AIS Development Strategies. Chapter 19. Overview. Today we will cover: (1) Three ways to obtain a new IS: Purchase Software, Develop in-house, Outsource (2) Three ways to improve the development process:
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Today we will cover:
(1) Three ways to obtain a new IS:
Purchase Software, Develop in-house, Outsource
(2) Three ways to improve the development
Business process reengineering (BPR), Prototyping, Computer-aided software engr. (CASE) tools
Web-based software delivered over the Internet. “Rent” rather than buy the software. Can reduce costs, and allow companies to focus on core competencies, not software.
E.g., Internet version of TurboTax
Once AIS requirements have been defined, the organization can buy software and hardware.
Companies needing only a PC and some office software can usually complete their own research and make a selection.
When buying large or complex systems, a request for proposal (RFP) should be prepared.
The RFP is an invitation to bidders to propose a system by a specific date.
The more information a company provides to a vendor, the better the company’s chances of receiving a system that meets its requirements. Be sure to distinguish between mandatory and desirable requirements. (General RFPs)
Each proposal is evaluated.
Finalists are investigated in depth.
Approaches to comparing system performance:
O’Neil examined the packages offered by the three vendors and rated them based on these three criteria. Ratings were from 1–5 with 5 being the highest score.
The weighted scores for each company are summed:
Based on the preceding scores, the bid would probably be awarded to Baker Co.
The preceding example is a simplification. In a real-life scenario, several factors would be different:
Verify that the AIS that looks best on paper is actually the best in practice:
Developing custom software is difficult, but some companies prefer this approach—particularly if the company is large, has unique needs, and believes their systems provide a competitive advantage.
(1) software developed by IS staff.
(2) software developed by End users.
Accountants help contribute by being project supervisors, users, or development team members.
End User Developmentoccurs when information users, such as managers, accountants, and internal auditors, develop their own applications using computer specialists as advisors. Inappropriate for very complex systems. May be appropriate for simpler projects.
Outsourcing: hiring an outside company to handle all or part of an organization’s data processing activities. Rapidly growing business.
Sometimes entire IT organizations are transferred to another company.
Examples of outsourced activities:
Michael Hammer has set forth several principles that help organizations successfully reengineer business processes:
Many BPR efforts fail or fall short of their objectives. A company must overcome the following obstacles:
Prototyping is an approach to systems design in which a simplified working model of a system is developed.
Good candidates for prototyping:
Prototyping is usually inappropriate for: