development strategies l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Development Strategies PowerPoint Presentation
Download Presentation
Development Strategies

Loading in 2 Seconds...

play fullscreen
1 / 54

Development Strategies - PowerPoint PPT Presentation


  • 209 Views
  • Uploaded on

Development Strategies. Dr. Yan Xiong College of Business CSU Sacramento 10/12/03. Agenda. Software Packages In-house Development Outsourcing Business Process Reengineering (BPR) Prototyping. Purchase Software.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Development Strategies' - Pat_Xavi


Download Now An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
development strategies

Development Strategies

Dr. Yan Xiong

College of Business

CSU Sacramento

10/12/03

agenda
Agenda
  • Software Packages
  • In-house Development
  • Outsourcing
  • Business Process Reengineering (BPR)
  • Prototyping
purchase software
Purchase Software
  • Canned software:written by computer manufacturers or software development companies
  • Sold on open market to broad range of users with similar requirements
  • Turnkey systems: combination of software and hardware sold as a package
purchasing software
Purchasing Software
  • Companies that buy rather than develop AIS software still go through systems development life cycle (SDLC)
  • Implementation phase is reduced:
    • less coding
    • less testing
  • This is most costly
purchasing software5
Purchasing Software
  • Companies that buy rather than develop AIS software still go through systems development life cycle (SDLC)
  • Implementation phase is reduced:
    • less coding
    • less testing
  • This is most costly SDLC phase
systems acquisition process

Can package

be modified?

Will package

meet needs?

Systems Acquisition Process

Investigate

software

packages

Develop

software

internally

No

No

Yes

Yes

Send RFP for

software and

hardware

Send RFP for

hardware,

if necessary

Select best

combination

Evaluate

proposal

alternative screening matrix
Alternative Screening Matrix
  • Use for screening, not selection
  • Beware of implying too much accuracy
alternative screening matrix8
Alternative Screening Matrix
  • Example:
    • Vendor A score 4.35
    • Vendor B score 4.25
    • Vendor C score 3.25
  • Vendor C out; Vendors A and B too close to call
alternative screening matrix9
Alternative Screening Matrix

M Evaluation Criteria

N Alternatives

Alternatives to be Compared

Evaluation

Criteria

Crit.

Weight

. . . .

A1

A2

An

C1

Wc1

C2

Wc2

.

.

.

.

.

.

Cm

Wcm

. . . .

Total

1.00

T1

T2

Tn

determining weights
Determining Weights
  • Rank factors in importance with most important receiving highest number
  • Total the ranks
  • Divide each factor weight by the total
  • Make individual weight adjustments if necessary
agenda12
Agenda
  • Software Packages
  • In-house Development
  • Outsourcing
  • Business Process Reengineering (BPR)
  • Prototyping
in house development
In-house Development
  • In the past, most organizations had information system departments develop custom software, because canned software fitting specific needs not available
  • Developing custom software difficult and error-prone
  • Also consumes a great deal of time and resources
in house development14
In-house Development
  • Custom software usually developed and written in house
  • Alternatively, can engage outside company to develop package or assemble it from their inventory of program modules (objects)
    • called “outsourcing”
  • When contracting with outside organization, must maintain control over the development process
in house development15
In-house Development
  • Outsourcing management:
    • carefully select developer
      • Vendor Screening Matrix
    • sign contract
    • plan and monitor each step
    • maintain effective communication
    • control all costs
agenda16
Agenda
  • Software Packages
  • In-house Development
  • Outsourcing
  • Business Process Reengineering (BPR)
  • Prototyping
outsourcing
Outsourcing
  • Hiring outside company to handle all or part of an organization’s IT activities
  • In mainframe outsourcingagreement, outsourcers buy client’s computers and hire all or most of client’s employees
    • Electronic Data Services (EDS)
outsourcing18
Outsourcing
  • In client/server (PC) outsourcing agreement, firm contracts for:
    • particular service
    • segment of its business
    • particular function
    • PC support
outsourcing types
Outsourcing Types
  • Professional services (consulting)
  • Services (training / data entry)
  • Temporary employees
    • contract programmers
  • Transactions (credit reports)
  • Systems integrators
outsourcing20

Benefits of Outsourcing

A business solution Asset utilization Access to greater expertise and more advanced technology Lower costs Improved development time Elimination of peaks and valleys usage Facilitation of downsizing

Outsourcing
outsourcing21

Risks of Outsourcing Inflexibility Loss of control Reduced competitive advantage Locked-in system

Not tied to corporate goals

Outsourcing
when to outsource
When to Outsource
  • Activity not strategic
  • Save at least 15%
  • Need technology specialists
  • Increase financial flexibility
    • capital to operating expenses
  • Free personnel for development
  • Acquire new technologies quicker
outsource failures
Outsource Failures
  • DT Study, 1997
  • Vendor expertise and sophistication
  • Improved delivery quality
  • Cost reduction
  • Increased focus on core competencies
  • Transition to new technologies
raleys
Raleys
  • Prefer to acquire talented, retail-oriented staff
  • Augments IT projects with consultants, contractors
  • Outsource professional services such as training and data entry
agenda25
Agenda
  • Software Packages
  • In-house Development
  • Outsourcing
  • Business Process Reengineering (BPR)
  • Prototyping
reengineering
Reengineering

