Introduction to Information Systems Chapter 13 PDF

Introduction to Information Systems Rainer, Prince, Sanchez-Rodriguez, Splettstoesser Hogeterp, Ebrahimi Fifth Canadian Edition Chapter 13 Acquiring Information Systems and Applications Copyright ©2021 John Wiley & Sons Canada, Ltd. ...

Introduction to Information Systems Rainer, Prince, Sanchez-Rodriguez, Splettstoesser Hogeterp, Ebrahimi Fifth Canadian Edition Chapter 13 Acquiring Information Systems and Applications Copyright ©2021 John Wiley & Sons Canada, Ltd. Learning Objectives 1. Discuss the different cost/benefit analyses that companies must take into account when they formulate a strategic IT plan 2. Discuss the four business decisions that companies must make when they acquire new applications 3. Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle 4. Describe alternative development methods and the tools that augment these methods Copyright ©2021 John Wiley & Sons Canada, Ltd. 2 Opening Case: Paychex Speeds Deployment with DevOps Think about: Why is it important for new IT systems to be implemented faster? What are the types of feedback that users, such as Paychex employees, can provide for new systems? Copyright ©2021 John Wiley & Sons Canada, Ltd. 3 13.1 Planning for and Justifying IT Applications IT Planning Evaluating and Justifying IT Investment: Benefits, Costs, and Issues Copyright ©2021 John Wiley & Sons Canada, Ltd. 4 IT Planning Organizational strategic plan IT architecture IT strategic plan IT steering committee IS operational plan Copyright ©2021 John Wiley & Sons Canada, Ltd. 5 IT Strategic Plan The IT strategic plan must meet three objectives: o It must be aligned with the organization’s strategic plan o It must provide for an IT architecture that seamlessly networks users, applications, and database o It must efficiently allocate IS development resources among competing projects so that the projects can be completed on time and within budget and still have the required functionality Copyright ©2021 John Wiley & Sons Canada, Ltd. 6 FIGURE 13.1 The information systems planning process Copyright ©2021 John Wiley & Sons Canada, Ltd. 7 A Typical IS Operational Plan Includes Mission statement of the IS function IS environment Objectives of the IS function Constraints on the IS function The application portfolio Resource allocation and project management Copyright ©2021 John Wiley & Sons Canada, Ltd. 8 Evaluating and Justifying IT Investment: Benefits, Costs, and Issues Assessing the costs Assessing the benefits (value) Conducting the cost-benefit analysis o Four common approaches are: Net present value (NPV) method Return on investment (ROI) Break-even analysis Business case approach Copyright ©2021 John Wiley & Sons Canada, Ltd. 9 Elbow-Partner Chat You will have 3 minutes to discuss and review the following questions with a partner or small group. Be prepared to share your answers and findings with the class. 1) What are some problems associated with assessing the cost of IT? 2) Why are the intangible benefits of IT so difficult to evaluate? Copyright ©2021 John Wiley & Sons Canada, Ltd. 10 13.2 Strategies for Acquiring IT Applications (1 of 2) Fundamental decisions in acquiring IT applications o How much computer code does the company want to write? o How will the company pay for the application? o Where will the application run? o Where will the application originate? Copyright ©2021 John Wiley & Sons Canada, Ltd. 11 13.2 Strategies for Acquiring IT Applications (2 of 2) Purchase a prewritten application Customize a prewritten application Lease the application Application service providers (ASP) and Software-as-a- Service (SaaS) vendors Use open-source software Outsourcing Continuous development Employ custom development Copyright ©2021 John Wiley & Sons Canada, Ltd. 12 TABLE 13.1 Advantages and Limitations of the Buy Option Advantages Many different types of off-the-shelf software are available. The company can try out the software before purchasing it. The company can save a lot of time by buying rather than building. The company can know what it is getting before it invests in the product. Purchased software may eliminate the need to hire personnel specifically dedicated to a project. Disadvantages Software may not exactly meet the company’s needs. Software may be difficult or impossible to modify, or it may require huge business process changes to implement. The company will not have control over software improvements and new versions. Purchased software can be difficult to integrate with existing systems. Vendors may discontinue a product or go out of business. Software is controlled by another company with its own priorities and business considerations. The