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MIS

Building the IS

System Acquisition Strategies

Develop Custom Application In-house Buying Packaged System and Customize it Rely on a external resource to build the system.

Who develops the IS?


In-house applications Software packages Outsourced Custom solutions Application Service provider (SaaS) Do not consider implementation options till the company has a clear set of goals and objectives for it business needs.

Selecting a Acquisition Strategy


When to use Custom Development Business Need In-house experience Project Skills Unique Functional & Technical exists Desire to build in-house skills Expert PM and proven methodology When to use Packaged Common Functional exists Skills are not strategic Good PM with vendor coordination When to Outsource Not core to business None exists Desire to outsource is strategic PM at the level of organization matching scope of outsourcing

Project Mgmt.

Time Frame

Flexible

Short

Short / Flexible

Sources of Application Software


Cloud computing

Managed Service Providers

Packaged Software Producers

Microsoft is the leader in prepackaged software production. Prepackaged software is off-the-shelf software. Often, prepackaged software is turnkey software
(i.e. not customizable).

Custom Software Producers

Firms like Infosys, TCS, WIPRO, Accenture, EDS etc are leading custom software producers. Consulting firms develop software to meet the clients specific requirements. Consulting firms are usually called when the client company does not have inhouse expertise or manpower available to develop the system.

Enterprise Solutions Software

Enterprise Resource Planning (ERP) systems that integrate individual traditional business functions into modules enabling a single seamless transaction to cut across functional boundaries. SAP is the leading vendor of ERP systems.

Application Service Providers

ASP: an organization that hosts and runs computer applications for other companies, typically on a per-use or license basis Business Growth limits the use of application through ASPs.

Brought in MSPs Managed Service Providers

In-House Development

If sufficient system development expertise with the chosen platform exists in-house, then some or all of the system can be developed by the organizations own staff. Often, there are a variety of sources used, with in-house staff playing a role as well as consultants or ERP vendors.

Criteria for Choosing Off-theShelf Software


Cost Functionality Vendor support Viability of vendor Flexibility Documentation Response time Ease of installation

What is a system?

A system is a group of interacting, interrelated, and interdependent components that form a complex and unified whole. Has a objective Has a boundary Has importance Has a purpose Has a nature (closed/open and probabilistic / deterministic)

Analysis and Design of a IS

Get Business Requirements Model / re-Model them to get better control, better results Increase the efficiencies of the business processes

Analysis and Design

Systems analysis and design is a systematic approach to identifying problems, opportunities, and objectives; analyzing the information flows in organizations; and designing computerized information systems to solve a problem

Who does it?

Systems / Business Analyst performs analysis and design based upon:

Understanding of organizations objectives, structure and processes Knowledge of how to exploit information technology for advantage

Organizational Responsibilities in Systems Development

Programmers (Developers)

Convert specifications into instructions that the computer understands Write documentation and testing programs

Business Managers

Have power to fund projects and allocate resources Set general requirements and constraints for projects

Organizational Responsibilities in Systems Development

Database Administrator

Involved in design, development and maintenance of databases


Develop systems involving data and/or voice communications Involved in training users and writing documentation Ensure that required controls are built into the system

Network and telecommunications experts

Human Factors Specialists

Internal Auditors

Organizational Responsibilities in Systems Development

IS Manager (Project Manager) May have a direct role in systems development if the project is small Typically involved in allocating resources to and overseeing system development projects. Systems Analyst Key individual in the systems development process Analytical Understanding of organizations Problem solving skills System thinking Ability to see organizations and information systems as systems Technical Understanding of potential and limitations of technology Management Ability to manage projects, resources, risk and change Interpersonal Effective written and oral communication skills

What is needed for analysis and Design?

Approach to Analysis & Design


A process used to create an information system Consists of:

Methodologies

A sequence of step-by-step approaches that help develop the information system

Techniques

Processes that the analyst follows to ensure thorough, complete and comprehensive analysis and design
Computer programs that aid in applying techniques

Tools

Data and Processes

Three key components of an information system


Data Data Flows Processing Logic

Data

Understanding the source and use of data is the key to good system design Various techniques are used to describe data and the relationship amongst data Groups of data that move and flow through the system

Data Flows

Data and Processes

Data Flows (Continued)

Include description of sources and destination for each data flow Describe steps that transform data and events that trigger the steps

Processing Logic

Systems Development Life Cycle (SDLC)

Traditional methodology for developing, maintaining, and replacing information systems Phases in SDLC:

Planning Analysis Design Implementation Maintenance

Systems Development Life Cycle


Phases are not necessarily sequential Each phase has a specific outcome and deliverable Individual companies use customized life cycles

Standard and Evolutionary Views of SDLC

SDLC Planning Phase


Identify, analyze, prioritize, and arrange IS needs

Phases of the Systems Development Life Cycle

Project Identification and Selection

Two Main Activities


Identification of need Prioritization and translation of need into a development schedule

Helps organization to determine whether or not resources should be dedicated to a project. Two Activities

Project Initiation and Planning

Formal preliminary investigation of the problem at hand Presentation of reasons why system should or should not be developed by the organization

Feasibility Analysis

Detailed business case for the project


Technical feasibility Economic feasibility Operational / Organizational feasibility

Compiled into a feasibility study Feasibility is reassessed throughout the project

Technical Feasibility: Can We Build It?