Hammer / Champy

“ . . . fundamental rethinking

andradical redesign of business processes

to achieve dramatic improvements . . .”

slide27
BPR
  • Reduces company to essential processes
  • Focuses on whythey are done rather than on the details of how they are done
  • Completely reshapes organizational work practices and information flows to take advantage of technological advancements
business process
Business Process

“…set of tasks that directly support the achievement of business objectives by providing a product or service for a customer who is outside the organization or in a different organizational unit”

American Management Systems

core processes
Core Processes
  • 4 or 5 in any organization
  • Can be broken down into sub-processes
  • Critical to organization’s success
  • Focus redesign on these processes
financial core processes
Financial Core Processes

Product New loan, savings Development checking plan

Sales and New accounts, Marketing acquisitions

Order Deposits, loans, Fulfillment withdrawals

Customer Financial planning, Service inquiries

pharmaceuticals core processes
Pharmaceuticals Core Processes

Product R & D testing Development

Sales and Market segmenta- Marketing tion, contracts

Order Contract manage- Fulfillment ment, shipping

Customer Claims analysis Service

bpr examples
BPR Examples
  • From Martin, Analysis and Design of Business Information Systems, (Prentice Hall, 1995)
  • All focused on Data Flow Diagrams (DFDs)
outsourcing33

DeliveryVendor

Produce

Deliver

ConrailDelivery

Produce

Outsourcing

A. GM Process Flows Before

B. Outsourcing Delivery to Contrail

customer focus

Cust.

P1

P2

P3

Cust.

P1

P2

P3

Cust.

Cust.

Case Mgr.

Customer Focus

Before:

After:

buffering

Before:

3.5

EditOrder

After:

PendingOrder File

3.5

EditOrder

3.6

ShipProduct

Buffering

3.6

ShipProduct

Order

slide36

3.1

Order (Copy 1)

Verify

Order

Customer

3.2

Order (Copy 2)

Credit

Check

Parallel Processing

Before:

3.1

3.2

Order

Order

Customer

Verify

Order

Credit

Check

After:

geographic balancing

1

2

3

Geographic Balancing

Building A

Building B

Before:

geographic balancing38
Geographic Balancing

Building A

Building B

After:

1

3

2

bpr challenges
BPR Challenges
  • Tradition
  • Resistance
    • e.g., seniority
  • Time requirements
  • Lack of management support
  • Risk
    • most crucial processes
    • on-going organization
bpr challenges40
BPR Challenges
  • Controls
    • often sacrificed for sake of efficiency
    • e.g., eliminating verification process
  • Accountants must ensure that what is gained by BPR is not lost through fraud, errors, etc.
controls example
Controls Example
  • BPR expert recommends that you consolidate two sequential processes
    • reduce personnel
    • reduce handoffs (errors)
    • increase job satisfaction
  • But you will lose separation of duties
controls example42
Controls Example
  • Calculate BPR consolidation savings
  • Calculate probable fraud costs
    • Likelihood of threat (risk) times exposure $
  • Compare
slide43

“Best-of-Breed”

Quality

NeedsImprove-ment

Non - Critical

Critical

Importance

State of California Guidelines

Consolidate,Transfer Internally

Improve,Leverage

Redesign(Reengineer)

Outsource

agenda44
Agenda
  • Software Packages
  • In-house Development
  • Outsourcing
  • Business Process Reengineering (BPR)
  • Prototyping
prototyping
Prototyping
  • Approach to systems development in which simplified working model of system developed
  • Prototype (“first draft”) quickly and inexpensively built
  • Provided to users for testing and training
why prototyping
Why Prototyping

“When you’re working with new system ideas with your users, you don’t want to go through the cost of developing a gigantic system which might take years; you’ll build a mock-up of it, which might take weeks.”

Brian Kilcourse, CIO

Longs Drug Stores

why prototyping47
Why Prototyping
  • Experience at AT&T, TRW, and IBM
    • 30% of system requirements will change BEFORE initial system delivery
  • Production error correction model
error correction

$

Prototyping

T i m e t o D e t e c t

Error Correction
prototype life cycle

Develop Prototype

Operationalize Prototype

Refine Prototype

Complete System

Prototype Life Cycle

Analyze problem

prototype types
Prototype Types
  • Iterative: Make series of changes until prototype becomes the final system
    • e.g., writing a poem
  • Throw-away: Once user approves, then abandon for construction purposes
    • e.g., architect’s drawing of new house
slide51

PrototypeLanguage

OperationsLanguage

4 GL

4 GL

3 GL

3 GL

SDLC Stage

A

D

Iterative

Throwaway

Iterative

Prototype Models

prototyping52
Prototyping

Advantages of Prototyping

Better definition of user needs Higher user involvement and satisfaction Faster development time Fewer errors More opportunity for changes Less costly

Better user/analyst communication

prototyping53
Prototyping

Disadvantages of Prototyping Significant user time Bypass Analysis Phase

Incomplete systems development Inadequately tested and documented systems Negative behavioral reactions Unending development

topics covered
Topics Covered
  • Software Packages
  • In-house Development
  • Outsourcing
  • Business Process Reengineering (BPR)
  • Prototyping