Chapter 9 - Developing and Acquiring Information Systems

Chapter 9 - Developing and Acquiring Information Systems

Chapter 9 - Developing and Acquiring Information Systems Managers from across organizations are involved in developing and acquiring information systems Copyright 2014 Pearson Education, Inc. Chapter 9 Learning Objectives Copyright 2014 Pearson Education, Inc.

Making the Business Case Copyright 2014 Pearson Education, Inc. Business Case Objectives The Business Case sells an investment Lays out the costs and benefits Used to make a go or no-go decision May be used to justify continued funding Ensures an investment is adding value

Copyright 2014 Pearson Education, Inc. The Productivity Paradox Copyright 2014 Pearson Education, Inc. Making a Successful Business Case: Identifying Costs and Benefits Identifying Costs Tangible Costs Total Cost of Ownership (TCO) Non-recurring costs Recurring costs

Intangible Costs Identifying Benefits Tangible Benefits Intangible Benefits Copyright 2014 Pearson Education, Inc. Making a Successful Business Case: Performing CostBenefit Analyses Copyright 2014 Pearson Education, Inc.

Making a Successful Business Case: Comparing Competing Investments Copyright 2014 Pearson Education, Inc. Presenting the Business Case Know the Audience Know who you are presenting to, what their background 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 Copyright 2014 Pearson Education, Inc. The Systems Development Process Copyright 2014 Pearson Education, Inc.

Customized 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 Copyright 2014 Pearson Education, Inc.

Off-the-Shelf Software: Examples Category Business information systems Application Payroll Inventory Office automation

Personal productivity Copyright 2014 Pearson Education, Inc. Description Automation of payroll services, from the optical reading of time sheets to generating paychecks Automation of inventory

tracking, order processing, billing, and shipping Support for a wide range of tasks from word processing to graphics to e-mail Examples ZPAY Intuit Payroll Intuit QuickBooks InventoryPower 5 OpenOffice

Corel WordPerfect Microsoft Office Open Source Software Programs source code is freely available for use and/or modification Linux is a prevalent example 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 Copyright 2014 Pearson Education, Inc. Combining Customized, Open Source, and Offthe-Shelf Systems Off-the-shelf systems can often be customized Off-the-shelf systems may interact with opensource systems (e.g., the MySQL open-source database can be used to store data for a small business ERP system) Copyright 2014 Pearson Education, Inc.

IS Development in Action Copyright 2014 Pearson Education, Inc. IS Development in Action Copyright 2014 Pearson Education, Inc. The Role of Users in the Systems Development Process

System Analysis design the System System Users know what is needed System Analysis depend on System Users System Users are key throughout the process Copyright 2014 Pearson Education, Inc. Steps in the Systems Development Process 1. Systems planning

and selection 2. Systems analysis 3. Systems design 4. Systems implementation and operation Copyright 2014 Pearson Education, Inc. 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 Copyright 2014 Pearson Education, Inc. Phase 2: Systems Analysis Collecting Requirements May be the most important part of Systems Development

Dictates how the proposed system should function Modeling Data What data is needed Modeled using Entity-Relationship diagrams Modeling Processes and Logic Model the Data flow Model the Processing Logic Develop System Designs & Evaluate, Selecting One Copyright 2014 Pearson Education, Inc.

Phase 3: Systems Design The system design chosen from Phase 2 is now elaborated to where it could be built Human-computer interface Point of contact between the user and the system Data entry and management forms Databases and files Processing and logic Modeled using one of many techniques Models converted into code in Phase 4

Copyright 2014 Pearson Education, Inc. Phase 4: Systems Implementation and Operation Convert design into a working system Software programming & software testing System conversion, documentation, training, and support User and reference guides User training manuals and tutorials Installation procedures and troubleshooting suggestions

Copyright 2014 Pearson Education, Inc. Phase 4: Systems Implementation and Operation: Conversion Strategies Copyright 2014 Pearson Education, Inc. Repeating the SDLC: Systems Maintenance Copyright 2014 Pearson Education, Inc.

Repeating the SDLC: Systems Maintenance: Activity Mapping Copyright 2014 Pearson Education, Inc. Other Approaches to Designing and Building Systems Prototyping Trial-and-error Works even when the desired endpoint isnt known, if there is a

basis for determining when one prototype is better than another RAD & Extreme Programming Copyright 2014 Pearson Education, Inc. Acquiring Information Systems Copyright 2014 Pearson Education, Inc.

External Acquisition: Reasons for External Acquisition 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

Copyright 2014 Pearson Education, Inc. External Acquisition: Steps 1. 2. 3. 4. 5. Systems planning and selection

Systems analysis Development of a request for proposal Proposal evaluation Vendor selection Copyright 2014 Pearson Education, Inc. External Acquisition: Steps: 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) Copyright 2014 Pearson Education, Inc. External Acquisition: Steps: Proposal Evaluation The proposal needs to be evaluated based on the cost and benefits, which is often interpreted as functionality

Total cost of ownership System features compared to RFP System benefits based on system features System benchmarks measure of system features Other factors risk Copyright 2014 Pearson Education, Inc. External Acquisition: Steps: Vendor Selection Typically multiple feasible solutions Prioritize or rank competing proposals Weighted scoring system works well for this

Copyright 2014 Pearson Education, Inc. Outsourcing Systems Development: Why Outsourcing? Outsourcing Reasons Cost and Quality Concerns Problems in IS Performance Supplier Pressures Simplifying, Downsizing, and Reengineering Financial Factors

Organizational Culture Internal Irritants Copyright 2014 Pearson Education, Inc. Description Vendors have economies of scale, and can develop better systems at a lower cost Outsourced vendors more reliable and consistent Aggressive sales forces Companies retreating to core competencies, outsourcing functions not core to value creation

An arms-length relationship with vendors can create more efficient use, IT assets can be liquidated Internal politics may block IT from moving forward If the IS staff and users are not interacting well together, removing that source of tension can be a relief Outsourcing Systems Development: 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 & tactical Policy & relationship Copyright 2014 Pearson Education, Inc. END OF CHAPTER CONTENT Copyright 2014 Pearson Education, Inc. Managing in the Digital World: Microsoft Is Kinecting Its Ecosystem

Microsoft released the Kinect in 2010, a motion capture device for the Xbox with a USB interface Programmers saw the potential to use the Kinect in new and novel ways Microsoft resisted, and threatened lawsuits Programmers ignored Microsoft, developing drivers connecting the Kinect to computers Microsoft realized the Kinect programming was here to stay, and now supports users programming new applications for it This bolstered Microsoft's reputation with programmers, and now an ecosystem is developing around Kinect programming Copyright 2014 Pearson Education, Inc.

Brief Case: The Cold War in Software Patents Originally, internet software was based on open standards As profits and competition increased, patenting software has become commonplace Companies now waging patent battles so block rivals and secure market advantages Some companies buy up patents for the sole purpose of suing other companies infringing on them The resulting battles stifle creativity, reduce market competitiveness and choice, and drive up costs which are

ultimately paid for by the consumer Copyright 2014 Pearson Education, Inc. Coming Attractions: Microsofts PixelSense Any Place, Any Time Pixelsense is a Microsoft technology allowing tabletop display of data that can be manipulated with gestures through touch and computer vision Currently bulky and expensive Introduced in 2008 as a tabletop display Upgraded in 2012 to be thinner, but still not mobile Microsoft working on mobile version that can be powered by a

laptop Microsoft sees it eventually becoming pervasive, with inexpensive screens on many surfaces that users can interact with Copyright 2014 Pearson Education, Inc. Ethical Dilemma: Genetic Testing Genetic testing is now a reality Many people have genes that predispose them to certain diseases

In 2008 Congress passed a law to prevent genetic discrimination Cannot be used in hiring / firing decisions Cannot be used in insurability and insurance premium decisions Knowing our genetic heritage will give us new opportunities, but may lead to abuse if the information isnt protected Copyright 2014 Pearson Education, Inc.

