SYSTEM ANALYSIS & DESIGN By Aadil Keshwani aadil.keshwani@gmail.com
EVALUATION SOFTWARE ALTERNATIVES

Companies can acquire software by developing an in-house system, buying a commercial software package, or customizing a software package
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
The most important factor influencing this decision is TCO (total cost of ownership)
Steps in system development are shown below:
Planning
Analysis
Make, build or Purchase
In-house system Customized software Commercial software package
Implementation

Choice between developing in-house software and purchasing software often is called a make or buy , or build or buy decision
 The company’s IT dept makes, builds, and develops in-house software
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A software package is purchased or leased from another firm
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Companies that develop software for sale are called software vendors
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Firm that enhances a commercial package by adding custom features and configuring it for a particular industry in called a value-added reseller (VAR)
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Horizontal application

software package that can be used by many different types of organizations
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Example: accounting package
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Vertical application  A software package developed to handle information requirements for a specific type of business
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Example: Organizations with special system requirements include colleges, banks, hospitals, insurance companies, construction companies
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Of the software acquisition options available:


Devlopin in-house
Buying a software package

Customizing a software package
Each has advantages, disadvantages, and cost considerations
Developing Software In-House
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SATISFY UNIQUE BUSINESS REQUIREMETNS
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Often commercially available software package cannot meet the unique business requirements
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Examples:

College course scheduling system
Depends on curriculum requirements, student demand, classroom space and available instructors

