Information Systems Today

1. Information Systems Today Eighth Edition Chapter # 8 Developing and Acquiring Information Systems

2. Learning Objectives 9.1 Describe how to formulate and present the business case for technology investments. 9.2Describe the systems development life cycle and its various phases. 9.3 Explain how organizations acquire systems via external acquisition and outsourcing.

3. Electronic Business: E-Commerce and E-Government • Learning Objective: Describe how to formulate and present the business case for technology investments • Business Case Objects • The Productivity Paradox • Making a Successful Business Case • Presenting the Business Case

4. Business Case Objectives • The business case sells an investment • Build a strong, integrated set of arguments • Show how an IS adds value to the organization • Lays out the costs and benefits • Used to make a “go” or “no-go” decision • May be used to justify continued funding

5. The Productivity Paradox

6. Making a Successful Business Case (Table 9.1)

7. Identifying Costs and Benefits • Identifying Costs • Tangible costs—total cost of ownership (TCO) • Non-recurring costs (acquisition) • Recurring costs (use and maintenance) • Intangible costs (e.g., loss of customers) • Identifying Benefits • Tangible benefits (e.g., estimated sales gains) • Intangible benefits (e.g., improved customer service)

8. Performing Cost-Benefit Analyses

9. Comparing Competing Investments • Weighted Multicriteria Analysis

10. Presenting the Business Case • Know the Audience • Know who you are presenting to, what their back-ground is, and what they care about • Convert Benefits to Monetary Terms • Show benefits as $ per time period, often annual • Devise Proxy Variables • Measure What Is Important to Management • Know management “hot-button” issues • Describe how the system impacts them

11. Stakeholders and Factors (Table 9.2)

12. The Systems Development Process (1 of 2) • Custom Versus Off-the-Shelf Software • Open Source Software • Systems Integration: Combining Custom, Open Source, and Off-the-Shelf Systems (Subject headings continued on the next slide) • Learning Objective: Describe the systems development life cycle and its various phases

13. The Systems Development Process (2 of 2) • IS Development in Action • The Role of Users in the Systems Development Process • Systems Development Controls • Steps in the Systems Development Process • Phase 1: Systems Planning and Selection • Phase 2: Systems Analysis • Phase 3: Systems Design • Phase 4: Systems Implementation and Operation • Repeating the SDLC: Systems Maintenance • Other Approaches to Designing and Building Systems

14. Custom Versus Off-the-Shelf Software • Customized Software • Customizability—tailored to unique needs • Problem specificity—pay only for what is needed • Off-the-Shelf Software (Packaged Software) • Less costly than customized systems • Faster to procure than customized systems • Of higher quality than customized systems • Less risky than customized systems

15. Off-the-Shelf Software: Examples (Table 9.3) Commercial off-the-shelf (COTS) software—typically developed by software companies that spread the development costs over a large number of customers

16. Open Source Software • Program’s source code is freely available for use and/or modification • Linux and MySQL are prevalent examples • Free to use, but “hidden” support costs • Typically no support for the free version • Commercial vendors may offer commercial-grade support to industry users for a fee • MySQL database is used by Yahoo!, Facebook, and Associated Press

17. Combining Customized, Open Source, and Off-the-Shelf Systems Off-the-Shelf systems can often be customized Off-the-Shelf systems may interact with open-source systems (e.g., the MySQL open source database can be used to store data for a small business ERP system)

18. IS Development in Action (1 of 2)

19. IS Development in Action (2 of 2)

20. The Role of Users in the Systems Development Process System analysts design the system System users know what is needed System analysts depend on system users System users are key throughout the process

21. Steps in the System Development Process • Systems planning and selection • Systems analysis • Systems design • Systems implementation and operation

22. Phase 1: Systems Planning and Selection • Resources are limited so projects must be limited • Analyst gathers information and builds the case • Multiple approaches to selecting projects • Formal IS planning process • Ad-hoc planning process • The business case role • Business cases for different projects compared • Multiple selection criteria

23. Phase 2: Systems Analysis: Collecting Requirements • Collecting Requirements • Most important part of system development • Requirements Collection is the process of gathering and organizing information from users by the following means: • Interviews • Questionnaires • Observations • Document Analysis • Joint Application Design (JAD) – A group meeting—based process for requirements collection (see next slide)

24. Joint Application Design The JAD room below is a perfect example of the Joint Application Design meeting

25. Phase 2: Systems Analysis: Modeling Data • The diagram above shows an entity-relationship diagram (data modeling) pertaining to students

26. Phase 2: Systems Analysis: Modeling Processes and Logic • The figure on the right shows the four key elements in the development of a system as follows: • Requirements • Data • Data flows • Processing logic

