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MIS 503
Management Information Systems
MBA Program
SYSTEMS DEVELOPMENT
LIFE CYCLE METHODOLOGY
Systems development life cycle (SDLC) – a highly
structured approach for development of new
customized software applications
Page 385
SYSTEMS DEVELOPMENT
LIFE CYCLE METHODOLOGY
The SDLC Project Team
• Usually temporary
• Includes personnel from IS and business units
• Has a project manager
– Traditionally from IS
– Can be from business unit
– May be one from each
– Responsible for success of project – delivering quality
system on time and within budget
Page 393
SYSTEMS DEVELOPMENT
LIFE CYCLE METHODOLOGY
The SDLC Project Team
• Includes systems analysts
– Have critical roles
– Work closely with business managers and end users
– Have problem-solving skills, knowledge of IT capabilities, strong
business understanding
• Has a business sponsor and a champion
Page 394
Managing Change
• The ability to manage change is
critical to the success of systems
development.
– The new or modified systems created
during systems development will
inevitably cause change.
– Managing change requires the ability to
recognize existing or potential
problems.
Significant Quote
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SDLC:
– Most often requires a lot of documentation
– Outputs from one step inputs to next
– Often referred to as the “waterfall” model
Page 386
SYSTEMS DEVELOPMENT
LIFE CYCLE METHODOLOGY
Definition Phase – Feasibility Analysis
• Types of feasibility – economic, operational, and
technical
• Deliverable – 10-20 page document:
– Executive overview and recommendations
– Description of what system would do and how it would
operate
– Analysis of costs and benefits
– Development plan
Page 387-388
SYSTEMS DEVELOPMENT
LIFE CYCLE METHODOLOGY
Definition Phase – Requirements Definition
• Focuses on logical design: processes, data flows, and data interrelationships – not
specific physical implementation
Page 388
Significant Quote
Brook’s Law:
Adding manpower to a late software project makes
it later!
(Frederick P Brooks Jr.)
• Installation
• Operations
• Maintenance
Page 390
Implementation Phase – Installation
Parallel Strategy
Parallel Strategy
Parallel Strategy
Parallel Strategy
Meskimens Law
There is never time to do it right, but there is
always time to do it over
User Acceptance
• User acceptance document - a
formal agreement signed by the user
that a phase of the installation or the
complete system is approved.
• This is a legal document that usually
removes or reduces the IS vendor
from liability or responsibility for
problems that occur after it is signed.
Causes of Maintenance
• Some major causes of program
maintenance are:
– New requests from stakeholders,
users, and managers.
– Bugs or errors in the program.
– Technical and hardware problems.
– Corporate mergers and acquisitions.
– Governmental regulations.
Significant Quote
Nixons Law
The man who can smile when things go
wrong has thought of someone to blame.
Flon's axiom
There does not now, nor will there ever, exist
a programming language in which it is the
least bit hard to write bad programs.
(Lawrence Flon)
Trends in Systems
Development
Operational and Rapid
Prototyping
• An operational prototype is a prototype
that works.
• A partially operational prototype has
some components that are operational.
• A rapid prototype allows system
stakeholders and users to see a mockup
of the subsystem much faster, which
enables earlier changes.