Package delivery system
Identifying best combination of routes and loading patterns for the company’s fleet of delivery trucks
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MINIMIZE CHANGES IN BUSINESS PROCEDURES AND POLICIES
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If available packages will require changes in current business operations or processes
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If installation of a purchased package will be too disruptive, then organization might decide to develop its own software
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MEET CONSTRAINTS OF EXISTING SYSTEMS
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Any new software installed must work with existing systems.
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SYSTEM ANALYSIS & DESIGN By Aadil Keshwani aadil.keshwani@gmail.com
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
A software package that works correctly with the existing system might prove difficult
A company could develop its own software to ensure that the new system will interface with the old system
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MEET CONSTRAINTS FO EXISTING TECHNIOLOGY
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The new system must work with existing hardware and legacy systems.
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That may need custom design not commercially available
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Co.s may have older microcomputer workstations that cannot handle graphics-intensive software or high-speed Internet access
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The company either must upgrade the environment or develop in-house software that can operate with the constraints of the existing hardware
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DEVELOP INTERNAL RESOURCES AND CAPABILITES
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In-house IT resources and capabilities provide a competitive advantage because they can respond quickly when business problems or opportunities arise
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With in-house package, companies can develop and training an IT staff that understands the organization’s business functions and information support needs
Purchasing a Software Package
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LOWER COSTS
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Software vendors spread the development costs over many customers
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Compared to software developed in-house, a software package almost always is less expensive – particularly in terms of initial investment
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LESS TIME TO IMPLEMENT
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The purchased package is already designed, programmed, tested and documented
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In-house time normally spent on those tasks is eliminated
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To install the software and integrate it in business systems can take a significant amount of time
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PROVEN RELIABILITY AND PERFOMANCE BENCHMARKS
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If the package is in marked for long, many major problems may have been detectdd and corrected dby the vendor
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If product is popular, it must be rated and evaluated by independent reviewers
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LESS TECHNICAL DEVELOPMENT STAFF
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Companies can reduce the number of programmers and systems analysts on the IT staff.
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The IT staff can concentrate on systems whose requirements cannot be satisfied by software packages
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FUTURE UPGRADES PROVIDED BY THE VENDOR
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Software vendors regularly upgrade software packages by adding improvements and enhancements to create a new version or release
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In many cases, vendors receives input and suggestions from current users when planning future upgrades
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OTHER COMPANIES AS RESOURCES
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You can contact users in other companies to get their impressions and input about the software package
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You might be able to try the package or make a site visit to observe the system in operation before making a purchase decision
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SYSTEM ANALYSIS & DESIGN
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By Aadil Keshwani aadil.keshwani@gmail.com
If a company decides to install a new software release, the upgrade must be planned and coordinated carefully, just as with any other system change
Upgrades are less expensive
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SYSTEM ANALYSIS & DESIGN By Aadil Keshwani aadil.keshwani@gmail.com
Customizing Software Packages
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Acquire package that can meet you needs
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Three ways to customize a software
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Purchase basic package that vendors will customize to suit you needs
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Vendors offer basic packages in std version with add-on components that are configured individually
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Vendors offer options when std application will not satisfy all customers
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Example:
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Human resources information system : Each company handles employee compensation and benefits differently
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Negotiate directly with the software vendor to make enhancements to meet your need by paying for the changes
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Purchase the package and make you own modifications
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Option attractive when product is close to satisfying requirements and the vendor will not make the requested changes
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Disadvantage : Systems analysts and programmers might be unfamiliar with the software and will need time to learn the package and make the modifications correctly
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Disadvantages of Customizations:
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If vendor does customizing, package will cost more, take longer to obtain, and might be less reliable
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Vendors might not upgrade a customized version
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If modifications are done by the company, when a new release of the package becomes available, the company might have to modify the new version
Other Software Alternatives
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Application Service Providers
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New category of software supplier
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Delivers applications, or access to applications, by charging a usage or subscription fee
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Provides more than a license to use the software, it rents an operational package to the customer
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The service that the ASP provides is called application hosting
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ASPs represent a growing trend, with the Internet serving as a logical and popular delivery channel
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Outsourcing
 Use of outside companies called service providers to handle a portion of a company’s IT workload on a temporary or long-term basis
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Many firms outsource IT works to control costs and deal with rapid technological change
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Service providers usually concentrate on specific functions such as hardware, software and network support, or business services such as payroll processing and billing
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Advantages:
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Attractive to a company whose volume fluctuates widely
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Attractive when company lacks the time or expertise to handle the work on its own
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Relieves the company of the responsibility of adding IT staff
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Causes of concerns:
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Company has to turn over internal data to an external service provider and trust provider to maintain quality
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Careful planning required to avoid lost revenue, added expenses and potential litigation
 Concerns about employees’ job security
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Rather than extra staff, companies can get assistance from a contract personnel firm, which supplies technical help for a specific period of time at a set rate
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Outsourcing strategies can include
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
 temporary arrangement with a payroll service long-term contract with a systems management or facilities management firm that provides IT support for an entire operation
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User Applications
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Utilizes standard business software, such as Microsoft Office 2000, which is configured in a specific manner to enhance user productivity
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In addition, IT staff can create a user interface, which includes screens, commands, controls, and features that enable users to interact more effectively with the application
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Offers low-cost solution
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More powerful, flexible and user-friendly
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Microsoft & Corel offer software suites and integrated applications that can exchange data with programs that include tutorials, Wizards, and Help features for guidance
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Companies empower lower-level employees by providing more access to data and more powerful data management tools.
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This makes IT dept more productive because can save time spent on responding to daily activities and utilize it on high-impact systems development projects that support strategic business goals
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A help desk, or information center (IC), within IT dept responsible for supporting users
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IC staff provides hotline assistance, training, and guidance to users who need support
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Selecting a Software Alternative
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Company must decide whether to develop the software in-house, customize a software package, purchase a software package, or select some combination of these solutions.
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Decision affects the remaining SDLC phases
Software development requires more participation from the systems analyst than choosing a commercial package
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Management takes decision after the written recommendations are presented and formal presentation is made
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If management decides to develop software in-house, the system design phase of SDLC can begin
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If management decides to buy a software package, following five steps must be performed:
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Evaluate the information system requirements
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Identify potential software vendors
Evaluate software package alternatives
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Make the purchase
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Install software package
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If management decides to customize a software package, same five steps listed above must be performed with one difference
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Because system requires additional features or capabilities, specific changes must be designed
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Need to work through the systems design phase of SDLC to design modifications
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Customizing a software package requires a combination of tasks, because you are purchasing and redesigning an essential part of the system
STEPS IN EVALUATING AND PURCHASING SOFTWARE PACKAGES
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Step 1 : Evaluate the Information System Requirements
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IDENTIFY THE KEY FEATURES OF THE SYSTEM
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Highlight critical features of the system
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Example:
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If company operates nationwide, then its payroll system must be capable of deducting any applicable state income taxes
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
ESTIMATE VOLUMENT AND FUTURE GROWTH
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Need to know the current volume of transactions and processing and then forecast changes over a three-to-five year period
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Volume figures are constraints for both the software package and the hardware required
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Make sure that the package and the hardware can handle future transaction volumes and data storage requirements
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SPECIFY ANY HARDWARE CONSTRAINTS
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Software must run properly on your current or proposed hardware platform
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Make decision about software first because software is the main element in any system- it is the part with which people work and directly affects the system’s usability
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PREPARE A REQUEST FOR PROPOSAL OR QUOTATION
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Request for proposal or request for quotation similar documents but used in different situations, based on whether or not you have selected a specific software product
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Request for Proposal (RPF) is a written list of features and specifications given to prospective vendors when you have not identified a specific product or package to use
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Vendors can decide if they have a product that will meet your needs and then respond with suggestions and alternatives
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RFPs vary in size and complexity
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RFP of large system can contain dozens of pages with unique requirements and features
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Request for Quotation (RFQ) used when you already know the specific product or package you want and you need to obtain price quotations of bids
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RFQs can involve outright purchase or a variety of leasing options and can include maintenance of technical support terms
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With both methods, the objective is to obtaing vendor replies that are clear, comparable and responsive
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Step 2 : Identify Potential Software Vendors
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If software runs on personal computers, you might purchase the package from a commercial software vendor
 Preparing a RFP will help the vendor’s sales representatives identify possible solutions
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If software will run on a mainframe computer, or as an enterprise-wide applications , you will probably not purchase it from a retail source
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Instead, popular products and strategies can be identified by contacting software vendors, industry sources, and IT consultants
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Internet – primary marketplace for all IT products
For vertical applications, you can research industry trade journals or Web sites to find reviews for industry-specific software solutions
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Industry trade groups can direct you to companies that offer specific software solutions.
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Another approach is to work with a consulting firm
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IT consultants offer specialized services that help companies select software packages
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Advantage: Can tap into broad experience that is difficult for any one company to acquire
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Consultants can be located by contacting professional organizations, industry sources, or simply by searching the Internet
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Involves additional expense, but can prevent even more costly mistakes
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Another valuable resource is the Usenet
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Usenet is an Internet butlletin board system that contains thousands of forums, called newsgroups that cover every imaginable topic
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Excellent sources of information and good places to exchange ideas with other analysts and IT professionals
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SYSTEM ANALYSIS & DESIGN
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By Aadil Keshwani aadil.keshwani@gmail.com
Step 3 : Evaluate Software Package Alternative
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Select one to fit the company’s needs
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First obtain information about the packages from as many sources as possible, like
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Vendor presentations and literature
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Product documentation
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Trade publications
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Companies that perform software testing and evaluation
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To learn more about software, search the Internet using keywords that describe the application
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SYSTEM ANALYSIS & DESIGN By Aadil Keshwani aadil.keshwani@gmail.com