27. Phase 3: Systems Design • The system is designed during this phase from the chosen design during Phase 2 as follows: • Processing and Logic • Modeled using one of many techniques • Models converted into code in Phase 4 • Database and files • Human-computer interface • Point of contact between the user and the system • Data entry and management forms

28. Human—Computer Interface

29. Phase 4: Systems Implementation and Operation • Convert design into a working system • Software programming and software testing • System conversion, documentation, training, and support • User and reference guides • User training manuals and tutorials • Installation procedures and troubleshooting suggestions

30. Types of Software Testing (Table 9.4)

31. Conversion Strategies

32. Repeating the SDLC: Systems Maintenance

33. Systems Maintenance Activities

34. Other Approaches to Designing and Building Systems • Prototyping • Trial-and-error • Works even when the desired endpoint isn’t known, if there is a basis for determining when one prototype is better than another • RAD & Extreme Programming

35. Acquiring Information Systems • Learning Objective: Explain how organizations acquire systems via external acquisition and outsourcing. • External Acquisition • Outsourcing Systems Development

36. Reasons for External Acquisition • Possible situations: • Situation 1: Limited IS staff • Situation 2: IS staff has limited skill set • Situation 3: IS staff is overworked • Situation 4: Problems with performance of IS staff • When this is the case, there are two options: • External acquisition of a prepackaged system • Outsourcing systems development

37. Steps in External Acquisition • Most competitive external acquisition processes have at least five steps • Systems planning and selection • Systems analysis • Development of a request for proposal • Proposal evaluation • Vendor selection

38. Development of a Request for Proposal A summary of existing systems and applications Requirements for system performance and features Reliability, backup, and service requirements The criteria that will be used to evaluate proposals Timetable and budget constraints (how much you can spend)

39. Proposal Evaluation • Evaluation may include: • Viewing system documentations • Evaluating system performance • Judging how system stacks up to important criteria • Use of system benchmarks • Response time given a specified number of users • Time to sort records • Time to retrieve a set of records • Time to produce a given report • Time to read in a set of data

40. Commonly Used Evaluation Criteria (Table 9.8)

41. Vendor Selection • Typically multiple feasible solutions • Prioritize or rank competing proposals • Weighted scoring system works well for this • Other approaches include: • Simple checklists • Subjective processes • Once vendor is selected, external acquisition is complete

42. Managing the Software License • Varying degrees of restrictiveness or freedom • Types of licenses • Shrink-wrap or click-wrap licenses • Typical for off-the-shelf and system software • Enterprise or volume licenses • Usually negotiated • Software asset management • Performing a software inventory

43. Why Outsourcing?

44. Managing the IS Outsourcing Relationship • Outsourced relationships take continuous management • Realistic, tangible measures of performance should be developed and tracked • Multiple levels of interaction based on the type of interaction • Operational and tactical • Policy and relationship

45. END OF CHAPTER CONTENT

46. Managing in the Digital World:The Maker Movement Maker movement refers to the increase of do-it-yourself (DIY) and do-it-with-others (DIWO) as makers Key technologies include: inexpensive computing devices, rapid prototyping machinery, and stream-lined software development platforms Previous objects required many expensive tools Same objects can be 3D printed at much less cost Open source hardware, software, and standard interfaces make it easy for anyone to learn

47. Green IT: Project Natick—Microsoft’s Underwater Data Centers • Data centers require massive amounts of space usually located in remote areas • Largest located in China with 6.3 million square feet • Data centers need water to cool the computer servers • Project Natick is a Microsoft idea of building a large data center that can reside 100s of feet underwater • Cooling costs would be zero (no heat impact) • Need to use materials that would not rust and last for 5 years

48. Coming Attractions:Harvesting Human Energy • Smartwatch or fitness tracker can see a battery deplete in just a few days • MIT researchers are experimenting how to power our gadgets by our body movements • A sandwich of metal and polymer are put together that acts like a lithium battery • If this material is bent, electrochemical processes create an electrical current to supply by our gadgets • Challenge is for user to exercise or be active

49. Ethical Dilemma:Ethical App Development • Nowadays anyone can build an app, not just major software companies • Mobile apps are especially prevalent, with opportunities to build the next “killer app” • This leads to possible ethical issues, especially related to privacy concerns • Facebook privacy policies always changing, often violating privacy preferences of users • iOS social media Path app secretly sends users’ complete address list to Path’s servers • Apps can easily retrieve user data, but can does not imply ought

50. Who’s Going Mobile:Creating Mobile Apps • Smartphone apps are being rapidly developed and deployed • In 2015, Google and Apple announced more than 1.5 million apps in their app stores • Only a relatively few are highly successful • Flappy Bird took only three days to complete, but netted $50K per day • Game templates are available for as low as $199 for developers, not even needing code • Other app possibilities • Productivity tools for students • Managing your passwords • Plenty of other ideas