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AIS Development Strategies

AIS Development Strategies. Chapter 21. Learning Objectives. Describe how organizations purchase application software, vendor services, and hardware Explain how information system departments develop custom software

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AIS Development Strategies

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  1. AIS Development Strategies Chapter 21

  2. 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

  3. How to Obtain an AIS Purchase Develop in-house Outsource to outside organization

  4. 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

  5. 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

  6. End-User Computing Advantages Disadvantages • 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 • 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

  7. Outsourcing Advantages Disadvantage • 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-and-valleys usage • Facilitates downsizing • Inflexibility • Loss of control • Reduced competitive advantage • Locked-in system • Unfulfilled goals • Poor service • Increased risk

  8. 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

  9. Prototyping Advantages Disadvantages • Results in well-defined user needs • Higher user satisfaction and involvement • Faster development time • Fewer errors • Opportunities to suggest changes • Less costly • 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

  10. Computer-Aided Software Engineering (CASE) Advantages Disadvantages • Improved productivity • Improved program quality • Cost savings • Improved control procedures • Simplified documentation • Incompatibility with other systems • Unmet expectations

  11. 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 • 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)

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