End user development in management information systems

CHAPTER 14 1. Planning for and Justifying IT Applications 2. Strategies for Acquiring IT Applications 3. Traditional Systems Development Life Cycle 4. Alternative Methods and Tools for Systems Development 1. Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan. 2. Discuss the four business decisions that companies must make when they acquire new applications. 3. Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle. 4. Describe alternative development methods and the tools that augment these methods. Opening Case • Peoples State Bank Transforms Its Information Technology 1. Discuss the problems with PSB’s legacy systems that led to the information technology conversion. 2. Why did PSB decide to outsource their IT rather than developing new systems in-house as they had in the past? 3. What are the potential disadvantages that PSB might encounter from outsourcing its IT function? 14.1 Planning for and Justifying IT Applications • IT Planning • Evaluation and Justifying IT Investment: Benefits, Costs, and Issues Figure 14.1: The IS Planning Process IT Planning • • • • Organizational Strategic Plan IT Strategic Plan IT Steering Committee IS Operational Plan IT Strategic Plan Three Objectives of an IT Strategic Plan: – Must be aligned with the organization’s strategic plan – Provide for an IT architecture – Efficiently allocate IS development resources IT Steering Committee Major Tasks of an IT Steering Committee – Link corporate strategy with IT strategy – Approve the allocation of resources for the MIS function – Establish performance measures for the MIS function and ensure they are met IS Operational Plan Elements of an IS Operational Plan: – Mission – IS Environment – Objectives of the IS Function – Constraints on the IS function – Application Portfolio – Resource Allocation and Project Management Evaluation and Justifying IT Investment: Benefits, Costs, and Issues • Assessing the Costs • Assessing the Benefits • Conducting the Cost-Benefit Analysis Conducting the Cost-Benefit Analysis Four Common Approaches for CostBenefit Analysis: • Net Present Value • Return on Investment (ROI) • Breakeven Analysis • Business Case Approach 14.2 Strategies for Acquiring IT Applications • • • • • • Fundamental Decisions Acquisition Methods Purchase a Prewritten Application Customize a Prewritten Application Lease the Application Application Service Providers and Software-as-a-Service Vendors 14.2 • • • • Strategies for Acquiring IT Applications (Continued) Use Open-Source Software Outsourcing Continuous Development Employ Custom Development Fundamental Decisions • How much computer code does the company want to write? • How will the company pay for the application? • Where will the application run? • Where will the application originate? Table 14.1: Advantages & Disadvantages of Buy Option Figure 14.2: Operation of an ASP Figure 14.3: Operation of a SaaS Vendor ABOUT BUSINESS 14.1 • Containers 1. What does the container technology offer developers that traditional deployment methodologies do not? 2. What role do you think large companies like Microsoft and Docker, Inc. play in streamlining application development? 14.3 The Traditional Systems Development Life Cycle • Systems Development Life Cycle (SDLC) 1. 2. 3. 4. 5. 6. Systems Investigation Systems Analysis Systems Design Programming and Testing Implementation Operations and Maintenance Figure 14.4: A six-stage SDLC with Supporting Tools Figure 14.5: Comparison of user & Developer Involvement Over the SDLC Table 14.2: Advantages and Disadvantages of System Acquisition Methods Table 14.2: Advantages and Disadvantages of System Acquisition Methods (Continued) Table 14.2: Advantages and Disadvantages of System Acquisition Methods (Continued) Table 14.2: Advantages and Disadvantages of System Acquisition Methods (Continued) Table 14.2: Advantages and Disadvantages of System Acquisition Methods (Continued) Table 14.2: Advantages and Disadvantages of System Acquisition Methods (Continued) Table 14.2: Advantages and Disadvantages of System Acquisition Methods (Continued) SDLC: Systems Investigation • Three Basic Solutions • Feasibility Study • Go / No Go Decision Systems Investigation: Three Basic Solutions 1. Do nothing and continue to use the existing system unchanged 2. Modify or enhance the existing system 3. Develop a new system. Systems Investigation: Feasibility Study • Technical Feasibility • Economic Feasibility • Behavioral Feasibility SDLC: Systems Analysis The process whereby systems analysts examine the business problem that the organization plans to solve with an IS. • Deliverable: – A set of system requirements (or User Requirements) SLDC: Systems Design Describes how the system will resolve the business problem. • Deliverable: – a set of technical system specifications. • Scope Creep Systems Design: Technical Specifications • Technical Specifications include following: – System outputs, inputs, and user interfaces – Hardware, software, databases, telecommunications, personnel, and procedures – A blueprint of how these components are integrated SDLC: Programming and Testing • Programming • Testing SDLC: Implementation • Implementation • Three Major Conversion Strategies – Direct – Pilot – Staged SDLC: Operations & Maintenance Systems Require Several Types of Maintenance: • Debugging • Updating •