Part 3 Developing Information Systems 2 Copyright © 2001 by Harcourt, Inc. All rights reserved. Continuing the Development Process Systems development life cycle from Chapter 8 Planning Implementation Analysis Design 2001 Design Stage • Internal Development • Outsource • Acquire • Prototype 2001 Design Stage Comparison of Development Methods Development Method Internal development 2001 Advantages Competitive advantage Complete control over final system Builds technical skills and functional knowledge of developers Disadvantages Requires dedicated effort of in-house staff Development can be slow Costs may be higher than with other approaches System may not work when completed or not provide desired functionality Internal Development Disadvantages • • • • • Time, $$ Resource Intensive Need well-defined Requirements Inhibits Change Not for small, less structured systems 2001 Outsourcing • System built and operated by external vendor • Way to control costs • Share resources • To keep current with technology 2001 Outsourcing • Benefits: – Quality know-how – Free up Human Resources – Free up Capital – Fixed Cost Variable – Shorter Implementation Cycles 2001 • Disadvantages: – – – – Loss of Control Vulnerability Dependency Loss of experienced employees – Loss of competitive advantage (secrets get out) Design Stage Comparison of Development Methods Development Method Outsourcing 2001 Advantages Disadvantages Outsourcer has more- Loss of control of project skilled and experienced Internal developers may not programmers learn skills necessary to maintain system Internal staff is not Costs may be higher than diverted from current with acquisition work Outsourcer may not deliver on claims, or final system may not provide desired functionality Outsourcing •Types of contracts –Time-and-materials contract –Fixed-price contract –Value-added contract 2001 Outsourcing Contract Type 2001 Pricing Time-andmaterials Payment is based on the time spent on project and any materials involved Fixed-price Price is fixed for development of system Value-added Outsourcer is paid based on benefits resulting from new system Comments Can result in large bill Good when time required for project is hard to estimate Company knows costs prior to work Can result in outsourcer cutting corners to keep costs down Enables outsourcer to share in risks and benefits of project Buy Prewritten Software Packages • Has common functions • In-house resources are in short supply • Can be customized – Meet “own” needs – $$$ 2001 Acquisition Advantages: • • • • • • • Quick Installation Well-defined Functions Lower Costs Less Risk, Higher Quality Continually Revised, Updated Familiarity However…DOES IT MEET YOUR NEEDS 2001 Acquisition DISadvantages: • • • • NOT MEET REQUIREMENTS To complex to revise Not supported if revised Cost to Customize 2001 Design Stage Comparison of Development Methods Development Method Acquisition 2001 Advantages Available sooner and has high probability of working Lower costs because development spread out over many users Disadvantages Little comparative advantage Must accept functionality of purchased system May not integrate well with existing systems May require modification to meet needs •Acquisition –Request for proposals (RFP) –Benchmark alternative packages 2001 Acquisition Hardware & Software Acquisition Sequence Software Design Request for Software Proposals Software Proposal Evaluation and Selection Contractual Arrangements Hardware Specifications Requirements Request for Hardware Proposals Hardware Proposal Evaluation and Selection Contractual Arrangements 2001 Installation of Software Installation of Hardware ERP • Enterprise Resource Planning – Set of applications to automate • Finance, Human Resources • Manufacturing, Production Scheduling • Sales, Supply Chain Management – Complex, Large scale – E-commerce for front-end – Data Warehousing 2001 ERP Vendors • • • • • SAP - Walldorf, Germany; Oracle - Redwood Shores, CA; PeopleSoft - Pleasanton, CA; Baan - Banreveld, Netherlands; J.D.Edwards - Denver, CO; 2001 Prototyping • Creating a working mode – – – – – Encourage End-use participation Easier to modify If Requirements Unclear High Risk Project Something sooner • RAD - Rapid Application Development – Combine Logical and Physical Design 2001 • Prototyping types –User interface prototype –Demonstration prototype –Throw-away prototype –Evolutionary prototype •Iterative development 2001 Rapid Application Development Type of Prototype User interface prototype Used in design stage of development process to explore interfaces of final applications Demo prototype To show a potential client the manner in