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Chapter 7 Development Strategies 288­ Apply Your Knowledge Apply Your Knowledge This section contains four mini-cases. Each case describes a situation, explains your role, and requires you to apply what you learned in the chapter. 1 Sandy Shores Time Shares Sandy Shores Time Shares is one of the largest time-sharing and rental brokers for vacation cottages along the North Carolina coast. After 10 successful years of matching up owners and renters, Sandy Shores decided to acquire a computerized reservation and booking system. Tim Burns, the owner of Sandy Shores, read an article about software packages, and he asked you, as an IT consultant, for your advice. Tasks 1. W  ould the new reservation and booking system be a horizontal or a vertical application? Explain your answer. 2. What software development and acquisition strategies should Sandy Shores consider? 3. Conduct an Internet search for online reservation systems, software, and services that Sandy Shores might consider. Describe your findings. 4. As a systems analyst, what would your role be in helping Sandy Shores develop a new system? Would the acquisition strategy affect your role? Why or why not? 2 Atrium Bio-Medical Supply, Inc. Atrium Bio-Medical Supply is a medium sized regional supplier of medical and laboratory equipment. Since starting the company 12 years ago, Victoria Dawn has built Atrium into a competitive supply company across several metro areas, but her growth potential is limited because the firm does not have an integrated sales and logistics system. Victoria asked you to evaluate Atrium’s options for acquiring a new system. Tasks 1. 2. 3. 4. What options does Atrium have for acquiring a new system? What are the pros and cons of in-house development versus purchasing a system? If the decision is made to purchase a new system, what are three options for customizing the software? Based on Part C of the Systems Analyst’s Toolkit, what financial analysis tools should you use to evaluate the software acquisition options for Atrium? Explain how you would apply each of the tools. 9781285171340_CH07.indd 288 11/12/12 8:14 AM Phase 2 Systems Analysis Apply Your Knowledge 3 289­ Leading Edge Climbing Equipment Leading Edge Climbing Equipment is a retail rock climbing equipment vendor that is planning to install a new order entry and transaction processing system. As Leading Edge’s IT manager, you are preparing for a follow-up meeting to confirm the owner’s decision to move forward with the system. Tasks 1. 2. 3. 4. 4 In deciding on your proposal, what options do the owners have? If the owners decide to purchase or customize a software package, what steps will you take? Explain the difference between logical and physical design. Describe the steps typically performed in systems design. IT News and Views You are a staff writer at IT News and Views, a popular online newsletter aimed at IT professionals. Your editor has asked you to prepare a special report for next week’s edition. Specifically, she wants you to research the subject of software outsourcing, and other significant trends that might affect software development in the future. She wants you to cite specific sources for your information, including current IT employment statistics and employment forecasts from the U.S. Bureau of Labor Statistics. Tasks 1. S earch for information about software outsourcing generally, using the search techniques described in Part D of the Systems Analyst’s Toolkit. 2. Visit the Bureau of Labor Statistics site at www.bls.gov and search for information about employment trends affecting systems analysts, computer programmers, and software engineers. 3. Does the Bureau of Labor Statistics offer any comments or insights into the subject of outsourcing generally? What conclusions does it reach? 4. In your report, comment on whether the offshore outsourcing of IT jobs is just another step in the progression that began with manufacturing jobs, or represents a whole new trend. Be sure to cite Web research sources and your own reasons. 9781285171340_CH07.indd 289 11/12/12 8:14 AM Chapter 7 Development Strategies 290­ Case Studies Case Studies Each chapter includes a Chapter Case, a Continuing Case, a Capstone Case, and an Online Case Simulation. You can learn more about the Online Case Simulation in the MIS CourseMate Features section. Chapter Case: Campus Bikes (Part 2) In Chapter 6, you learned that Campus Bikes is a popular bicycle shop located near a major university. The shop sells several brands of new bikes, including everything from high-end racing models to beach cruisers. In addition to sales of new bikes and accessories, Mark’s service department is always busy. The staff includes Mark himself, a bookkeeper, two part-time sales reps, a full-time mechanic, and several part-time service helpers who assemble bikes. Background Until now, the owner, Mark Turner, kept the business records on his personal computer. He created a simple database to keep track of inventory, but it is not always up-to-date. He also developed spreadsheets to track expenses and payroll. The business has grown and Mark wants to install a new computer system to