Users and analysts familiarity with the business application area Familiarity with technology

Have we used it before? How new is it?

Project size

Number of people, time, and features

Compatibility with existing systems

Organizational Feasibility
If we build it, will they come?

Strategic alignment

How well do the project goals align with business objectives? Project champion(s) Organizational management System users adaptability

Stakeholder analysis

Economic Feasibility Should We Build It?


Identify costs and benefits Assign values to costs and benefits Determine cash flow Assess financial viability

Net present value (NPV) Return on investment (ROI) Break even point (BEP)

SDLC Analysis Phase


Study and structure system requirements

Systems Development Life Cycle

Analysis

Study of current procedures and information systems

Determine requirements

Study current system Structure requirements and eliminate redundancies

Generate alternative solutions Compare alternatives Recommend best alternative

Learn the who, what, where, when and the why for these

SDLC Design Phase


Convert recommended solution to system specifications
Logical design: functional features described independently of computer platform

Physical design: logical specifications transformed to technologyspecific details

Systems Development Life Cycle

Design

Logical Design

Concentrates on business aspects of the system


Technical specifications

Physical Design

SDLC Implementation Phase


Code, test, install, and support the information system

Implementation

Hardware and software installation Programming User Training Documentation

SDLC Maintenance Phase


Systematically repair and improve the information system

Systems Development Life Cycle

Maintenance

System changed to reflect changing conditions System obsolescence

Traditional Waterfall SDLC

One phase begins when another completes, little backtracking and looping

Problems with Waterfall Approach

System requirements locked in after being determined (can't change) Limited user involvement (only in requirements phase) Too much focus on milestone deadlines of SDLC phases to the detriment of sound development practices

Alternatives to Traditional Waterfall SDLC


Joint Application Design (JAD) Rapid Application Development (RAD)

Prototyping eXtreme Programming

Agile Methodologies

Joint Application Design (JAD)

Structured process involving users, analysts, and managers Several-day intensive workgroup sessions Purpose: to specify or review system requirements

Rapid Application Development (RAD)


Methodology to decrease design and implementation time Involves: prototyping, JAD, CASE tools, and code generators

Prototyping

Iterative development process: Requirements quickly converted to a working system System is continually revised Close collaboration between users and analysts

Prototyping

Building a scaled-down working version of the system Advantages:


Users are involved in design Captures requirements in concrete form

Agile Methodologies

Motivated by recognition of software development as fluid, unpredictable, and dynamic Three key principles

Adaptive rather than predictive Emphasize people rather than roles Self-adaptive processes

eXtreme Programming

Short, incremental development cycles Automated tests Two-person programming teams Coding and testing operate together Advantages:

Communication between developers High level of productivity High-quality code

Object-Oriented Analysis and Design


Based on objects rather than data or processes Object: a structure encapsulating attributes and behaviors of a real-world entity Object class: a logical grouping of objects sharing the same attributes and behaviors Inheritance: hierarchical arrangement of classes enable subclasses to inherit properties of superclasses

CASE Tools

CASE tools are automated, microcomputer-based software packages for systems analysis and design Project dictionary/workbook: system description and specifications Diagramming tools Example products: Oracle Designer, Rational Rose Facilitate creation of a central repository for system descriptions and specifications

CASE Tools

Four reasons for using CASE tools are:


To increase analyst productivity Facilitate communication among analysts and users Providing continuity between life cycle phases To assess the impact of maintenance

Selecting THE Methodology


Clarity of User Requirements Familiarity with Technology System Complexity System Reliability Short Time Schedules Schedule Visibility

Your Turn
Suppose you are an analyst for the ABC Company, a large consulting firm with offices around the world. The company wants to build a new knowledge management system that can identify and track the expertise of individual consultants anywhere in the world on the basis of their education and the various consulting projects on which they have worked. Assume that this is a new idea that has never before been attempted in ABC or elsewhere. ABC has an international network, but the offices in each country may use somewhat different hardware and software. ABC management wants the system up and running within a year. What methodology would you recommend ABC Company use? Why?

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