AIS Development Strategies Chapter 21 Copyright © 2015 Pearson Education, Inc 21-1 Learning Objectives • Describe how organizations purchase application software, vendor services, and hardware • Explain how information system departments develop custom software • Explain how end users develop, use, and control computer-based information systems • Explain why organizations outsource their information systems, and evaluate the benefits and risks of this strategy • Explain the principles and challenges of business process management • Describe how prototypes are used to develop an AIS, and discuss the advantages and disadvantages of doing so • Explain what computer-aided software engineering is and how it is used in systems development Copyright © 2015 Pearson Education, Inc 21-2 How to Obtain an AIS • Purchase • Develop in-house • Outsource to outside organization Copyright © 2015 Pearson Education, Inc 21-3 Purchasing • Select a vendor (from referrals, trade shows, etc.) • Request for proposal (RFP) that meets needs • Evaluate proposals ▫ Top vendors invited to give demonstrations on how their system will fit your needs • Make a final selection based upon your criteria Copyright © 2015 Pearson Education, Inc 21-4 Develop Software In-House • Advantages ▫ Provides a significant competitive advantage • Risks ▫ ▫ ▫ ▫ ▫ ▫ ▫ Requires significant amounts of time Complexity of the system Poor requirements defined Insufficient planning Inadequate communication and cooperation Lack of qualified staff Poor top management support Copyright © 2015 Pearson Education, Inc 21-5 End-User Computing Advantages • Allows for end-users to create, control, and implement simple systems • More likely to meet user needs • Saves time • Frees up system resources • Easy to use and understand Copyright © 2015 Pearson Education, Inc Disadvantages • Lack of testing of application and possible calculation errors • Inefficient systems • Poorly controlled • Poorly documented • System incompatibilities • Duplication of data • Increase costs in later years with upgrades Outsourcing Advantages • Allows companies to concentrate on core competencies • Asset utilization • Access to greater expertise and better technology • Lower costs by standardizing user applications and splitting development and maintenance costs between projects • Less development time • Elimination of peaks-andvalleys usage • Facilitates downsizing Copyright © 2015 Pearson Education, Inc Disadvantage • Inflexibility • Loss of control • Reduced competitive advantage • Locked-in system • Unfulfilled goals • Poor service • Increased risk Business Process Management Systems • Automate and facilitate business process improvements using: ▫ Process engine to model and execute applications and business rules ▫ Business analytics to identify issues, trends, and opportunities ▫ Collaboration tools to remove communication barriers ▫ Content manager to store electronic documents and images Copyright © 2015 Pearson Education, Inc 21-8 Prototyping Advantages • Results in well-defined user needs • Higher user satisfaction and involvement • Faster development time • Fewer errors • Opportunities to suggest changes • Less costly Copyright © 2015 Pearson Education, Inc Disadvantages • Requires significant user time • Resource efficiency may not be achieved • Inadequate testing and documentation • Negative behavioral reactions • Continuous development of iterations leaves a feeling of no project completion Computer-Aided Software Engineering (CASE) Advantages • • • • • Disadvantages Improved productivity Improved program quality Cost savings Improved control procedures Simplified documentation Copyright © 2015 Pearson Education, Inc • Incompatibility with other systems • Unmet expectations Key Terms • Canned software • Turnkey systems • Application service provider (ASP) • Request for proposal (RFP) • Benchmark problem • Point scoring • Requirement costing • Custom software • End-user computing (EUC) • Help desk • Outsourcing Copyright © 2015 Pearson Education, Inc • Business process reengineering (BPR) • Business process management (BPM) • Business Process Management System (BPMS) • Prototyping • Operational prototype • Nonoperational (throwaway) prototype • Computer-aided software (or systems) engineering (CASE) ... computer-based information systems • Explain why organizations outsource their information systems, and evaluate the benefits and risks of this strategy • Explain the principles and challenges... expertise and better technology • Lower costs by standardizing user applications and splitting development and maintenance costs between projects • Less development time • Elimination of peaks-andvalleys... Frees up system resources • Easy to use and understand Copyright © 2015 Pearson Education, Inc Disadvantages • Lack of testing of application and possible calculation errors • Inefficient systems