handle all business functions. You are a lab assistant in the computer information department at the college. You earned a computer science degree at a two-year school, and you recently decided to work toward your four-year degree. Mark recently asked you to help him plan a system for Campus Bikes. You used an object-oriented approach to create a model of the business functions and actors involved. Now Mark wants you to do a “make or buy” analysis. Specifically, you will look into the pros and cons of in-house development versus purchase of a software package. Your research indicates that the most popular bike shop package is offered by a vendor called BikeData. In your last meeting, Mark said that tangible savings for a new system would be hard to measure, but improved customer care, better service department records, and increased productivity are expected. Mark estimates that these benefits will add up to about $3,000 per year, whether the system is developed in-house, or purchased from BikeData. You decide to compare relative costs to establish a total cost of ownership (TOC) over the useful life of the system. Based on your research, you put together the following summary: Costs for Option A: Develop In-house • • • The system will have a six-year useful life, be very flexible, and easiest to maintain. It will cost $15,000 to develop, install, and configure the system, and $1,000 to load existing data. Mark and the bookkeeper can handle day-to-day support with no added expense. Costs for Option B: Purchase BikeData Software Package • • • • This is a vertical package with a four-year useful life. The software is less flexible than an in-house system and some customizing will be needed. It will cost $8,000 to purchase, $1,500 to install and configure, $2,500 to load existing data, and $1,000 additional hardware will be needed Support is free for the first year, then there is a $2,000 annual fee Benefits for Both Options: $3,000 per year Tasks 1. 2. 3. 4. Prepare a detailed list of pros and cons of in-house versus software purchase. Calculate ROI for both options. Calculate NPV for both options. Use an 8% discount factor. Create a PowerPoint presentation for Mark showing the results of your analysis, including recommendations and reasons. 9781285171340_CH07.indd 290 11/12/12 8:14 AM Phase 2 Systems Analysis 291­ Case Studies Continuing Case: Personal Trainer, Inc. Personal Trainer, Inc. owns and operates fitness centers in a dozen Midwestern cities. The centers have done well, and the company is planning an international expansion by opening a new “supercenter” in the Toronto area. Personal Trainer’s president, Cassia Umi, hired an IT consultant, Susan Park, to help develop an information system for the new facility. During the project, Susan will work closely with Gray Lewis, who will manage the new operation. Background During data and process modeling, Susan Park developed a logical model of the proposed system. She drew an entity-relationship diagram and constructed a set of leveled and balanced DFDs. Now Susan is ready to consider various development strategies for the new system. She will investigate traditional and Web-based approaches and weigh the pros and cons of in-house development versus other alternatives. Before you begin, you should review the background information and facts contained in Chapters 2, 4, and 5 of the case study. Tasks 1. What options does Personal Trainer have for developing a new system? What are some specific issues and options that Susan should consider in making a decision? 2. Susan has been asked to prepare a system requirements document and deliver a presentation to the management team. What should be the main elements of the system requirements document? 3. Based on the suggestions in Part A of the Systems Analyst’s Toolkit, what visual aids should Susan use during her presentation? 4. Susan wants to prepare a presentation that will calculate the total cost of ownership for the system. What financial analysis tools are available to her, and what are the advantages (and possible disadvantages) of each tool? Capstone Case: New Century Wellness Group New Century Wellness Group offers a holistic approach to healthcare with an emphasis on preventive medicine as well as traditional medical care. In your role as an IT consultant, you will help New Century develop a new information system. Background Based on your earlier recommendations, New Century decided to continue the systems development process for a new information system. Now, at the end of the systems analysis phase, you are ready to prepare a system requirements document and give a presentation to the New Century associates. Many of the proposed system’s advantages were described during the fact-finding process. Those include smoother operation, better efficiency, and more user-friendly procedures for patients and New Century staff. You also must examine tangible costs and benefits to determine the economic feasibility of several alternatives. If New Century decides to go ahead with the development process, the main options are to develop the system in-house or purchase a vertical package and configure it to meet New Century’s needs. You have studied