EXISTING USERS
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Contact existing users of the software package to obtain feedback and learn about their experiences
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User references important
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TESTING
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Ask users in your organization to try the software package
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For horizontal systems, using a demonstration copy to enter a few sample transactions could be an acceptable test
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For vertical application systems, a team of IT staff and users might need several days or weeks to perform tests
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BENCHMARKING
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Benchmark test performed to determine whether package can handle a certain transaction volume efficiently
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It measures the time a package takes to process a certain number of transactions
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Good way to measure relative performance in case two or more packages are into considerations
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Step 4 : Make the Purchase
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Purchasing is not owning
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Software license is purchased
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It gives right to use the software under certain terms and conditions
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License may be for using software on single computer or on a specified number of computers, a network, or an entire site
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License restrictions could prohibit you from making software available to others or modifying the program
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Some vendor offer leasing as a financial alternative.
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If a customer does decide to lease, a lease agreement describes the time period, terms and payments
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Maintenance agreement, allows you to contact the vendor for assistance when you have system problems or questions
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It also gives you the right to obtain new releases of the package at no charge or at a reduced rate
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Step 5 : Install the Software Package
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Final step -> installation
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For small systems, installation can take one day or less
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For large systems, installation can require considerable time and effort
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Installation should be planned in advance
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If software package is customized, then the task will be more complex and difficult
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Before using software package, complete all implementation steps, including loading, configuring, and testing the software; training users; and converting data files to the new system’s format
Evaluation and Selection Teams
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Most companies use a combination of in-house developed software, software packages, outsourcing, and end-user systems
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Even a single system can use a mix of software alternatives.
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Evaluation and selection is not a simple process
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Objective is to obtain the product with the lowest total cost of ownership, but actual cost and performance can be difficult to measure
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System analysts often work as an evaluation and selection team
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Team approach ensures that critical factors are not overlooked and that sound choice is made.
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Team should include users, who will participate in the selection process and feel a sense of ownership in the new system
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SYSTEM ANALYSIS & DESIGN
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By Aadil Keshwani aadil.keshwani@gmail.com
Primary objective of team: eliminate system alternatives that will not work, rank the system alternatives that will work, and then present the viable alternatives to management for a final decision
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COMPLETION OF SYSTEMS ANALYSIS
Prepare the system requirements, document and you presentation to the management
Systems Analyst’s Toolkit includes a section with guidelines and suggestion fro preparing the written report and the presentation to management
System Requirements Document
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Also called software requirements specification, contains the requirements for the new system, describes the alternatives that were considered, and makes a specific recommendation to management
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This important document is the starting point for measuring the performance, accuracy and completeness of the finished system before entering the systems design phase
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It is like contract that identifies what must be delivered by the systems developers, to users; therefore the language used should be simple to understand, so that they can offer input, suggest improvement and approve the final version
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Document can be lengthy
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So format and organize it so it is easy to read and use
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Should include cover page and a detailed table of contents
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Can add an index and a glossary of terms to make the document easier to use
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Content depends on the company and the complexity of the system
Presentation to Management
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One of the most critical milestones in the systems development process
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Managers make key decisions that affect the future development of the system
Prior to management, two other presentations are given : to the
 principal individuals in the IT dept to keep them posted
 users to answer their questions and seek their approval
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System requirements document is the basis for all three presentations
 Review the guidelines and suggestions in the Systems Analyst’s Toolkit, which helps in delivering a successful presentation
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Keep the following suggestions in mind:
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Begin with brief overview of purpose and primary objectives
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Summarize the primary viable alternatives -> with costs, advantages and disadvantages
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Explain why the evaluation and selection team chose the recommended alternative
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Allow time for discussion and question-answers
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Obtain a final decision from management
 Objective of presentation to obtain approval for the development of the system and to gain management’s full support, including finance
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Next task could be:
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Develop an in-house system
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Begin system design phase for new system
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Modify the current system
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Begin system design phase for the modified system
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Purchase or customize a software package
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Negotiate price with software vendor
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If no modification required, begin planning the systems implementation phase

