Chapter 6

Systems Development

Steps, Tools, and Techniques

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-1 Second Canadian Edition All rights reserved
 MAIN MAP
 KW = Knowledge Workers
 SDLC = Systems Development Life Cycle
KW & Roles
In SDLC

 Plan
 Analyze
 Design
 Develop
7 Phases Why Systems
 Test Of SDLC Fail ?
 Implement
 Maintain Systems
Development

Sourcing
Prototyping  In
 Self
 Out

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-2 Second Canadian Edition All rights reserved
 INTRODUCTION
 Why do businesses build information systems ?
 How does a business know when it is time to
replace the old information system with a new
one ?
 TYPICALLY: Knowledge workers will request
new systems to help them perform their work.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-3 Second Canadian Edition All rights reserved
 INTRODUCTION

 Developing of an information system may fail.

 There are many factors that must be considered
and come together in order to develop a
successful information system.
 The SDLC = Systems Development Life Cycle is
one approach to reduce the risk of failure.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-4 Second Canadian Edition All rights reserved
 Introduction

 Systems development life

cycle (SDLC) - a structured
step-by-step approach for
developing information
systems.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-5 Second Canadian Edition All rights reserved
 INTRODUCTION

 In this chapter we focus on:

 Seven Phases In The Systems Development Life Cycle
 Knowledge Workers and Their Roles In The Systems
Development Life Cycle
 Why Systems Fail
 Sourcing
• In sourcing
• Self sourcing
• Outsourcing
 Prototyping

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-6 Second Canadian Edition All rights reserved
 7 PHASES OF SDLC
 KW = Knowledge Workers
 SDLC = Systems Development Life Cycle
KW & Roles
In SDLC

 Plan
 Analyze
 Design
 Develop
7 Phases Why Systems
 Test Of SDLC Fail ?
 Implement
 Maintain Systems
Development

Sourcing
Prototyping  In
 Self
 Out

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-7 Second Canadian Edition All rights reserved
 Seven Phases in the SDLC

 There are literally hundreds of activities

associated with each phase of the SDLC
 Such activities include:
 Determining budgets
 Gathering systems requirements
 Documentation
 Modeling

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-8 Second Canadian Edition All rights reserved
 Seven Phases in the SDLC

Figure 6.2
Important Activities
in the Systems
Development Life
Cycle
page 219

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-9 Second Canadian Edition All rights reserved
 Seven Phases in the SDLC
Phase 1: Plan
Plan Analysis Design Develop Test Implement Maintain

 Activities
 Define the system to be developed.
 Set the project scope.
 Develop the project plan including tasks, resources,
and timeframes.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-10 Second Canadian Edition All rights reserved
 Seven Phases in the SDLC
Phase 1: Plan
Plan Analysis Design Develop Test Implement Maintain

 Planning phase - involves determining a solid plan for

developing your information system.

 The three of the most important activities involved during

the planning phase:
 Identify and select the system for development
 Set project scope
 Develop project plan

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-11 Second Canadian Edition All rights reserved
 Seven Phases in the SDLC
Phase 1: Plan
Plan Analysis Design Develop Test Implement Maintain

 Identify and select the system for development

 Key question: “What systems are required to support the
strategic goals of your organization?”
 KW generate proposals to build new information systems
when they are having a difficult time performing their jobs.
 Companies cannot develop all proposed IS, so they look
into the critical success factors.
 Critical success factor (CSF) - a factor simply critical to
your organization’s success.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-12 Second Canadian Edition All rights reserved
 Seven Phases in the SDLC
Phase 1: Plan
Plan Analysis Design Develop Test Implement Maintain

 Once the system to be developed in defined, then

the project needs to be scoped.
 Set project scope - clearly defines the high-level
system requirements.
 It is a birds-eye-view of the project.
 Project scope document - a written definition of the
project scope and is usually no longer than a paragraph.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-13 Second Canadian Edition All rights reserved
 Seven Phases in the SDLC
Phase 1: Plan
Plan Analysis Design Develop Test Implement Maintain

