strategies for Acquiring IT Applications Buy the applications (off-the-shelf approach) Lease the applications Use Open-Source Software Software-as-a-service Developing the applications in-house 10.3 Traditional Systems Development Life Cycle Software Development Life Cycle (SDLC) is the traditional systems development method that organizations use for large-scale IT projects. SDLC processes are systems investigation, systems analysis, systems design, programming, testing, implementation, operation and maintenance. Waterfall approach is when tasks in one phase are completed before the work proceeds to the next stage. Traditional Systems Development Life Cycle (SDLC) The SDLC Major advantages Control Accountability Error detection Major drawbacks Relatively inflexible Time-consuming and expensive Discourages changes once user requirements are done SDLC – Systems Investigation Begins with the business problem (or opportunity) followed by the feasibility analysis. Feasibility study Go/No-Go Decision Feasibility Study Technical feasibility Economic feasibility Organizational feasibility Behavioral feasibility SDLC – System Analysis Is the examination of the business problem that the organization plans to solve with an information system. Main purpose is to gather information about existing system to determine requirements for the new or improved system. Deliverable is a set of system requirements. SDLC – Systems Design Describes how the system will accomplish this task. Deliverable is the technical design that specifies: System outputs, inputs, user interfaces. Hardware, software, databases, telecommunications, personnel & procedures. Blueprint of how these components are integrated. SDLC – System Design (continued) Logical system design states what the system will do, using abstract specifications. Physical system design states how the system will perform its functions, with actual physical specifications. Scope creep is caused by adding functions after the project has been initiated. SDLC – Programming & Testing Programming involves the translation of a system’s design specification into computer code. Testing checks to see if the computer code will produce the expected and desired results under certain conditions. Testing is designed to delete errors (bugs) in the computer code. These errors are of two types: Syntax errors ( e.g., misspelled word or a misplaced comma) Logic errors that permit the program to run but result in incorrect output. SDLC – Systems Implementation Implementation or deployment is the process of converting from the old system to the new system. Four major conversion strategies ; Direct Conversion Pilot Conversion Phased Conversion Parallel Conversion SLDC – Operation & Maintenance Audits are performed to assess the system’s capabilities and to determine if it is being used correctly. Systems need several types of maintenance. Debugging Updating Maintenance 10.4 Alternative Methods & Tools for Systems Development Prototyping Joint application design (JAD) Integrated computer-assisted software engineering tools Rapid application development (RAD) Agile development End-user development Component-based development RAD versus SDLC 10.5 Outsourcing & Application Service Providers Outsourcing is when an organization acquires IT applications or services from outside contractors or external organizations. Application Service Provider (ASP) is an agent or vendor who assembles the software needed by enterprises and packages the software with services such as development, operations and maintenance. “Outsourcing? First door on your right.” 10.6 Vendor & Software Selection Step 1: Identify potential vendors. Step 2: Determine the evaluation criteria. Request for proposal (RFP) is a document sent to potential vendors to submit a proposal describing their software package and explain how it would meet the company’s needs. Step 3: Evaluate vendors and packages. Vendor & Software Selection (continued) Step 4: Choose the vendor and package Step 5: Negotiate a contract. Step 6: Establish a service level agreement. Service Level Agreements (SLAs) are formal agreements that specify how work is to be divided between the company and its vendors. Chapter Closing Case