which the application will look and act Throw-away prototype Used in analysis stage to determine specifications; also used to explore factors critical to system’s success Development of actual system in an iterative fashion that can be modified to meet user’s feedback Evolutionary prototype 2001 Primary Purpose Development Tools Special purpose computer language or final computer language Browser/HTML Special purpose computer language Special purpose computer language that results in much faster development than final computer language Any of a number of computer languages Rapid Application Development Evolutionary Prototyping Identify Problem Develop Initial Prototype Trial Use of Prototype Feedback Refine and Enhance Prototype Implement Prototype or Use as Model 2001 Maintain Rapid Application Development Advantages & Disadvantages of Evolutionary Prototyping Advantages 1. Users understand and react to prototypes far better than paper specifications Disadvantages 1. Quick, rough design may replace wellthought out design 2. It is usually quicker to build prototype than 2. Evolutionary prototyping may encourage to create paper specifications users to continually change their minds about requirements, resulting in feature creep 3. Reality testing is introduced into project at 3. User’s expectations may be too high based early stage on early prototypes 4. It can help avoid systems with inadequate 4. Users may not want to go from prototype to or wrong features production system; they may want to keep the prototype 5. It encourages creative input from users 5. Users may not understand why the final cost for the full system is so high 6. It enables errors and weaknesses to be 6. Users may not work hard enough to identify caught before expensive design and flaws in the prototype programming are done 2001 Design Stage Data Model for Purchasing System: Physical Database Specification Customer Table 2001 Purchase Table Products Table *Customer ID *Purchase Number *Product ID Last Name Customer ID Product Name First Name Product ID Current Product Price E-mail Address Price Paid Product QOH Number Bucks Bucks Used ••• Quantity Purchased Purchase Date Design Stage • Converting process models to physical forms –Input/Process/Output tables –Pseudocode –DB Tables to match structure 2001 Design Stage IPO Table for Process 1 Input Processing Customer ID, 1. Use Customer ID to query Amount of Sale, database for Available Bucks Available Bucks 2. If Available Bucks > 10, Net Amount = Amount – Available Bucks Update Available Bucks = 0 3. If Available Bucks = 10 Net Amount = Amount of Sale Don’t change Available Bucks 2001 Output Net Amount Updated Available Bucks Design Stage • Computer-aided software engineering (CASE) • CASE benefits – Reduced development time – Improved sharing – User involvement – Easier to modify 2001 Implementation • Building the system –Programming languages • Object-oriented languages • Procedures • The programming process • Test the programs 2001 Implementation • Steps required before program is operational –Incorporate step-by-step logic –Programmers test for errors –Development team testing –Program released to users –Users report errors 2001 Implementation • Installing the system • Training staff • Performing Maintenance 2001 Implementation • Conversion Approaches –Direct –Parallel –Pilot –Phased 2001 Implementation Conversion Characteristics Advantages Approach Direct Simultaneously Fast shut down old Lower cost system and start up new system Parallel Run old and new Able to fix systems at same problems with time new system while old system still in operation 2001 Disadvantages New system may not work Risk High Slower than Low direct approach Expensive to run both versions Performance problems due to running new versions Implementation 2001 Conversion Characteristics Advantages Approach Pilot Install and test Find and fix system in one problems part of without organization affecting entire before installing organization everywhere Phased System is Requires less installed installation sequentially at staff different Problems at locations one location can be fixed before installing elsewhere Disadvantages Risk Problems with Moderate high volume of transactions may not be found Different Moderate locations are not using the same version of the system Implementation • Classroom Training • One-on-one Training • Computer-based training (CBT) 2001 Implementation • Performing maintenance –Determine Needed Changes –Make Needed Changes 2001 NEXT SLIDE Crime and Security in the Networked Economy PAST SLIDE 9 - 36 Copyright © 2001 by Harcourt, Inc. All rights reserved. Chapter 10