IS Development

Standards and Practices

Learning Objectives
1. Describe how organizations

purchase application software,

vendor services, and hardware.
2. Explain how information
system departments develop
custom software.
3. Explain how end-users develop,
use, and control computerbased information systems.

Learning Objectives
4. Explain why organizations

outsource their information

systems, and evaluate the
benefits and risks of this
strategy.
5. Explain the principles and
challenges of business
process reengineering.

Learning Objectives
6. Describe how prototypes are used

to develop an AIS, and discuss the

advantages and disadvantages of
doing so.
7. Explain what computer-aided
software engineering is and how it
is used in systems development.

Introduction
Ann Christy was elated that the new

system Shoppers Mart (SM) needed was

approved.
She needed answers to the following
questions:
Was the software she needed available
for her to purchase? If so, how should she
approach the process of buying hardware
and software and selecting a vendor?

Introduction
How do companies go about developing

software in-house, and is this the best

approach for SM?
How extensively should the system make
use of end-user-developed software?
If the company decided to develop the
system in-house, should it try and speed
up the development process by using
prototyping or computer-assisted software
engineering?

Introduction
Should SM just make the needed

improvements to its existing system,

or should it consider reengineering
its business processes and then develop
a system to support the new processes?
Was outsourcing the information system
a viable alternative to obtaining a new
system? Did the benefits outweigh its
risks?

Introduction
This subject matter discusses three ways

to obtain a new information system:

purchasing prewritten software, developing
software in-house, and hiring an outside
company (outsourcing).
It also presents ways of speeding up or
improving the development process
business process reengineering,
prototyping and computer-aided software
engineering (CASE) tools.

Learning Objective 1
Describe how
organizations purchase
application software,
vendor services, and
hardware.

Purchase Software
Canned software is written by software

development companies and is sold on

the open market to a broad range of
users with similar requirements.
Turnkey systems are a combination of
software and hardware sold as a
package. The vendor installs the entire
system and user needs only to turn
the key.

Purchase Software,

continued

The Internet has given companies a new

way to acquire software:
Application service providers (ASPs) host
Web-based software on their computers and
deliver the software to their clients over the
Internet.

Purchasing Software
and The SDLC
Companies that buy rather than

develop AIS software still go through

the systems development life cycle
(SDLC).
1. Systems analysis
2. Conceptual design
3. Physical design
4. Implementation and conversion
5. Operation and maintenance

The Systems Acquisition Process

Investigate
software
packages

Will package
meet needs?
Yes
Send RFP for
Yes
software
and
hardware

Evaluate
proposal

No

No

Can package
be modified?

Develop
software
internally

Yes
Send RFP for
hardware,
if necessary
Select best
combination

Learning Objective 2
Explain how information
system departments
develop custom
software.

Development by In-House
IS Department
Most often, organizations develop

their own custom software, because

canned software that fit their specific
needs is not available.
Developing custom software is
difficult and error-prone.
It also consumes a great deal of time
and resources.

Custom Software Development by

an Outside Company
When contracting with an outside
organization, a company should
maintain control over the development
process. Some guidelines:
Carefully select a developer
Sign a contract
Plan and monitor each step
Maintain effective communication
Control all costs

Learning Objective 3
Explain how end users
develop, use, and control
computer-based
information systems.

End-User-Developed
Software

End-user computing (EUC) is the hands-on

development, use, and control of computerbased information systems by users.
With the advent of inexpensive PCs and
powerful, inexpensive software, users
began developing their own systems to
create and store data, access and download
company data, and share data and
computer resources in networks.

End-User-Developed
Software

Examples of end user development uses:

Retrieving information from company
databases to produce simple reports or to
answer one-time queries
Performing what if sensitivity or statistical
analyses
Developing applications using prewritten
software (spreadsheet or database system)
Preparing schedules and lists, such as
depreciation schedules, accounts receivable
aging, and loan amortizations

Benefits of End-UserDeveloped Software

Benefits of End-User Computing
User creation, control, and implementation
Systems that meet user needs
Timeliness
Freeing up IS resources
Versatility and ease of use

Risks of End-User Computing

Logic and development errors
Inadequately tested applications
Inefficient systems
Poorly controlled and documented systems
Systems incompatibility
Duplication of systems
Increased costs

Managing and Controlling

End-User Computing
Organizations use several different

approaches to mange and control

end-user computing. For example, a
help desk can encourage, support,
coordinate and control end-user
activities.

