Systems Analysis and Design, 13th Edition Chapter 10 PDF

Systems Analysis and Design, 13 th Edition Chapter 10: Development Strategies Scott Tilley, Sy...

Systems Analysis and Design, 13 th Edition Chapter 10: Development Strategies Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1  Chapter Objectives (1 of 2) By the end of this chapter, you should be able to: 1. Compare and contrast traditional and web-based systems development. 2. Explain the possible impact of evolving IT trends on systems development. 3. Outline the process of selecting an in-house software development option. 4. Explain outsourcing. 5. Summarize the main advantages and the unique concerns of offshoring. Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2  Chapter Objectives (2 of 2) By the end of this chapter, you should be able to (continued): 6. Describe the concept of software as a service. 7. Explain why data management and analytics are integral to selecting a development strategy. 8. Outline how a systems analyst helps in choosing a development strategy. 9. Execute the main steps in the software acquisition process. Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3  Traditional versus Web-Based Systems Development (1 of 5) Traditional development factors that influence design include: − Compatibility with existing hardware or legacy systems − Web-based features are typically regarded as supplementary enhancements rather than fundamental components − Development of traditional systems follows one of three paths:  In-house development  Purchase off-the-shelf software package with possible modification  Engage external consultants Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4  Traditional versus Web-Based Systems Development (2 of 5) Scalability and security are also critical considerations in traditional systems development − Scalability is affected by network limitations and constraints − Many applications require substantial desktop computing power and resources − Security issues usually are less complex than with web-based systems Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5  Traditional versus Web-Based Systems Development (3 of 5) Web-based development considerations include the following: − Systems are developed and delivered on an Internet-based framework − Internet-based development treats the web as the platform − Web-based systems are easily scalable and can run on multiple hardware environments − They are used for customer relationship management, order processing, and materials management Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6  Traditional versus Web-Based Systems Development (4 of 5) Web-based development considerations include the following: − When companies acquire web-based software as a service (SaaS) rather than a product they purchase, they can limit in-house involvement − The vendor installs, configures, and maintains the system − They often require additional layers, called middleware, to communicate with existing software and legacy systems − Web-based solutions open more complex security issues that should be addressed Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7  Traditional versus Web-Based Systems Development (5 of 5) Systems analysts must consider whether development will take place in a traditional environment or in a web-centric framework Two web-based development environments include the following: − Microsoft’s.NET − MERN stack There is a significant trend toward web-based architecture Many firms rely on traditional systems because they use legacy applications that are not easily replaced Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8  Evolving Trends (1 of 4) Artificial Intelligence (AI) and Machine Learning (ML) are paving the way for more automated decision making, predictive analysis, and enriched user experiences Organizations can create innovative and adaptive solutions by embedding AI and ML into systems The role of AI and ML in system development is not just about enhancing current capabilities − Autonomous vehicles, smart city infrastructures, and advanced health diagnostics are examples where AI and ML are pushing boundaries Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9  Evolving Trends (2 of 4) Cloud computing (SaaS, Paas, IaaS, UCaaS) provides computing services, including servers, storage, databases, networking, and software, over the Internet. − Users pay only for the resources they consume The Internet of Things (IoT) represents a shift in systems analysis and design − This network includes various devices, such as home appliances, industrial machinery, and wearable technology, embedded with sensors, software, and connectivity capabilities − Requires the development of distributed and context-aware systems Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10  Evolving Trends (3 of 4) Mobile devices include smartphones and tablets − The development of applications requires consideration of various factors such as screen size, operating system diversity, and different hardware specifications − For developers, it presents a challenge and an opportunity to innovate and create applications that are functional, engaging, and user-friendly − Mobile app development has become a key area of focus in systems analysis and design Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11  Evolving Trends (4 of 4) Web 2.0 is a second generation of the web that enables people to collaborate, interact, and share information much more effectively − It is characterized by social media platforms, blogs, wikis, and other user-generated content Web 3.0 is poised to redefine our online experiences by focusing on making the web more intelligent and efficient − Data will be interconnected in a way that is easily accessible and understandable by humans and machines Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12  In-House Development Options (1 of 6) The choice between developing versus purchasing software often is called a make or buy (build or buy) decision Companies that develop software for sale are called software vendors A firm that enhances a commercial package by adding custom features and configuring it for an industry is a value-added reseller (VAR) A software package that many organizations use is a horizonal application A software package developed for a specific type of business is called a vertical application Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13 In-House Development Options (2 of 6) Figure 10-1 Instead of outsourcing, a company can develop a system in- house or purchase and customize a commercial package. Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14  In-House Development Options (3 of 6) The reasons for developing software in-house include the following: − Satisfies unique business requirements  Not possible with standard commercial software packages − Minimizes changes in business procedures and policies − Meets constraints of existing systems and technology − Develops internal resources and capabilities Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15  In-House Development Options (4 of 6) The reasons for purchasing a software package include the following: − Lower costs − Requires less time to implement − Proven reliability and performance benchmarks − Requires less technical development staff − Future upgrades provided by the vendor  Users can offer practical suggestions Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16  In-House Development Options (5 of 6) The following are ways to customize a software package: − Purchase a basic package that vendors will customize to suit project requirements − Negotiate directly with the software vendor to make enhancements to meet project needs by paying for the changes − Purchase the package and make project-specific modifications The benefits can diminish when significant product customization is required Future support and maintenance is another issue with customized packages Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17  In-House Development Options (6 of 6) Creating User Applications − A user application utilizes standard business software − These applications can be further enhanced by creating user- friendly interfaces, which include screens, commands, controls, and features that facilitate more efficient interaction with the application − In most medium- to large-sized companies support is offered through a service desk  It provides user support, training, and guidance Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 18  Knowledge Check Activity 10-1 Why would a company choose in-house software development? Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 19  Knowledge Check Activity 10-1: Answer Why would a company choose in-house software development? Answer: The most common reason for a company to develop its information system is its unique requirements that no software package can satisfy. Other typical reasons for in-house development include the following: A software package could cause significant changes to current operations, procedures, or data processing; the new software must work with the company’s existing information systems; the software must be compatible with the company’s existing hardware and systems software; in-house IT resources provide a competitive edge; and an in-house IT staff has a better understanding of the organization’s information needs. Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 20  Outsourcing (1 of 5) Outsourcing is a strategic decision by companies to transfer information systems development, operation, or maintenance to an outside firm Businesses might rent software from a service provider, which is common with software as a service (SaaS) Outsourcing extends to more substantial business functions through business process outsourcing (BPO) − BPO involves handing over entire business processes to an outside firm, such as customer service operations Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 21  Outsourcing (2 of 5) Global outsourcing has seen substantial growth in recent years − The increasing adoption of digital technologies across various sectors and the strategic need for cost efficiency have prompted businesses to outsource nonessential activities Other types of outsourcing include knowledge process outsourcing (KPO) and legal process outsourcing (LPO) The shift to work from home (WFH) has highlighted the need for more flexible and scalable solutions that adapt to the changing work environment Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 22  Outsourcing (3 of 5) Outsourcing firms offer the following fee models: − Fixed fee model uses a set fee based on a specified level of service and user support − In the subscription model the fee varies based on the number of users or workstations that have access to the application − The usage model or transaction model charges a variable fee based on volume of transactions or operations performed by the application Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 23  Outsourcing (4 of 5) Outsourcing issues and concerns include the following: − Mission-critical IT systems are outsourced if the result is cost- attractive and reliable − Outsourcing should only be considered if it involves an acceptable level of risk and contributes positively to objectives − Overseas outsourcing can raise issues with control, culture communication, and security − Reviewing the outsourcing firm’s history and financial condition is crucial to mitigate risks and safeguard the company’s interests Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 24  Outsourcing (5 of 5) Outsourcing issues and concerns include the following (continued): − Outsourcing also involves complexities related to data transfer jurisdictions, mainly when dealing with international service providers − Reliability and stability of the outsourcing firm are also critical factors to consider − Implications of outsourcing on internal staffing and corporate culture must be considered Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 25  Offshoring Offshoring involves relocating IT development, support, and operational tasks to countries other than where business operations are located − Also referred to as offshore outsourcing or global outsourcing The primary motivation is the search for more cost-effective IT development and maintenance solutions to reduce expenses Risks and concerns include impact on the economy, project control, security issues, disparate cultures, and effective communication Some companies are considering reshoring (onshoring), which is a process of bringing back previously offshored operations Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 26  Software as a Service (1 of 3) The SaaS model aligns closely with the current digital process management (DPM) demands − DPM involves optimizing and automating business processes through digital technology SaaS advantages include the following: − Eliminates the need for customers to handle complex software installations and continual updates − Increased flexibility and accessibility − Cost-effective Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 27  Software as a Service (2 of 3) The shortcomings of SaaS include the following: − Less control over security and privacy − Requires a stable, high-speed Internet connection to function effectively − Customization and integration challenges One of Microsoft’s more popular consumer-focused SaaS offerings is Microsoft 365 − Offers convenience and flexibility Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 28  Software as a Service (3 of 3) Figure 10-4 Microsoft 365 provides web-based access to the complete Office suite Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 29  Knowledge Check Activity 10-2 What is outsourcing? Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 30  Knowledge Check Activity 10-2: Answer What is outsourcing? Answer: Outsourcing is the transfer of information systems development, operation, or maintenance to an outside firm that provides these services for a fee on a temporary or long-term basis. Outsourcing can refer to relatively minor programming tasks, renting software from a service provider, outsourcing a basic business process (often called business process outsourcing, or BPO), or handling a company’s entire IT function. Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 31  Data Management and Analytics Both traditional and web-based systems generate vast amounts of data that must be managed and analyzed Integrating the latest trends such as AI and cloud computing directly impacts data management and analytics strategies Organizations must consider how software packages will handle data Outsourcing and offshoring bring additional considerations SaaS solutions often come with built-in analytics tools and capabilities − Data storage and analytics can grow with the organization’s needs Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 32  Selecting a Development Strategy (1 of 3) Selecting the best development strategy is an important decision and depends on the company’s immediate and projected future needs Evaluation and selection of various software alternatives is a complicated process System analysts typically work as an evaluation and selection team − The goal is to eliminate system alternatives that will not meet requirements, which involves ranking the suitable alternatives and presenting the viable alternatives to management for a final decision Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 33  Selecting a Development Strategy (2 of 3) The following are widely used financial analysis tools: − Payback analysis is a method used to determine how long it takes for an information system to pay for itself through reduced costs and increased benefits − Return on investment (ROI) is a metric that calculates the percentage rate of return from a project by comparing its total net benefits to its total costs − Net present value (NPV) provides a comprehensive measure of a project’s value, calculating the total worth of benefits minus costs Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 34  Selecting a Development Strategy (3 of 3) The following cost-benefit checklist can be used to determine the feasibility of a project: − List each development strategy under consideration − Identify all costs and benefits − Consider future growth − Include support costs for hardware and software − Analyze licensing options − Apply financial tools − Prepare a report for management Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 35  Software Acquisition (1 of 8) Software acquisition refers to the process by which organizations obtain software to meet their specific operational needs and objectives Each software acquisition method offers unique benefits and poses the following challenges: − Costs − The degree of control over the development process − The level of expertise required − The time it takes to bring the software to market Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 36  Software Acquisition (2 of 8) The first stage of the acquisition process starts with an analysis of system requirements necessary for a system’s functionality This step thoroughly examines network and web-related issues A request for proposal (RFP) or a request for quotation (RFQ) is a formal invitation for vendors to submit their proposals When an organization receives multiple RFPs or RFQs, employing an evaluation model becomes critical in decision making − This model serves as a standardized framework to assess and compare proposals from multiple vendors Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 37  Software Acquisition (3 of 8) Table 10-3 Vendor A has the most total points in this unweighted model. Each vendor was rated on a scale from 1 (lowest) to 10 in several categories, and then the scores were added to calculate total points. Unweighted Evaluation Vendor A Vendor B Vendor C Model for a Network Project Price 6 5 9 Completion Date 2 5 8 Layout/Design 8 8 5 References 10 6 3 TOTAL POINTS 26 24 25 Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 38  Software Acquisition (4 of 8) The next step in software acquisition is identifying potential vendors or outsourcing providers Research can be accomplished via the Internet, industry trade journals, online forums, or consulting firms Organization’s can incorporate vendor risk assessments (VRAs) and third-party risk management (TPRM) into the selection process − Ensures a defined, systematic approach for evaluating potential vendors, focusing on security, compliance, financial stability, and reputation Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 39  Software Acquisition (5 of 8) Figure 10-5 Microsoft Communities is a valuable resource for IT professionals. Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 40  Software Acquisition (6 of 8) After identifying alternatives, the analyst must select the one that best fits the company’s needs The evaluation process includes the following steps: − Information from existing users should be obtained − The application should be tested − The package should be benchmarked  Benchmarking is an evaluation tool that offers a quantifiable measure of a software package’s performance by timing its processing of a specific number of transactions Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 41  Software Acquisition (7 of 8) To effectively assess the total cost of ownership (TCO) for each development option, use tools to develop a comprehensive spreadsheet − Enhance the spreadsheet by incorporating graphical charts that visually represent the results In addition to upfront costs of software acquisition, it is vital to consider user support issues − A supplemental maintenance agreement might be considered when purchasing a software package Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 42  Software Acquisition (8 of 8) The systems analyst should now prepare a comprehensive acquisition recommendation report The report should include the following: − An evaluation and description of each acquisition alternative − Give details of each option with a precise analysis of advantages and disadvantages − When applicable, use visuals like charts or graphs to illustrate complex data or comparisons For the oral presentation, the analyst should use clear communication Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 43  Knowledge Check Activity 10-3 What is the primary objective of the evaluation and selection team in selecting a development strategy? Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 44  Knowledge Check Activity 10-3: Answer What is the primary objective of the evaluation and selection team in selecting a development strategy? Answer: The team’s primary objective is to eliminate system alternatives that will not meet requirements, rank the feasible alternatives, and present the viable alternatives to management for a final decision. The process begins with a careful study of the costs and benefits of each alternative. Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 45  Self Assessment List two reasons offshoring may be risky. What are the steps of the software acquisition process? Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 46  Summary (1 of 2) Now that the lesson has ended, you should be able to: 1. Compare and contrast traditional and web-based systems development. 2. Explain the possible impact of evolving IT trends on systems development. 3. Outline the process of selecting an in-house software development option. 4. Explain outsourcing. 5. Summarize the main advantages and the unique concerns of offshoring. Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 47  Summary (2 of 2) Now that the lesson has ended, you should be able to (continued): 6. Describe the concept of software as a service. 7. Explain why data management and analytics are integral to selecting a development strategy. 8. Outline how a systems analyst helps in choosing a development strategy. 9. Execute the main steps in the software acquisition process. Scott Tilley, Systems Analysis and Design, 13th Edition. © 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 48