those choices and put together some preliminary figures. You know that New Century’s current workload requires six hours of office staff overtime per week at a base rate of $15 per hour. In addition, based on current projections, New Century will need to add another full-time clerical position in about six months. Neither the overtime nor the additional job will be needed if New Century implements the new system. The current manual system also causes an average of three errors per day, and each error takes about 20 minutes to correct. The new system should eliminate those errors. (continues) 9781285171340_CH07.indd 291 11/12/12 8:14 AM Chapter 7 Development Strategies 292­ Case Studies Capstone Case: New Century Wellness Group You estimate that by working full-time you could complete the project in about 12 weeks. Your consulting rate, which New Century agreed to, is $35 per hour. If you design the new system as a database application, you can expect to spend about $2,500 for a networked commercial package. After the system is operational and the staff is trained, New Century should be able to handle routine maintenance tasks without your assistance. As an alternative to in-house development, a vertical software package is available for about $12,000. The vendor offers a lease-purchase package of $4,000 down, followed by two annual installments of $4,000 each. If New Century buys the package, it would take you about four weeks to install, configure, and test it, working full-time. The vendor provides free support during the first year of operation, but then New Century must sign a technical support agreement at an annual cost of $600. Although the package contains many of the features that New Century wants, most of the reports are pre-designed and it would be difficult to modify their layouts. No matter which approach is selected, New Century probably will need you to provide about 10 hours of initial training and support each week for the first three months of operation. After the new system is operational, it will need routine maintenance, file backups, and updating. These tasks will require about four hours per week and can be performed by a clinic staff member. In both cases, the necessary hardware and network installation will cost about $12,500. In your view, the useful life of the system will be about five years, including the year in which the system becomes operational. You are scheduled to deliver a presentation to New Century next week, and you will submit a system requirements document at that time. To prepare yourself, you reviewed the skills described in Part A of the Systems Analyst’s Toolkit, and you listed tips to remember, as follows: Presentation Tips • • • • • Use suitable visual aids. Use presentation software, if possible. Distribute handouts before, during, or after the presentation. Follow the guidelines in Part A of the Systems Analyst’s Toolkit. Keep your presentation to 30 minutes, including 5 minutes for questions. System Requirements Document Tips • • • • Follow the guidelines in Part A of the Systems Analyst’s Toolkit. Include charts, graphs, or other helpful visual information in the document. Also include other material to help the audience understand the new system and decide on the next step. Spell check and carefully proofread the entire document. For readability, try to keep the Flesch Reading Ease score above 60, and aim for a FleschKincaid Grade Level of 8.0 to 9.0. Tasks 1. Provide an overview of the proposed system, including costs and benefits, with an explanation of the various cost-benefit types and categories. 2. Develop an economic feasibility analysis, using payback analysis, ROI, and present value (assume a discount rate of 10%). 3. Prepare a context diagram and diagram 0 for the new system. 4. Provide a brief explanation of the various alternatives that should be investigated if development continues, including in-house development and any other possible strategies. 9781285171340_CH07.indd 292 11/12/12 8:14 AM Phase 2 Systems Analysis 293­ CASE Tool Workshop CASE Tool Workshop Systems analysts use CASE tools to help them plan, build, and maintain information systems. To learn more about CASE tools, turn to Part B of the Toolkit that follows Chapter 12. You can complete these tasks with the Visible Analyst® CASE tool, which is available with this textbook, or a similar tool. Background Suppose your company wants to create a logical model of a proposed information system, and then decide whether to develop the system in-house and purchase a software package. You have been asked to use a CASE tool to construct the model. Tasks 1. After you perform fact-finding, you begin to work on the model. What diagrams will you create, and why? Will you use DFDs, object models, or both? Will you create an entity-relationship diagram? Explain your answers. 2. Most CASE tools can generate program code directly from diagrams and a central repository, and some tools are able to export the repository to a database management program, where the design can be implemented. Since you don’t know whether the new system will be developed in-house, it would be helpful to know more about this in advance. Perform research on the CASE tool you are using to learn what code-generation and export features are available, and describe your findings. 