 Developing a project plan is the final activity of the

planning phase.
 Project plan - defines the what, when, and who
questions of system development including all activities
to be performed, the individuals, or resources, who will
perform the activities, and the time required to complete
each activity.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-14 Second Canadian Edition All rights reserved
 Seven Phases in the SDLC
Phase 1: Plan
Plan Analysis Design Develop Test Implement Maintain

 The project plan should include:

 Project milestones - represent key dates for which you need a
certain group of activities performed.
 Project manager - an individual who is an expert in project
planning and management, defines and develops the project
plan and tracks the plan to ensure all key project milestones are
completed on time.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-15 Second Canadian Edition All rights reserved
 Seven Phases in the SDLC
Phase 2: Analysis
Plan Analysis Design Develop Test Implement Maintain

 The analysis phase involves

 The end users
 The IT specialists

Working together
 To understand and

 Document

the business requirements for the system.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-16 Second Canadian Edition All rights reserved
 Seven Phases in the SDLC
Phase 2: Analysis
Plan Analysis Design Develop Test Implement Maintain

 Gather Business requirements - the detailed set of

knowledge worker requests that the system must meet in
order to be successful.
 Key activity = Gathering clearly defined business
requirements.
 Gathering business requirements = investigation.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-17 Second Canadian Edition All rights reserved
 Seven Phases in the SDLC
Phase 2: Analysis
Plan Analysis Design Develop Test Implement Maintain

 A useful way to gather system requirements is:

1. Joint application development (JAD) - knowledge workers
and IT specialists meet, sometimes for several days, to define
or review the business requirements for the system.
2. Requirements definition document – prioritizes the business
requirements and places them in a formal comprehensive
document.
3. Sign-off - the knowledge workers’ actual signatures indicating
they approve all of the business requirements.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-18 Second Canadian Edition All rights reserved
 Seven Phases in the SDLC
Phase 3: Design
Plan Analysis Design Develop Test Implement Maintain

 The primary goal of the design phase

 Build the technical architecture required to support
the system.
 This includes
 Design of the technical architecture
 Design system models.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-19 Second Canadian Edition All rights reserved
 Seven Phases in the SDLC
Phase 3: Design
Plan Analysis Design Develop Test Implement Maintain

 Technical architecture –
 Defines the hardware, software, and telecommunications equipment
required to run the system.
 The final architecture must meet you needs in terms of
 Time
 Cost
 Technical feasibility
 Flexibility

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-20 Second Canadian Edition All rights reserved
 Seven Phases in the SDLC
Phase 3: Design
Plan Analysis Design Develop Test Implement Maintain

 It is important to ensure that the final

architecture meet
 Current system needs
 Future system needs

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-21 Second Canadian Edition All rights reserved
 Seven Phases in the SDLC
Phase 3: Design
Plan Analysis Design Develop Test Implement Maintain

 Modeling - the activity of drawing a graphical

representation of a design.

 You model everything you build including

 Reports
 Programs
 databases

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-22 Second Canadian Edition All rights reserved
 Seven Phases in the SDLC
Phase 3: Design
Plan Analysis Design Develop Test Implement Maintain

 There are many different types of modeling activities

performed during the design stage
 Graphical user interface (GUI)
• The interface to an information system.
• the ability to model the information system screens for an entire
system.
 Entity relationship diagram
 Data flow diagram
 Flowcharting

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-23 Second Canadian Edition All rights reserved
 Seven Phases in the SDLC
Phase 3: Design
Plan Analysis Design Develop Test Implement Maintain

Figure 6.3
Graphical User
Interface (GUI)
Screen Design
page 222

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-24 Second Canadian Edition All rights reserved
 Seven Phases in the SDLC
Phase 4: Development
Plan Analysis Design Develop Test Implement Maintain

 Development phase
 Take all of your detailed design documents from the
design phase and transform them into an actual
system.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-25 Second Canadian Edition All rights reserved
 Seven Phases in the SDLC
Phase 4: Development
Plan Analysis Design Develop Test Implement Maintain

 Activities during this phase include

 Coding programs
 Creating databases
 Deploying the telecommunications equipment
 Installing hardware and software
 In other words
 Build the technical architecture.
 Build the database and programs.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-26 Second Canadian Edition All rights reserved
 Seven Phases in the SDLC
Phase 5: Test
Plan Analysis Design Develop Test Implement Maintain

 Testing phase
 Verifies that the system works and meets all of the
business requirements defined in the analysis phase.