purchasing company lacks intimate knowledge about how and why the software functions as it does. Copyright ©2021 John Wiley & Sons Canada, Ltd. 13 IT’s About Business 13.1: Developers Help Developers Help Dry Cleaners Consider: How the global economy and the Internet result in an innovation rapidly becoming a requirement (e.g., Starchup in 2016 was an innovation, but is not considered one now). What other IT services are new but commonplace? How many cleaning apps are there in your neighbourhood? Do they seem to be easy to use? Copyright ©2021 John Wiley & Sons Canada, Ltd. 14 13.3 Traditional Systems Development Life Cycle Systems development life cycle (SDLC) stages: o Systems investigation o Systems analysis o Systems design o Programming and testing o Implementation o Operation and maintenance Copyright ©2021 John Wiley & Sons Canada, Ltd. 15 FIGURE 13.4 A six-stage systems development life cycle with supporting tools Copyright ©2021 John Wiley & Sons Canada, Ltd. 16 The Traditional Systems Development Life Cycle (SDLC) Team Users Systems analysts Programmers Technical specialists Stakeholders Copyright ©2021 John Wiley & Sons Canada, Ltd. 17 FIGURE 13.5 Comparison of user and developer involvement over the SDLC Copyright ©2021 John Wiley & Sons Canada, Ltd. 18 SDLC: Systems Investigation Three basic solutions: o Do nothing and continue to use the existing system unchanged o Modify or enhance the existing system o Develop a new system Feasibility study o Technical feasibility o Economic feasibility o Behavioural feasibility Steering committee prioritizes and makes a go/no go decision Copyright ©2021 John Wiley & Sons Canada, Ltd. 19 SDLC: Systems Analysis The process whereby systems analysts examine the business problem that the organization plans to solve with an IS Deliverable: o A set of system requirements (i.e., user requirements) Copyright ©2021 John Wiley & Sons Canada, Ltd. 20 SDLC: Systems Design Describes how the system will resolve the business problem Deliverable: o A set of technical system specifications that specify: System outputs, inputs, calculations or processing, and user interfaces Hardware, software, databases, telecommunications, personnel, and procedures A blueprint of how these components are integrated Scope creep Copyright ©2021 John Wiley & Sons Canada, Ltd. 21 SDLC: Programming and Testing Programming: translating the design specifications into computer code Testing: the process that assesses whether the computer code will produce the expected and desired results o Also intended to detect errors, or bugs in the computer code Copyright ©2021 John Wiley & Sons Canada, Ltd. 22 SDLC: Implementation Implementation (i.e., deployment): the process of converting from an old computer system to a new one Conversion strategies: o Direct conversion o Pilot conversion o Phased conversion o Parallel conversion (or historic parallel) Copyright ©2021 John Wiley & Sons Canada, Ltd. 23 SDLC: Operations and Maintenance Systems operate while they meet their objectives o Assessed using audits Systems require several types of maintenance: o Debugging o Updating o Adding new functions Copyright ©2021 John Wiley & Sons Canada, Ltd. 24 Elbow-Partner Chat You will have 3 minutes to discuss and review the following questions with a partner or small group. Be prepared to share your answers and findings with the class. 1) What is a feasibility study and why would you want to utilize it? 2) What is the difference between system analysis and system design? Copyright ©2021 John Wiley & Sons Canada, Ltd. 25 13.4 Alternative Methods and Tools for Systems Development Joint application design (JAD) Rapid application development (RAD) Agile development End-user development DevOps Tools for Systems Development Copyright ©2021 John Wiley & Sons Canada, Ltd. 26 FIGURE 13.6 A rapid prototyping development process versus SDLC Copyright ©2021 John Wiley & Sons Canada, Ltd. 27 Tools for Systems Development Prototyping Integrated computer-assisted software engineering tools (iCASE and CASE, upper CASE, lower CASE) Component-based development Object-oriented development Containers Low-code development platforms (LCDP) Copyright ©2021 John Wiley & Sons Canada, Ltd. 28 Copyright Copyright © 2021 John Wiley & Sons Canada, Ltd. or the author. All rights reserved. Students and instructors who are authorized users of this course are permitted to download these materials and use them in connection with the course. No part of these materials should be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by law. Advice on how to obtain permission to reuse this material is available at http://www.wiley.com/go/permissions. Copyright ©2021 John Wiley & Sons Canada, Ltd. 29