Professional Documents
Culture Documents
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is sold on the open
market to a broad range of users with
similar requirements.
± Some companies sell hardware and software
together as a package.
These systems are called
.
Many are written by vendors who specialize in a
particular industry.
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± Advantages of ASPs:
Reduction of software costs and administrative
overhead.
Automated software upgrades.
Scalability as the business grows.
Global access to information.
Access to skilled IT personnel.
Ability to focus on core financial competencies
rather than IT.
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± Companies that buy rather than develop
software still follow the SDLC process,
including:
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± Companies that buy rather than develop
software still follow the SDLC process,
including:
Systems analysis
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± Companies that buy rather than develop
software still follow the SDLC process,
including:
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± Companies that buy rather than develop
software still follow the SDLC process,
including:
Systems analysis
Conceptual design
Physical design
Implementation and conversion
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± Deciding whether to make or buy software
can be made independently of the decision to
acquire hardware, service, maintenance, and
other AIS resources.
± And the preceding resources can be bought
independently of the software.
± But hardware and vendor decisions may
depend on the software decisions.
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± 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.
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± Eliminate any proposals that:
Are missing important information.
Fail to meet minimum requirements.
Are ambiguous.
± Those that pass the preliminary screening should be
compared with the proposed AIS requirements to
determine:
If they meet all
requirements.
How many
requirements they meet.
± Finalists can be invited to demo their system using
company-supplied data.
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Benchmark problem
± The new AIS performs a data processing task
with input, processing, and output jobs typical
of what would be required of the new system.
± Processing times are calculated and
compared.
± The AIS with the lowest time is judged most
efficient.
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Point scoring:
± A weight is assigned to each criterion used to
evaluate the system, based on the relative
importance of that criterion.
± Each criterion is rated for each product.
± Each rating is multiplied times the weight
assigned to the criterion to develop a
weighted score.
± The weighted scores are added for each
product.
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Example:
± Zorba Co. is evaluating systems offered by three
different vendors: Able Co., Baker Co., and Cook Co.
± Zorba has determined three criteria that they will use
to evaluate the different systems: cost, speed, and
vendor reliability.
± They have provided the following weights to each
criteria, with vendor reliability being the most critical:
Vendor reliability²¢
Cost²
Speed²
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Cost () s0 1V 2
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Requirements costing:
± Estimates cost of purchasing or developing
features that are included in a particular
AIS.
± The total AIS cost is calculated by adding the
acquisition cost to the purchasing and
development costs.
± Total cost = cost of system with required
features.
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± Poorly controlled and documented systems
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is hiring an outside company
to handle all or part of an organization¶s
data processing activities.
± In a mainframe outsourcing agreement:
The outsourcers buy the client¶s computers and
hire all or most of the client¶s employees.
Then operate and manage the entire system on
the client¶s site or migrate it to the outsourcer¶s
computers.
Many of these contracts have terms of 10 or more
years and cost from hundreds of thousands to
millions of dollars a year.
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± In a client/server or a PC outsourcing
agreement the organization outsources:
A particular service (e.g., help desk services);
A segment of its business;
A particular function; or
PC support.
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± Outsourcing was initially used for
standardized applications such as payroll,
accounting, and purchasing.
± Also used by companies that were struggling
to survive and wanted a quick cash infusion
from selling their hardware.
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Benefits of outsourcing:
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Benefits of outsourcing:
± Provides a business solution
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Benefits of outsourcing:
± Provides a business solution
± Asset utilization
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Benefits of outsourcing:
± Provides a business solution
± Asset utilization
± Access to greater experience and more
advanced technology
± Lower costs
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Benefits of outsourcing:
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Benefits of outsourcing:
± Provides a business solution
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± Elimination of peaks-and-valleys usage
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Risks of outsourcing
± Many outsourcing contracts fail to meet
expectations for reasons including:
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Risks of outsourcing:
± Inflexibility
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Risks of outsourcing:
± Inflexibility
± Loss of control
± Reduced competitive advantage
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BPR:
± Simplifies the system.
± Makes it more effective.
± Improves a company¶s quality and service.
BPR software has been developed to help
automate many BPR tasks.
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Centralize AND disperse data.
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± Many BPR efforts fail or fall short of their objectives. A
company must overcome the following obstacles:
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company must overcome the following obstacles:
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Resistance
Time and cost requirements
Lack of management support
Skepticism
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Advantages of prototyping:
± - -
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Advantages of prototyping:
± Better definition of user needs
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Advantages of prototyping:
± Better definition of user needs
± Higher user involvement and satisfaction
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Advantages of prototyping:
± Better definition of user needs
± Higher user involvement and satisfaction
± Faster development time
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Advantages of prototyping:
± Better definition of user needs
± Higher user involvement and satisfaction
± Faster development time
± Fewer errors
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Advantages of prototyping:
± Better definition of user needs
± Higher user involvement and satisfaction
± Faster development time
± Fewer errors
± More opportunity for changes
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Disadvantages of prototyping:
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Disadvantages of prototyping:
± Significant user time
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Disadvantages of prototyping:
± Significant user time
± Less efficient use of system resources
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Disadvantages of prototyping:
± Significant user time
± Less efficient use of system resources
± Incomplete system development
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Disadvantages of prototyping:
± Significant user time
± Less efficient use of system resources
± Incomplete system development
± Inadequately tested and documented systems
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Disadvantages of prototyping:
± Significant user time
± Less efficient use of system resources
± Incomplete system development
± Inadequately tested and documented systems
± Negative behavioral reactions
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You¶ve learned:
± How organizations buy software, hardware,
and vendor services.
± How information systems departments
develop custom software.
± How end users develop, use, and control
computer-based information systems.
± Why organizations outsource their information
systems, as well as the benefits and risks of
doing so.
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