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
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AIS Development StrategiesChapter 2121-1Learning ObjectivesDescribe how organizations purchase application software, vendor services, and hardwareExplain how information system departments develop custom softwareExplain how end users develop, use, and control computer-based information systemsExplain why organizations outsource their information systems, and evaluate the benefits and risks of this strategyExplain the principles and challenges of business process managementDescribe how prototypes are used to develop an AIS, and discuss the advantages and disadvantages of doing soExplain what computer-aided software engineering is and how it is used in systems development21-2How to Obtain an AISPurchaseDevelop in-houseOutsource to outside organization21-3Purchasing Select a vendor (from referrals, trade shows, etc.)Request for proposal (RFP) that meets needsEvaluate proposalsTop vendors invited to give demonstrations on how their system will fit your needsMake a final selection based upon your criteria21-4Develop Software In-HouseAdvantagesProvides a significant competitive advantageRisksRequires significant amounts of time Complexity of the systemPoor requirements definedInsufficient planningInadequate communication and cooperationLack of qualified staffPoor top management support21-5End-User ComputingAdvantagesDisadvantagesAllows for end-users to create, control, and implement simple systems More likely to meet user needsSaves timeFrees up system resourcesEasy to use and understandLack of testing of application and possible calculation errorsInefficient systemsPoorly controlledPoorly documentedSystem incompatibilitiesDuplication of dataIncrease costs in later years with upgrades21-6OutsourcingAdvantagesDisadvantageAllows companies to concentrate on core competenciesAsset utilizationAccess to greater expertise and better technologyLower costs by standardizing user applications and splitting development and maintenance costs between projectsLess development timeElimination of peaks-and-valleys usageFacilitates downsizingInflexibilityLoss of controlReduced competitive advantageLocked-in systemUnfulfilled goalsPoor serviceIncreased risk21-7Business Process Management SystemsAutomate and facilitate business process improvements using:Process engine to model and execute applications and business rulesBusiness analytics to identify issues, trends, and opportunitiesCollaboration tools to remove communication barriersContent manager to store electronic documents and images21-8PrototypingAdvantagesDisadvantagesResults in well-defined user needsHigher user satisfaction and involvementFaster development timeFewer errorsOpportunities to suggest changesLess costly Requires significant user timeResource efficiency may not be achievedInadequate testing and documentationNegative behavioral reactionsContinuous development of iterations leaves a feeling of no project completion21-9Computer-Aided Software Engineering (CASE)AdvantagesDisadvantagesImproved productivityImproved program qualityCost savingsImproved control proceduresSimplified documentationIncompatibility with other systemsUnmet expectations21-10Key TermsCanned softwareTurnkey systemsApplication service provider (ASP)Request for proposal (RFP)Benchmark problemPoint scoringRequirement costingCustom softwareEnd-user computing (EUC)Help deskOutsourcingBusiness process reengineering (BPR)Business process management (BPM)Business Process Management System (BPMS)PrototypingOperational prototypeNonoperational (throwaway) prototypeComputer-aided software (or systems) engineering (CASE)21-11