B. INFORMATION TECHNOLOGY (IS)CISB434: DECISION SUPPORT SYSTEMS

Chapter 9:System Development & Acquisition

LEARNING OBJECTIVES

Describe the basic concepts of systems development Discuss the major steps in developing

decision support system (DSS) management support system (MSS)

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LEARNING OBJECTIVES List the major MSS application develop-ment

options along with the benefits and limitations describe the four phases of the system

development life cycle: planning analysis development implementation

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LEARNING OBJECTIVES

Discuss various MSS application out-sourcing options including the use of an application service

provider (ASP) utility computing

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LEARNING OBJECTIVES

Describe prototyping methodology explain why MSSs are typically developed using

these methods describe the factors that lead to success or

failure discuss the learning process that occurs during

development discuss the concept of end-user computing

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LEARNING OBJECTIVES

Give some major MSS software pack-ages and MSS application suites examine the criteria for selection

Describe various methods for connect-ing an MSS application to back-end systems and databases discuss the value and technical foundation of

Web Services in integrated applications

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LEARNING OBJECTIVES

Describe the criteria used in selecting an outsourcing vendor and package

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SYSTEM DEVELOPMENT & ACQUISITIONBasic Concepts of Systems Development

MSS DEVELOPMENTINTRODUCTION Types of Support Systems

Infrastructure Data Warehouses and Business Intelligence Knowledge Management Systems Enterprise Information Systems Portals

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MSS DEVELOPMENTINTRODUCTION Types of Support Systems

Specific applications Tools and tool kits Platforms

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MSS DEVELOPMENTTHE LANDSCAPE & FRAMEWORK

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MSS DEVELOPMENTTHE LANDSCAPE & FRAMEWORK Step 1:

Planning, identifying, and justifying MSS Step 2:

Creating an MSS architecture MSS architecture

A plan for organizing the underlying infrastruc-ture and applications of the MSS project

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MSS DEVELOPMENTTHE LANDSCAPE & FRAMEWORK Step 3:

Selecting a development option Build the system in house Have a vendor build a custom-made system Buy an existing application and install it, with or

without modifications, by yourself or through a vendor

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MSS DEVELOPMENTTHE LANDSCAPE & FRAMEWORK Step 3:

Selecting a development option Lease standard software from an ASP, utility

computing, or set up a software-as-a-service arrangement

Enter into a partnership or an alliance that will enable the company to use someone else's application

Use a combination of these approaches

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MSS DEVELOPMENTTHE LANDSCAPE & FRAMEWORK Step 4:

Installing, testing, connecting, and deploy-ing MSS applications

Step 5: Operations, maintenance, and updating

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MSS DEVELOPMENTTHE LANDSCAPE & FRAMEWORK Managing the development process

The development process can be fairly complex and must be managed properly

For medium to large applications, a project team is usually created to manage the process and the vendors Project management software

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SYSTEM DEVELOPMENT & ACQUISITIONDevelopment Options

MSS DEVELOPMENTDEVELOPMENT OPTIONS

In-house development (in-sourcing) Outsourcing

Buy from off the shelf Lease from vendor

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MSS DEVELOPMENTDEVELOPMENT OPTIONS In-house development - Insourcing

Development options for in-house development Building from scratch Building from components Integrating applications

Need to have the expertise/ skills in house Good for specialized application

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MSS DEVELOPMENT IN-HOUSE DEVELOPMENT-METHODS USED

Methods used in in-house development System Development Life Cycle (SDLC)  

A systematic process for the effective construc-tion of large information systems

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MSS DEVELOPMENTIN-HOUSE DEVELOPMENT-METHODS USED

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MSS DEVELOPMENTIN-HOUSE DEVELOPMENT-METHODS USED

Rapid application development (RAD)   A development methodology that adjusts a

system development life-cycle so that parts of the system can be develo-ped

quickly enabling users to obtain some functionality as

soon as possible Includes methods of phased development e.g. prototyping, and throwaway prototyping

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MSS DEVELOPMENTIN-HOUSE DEVELOPMENT-METHODS USED

Prototyping A strategy in which a scaled-down system or

portion of a system is constructed in a short time, tested, and

improved in several iterations

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MSS DEVELOPMENTDEVELOPMENT OPTIONS Buying applications - cost,

maintenance/support provided… Leasing applications

Lease from an outsourcer and then install it on the company’s premises

Lease from an ASP that hosts the application at its data center

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MSS DEVELOPMENTDEVELOPMENT OPTIONS Methods used in in-house development

Software-as-a-service (SaaS) Software that is rented instead of sold

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MSS DEVELOPMENTDEVELOPMENT OPTIONS Factors driving the switch to software-as-a-

service: Reducing the risks involved in acquiring new

software Influencing product and service quality via an

ongoing relationship with vendors

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MSS DEVELOPMENTDEVELOPMENT OPTIONS Factors driving the switch to software-as-a-

service: Changing usage commitments as business

circumstances change Preparing financially justifiable business cases More accurately predicting ongoing expen-ses

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DEVELOPMENT OPTIONS

If custom software is required, the alternatives of insourcing and outsourcing should be compared. A key consideration is the availability of in-house

resources.

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DEVELOPMENT OPTIONS

If do not have the resources to build in-house, need to consider buy off the shelf (package) or lease from vendor: if the application is sufficiently popular

that packages and/or ASPs exist for it their total cost of ownership (TOC) should

be compared for the firm’s planning horizon.

