Copyright © 2012 Pearson Education, Inc.

Publishing as Prentice Hall

2.1
  Understand outsourcing
 Describe six different sources of software
 Discuss how to evaluate off-the-shelf
software
 Discuss reuse and its role in software
development

2.2
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
  Practice of turning over some or all responsibility
for information systems applications and
operations to another firm.
 Examples:
› Outsourcing firm develops and runs applications on
their computers (Payroll application)
› Outsourcing firm runs applications at your site on your
computers.
 Reasons to outsource
› Cost effective
› Overcome organizational problems in information
systems unit
 Outsourcing should be considered during
systems analysis
2.3
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  Information Technology Service Firms
› Utilized when
 Organization lacks resources to develop in-house system
 Suitable off-the-shelf solution is not available
› Help companies develop custom information
systems for internal use
› Develop, host and run applications
› Provide other services
› IT Service firms employ consultants with domain-
specific experience

2.4
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  Packaged Software Producers
› Produce pre-packed or off the shelf systems
› Products range from broad-based packages to
industry specific packages
› Two types of software
 Turnkey – cannot be modified to meet specific users
needs
 Non-turnkey – can be modified
› Off-the-shelf software can meet up to 70% of an
organization’s needs.

2.5
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  Enterprise Solutions Software
› Also called Enterprise Resource Planning (ERP) Systems
› Consist of a series of integrated modules
 Each module supports individual traditional business function
 Accounting
 Distribution
 Manufacturing
 Human Resources
 Integrated to focus on business processes rather than business
functional areas
› Enables an organization to integrate all parts of a business
process in a unified information system
 All aspects of a transaction occur seamlessly in single
information system

2.6
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 › Benefits
 Single repository for all aspects of a business
process
 Ensures more consistent and accurate data
 Less maintenance
 Flexibility of modules
 Additional modules can be added as needed
 Additional modules are immediately integrated into
existing system

2.7
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
 › Disadvantages
 Complexity of implementation
 Extended implementation time
 Reliance upon consultants
 Often, organizations must change the way
that they do business in order to use systems
› ERP vendors
 SAP
 Oracle

2.8
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
  Cloud Computing
› Software is rented or licensed from third party
providers
 Run at remote sites
› Applications are accessed through the Internet
or a VPN
› Applications bought, installed and maintained
by service provider
› Users pay per-use or month-to-month license
› Includes software as a service as well as
hardware as a service
› Some examples:
 Google Apps
 Salesforce.com
2.9
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
 › Predicted that by 2013, 12% of world’s
computing will be done by cloud.
 Total market of $160 billion
› Reasons for Choosing Cloud
 Freeing internal IT staff
 Faster access to applications than internal
development
 Lower-cost access to corporate-quality
applications

2.10
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 › Concerns
 Reliability
 Security
 Compliance with government regulations
 Sarbanes-Oxley

2.11
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
  Open-Source Software
› Freely available
› Includes source-code
› Maintained by a group of interested individuals
› Some examples
 Linux
 Firefox
 mySQL

2.12
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  In-House Development
› Complete system
› Hybrid systems

2.13
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  Criteria
› Cost
 In-house versus purchase
› Functionality
› Vendor Support
› Viability of Vendor
› Flexibility
› Documentation
› Response Time
› Ease of Installation
2.14
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  Information from vendor
› Documentation
› Marketing literature
› Questionnaire
 Request for Proposal
 Software Test drive
 Feedback from other users
 Independent software testing services

2.15
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
  Use of previously written software resources
in new applications
 Most often applied to object-oriented and
component-based development
 Reuse of object classes
› Increases productivity
› Reduces defect density
› Reduces rework
 Reuse plan must be matched with
companies strategic business goals

2.16
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  Four Approaches
1. Ad hoc Reuse
2. Facilitated Reuse
3. Managed Reuse
4. Designed Reuse

2.17
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
  Outsourcing
 Six different sources of software
 Evaluation of off-the-shelf software
 Reuse

2.18
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
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