Download - 2015112317020600009696_0014M - PPT10 - R3
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CHAPTER 13
Acquiring Information Systems and Applications
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CHAPTER OUTLINE
13.1 Planning for and Justifying IT Applications13.2 Strategies for Acquiring IT Applications13.3 The Traditional Systems Development Life
Cycle13.4 Alternative Methods and Tools for
Systems Development13.5 Vendor and Software Selection
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LEARNING OBJECTIVES
1. Define an IT strategic plan, identify three objectives it must meet, and describe the four common approaches to cost-benefit analysis.2. Discuss the four business decisions that companies must make when they acquire new applications.3. Identify the six processes involved in the systems development life cycle, and explain the primary tasks and importance of each process.
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LEARNING OBJECTIVES (continued)
4. Describe four alternative development methods and four tools that augment development methods, and identify at least one advantage and one disadvantage of each method and tool.5. Analyze the process of vendor and software selection.
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13.1 Planning for 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
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Information Systems Planning
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Information Systems Planning (continued)
Organizational Strategic Plan IT Architecture
IT Strategic Plan
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IT Steering Committee
© Image Source/Age Fotostock America, Inc.
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IS Operational Plan
Contains the following elements:MissionIT environmentObjectives of the IT functionConstraints of the IT functionApplication portfolioResource allocation and project management
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Evaluating & Justifying IT Investment: Benefits, Costs & Issues
Assessing the costsFixed costsTotal 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
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Conducting the Cost-Benefit Analysis
Using Net Present Value (NPV)Return on investmentBreakeven analysisThe business case approach
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13.2 Strategies for Acquiring IT Applications
Four fundamental business decisions to make before choosing a strategy: (1) How much computer code does the company want to write? (2) How will the company pay for the application? (3) Where will the application run? (4) Where will the application originate?
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Strategies for Acquiring IT Applications
Purchase a Prewritten ApplicationCustomize a Prewritten ApplicationLease the applicationsApplication Service Providers and Software-
as-a-Service VendorsUse Open-Source SoftwareOutsourcingCustom Development
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Operation of an Application Service Provider (ASP)
ASP Data Center
CustomerA
Application
CustomerB
Application
CustomerC
Application
Database Database Database
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Operation of a Software-as-a-Service (SaaS) Vendor
SaaS Vendor Data Center
CustomerA
CustomerB
CustomerC
CustomerA
CustomerB
CustomerC
Application
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13.3 Traditional Systems Development Life Cycle
Software Development Life Cycle (SDLC) Systems InvestigationSystems AnalysisSystems DesignProgramming and TestingImplementationOperation and Maintenance
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Prototyping
Six-Stage Systems Development Life Cycle (SDLC) with Supporting Tools
Systems Investigation
Deliverable: Go/No Go Decision
Systems Analysis
Deliverable: User Requirement
Systems Design
Deliverable: Technical Specification
Programming and Testing
ImplementThe
System
Operation and Maintenance
Business Need
Joint Application
Design (JAD)
Upper CASE Tools
Lower CASE Tools
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The SDLC
Major advantagesControlAccountabilityError detection
Major drawbacksRelatively inflexibleTime-consuming and expensiveDiscourages changes once user requirements are gathered
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SDLC – Systems Investigation
Begins with the business problem (or opportunity) followed by the feasibility analysis.
Feasibility studyDeliverable: Go/No-Go Decision
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Feasibility Study
Technical feasibilityEconomic feasibilityOrganizational feasibilityBehavioral feasibility
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SDLC – System Analysis
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, also called user requirements.
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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.
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SDLC – System Design (continued)
Scope creep is caused by adding functions after the project has been initiated.
Kajano/Shutterstock
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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.
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SDLC – Systems Implementation
Implementation involves three major conversion strategies:
Direct Conversion Pilot Conversion Phased Conversion Parallel Conversion (not used much today)
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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
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13.4 Alternative Methods and Tools for Systems Development
Joint application design (JAD)Rapid application development (RAD)Agile developmentEnd-user development
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RAD versus SDLC
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Tools for Systems Development
PrototypingIntegrated computer-assisted software engineering (ICASE)Component-based developmentObject-oriented development
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13.5 Vendor & Software Selection
Step 1: Identify potential vendors.Step 2: Determine the evaluation criteria.
Request for proposal (RFP)Step 3: Evaluate vendors and packages.Step 4: Choose the vendor and packageStep 5: Negotiate a contract.Step 6: Establish a service level agreement.
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Chapter Closing Case
• The Problem
• The Solution
• The Results