9781285171340_CH07.indd 293 11/12/12 8:14 AM BUIS 361 – Individual Assignment 7 – due by 11:59PM on Wed 11/22 I. Answer the following questions, based on the material in Chapter 7, Development Strategies. 1. Describe the concept of software as a service rather than a product. Is this an important trend? Why or why not? 2. What are three typical reasons why companies develop their own information systems? 3. What are main steps in the software acquisition process? What is an RFP, and how does it differ from an RFQ? 4. Explain the relationship between logical and physical design. 5. How has the proliferation of mobile devices affected IT professionals? II. Complete the Apply Your Knowledge Mini Cases #1 Sandy Shores Time Shares, Tasks 1-4, page 288 in the .pdf file and #4 IT News and Views, Tasks 1-4, page 289 in the .pdf file. Chapter 7 Development Strategies Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.     Describe the concept of Software as a Service Define Web 2.0 and cloud computing Explain software acquisition alternatives, including traditional and Web-based software development strategies Describe software outsourcing options, including offshore outsourcing and the role of service providers Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2      Explain advantages and disadvantages of inhouse software development Discuss cost-benefit analysis and financial analysis tools Describe a request for proposal (RFP) and a request for quotation (RFQ) Describe the system requirements document Explain the transition from systems analysis to systems design Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3  Earlier, certain work functions in the company required: ◦ Development of software by in-house efforts ◦ Employing the services of external entities  Today, organizations have following choices for software acquisition ◦ Application service providers ◦ Web-hosted software options ◦ Firms that offer enterprise-wide software solutions  Selecting the best development path is an important decision Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4  Software as a Service (SaaS) ◦ Software deployment model that hosts an application as a service provided to customers over the Internet ◦ Reduces the customer’s need for software maintenance, operation, and support Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5  Traditional vs. Web-Based Systems Development ◦ Service-oriented architecture (SOA)  A way of engineering systems in which reusable business functionality is provided by services through well-defined interfaces  Technically, not software architecture but an architectural style Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6  Traditional vs. Web-Based Systems Development ◦ Traditional Development  System design is influenced by compatibility issues  Systems are designed to run on local and wide-area networks  Systems often utilize Internet links and resources  Development typically follows one of three main paths:  In-house development  Purchase of a software package with possible modification  Use of outside consultants  Scalability is affected by network limitations and constraints Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7  Traditional vs. Web-Based Systems Development (Cont.) ◦ Web-Based Development  Systems are developed and delivered on an Internetbased framework  Treats the Web as the platform rather than just a communication channel  Web-based systems are easily scalable and can run on multiple hardware environments  Used for customer relationship management, order processing, and materials management  Treats software applications as services that are less dependent on desktop computing power and resources Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8  Traditional vs. Web-Based Systems Development (Cont.) ◦ Web-Based Development  Requires additional layers, called middleware, to communicate with existing software and legacy systems  Middleware: Connects dissimilar applications and enables them to communicate and exchange data  Open more complex security issues that should be addressed Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9  Evolving Trends - Web 2.0, Cloud Computing, and Mobile Devices ◦ Web 2.0: second generation of the web that enables people to collaborate, interact, and share information much more effectively  Enhances interactive experiences ◦ Cloud computing: Online software in which applications and services are accessed and used through an Internet connection ◦ Mobile devices: Smartphones, tablets, and other computing devices that are not permanently tethered to a desk Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10   Transfer of information systems development, operation, or maintenance to an outside firm The Growth of Outsourcing ◦ Service provider: Offers outsourcing solutions Application service provider (ASP)  Delivers a software application or access to an application by charging a usage or subscription fee ◦ Internet business services (IBS)  Also called managed hosting  Provide web-based support for