Functions of a Help Desk

What are some duties of the help desk?
Providing hot-line assistance to help resolve
problems
Serving as a clearinghouse for information,
coordination, and assistance training end
users, and providing corresponding technical
maintenance and support
Evaluating new end-user hardware and
software products
Assisting with application development
Developing and implementing standards
Controlling corporate data

Learning Objective 4
Explain why organizations
outsource their
information systems, and
evaluate the benefits and
risks of this strategy.

Outsource the System

What is outsourcing?
It is hiring an outside company to

handle all or part of an organizations

data processing activities.
In a mainframe outsourcing
agreement, the outsourcers buy their
clients computers and hire all or most
of the clients employees.

Outsource the System

In a client/server or PC

outsourcing agreement,
an organization
outsources a particular
service, a segment of its
business, a particular
function, or PC support.

Outsource the System

Benefits of Outsourcing
A business and information solution
Asset utilization
Access to greater expertise and
more advanced technology
Lower costs
Improved development time
Elimination of peaks and valleys usage
Facilitation of downsizing

Risks of Outsourcing
Inflexibility
Loss of control of system and/or data
Reduced competitive advantage
Locked-in system
Unfulfilled goals
Possibility of poor service

Learning Objective 5
Explain the principles and
challenges of business
process reengineering.

Business Processes
Reengineering

What is business process reengineering

(BPR)?
It is the thorough analysis and complete
redesign of business process and
information systems to achieve
performance improvements.
It is a process that challenges traditional
organizational values and cultures
associated with underperformance.

Business Processes
Reengineering
BPR reduces a company to its

essential business processes and

focuses on why they are done rather
than on the details of how they are
done.
It completely reshapes organizational
work practices and information flows
to take advantage of technological
advancements.

Principles of
Reengineering
What are the seven principles
of business processing
reengineering?
1. Organize around outcomes,
not tasks.
2. Require those who use the
output to perform the
process.
3. Require those who produce
information to process it.

Principles of
Reengineering
4. Centralize and disperse data.
5. Integrate parallel activities
6. Empower workers, use built-

in controls, and flatten the

organization chart.
7. Capture data once, at its
source.

Challenges Faced by
Reengineering Efforts
What are some of the obstacles to
reengineering efforts?
Tradition

Resistance

Time requirements

Risk

Lack of management support Skepticism

Retraining

Controls

Learning Objective 6
Describe how prototypes are
used to develop an AIS, and
discuss the advantages and
disadvantages of doing so.

Prototyping
What is prototyping?
an approach to systems design in which a

simplified working model of a system is

developed.
A prototype, or first draft, is quickly and
inexpensively built and provided to users
for testing.

Prototyping
What four steps are involved in

developing
a prototype?
1. Identify basic systems requirements.
2. Develop an initial prototype that meets
the agreed-on requirements.
3. Users identify changes, developers
make changes, and the system is
turned over to the user.
4. Use the system approved by the users.

Advantages of Prototyping
Better definition of user needs
Higher user involvement and satisfaction
Faster development time
Fewer errors
More opportunity for changes
Less costly

Disadvantages of Prototyping
Significant user time
Less efficient use of system resources
Incomplete systems development
Inadequately tested and
documented systems
Negative behavioral reactions
Unending development

Learning Objective 7
Explain what computeraided software engineering
is and how it is used in
systems development.

Computer-Aided Software
Engineering (CASE)
CASE is an integrated package of computer-

based tools that automate important

aspects of the software development
process.
CASE tools are used to plan, analyze,
design, program, and maintain an
information system.
They are also used to enhance the efforts of
managers, users, and programmers in
understanding information needs.

Computer-Aided Software
Engineering (CASE)
CASE tools do not replace skilled

designers; instead they provide a host of

self-integrated tools that give developers
effective support for all SDLC phases.
CASE software typically has tools for
strategic planning, project and system
management, database design, screen
and report layout, and automatic code
generation.

Advantages of CASE Technology

Improved productivity
Improved program quality
Cost savings
Improved control procedures
Simplified documentation

Disadvantages of CASE Technology

Incompatibility
Cost
Unmet expectations

Ann Christys Case

What did Ann Christy decide?
against outsourcing the AIS

What did she think about prototyping?

that it would not work well

What did she think about reengineering?

- that the system did not need reengineering

What were her options?
purchase a system or design one in-house.

Conclusion
No matter which approach she

chose, Ann wanted to facilitate as

much end-user development as
was practical and useful.

Therefore
Development Standards in AIS depends solely

on the needs and priorities of the Organization

End