PROTOTYPING
METHODOLOGY
• Prototyping approach:
– Takes advantage of availability of fourth generation
procedural languages and relational database
management systems
– Enables creation of system (or part of system) more
quickly, then revise after users have tried it
– Is a type of evolutionary development process
Page 396
PROTOTYPING
METHODOLOGY
• Prototyping examples:
– Input and output screens developed for users to test as part of
requirements definition
– “First-of-a-series” – a completely operational prototype used as a pilot
– “Selected features” – only some essential features included in prototype,
more added later
– Prototyping used as a complete alternative to traditional SDLC
methodology
Page 396
PROTOTYPING
METHODOLOGY
Page 396
The Prototyping Steps
Page 398-399
PROTOTYPING
METHODOLOGY
Prototyping Advantages and Disadvantages
• Disadvantages:
– End prototype often lacks security and control features
– May not undergo as rigorous testing
– Final documentation may be less complete
– More difficult to manage user expectations
Page 399
PROTOTYPING
METHODOLOGY
Prototyping within an SDLC Process
• Hybrid methodology –
aspects of SDLC and
prototyping
• Goal is to produce a
system in less than a
year
Page 400-401
NEWER APPROACHES
Rapid Application Development (RAD)
Page 400-401
NEWER APPROACHES
Rapid Application Development (RAD)
Page 402
THE MAKE-OR-BUY DECISION
Decision should be made jointly by business managers and IS professionals
• Advantages of purchasing:
Cost savings
•
– Faster speed of implementation
–Disadvantages of purchasing:
Seldom exactly fits a company’s needs
•
– Often forces trade-offs
–
Page 406
PURCHASING METHODOLOGY
The Purchasing Steps
Page 409
PURCHASING METHODOLOGY
Evaluate Vendor Responses to RFP and Choose Package
• Evaluation steps:
– Review vendors’ responses from RFPs
– Request demonstrations of leading packages
– Request references from users of software packages in other companies
– Assess how well package capabilities satisfy company’s needs
– Understand extent of any additional development efforts or costs to tailor software
– Make decision
Page 410-411
PURCHASING METHODOLOGY
Evaluate Vendor Responses to RFP and Choose Package
Page 413
PURCHASING METHODOLOGY
Project Team for Purchasing Packages
Page 414-415
PURCHASING METHODOLOGY
Purchasing Advantages and Disadvantages
Page 418
NEW PURCHASING OPTION:
APPLICATION SERVICE
PROVIDERS (ASPs)
Some advantages:
•
Cost savings and faster speed of implementation
–
Usually involves monthly fees rather than large infrastructure investment
–
Disadvantages:
•
Dependence on an external vendor for both software and ongoing operations
–
Good assessment of required service levels even more critical
–
Page 418-419
End-User Systems
Development
• End-user systems development is
a term that was originally used to
describe the development of
information systems by individuals
outside of the formal IS planning
and departmental structure.
Potential Problems for
Systems Development
• Solving the wrong problem.
• Poor problem definition and analysis.
• Poor communication.
• A project that is too ambitious.
• A lack of top management support.
• A lack of management and user
involvement.
Potential Problems for
Systems Development
• Failure to use a standard systems
development approach.
• Inadequate or improper systems
design.
• Poor testing and implementation.
• A lack of concern for maintenance.
Success Factors in
Systems Development
• Clearly defined organizational goals.
• A sharp focus on, and clear understanding of, the most
important business problems or opportunities.
• Clearly defined systems development objectives.
• Support of top-level managers. Involvement of users at all
stages.
• Use of a proven systems development method.
• Creating or aligning incremental systems benefits with
normal user work activities so as to provide incentives for
effective system interaction.
• Managing change.
• A simple and straightforward design.
• Good training programs for all involved.
Global Sourcing
• The process of deciding where in the
world a firm’s activities will be
performed and who will perform the
activities.
– Fundamentally any activities that does
not require direct customer contact,
extensive local knowledge, or complex
interactions can be sourced anywhere
Global Resourcing
Outshoring and Outsourcing
Definition of Outsourcing
• IS outsourcing is the commissioning of part or all
of the IS activities an organization needs, and/or
transferring the associated human and other IS
resources, to one or more external IS suppliers
• IS Offshoring is the commissioning of part or all
of the IS activities an organization needs to one
or more other countries
• IS Insourcing is the sourcing of a business
function within the firm (e.g., Kingland Systems)
IS Outsourcing
• Four Types of Outsourcing
Relationships:
❑ Support
❑ Reliance
❑ Alignment
❑ Alliance
Outsourcing Grid
Extent of Substitution by Vendors
High
Reliance Alliance
Support Alignment
Low
Low High
Strategic Impact of IS Applications
Outsourcing Decision
Variables
• Relationships
• Division Among Suppliers and
Contracts
• Management Structure
• Operational Structure
• Internal Organization of Outsourcing
Coordination
Horizontal and Vertical
Integration
• Diversification - • Specialization -
increasing the reducing the number
number of products of products and
and services services
• Differentiation - • Integration -
aka ‘disintegration’ - performing a larger
decreasing the number of phases in
number of the production chain
subsequent phases in
the production chain
Backward Vertical
Disintegration
• Car manufacturer purchasing pre-
assembled engines instead of
purchasing and assembling the
component parts themselves
• Decreasing the number of phases a
firm performs by commissioning
another entity within the production
chain to perform those functions