transactions Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11  Outsourcing Fees ◦ Fixed fee model: Uses a set fee based on a specified level of service and user support ◦ Subscription model: Has a variable fee based on the number of users or workstations that have access to the application ◦ Usage model or transaction model: Charges a variable fee based on the volume of transactions or operations performed by the application Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12  Outsourcing Issues and Concerns ◦ Mission-critical IT systems are outsourced if the result is a cost-attractive and reliable business solution ◦ Overseas outsourcing can raise issues with control, culture communication, and security ◦ Reviewing the outsourcing firm’s history and financial condition is vital ◦ Outsourcing clients can be affected by mergers and acquisitions ◦ Employee job security is a major concern Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13  Offshore Outsourcing ◦ Called global outsourcing ◦ Shifting IT development, support, and operations to other countries ◦ Reason - Lower bottom-line costs ◦ Risks and concerns  Impact on the economy  Project control  Security issues Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14  Software development options ◦ Develop own systems ◦ Purchase, possibly customize, and implement a software package   Most important consideration is the total cost of ownership (TCO) Companies can develop user applications based on commercial software packages Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15  Make or Buy Decision ◦ Refers to the choice between developing and purchasing ◦ A company’s IT department makes, builds, and develops in-house software ◦ A software package is obtained from a vendor or application service provider FIGURE 7-8 Instead of outsourcing, a company can choose to develop a system in-house, or purchase and possibly customize a commercial package. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16  Make or Buy Decision (cont.) ◦ Software package: Obtained from a vendor or application service provider ◦ Software vendors: Develop software for sale ◦ Value-added reseller (VAR): Enhances a commercial package by adding custom features and configuring it for a particular industry ◦ Horizontal application: Can be used by many different types of organizations ◦ Vertical application: Developed to handle information requirements for a specific type of business Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17 FIGURE 7-10 Companies consider various factors when comparing inhouse development with the purchase of a software package. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 18  Developing Software In-House ◦ Satisfies unique business requirements  Not possible with standard commercial software packages  Minimizes changes in business procedures and policies  Installing a new software package almost always requires some degree of change in how a company does business ◦ Meets constraints of existing systems  Any new software installed must work with existing systems Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 19  Developing Software In-House (Cont.) ◦ Meets constraints of existing technology  The new system must work with existing hardware and legacy systems ◦ Develops internal resources and capabilities  Companies can develop and train IT staff who understand the organization’s business functions and information support needs Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 20  Purchasing a Software Package ◦ Lower costs  A software package is less expensive than the one developed in-house ◦ Requires less time to implement  Packages have already been designed, programmed, tested, and documented ◦ Proven reliability and performance benchmarks  Major problems would have been detected and corrected by the vendor Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 21  Purchasing a Software Package (Cont.) ◦ Requires less technical development staff  Companies can reduce the number of programmers and systems analysts on the IT staff ◦ Future upgrades provided by the vendor  Improvements and enhancements are included in regular updates ◦ Input from other companies  Users in other companies can be contacted to obtain their input and opinions Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 22  Customizing a Software Package ◦ Purchase a basic package that vendors will customize to suit project requirements ◦ Negotiate directly with the software vendor to make enhancements to meet project needs by paying for the changes ◦ Purchase the package and make project-specific modifications  Ensure modifications are permissible under the terms of the software license Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 23  Creating User Applications ◦ User application: Utilizes standard business software ◦ User interface: Enables effective interaction with the application ◦ Service desk or information center (IC): Provides user support ◦ Screen generators and report generators: Allow users to design their own data entry forms and reports ◦ Appropriate controls must be provided to ensure data security and integrity Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 24 Figure 7-11 Microsoft Access includes Form Wizard and a Report Wizard tools that ask a series of questions and then create the form or report. Source: Screenshots used with permission from Microsoft Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 25  Based on decisions taken by the organization in the systems development process ◦ Current and future needs are considered  Evaluation and selection of alternatives is a complicated process ◦ Forecasting actual costs is difficult  Evaluation and selection team: Selects hardware and software, includes systems analysts and users ◦ Ensures that critical factors are not overlooked and that a sound choice is made Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 26  Financial Analysis Tools ◦ Payback analysis  Determines the time taken for an information system to pay for itself through reduced costs and increased benefits ◦ Return on investment (ROI)  Percentage rate that compares the total net benefits (the return) received from a project to the total costs (the investment) of the project ◦ Net present value (NPV)  Total value of the benefits minus the total value of the costs Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 27 Figure 7-12 In this example, the HP interactive TCO calculator is used to determine the ROI of migrating to an Infrastructure-as-a-Service (IaaS) environment in the cloud from a traditional server environment Source: Hewlett-Packard Development Company, L.P. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 28  Cost-Benefit Analysis Checklist ◦ ◦ ◦ ◦ ◦ ◦ ◦ List each development strategy being considered Identify all costs and benefits for each alternative Consider future growth and the need for scalability Include support costs for hardware and software Analyze various software licensing options Apply the financial analysis tools to each alternative Study the results and prepare a report Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 29  Step 1 - Evaluate the Information System Requirements Identify key features Consider network and Web-related issues Estimate volume and future growth Specify hardware, software, or personnel constraints ◦ Prepare a request for proposal or quotation  Request for proposal (RFP): Describes the company, lists the IT services or products needed, and specifies the features required ◦ ◦ ◦ ◦  Request for quotation (RFQ): more specific than an RFP Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 30 FIGURE 7-13 Volume estimates for an order processing system showing current activity levels and two forecasts: one based on the existing order processing procedures and another that assumes a new Web site is operational. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 31 FIGURE 7-15 The three vendors have the same initial ratings, but the two evaluation models produce different results. In the unweighted model at the top of the figure, vendor A has the highest total points. However, after applying weight factors, vendor C is the winner, as shown in the model at the bottom of the figure. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 32  Step 2 - Identify Potential Vendors or Outsourcing Options ◦ The Internet contains information on all major products and acquisition services ◦ The organization can avail the services of a consulting firm that help companies select software packages ◦ Online forums or newsgroups provide opinions and ideas  Google Groups  Yahoo Groups Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 33  Step 3 - Evaluate the Alternatives ◦ Existing users  Provide feedback about their experiences ◦ Application testing  Users in the organization may be able to test the product ◦ Benchmarking  Benchmark: Measures the time a package takes to process a certain number of transactions  Each package is matched against RFP features and the choices are ranked Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 34  Step 4 - Perform Cost-Benefit Analysis ◦ Identify and calculate total cost of ownership (TCO) for each option being considered ◦ Study the conditions of use that come along with the software license ◦ If a software package is purchased, consider a supplemental maintenance agreement Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 35  Step 5 - Prepare a Recommendation ◦ Evaluate and describe alternatives along with:     Costs Benefits Advantages Disadvantages ◦ Submit a formal system requirements document and deliver a presentation Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 36  Step 6 - Implement the Solution ◦ Implementation tasks will depend on the solution selected ◦ Before the new software becomes operational, complete all implementation steps     Loading Configuring and testing the software Training users Converting data files to the new system’s format Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 37  System Requirements Document ◦ ◦ ◦ ◦ ◦ Called software requirements specification Contains the requirements for the new system Describes the alternatives considered Makes a specific recommendation to management Similar to a contract  Identifies items that system developers must deliver to users ◦ Format and organize the systems document  Easy to read and use Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 