Chapter 21

AIS Development Strategies

21-1
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 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.

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 Ways to Obtain an AIS

 Purchase the software

 Develop software in-house

 Hire and external company to develop and maintain

new software

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 Purchasing Software

 Off the Shelf (OTS) Canned

 System capabilities for users with similar requirements

 Turnkey System
 Hardware and software sold as a package

 Application Service Provider (ASP)

 Software is provided to user via the Internet

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 In-House System Development

 Main criteria for in-house development

 Provides a significant competitive advantage

 Risks of in-house development

 Significant amounts of time required
 Complexity of the system
 Poor requirements defined
 Insufficient planning
 Inadequate communication and cooperation
 Lack of qualified staff
 Poor top management support

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 End-User Computing (EUC)
 Hands-on development, use, and control of computer- based information systems by
users

 Advantages of EUC
 User creation, control, and implementation
 Users decide whether a system should be developed and what information is
important.
 Systems that meet user needs
 Users discover flaws that IS people do not catch.
 Many of the user-analyst-programmer communication problems in traditional
program development are avoided.
 Timeliness
 Time-consuming cost-benefit analyses, detailed requirements definitions, and
the delays and red tape of the approval process can be avoided.

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 End-User Computing (EUC) (cont’d)

 Advantages of EUC (cont’d)

 Freeing up of systems resources
 The more information needs users meet, the more time the IS department can
spend on other development and maintenance activities.
 Versatility and ease of use
 Users can change the information they produce or modify their application any
time their requirements change.

 Disadvantages to EUC:
 Logic and development errors
 Inadequately tested applications
 Inefficient systems
 Poorly controlled systems
 Poorly documented systems
 Incompatible systems
 Redundant data
 Wasted resources
 Increased costs

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 Outsourcing the System
 Hiring an outside company to handle all  Disadvantages:
or part of an organization’s data  Inflexibility
processing activities
 Reduced competitive
advantage
 Advantages:
 Unfulfilled goals
 Strategic and economic business
solution that allows companies to  Poor service
concentrate on core competencies  Increased risk
 Organizations improve their cash
position and reduce expenses by
selling assets to an outsourcer
 Access to greater expertise and
better technology
 Lower costs by standardizing user
applications, buying hardware at
bulk prices, splitting development
and maintenance costs between
projects, and operating at higher
volumes
 Less development time.
 Elimination of peaks-and-valleys
 Facilitates downsizing

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 Methods to Develop an AIS

 Business Process Redesign

 Prototyping

 Computer-Aided Software Engineering (CASE) Tools

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 Business Process Redesign

 Drastic, one-time-event approach to improving and

automating business processes

 Low success rate

 Evolved into:
 Business Process Management (BPM)
 Systematic approach to continuously improving and
optimizing an organization’s business processes

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 Prototyping

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 Prototyping
Advantages Disadvantages
 Better definition of user needs  Less efficient use of system
resources
 Higher user involvement and
satisfaction  Inadequate testing and
documentation
 Faster development time
 Negative behavioral reactions
 Fewer errors
 Never-ending development
 More opportunity for changes

 Less costly

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 Computer-Aided Software
Engineering (CASE)
 Software to help plan, analyze, design, program, and
maintain an information system
 Strategic planning
 Project and system management
 Database design
 Screen and report layout
 Automatic code generation

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 CASE Advantages vs. Disadvantages

 Improved productivity  Incompatibility

 Improved program quality  Cost

 Cost savings  Unmet expectations

 Improved control
procedures

 Simplified documentation

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