Chapter 12: Acquiring Information Systems and Applications
Transcript of Chapter 12: Acquiring Information Systems and Applications
![Page 1: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/1.jpg)
CHAPTER 12
Acquiring Information Systems and Applications
![Page 2: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/2.jpg)
CHAPTER OUTLINE
12.1 Project Management for Information System Projects
12.2 Planning for and Justifying IT Applications
12.3 Strategies for Acquiring IT Applications12.4 The Traditional Systems Development Life
Cycle12.5 Alternative Methods and Tools for
Systems Development12.6 Vendor and Software Selection
![Page 3: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/3.jpg)
12.1 Project Management for Information Systems Projects Project Information System Project Management The Triple Constraints
![Page 4: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/4.jpg)
An IS Project Gone Astray
![Page 5: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/5.jpg)
The Project Management Process
Project Initiation Project Planning Project Execution Project Monitoring and Control Project Completion
![Page 6: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/6.jpg)
12.2 Planning for and Justifying IT Applications
Organizations must analyze the need for the IT application.
Each IT application must be justified in terms of costs and benefits.
The application portfolio
![Page 7: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/7.jpg)
Information Systems Planning Process
![Page 8: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/8.jpg)
Information Systems Planning (continued)
Organizational strategic plan IT architecture Both are inputs in developing the IT strategic
plan.
![Page 9: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/9.jpg)
IT Steering Committee
The IT Steering Committee
![Page 10: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/10.jpg)
IS Operational Plan
Contains the following elements: Mission IT environment Objectives of the IT function Constraints of the IT function Application portfolio Resource allocation and project management
![Page 11: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/11.jpg)
Evaluating & Justifying IT Investment: Benefits, Costs & Issues Assessing the costs
Fixed costs Total cost of ownership (TCO)
Assessing the benefits (Values) Intangible benefits: Benefits from IT that may
be very desirable but difficult to place an accurate monetary value on.
Comparing the two
![Page 12: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/12.jpg)
Conducting the Cost-Benefit Analysis
Using Net Present Value (NPV) Return on investment Breakeven analysis The business case approach
![Page 13: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/13.jpg)
12.3 Strategies for Acquiring IT Applications
Buy the applications (off-the-shelf approach) Lease the applications Software-as-a-Service Use Open-Source Software Outsourcing Developing the applications in-house
![Page 14: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/14.jpg)
Operation of an Application Service Provider (ASP)
ASP Data Center
CustomerA
Application
CustomerB
Application
CustomerC
Application
Database Database Database
![Page 15: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/15.jpg)
Operation of a Software-as-a-Service (SaaS) Vendor
SaaS Vendor Data Center
CustomerA
CustomerB
CustomerC
CustomerA
CustomerB
CustomerC
Application
![Page 16: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/16.jpg)
12.4 Traditional Systems Development Life Cycle
Software Development Life Cycle (SDLC) is the traditional systems development method that organizations use for large-scale IT projects.
![Page 17: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/17.jpg)
Prototyping
Six-Stage Systems Development Life Cycle (SDLC) with Supporting Tools
Systems Investigation
Deliverable: Go/No Go Decision
Systems Analysis
Deliverable: User Requirement
Systems Design
Deliverable: Technical Specification
Programming and Testing
ImplementThe
System
Operation and Maintenance
Business Need
Joint Application
Design (JAD)
Upper CASE Tools
Lower CASE Tools
![Page 18: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/18.jpg)
Traditional SDLC Processes
Systems investigation Systems analysis Systems design Programming and testing Implementation Operation and maintenance
![Page 19: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/19.jpg)
The SDLC
Major advantages Control Accountability Error detection
Major drawbacks Relatively inflexible Time-consuming and expensive Discourages changes once user requirements
are done
![Page 20: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/20.jpg)
SDLC – Systems Investigation
Begins with the business problem (or opportunity) followed by the feasibility analysis.
Feasibility study Deliverable: Go/No-Go Decision
![Page 21: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/21.jpg)
Feasibility Study
Technical feasibility Economic feasibility Organizational feasibility Behavioral feasibility
![Page 22: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/22.jpg)
SDLC – System Analysis
Is the examination of the business problem that the organization plans to solve with an information system.
Main purpose is to gather information about the existing system to determine the requirements for the new or improved system.
Deliverable is a set of system requirements, also called user requirements.
![Page 23: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/23.jpg)
SDLC – Systems Design
Describes how the system will accomplish this task.
Deliverable is the technical design that specifies: System outputs, inputs, user interfaces. Hardware, software, databases,
telecommunications, personnel & procedures. Blueprint of how these components are
integrated.
![Page 24: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/24.jpg)
SDLC – System Design (continued)
Scope creep is caused by adding functions after the project has been initiated.
![Page 25: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/25.jpg)
SDLC – Programming & Testing
Programming involves the translation of a system’s design specification into computer code.
Testing checks to see if the computer code will produce the expected and desired results under certain conditions.
Testing is designed to delete errors (bugs) in the computer code.
![Page 26: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/26.jpg)
SDLC – Systems Implementation
Implementation involves three major conversion strategies: Direct Conversion Pilot Conversion Phased Conversion Parallel Conversion (not used much today)
![Page 27: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/27.jpg)
SLDC – Operation & Maintenance
Audits are performed to assess the system’s capabilities and to determine if it is being used correctly.
Systems need several types of maintenance. Debugging Updating Maintenance
![Page 28: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/28.jpg)
12.5 Alternative Methods & Tools for Systems Development
Prototyping Joint application design (JAD) Integrated computer-assisted software
engineering tools Rapid application development (RAD) Agile development End-user development Component-based development Object-oriented development
![Page 29: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/29.jpg)
RAD versus SDLC
![Page 30: Chapter 12: Acquiring Information Systems and Applications](https://reader035.fdocuments.in/reader035/viewer/2022062303/554cbba2b4c905aa608b5218/html5/thumbnails/30.jpg)
12.6 Vendor & Software Selection
Step 1: Identify potential vendors. Step 2: Determine the evaluation criteria.
Request for proposal (RFP) Step 3: Evaluate vendors and packages. Step 4: Choose the vendor and package Step 5: Negotiate a contract. Step 6: Establish a service level agreement.