38  Presentation to Management ◦ Helps take key decisions that affect the future development of the system ◦ Suggestions for effective presentations  Start with a brief overview  Summarize the primary viable alternatives  Explain why the evaluation and selection team chose the recommended alternative  Allow time for discussion  Obtain a final decision from management or agree on a timetable for the next step in the process Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 39  Presentation to Management (Cont.) ◦ Depending on management’s decision, a systems analyst will do one of the following      Implement an outsourcing alternative Develop an in-house system Purchase or customize a software package Perform additional systems analysis work Stop all further work ◦ Post presentation and management decision, the project begins a transition to the systems phase of the SDLC Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 40  Preparing for Systems Design ◦ Systems design requires accurate documentation  Provide detailed specifications for output, input, data, processes, and other requirements  Logical and Physical Design o o o Logical design: Defines what must take place Physical design: Describes the actual process of entering, verifying, and storing data Logical and physical designs are closely related • Accurate systems analysis is required Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 41   A new trend views Software as a Service (SaaS), rather than a product Traditional systems must: ◦ Function in various hardware and software environments ◦ Be compatible with legacy systems ◦ Operate within the constraints of company networks and desktop computing capability  Companies that choose to handle their own software development needs can: ◦ Create in-house systems ◦ Commercially purchase software packages Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 42    The systems analyst’s role in the software development process depends on the specific development strategy The most important factor in choosing a development strategy is total cost of ownership (TCO) Financial analysis tools include: ◦ Payback analysis ◦ Return on investment (ROI) ◦ Net present value (NPV) Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 43   Acquiring software involves a series of specific steps The system requirements document is the deliverable, or end product, of the systems analysis phase Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 44
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Running Head: Software Development Strategies

1

Software Development Strategies

Name
Course
University
Date:

Software Development Strategies

2

Software concept
For the most part if a product should have been introduced it was finished by obtaining
the product and after that downloading the records on the framework. Be that as it may, with
Software as a Service the product does not should be introduced on a PC but rather can be gotten
to through web at the host website assigned by the producer which spared the client upkeep,
operation and support as the maker stays up with the latest and running.
SaaS is new pattern in the market mostly due to the accompanying reasons: It encourages
organizations to get to bigger market gathering of people in minimal effort.
The expansion in number of clients can be suit effortlessly regarding information
stockpiling when contrasted with conventional information stockpiling server use.
Up gradation, upkeep and support is finished by specialist which spares organizations
enlisting an entire IT division for it.
The fundamental concern organizations identify with SaaS is the security of the
information and data. As SaaS is getting to the product through web that places it in the outdoors
and everyone can get to private information with right devices.
SaaS is a critical pattern in view of the above reasons it enables the organizations to spare
cash and procure more benefit, which is the primary motivation behind a business.
3 Reasons for company developing information system of their own.
As indicated by our course reading, the primary reason organizations build up their own
data frameworks is on account of there are no monetarily accessible programming bundles that
can meet their one of a kind business prerequisites.
Besides, to meet imperatives of existing software and hardware: meet compatibilities.

Software Development Strategies

At long last, yet not minimum, gainful programming limits changes in business
techniques and arrangements since if numerous accessible bundles will require changes in
current business operations or procedures which can turn into a diversion.

Process of software acquisition
Assess the Information System Requirements
Recognize Potential Vendors or Outsourcing Options
Assess the Alternatives
Perform Cost-Benefit Analysis
Set up a Recommendation
Implement the Solution
RFP, and RFQ
RFP represents the Request for Proposal. It is an archive that contains an organization's
data, the IT benefits the organization requires and portray the highlights that the organization
needs to be incorporated.
RFQ remains for ask for cit...


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