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CHAPTER 13

CHAPTER 13. Acquiring Information Systems and Applications. 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. Information Systems Planning.

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CHAPTER 13

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  1. CHAPTER 13 Acquiring Information Systems and Applications

  2. 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.

  3. Information Systems Planning

  4. 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.

  5. Conducting the Cost-Benefit Analysis • Using Net Present Value (NPV) • Return on investment • Breakeven analysis • The business case approach

  6. Strategies for Acquiring IT Applications • Purchase an Application • Customize an Application • Lease the applications • Application Service Providers and Software as-a-Service Vendors • Use Open-Source Software • Outsourcing • Custom Development

  7. Six-Stage Systems Development Life Cycle (SDLC) with Supporting Tools Prototyping Business Need Systems Investigation Deliverable: Go/No Go Decision Systems Analysis Deliverable: User Requirement Systems Design Deliverable: Technical Specification Programming and Testing Implement The System Operation and Maintenance Upper CASE Tools Joint Application Design (JAD) Lower CASE Tools

  8. Feasibility Study • Technical feasibility • Economic feasibility • Organizational feasibility • Behavioral feasibility

  9. SDLC – Systems Implementation • Direct Conversion • Pilot Conversion • Phased Conversion • Parallel Conversion

  10. 13.4 Alternative Methods and Tools for Systems Development Joint application design (JAD) Rapid application development (RAD) Agile development End-user development

  11. RAD versus SDLC

  12. Tools for Systems Development • Prototyping • Integrated computer-assisted software engineering (ICASE) • Component-based development • Object-oriented development

  13. 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 package Step 5: Negotiate a contract. Step 6: Establish a service level agreement.

  14. A Tale of Two Systems Installations • WestJet vs. JetBlue

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