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AIS Development Strategies. Chapter 21. Learning Objectives. Describe how organizations purchase application software, vendor services, and hardware Explain how information system departments develop custom software

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learning objectives
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
how to obtain an ais
How to Obtain an AIS


Develop in-house

Outsource to outside organization

  • 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
develop software in house
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
end user computing
End-User Computing



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



  • Allows companies to concentrate on core competencies
  • Asset utilization
  • Access to greater expertise and better technology
  • Lower costs by standardizing user applications and splitting development and maintenance costs between projects
  • Less development time
  • Elimination of peaks-and-valleys usage
  • Facilitates downsizing
  • Inflexibility
  • Loss of control
  • Reduced competitive advantage
  • Locked-in system
  • Unfulfilled goals
  • Poor service
  • Increased risk
business process management systems
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



  • Results in well-defined user needs
  • Higher user satisfaction and involvement
  • Faster development time
  • Fewer errors
  • Opportunities to suggest changes
  • Less costly
  • Requires significant user time
  • Resource efficiency may not be achieved
  • Inadequate testing and documentation
  • Negative behavioral reactions
  • Continuous development of iterations leaves a feeling of no project completion
computer aided software engineering case
Computer-Aided Software Engineering (CASE)



  • Improved productivity
  • Improved program quality
  • Cost savings
  • Improved control procedures
  • Simplified documentation
  • Incompatibility with other systems
  • Unmet expectations
key terms
Key Terms
  • Canned software
  • Turnkey systems
  • Application service provider (ASP)
  • Request for proposal (RFP)
  • Benchmark problem
  • Point scoring
  • Requirement costing
  • Custom software
  • End-user computing (EUC)
  • Help desk
  • Outsourcing
  • Business process reengineering (BPR)
  • Business process management (BPM)
  • Business Process Management System (BPMS)
  • Prototyping
  • Operational prototype
  • Nonoperational (throwaway) prototype
  • Computer-aided software (or systems) engineering (CASE)