The cost of using a package should include any component integration costs. The cost of using an ASP should include estimated price increases.

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SYSTEM DEVELOPMENT & ACQUISITIONMSS Application Outsourcing Options

MSS DEVELOPMENTOUTSOURCING OPTIONS Application Service Providers (ASP)

A software vendor that offers leased soft-ware applications to organizations

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MSS DEVELOPMENTOUTSOURCING OPTIONS Utility (on-demand) computing

Unlimited computing power and storage capacity that,

like electricity, water, telephone services, can be obtained on demand, used, and

reallocated for any application, and billed on a pay-per-use basis

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SYSTEM DEVELOPMENT & ACQUISITIONPrototyping

PROTOTYPINGADVANTAGES Short development time Short user reaction time

i.e. feedback from user Improved user understanding of the system

its information needs, and its capabilities Low cost

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PROTOTYPINGLIMITATIONS Gains obtained from cautiously stepping

through each of the system’s lifecycle stages might be lost including: A thorough understanding of the informa-tion

system’s benefits and costs A detailed description of the business’s

information needs

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PROTOTYPINGLIMITATIONS Gains obtained from cautiously stepping

through each of the system’s lifecycle stages might be lost including: An easy-to-maintain information system design A well-tested information system Well-prepared users

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PROTOTYPINGDEVELOPMENT PROCESS Users and managers, as well as an exe-cutive

sponsor, must be involved The analysis, design, and prototype im-

plementation phases are iteratively per-formed until a small prototype is sufficiently deve-loped

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PROTOTYPINGDEVELOPMENT PROCESS The final implementation takes place Simultaneously, further iterations occur

as other subsystems or capabilities are added to the deployed system

until a fairly stable, comprehensive system evolves

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PROTOTYPINGDEVELOPMENT PROCESS

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PROTOTYPINGDEVELOPMENT PROCESS

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PROTOTYPINGCOLLABORATION IN PROTOTYPING The interaction of user, developer, and

technology is extremely important in the prototyping process

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PROTOTYPINGEVALUATION IN PROTOTYPING Iterative design

A systematic process for system develop-ment that is used in MSS produce a first version of MSS then revise it and produce the second design version

and so on is an iterative design

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PROTOTYPINGIMPLEMENTING PROTOTYPING Target small, tactical applications that show

quick results Use software components Make application deployment iterative and

open to customization Use commodity hardware Use object technology

including tools such as Java

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PROTOTYPINGIMPLEMENTING PROTOTYPING Break major projects into manageable,

deliverable chunks Use packaged applications whenever

justifiable Consider IT service providers as well as utility

and grid computing Use Web services, if possible

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PROTOTYPINGSUCCESSES FACTORS Users and managers should be invol-ved in

every phase and iteration Learning should be explicitly integrated into

the design process Prototyping should essentially bypass the

formal information requirement defi-nition in the SDLC

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PROTOTYPINGSUCCESSES FACTORS A key criterion associated with proto-typing is

the short interval between iterations The initial prototype must be low cost

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PROTOTYPINGFAILURES No prelaunch objectives or metrics Too many major projects were conduc-ted

simultaneously The CEO set budgets and deadlines before

the project team was involved The budget and deadlines were not rea-listic

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PROTOTYPINGFAILURES There was no insider presence on the data

warehouse project team An overburdened project manager was

involved The availability of source data was un-

confirmed at the outset

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PROTOTYPINGFAILURES No user demand for sophisticated data

analysis was considered No routine meetings of executive spon-sors

and the project manager Business managers were not initially involved

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PROTOTYPINGLESSONS LEARNED FROM FAILURE Most critical success factors for develo-ping a

data warehouse executive sponsorship partnership of the IT staff and end users

Unclear understanding of the business objectives and how they are measured

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PROTOTYPINGLESSONS LEARNED FROM FAILURE An incremental pilot project should occur to

determine whether it is possi-ble to obtain the projected benefits

An organization should expect to make a major investment in ongoing manage-ment of the data warehouse

When all else fails, an organization should cut its losses and run

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SYSTEM DEVELOPMENT & ACQUISITIONMSS Software Packages & Suites

MSS DEVELOPMENTCRITERIA FOR SELECTION Selection criteria to buy or lease deci-sion

Flexibility Information requirements User friendliness Hardware and software resources Installation

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MSS DEVELOPMENTCRITERIA FOR SELECTION Selection criteria for buy or lease deci-sion

Maintenance services Vendor quality and track record Estimating costs Personnel Technological evolution

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MSS DEVELOPMENTCRITERIA FOR SELECTION Selection criteria for buy or lease deci-sion

Scalability Sizing Performance Reliability Security

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MSS SOFTWARE PACKAGES & SUITES THIRD-PARTY PROVIDERS Specialized and functional software packages MSS suite

An integrated collection of a large number of MSS tools that work together for applica-tions development

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MSS SOFTWARE PACKAGES & SUITES THIRD-PARTY PROVIDERS Representative MSS suites

MicroStrategy 8 Hyperion System 9 BI+ BusinessObjects XI Microsoft BizTalk Server 2004 Oracle’s MSS Products IBM’s WebSphere Commerce Suite

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MSS SOFTWARE PACKAGES & SUITES THIRD-PARTY PROVIDERS

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