CSAC 2511 AIS: Systems

Development, Analysis and

Strategies for AIS Development
Chapter 20 Learning Objectives
• Explain the five phases of the systems development life cycle.

• Discuss the people involved in systems development and the roles

they play.

• Explain the importance of systems development planning and

describe planning techniques.

• Discuss the various types of feasibility analysis and calculate

economic feasibility.

• Explain why system changes trigger behavioral reactions, what form

this resistance to change takes, and how to avoid or minimize the
resulting problems.

• Discuss the key issues and steps in systems analysis.

20-2
Systems Development Life Cycle (SDLC)

20-3
Who Is Involved in the SDLC?
• Information Systems • Systems Analysts
Steering Committee − Determine information
needs, prepare
− Executive level, plans and specifications for
oversees IS function; programmers
facilitates coordination with • Management
integration of systems − Get users involved in the
activities process, provide support
for development projects,
• Project Development Team align projects to meet
− Plan and monitor project organizations strategic
needs
progress
• Users
• Programmers − Communicate needs to
− Write and test programs system developers, help
according to analysts design and test to ensure
complete and accurate
specifications processing of data
20-
4
Systems Development Planning
• Proper planning provides for achieving goals and
objectives
• For systems development, two plans needed:
− Master Plan
 Long-range and authored by steering committee outlining
prioritized projects and timetables
− Project Development Plan
 Specific to a project and authored by the project team
identifies people, hardware, software, and financial resources
needed

20-5
Planning Techniques
• Program evaluation and review technique (PERT)
− Diagram that depicts all project activities that require time
and resources with completion estimates. Determines
critical path.
• Gantt chart
− Bar chart that organizes activities on the left hand side and
project time scheduled with a bar drawn to show the
progress to date for that particular activity.

20-6
Business Case (Feasibility Analysis)
• Economic
− Do benefits of new system justify the costs (time and
resources) to implement?
• Technical
− Can we use existing technology?
• Legal
− Does new system comply with regulations, laws, and
contractual obligations?
• Scheduling
− Can the system be developed in the time allotted?
• Operational
− Do we have the people to design and implement the
system? Will people use the new system?
20-7
Capital Budgeting
• Payback period
− Calculate the number of years required for the net savings
to equal the initial cost of investment
• Net Present Value (NPV)
− Estimate future cash flows with discounted rate for (time
value of money)
• Internal Rate of Return (IRR)
− Calculates the interest rate that makes the present value
of total costs equal to the present value of total earnings

20-8
Why People Resist Change?
• Fear • Disruption
− Additional requests for
− Of failure, the unknown, information and additional
losing status burdens of time is
• Lack of top-management distracting and prompts
support negative feelings
− If the top management is • Manner change is
not supportive why should introduced
the employee change? − Approaches are different
for top level and lower level
• Bad prior experiences employees
− Bad experience with prior • Biases and emotions
IS changes • Personal characteristics
• Poor communication and background
− Employees need to − Age
understand why change is − Open to technology and
necessary comfortable with it
20-
9
How to Prevent Behavioral Problems
• Management support • Performance evaluation
− Provide resources and − Reevaluate to ensure
motivation performance standards are
• Satisfy user needs consistent with the new
system
• Involve users
• Keep open communications
− Participation improves
communication and
commitment • Test the system prior to
• Reduce fears, emphasize implementation
opportunities
• Keep system simple
• Avoid emotionalism − Avoid radical changes
• Control user’s expectations
• Provide training − Be realistic
20-10
Phase 1: Systems Analysis

20-11
Chapter 21 Learning Objectives
• Describe how organizations purchase application software, vendor
services, and hardware

• Explain how information system departments develop custom software

• Explain how end users develop, use, and control computer-based

information systems

• Explain why organizations outsource their information systems, and

evaluate the benefits and risks of this strategy

• Explain the principles and challenges of business process management

• Describe how prototypes are used to develop an AIS, and discuss the
advantages and disadvantages of doing so

• Explain what computer-aided software engineering is and how it is used

in systems development
21-12
How to Obtain an AIS

• Purchase
• Develop in-house
• Outsource to outside organization

21-13
Purchasing

• Select a vendor (from referrals, trade shows, etc.)

• Request for proposal (RFP) that meets needs
• Evaluate proposals
− Top vendors invited to give demonstrations on how their
system will fit your needs
• Make a final selection based upon your criteria

21-14
Develop Software In-House

• Advantages
− Provides a significant competitive advantage
• Risks
− Requires significant amounts of time
− Complexity of the system
− Poor requirements defined
− Insufficient planning
− Inadequate communication and cooperation
− Lack of qualified staff
− Poor top management support

21-15
End-User Computing
Advantages Disadvantages
• Allows for end-users to • Lack of testing of
create, control, and application and possible
implement simple systems calculation errors
• More likely to meet user • Inefficient systems
needs • Poorly controlled
• Saves time • Poorly documented
• Frees up system resources • System incompatibilities
• Easy to use and understand • Duplication of data
• Increase costs in later years
with upgrades

21-16
Outsourcing
Advantages Disadvantage
• Allows companies to • Inflexibility
concentrate on core • Loss of control
competencies
• Reduced competitive
• Asset utilization
advantage
• Access to greater expertise
and better technology • Locked-in system
• Lower costs by standardizing • Unfulfilled goals
user applications and splitting • Poor service
development and maintenance
• Increased risk
costs between projects
• Less development time
• Elimination of peaks-and-
valleys usage
• Facilitates downsizing 21-17
Business Process Management Systems
• Automate and facilitate business process improvements
using:
− Process engine to model and execute applications and
business rules
− Business analytics to identify issues, trends, and
opportunities
− Collaboration tools to remove communication barriers
− Content manager to store electronic documents and
images

21-18
Prototyping
Advantages Disadvantages
• Results in well-defined user • Requires significant user
needs time
• Higher user satisfaction and • Resource efficiency may not
involvement be achieved
• Faster development time • Inadequate testing and
• Fewer errors documentation
• Opportunities to suggest • Negative behavioral
changes reactions
• Less costly • Continuous development of
iterations leaves a feeling of
no project completion

21-19
Computer-Aided Software Engineering
(CASE)
Advantages Disadvantages
• Improved productivity • Incompatibility with other
• Improved program quality systems
• Cost savings • Unmet expectations
• Improved control procedures
• Simplified documentation

21-20