Whos Going Mobile Creating Mobile Apps Smartphone apps are being rapidly developed and deployed Hundreds of thousands of apps compete on iTunes and Google Play Only a relatively few are highly successful 26% of downloaded apps only used once Successful apps require both strategy and luck Unique idea with significant market potential Customer research into key features Pricing (often free to start) and placement in an app store

A great app can go viral, allowing an updated, paid version to be released Copyright 2014 Pearson Education, Inc. Key Players: Game Development Studios Game development is a unique endeavor Most software companies - several revenue sources Game development requires unique skills and focus Leading games can cost $100 million to develop Game development studios use special

development methodologies Games require extensive testing and refinement Game studios focus on producing games to leverage their unique skills, specialization, and resources Copyright 2014 Pearson Education, Inc. When Things Go Wrong: Conquering Computer Contagion Blue Frog had a new solution to combat SPAM For every email received, sent a response email Six of the top 10 spammers dropped Blue Frogs clients from their lists

One spammer fought back, inundating Blue Frogs clients with so much spam ISP servers crashed Blue Frog decided to fold instead of creating a new cyberwar Copyright 2014 Pearson Education, Inc. Industry Analysis: Broadcasting Broadcasters of Radio and Television are facing dwindling viewership The Internet has opened new entertainment sources

and competition to viewers Advertisers are willing to pay less for smaller audiences Broadcasters now use the internet as another distribution channel, and can charge for online show advertising Some formats are requiring shorter broadcast formats to cater to online audiences Copyright 2014 Pearson Education, Inc. Copyright 2014 Pearson Education, Inc.

Recently Viewed Presentations

  • Essential Strategies for Eliminating HCV Among Persons With ...

    Essential Strategies for Eliminating HCV Among Persons With ...

    Essential Strategies for Eliminating HCV Among Persons With Current or Recent Injection Drug Use. This activity is supported by independent educational grants from AbbVie . Changing Epidemiology of HCV in Italy: Percentage of Newly Reported Cases by Age Group ......
  • Teacher- and learner-led discourse in L2 Spanish development ...

    Teacher- and learner-led discourse in L2 Spanish development ...

    Teacher- and learner-led discourse as tools for L2 grammatical development in task-based Spanish instruction Paul D. Toth University of Wisconsin-Madison ... Discussion Teachers as providers of procedural assistance in output processing: Assistance with linguistic task of utterance formulation ...
  • Contractions - Jefferson County Public Schools

    Contractions - Jefferson County Public Schools

    Contractions Know How There are about 70 contractions in the English language. Most contraction are made by leaving out two letters like the word she will (she'll). Some contractions are missing only one letter. Words are squeezed together. Contractions with...
  • Approach to TIA and Management of Stroke after 4.5 hours

    Approach to TIA and Management of Stroke after 4.5 hours

    Approach to TIA and Management of Stroke after 4.5 hours. Robert Altman R4. McGill University. ... Labetalol 10-20 mg IV q 10-20 min (or nitroprusside infusion) ... Offset by an increase in ICH (1.2% vs 0.4%)
  • Internal Combustion Engines for Soldier Power (Burn JP-8 ...

    Internal Combustion Engines for Soldier Power (Burn JP-8 ...

    Small Engine Prospects 2003 Tri-Service Expo Roger Demler Foster-Miller Inc 781.684.4233 [email protected] Why are we here ? Perspective on Small Engines (emphasis on 4-cycle spark ignition) Big picture on power and fuel choices Real progress Lower weight in smaller sizes...
  • Net Cetera

    Net Cetera

    Cyber Citizenship Managing Your Online Digital Reputation Glen Warren Vice President of Governmental Relations California School Library Association
  • PowerPoint Presentation

    PowerPoint Presentation

    Sharon's aunt Janet wrote an article about the trip. Possessive Noun * Rule #5 Always capitalize the pronoun I. Social studies is the subject I like. * Classwork: Worksheet Lesson 69 TLW use rules of capitalization for names and titles....
  • Investing in Health Systems of the Future Budapest,

    Investing in Health Systems of the Future Budapest,

    European Harmonisation of Medical Competence through an ICT-Supported Process. Zlatko . Fras. MD-PhD. President. UEMS - European Union of Medical Specialists