If modifications required, start the system design phase

If vendor is to make modifications, next step is to start planning the testing and documentation of the modifications as part of the systems implementation phase

Perform additional systems analysis work
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SYSTEM ANALYSIS & DESIGN By Aadil Keshwani aadil.keshwani@gmail.com
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
Further investigation for alternatives required
Explore alternatives not examined

Reduce the project scope due to cost constraints or expand project scope for new developments

Stop all further work
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Decision might be based on :
 your recommendation
 shift in priorities or costs

File all your research in a logical location so that it can be retrieved if the project is reopened in the future
TRANSITION TO SYSTEMS DESIGN
Essential to have an accurate and understandable system requirements document
Errors, omissions, ambiguities and other problems will affect the quality and completeness of the finished product.
Systems Design Overview
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Logical design of an information system defines the functions and features of the system and the relationships among its components

Includes:

Output produced by the system
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Input needed by the system
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Processes that must be performed by the system without regard to how tasks will be accomplished physically

Also known as essential model
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
Logical design defines what must take place, not how it is to be accomplished
Do not address the actual methods of implementation

Specifications of actual data, physical process of creating report and exact format of the report are not part of the logical design

Physical design is a plan for the actual implementation of the system
 Is built on the system’s logical design and describes the implementation of a specific set of system components

Physical design is concerned with how the system will meet hose requirements


Logical design is completed during the systems analysis phase of the SDLC
In systems design phase, begin work on the physical design of the system
Relationship between Analysis and Design

Physical and logical designs closely related

Design impossible without careful, accurate systems analysis

During design, return to the analysis phase only in limited situations

Might return to fact-finding in case if:

Important fact is overlooked

Users have significant new needs

If legal or governmental requirements change

Encounter unforeseen design issues or problems
PROTOTYPING

Prototype is rapidly constructed working version of the proposed information system

Common in manufacturing

User input and approval essential at every stage of systems development process
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SYSTEM ANALYSIS & DESIGN By Aadil Keshwani aadil.keshwani@gmail.com

Allows users to examine a model that accurately represents system outputs, inputs, interfaces, and processes


Sometimes, Prototype evolves into the final version of the information system
Sometimes, prototype is intended only to validate user requirements and is discarded further
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SYSTEM ANALYSIS & DESIGN By Aadil Keshwani aadil.keshwani@gmail.com
Approaches to Prototyping

Involves a repetitive sequence of analysis, design, modeling and testing


End product is full-featured, working model of the information system
RAD relies heavily on prototyping

Using RAD methods, a team of users, managers, and IT staff members works together to develop model that evolves into the completed system

Prototyping used to verify user requirements, after which it is discarded

Approach is known as design prototyping or throwaway prototyping

The end product is a user-approved design prototype that documents and benchmarks the features of the

 finished systems
Allow users to experiment with a prototype and provide feedback on how well it meets their needs
Approach increases costs

Expense will be offset by lower costs during subsequent SDLC phases:

Advantages:
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Users and systems can avoid misunderstandings

System developers can create accurate specifications for the finished system based on the prototype

Managers can evaluate a working model more effectively than a paper specification

Systems analysts can use a prototype to develop testing and training procedures before the finished system is available

Reduces the risk and potential financial exposure that occur when a finished system fails to support business needs

Potential problems:

Rapid pace of development can create quality problems, which are not discovered until the finished system is operational

Reliability and maintainability, cannot adequately be tested using a prototype

In complex systems, the prototype becomes difficult to manage
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