AIS Development Strategies

Chapter 21

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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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2015 Pearson
Education, Inc.

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How to Obtain an AIS

Purchase
Develop in-house
Outsource to outside organization

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Purchasing
Select a vendor (from referrals, trade shows,
etc.)
Request for proposal (RFP) that meets needs
Evaluate proposals
Top vendors invited to give demonstrations on
how their system will fit your needs

Make a final selection based upon your criteria

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Develop Software In-House

Advantages
Provides a significant competitive advantage

Risks

Requires significant amounts of time

Complexity of the system
Poor requirements defined
Insufficient planning
Inadequate communication and cooperation
Lack of qualified staff
Poor top management support

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End-User Computing
Advantages

Allows for end-users to create,

control, and implement simple
systems
More likely to meet user needs
Saves time
Frees up system resources
Easy to use and understand

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Disadvantages

Lack of testing of application

and possible calculation errors
Inefficient systems
Poorly controlled
Poorly documented
System incompatibilities
Duplication of data
Increase costs in later years
with upgrades
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Outsourcing
Advantages

Disadvantage

Allows companies to
concentrate on core
competencies
Asset utilization
Access to greater expertise and
better technology
Lower costs by standardizing
user applications and splitting
development and maintenance
costs between projects
Less development time
Elimination of peaks-andvalleys usage
Facilitates downsizing

Inflexibility
Loss of control
Reduced competitive
advantage
Locked-in system
Unfulfilled goals
Poor service
Increased risk

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Business Process Management Systems

Automate and facilitate business process
improvements using:
Process engine to model and execute applications
and business rules
Business analytics to identify issues, trends, and
opportunities
Collaboration tools to remove communication
barriers
Content manager to store electronic documents
and images
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Prototyping
Advantages

Results in well-defined user

needs
Higher user satisfaction and
involvement
Faster development time
Fewer errors
Opportunities to suggest
changes
Less costly

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Disadvantages

Requires significant user time

Resource efficiency may not be
achieved
Inadequate testing and
documentation
Negative behavioral reactions
Continuous development of
iterations leaves a feeling of no
project completion
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Computer-Aided Software Engineering

(CASE)
Advantages

Disadvantages

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

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Incompatibility with other

systems
Unmet expectations
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Key Terms
Canned software
Turnkey systems
Application service provider
(ASP)
Request for proposal (RFP)
Benchmark problem
Point scoring
Requirement costing
Custom software
End-user computing (EUC)
Help desk
Outsourcing
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Business process
reengineering (BPR)
Business process management
(BPM)
Business Process Management
System (BPMS)
Prototyping
Operational prototype
Nonoperational (throwaway)
prototype
Computer-aided software (or
systems) engineering (CASE)
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