 Test conditions - the detailed steps the system

must perform along with the expected results of
each step.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-27 Second Canadian Edition All rights reserved
 Seven Phases in the SDLC
Phase 5: Test
Plan Analysis Design Develop Test Implement Maintain

 Testing is critical
 Must have test plans
 Write the test conditions.

 Perform the testing of the system.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-28 Second Canadian Edition All rights reserved
 Seven Phases in the SDLC
Phase 6: Implement
Plan Analysis Design Develop Test Implement Maintain

 Implementation phase
 Bringing the system into life by placing it in the organization

 During this phase

 You distribute the system to all of the knowledge workers and
they begin using the system to perform their everyday jobs.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-29 Second Canadian Edition All rights reserved
 Seven Phases in the SDLC
Phase 6: Implement
Plan Analysis Design Develop Test Implement Maintain

 During this phase

 You distribute the system to all of the knowledge
workers and they begin using the system to perform
their everyday jobs.
 You create User documentation
• Highlights how to use the system.
 You perform training to the employees to use the
system

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-30 Second Canadian Edition All rights reserved
 Seven Phases in the SDLC
Phase 6: Implement
Plan Analysis Design Develop Test Implement Maintain

 Online training - runs over the Internet or off a

CD-ROM.

 Workshop training - is held in a classroom

environment and lead by an instructor.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-31 Second Canadian Edition All rights reserved
 Seven Phases in the SDLC
Phase 7: Maintain
Plan Analysis Design Develop Test Implement Maintain

 Maintenance phase
 It is the final phase of the system
development effort
 Monitor and support the new system to
ensure it continues to meet the business
goals.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-32 Second Canadian Edition All rights reserved
 Seven Phases in the SDLC
Phase 7: Maintain
Plan Analysis Design Develop Test Implement Maintain

 Once the system is in place you need to provide

support
 Build a help desk to support the system users.
 Provide an environment to support system changes.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-33 Second Canadian Edition All rights reserved
 KW & ROLES IN SDLC
 KW = Knowledge Workers
 SDLC = Systems Development Life Cycle
KW & Roles
In SDLC

 Plan
 Analyze
 Design
 Develop
7 Phases Why Systems
 Test Of SDLC Fail ?
 Implement
 Maintain Systems
Development

Sourcing
Prototyping  In
 Self
 Out

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-34 Second Canadian Edition All rights reserved
 Knowledge Workers and Their Roles in the SDLC

 Your participation in the systems development

process is vitally important because you are
(or will be) a:
1. Business process expert
2. Liaison to the customer
3. Quality control analyst
4. Manager of other people

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-35 Second Canadian Edition All rights reserved
 Knowledge Workers and Their Roles in the SDLC
Plan

 The role KW play in the planning phase is

 Define which systems are to be developed.
 Define the
• project scope,
• project plan, and
• project milestones.
 Allocate individuals to work on the different
activities.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-36 Second Canadian Edition All rights reserved
 Knowledge Workers and Their Roles in the SDLC
Analysis

 As a KW, you are the business process expert

 This means that you are the one who knows how current processes and
current systems work
 This means that you are the one who knows how things need to change
 One of the primary activities is
 Review all business requirements.

 It’s far cheaper to find an error during the planning or analysis phase
than it is to find the same error during the implementation or
maintenance phase.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-37 Second Canadian Edition All rights reserved
 Knowledge Workers and Their Roles in the SDLC
Analysis

Figure 6.5
The Cost of
Finding Errors
page 227

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-38 Second Canadian Edition All rights reserved
 Knowledge Workers and Their Roles in the SDLC
Design

 As a KW your role during the design phase

 Decreases as a business expert and
 Increases as a quality control analyst
 IT specialists perform most of the activities
during the design phase.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-39 Second Canadian Edition All rights reserved
 Knowledge Workers and Their Roles in the SDLC
Develop

 Your role during the development phase is to

 Confirm any changes to business requirements.
 Track the progress of tasks on the project plan to
ensure timely delivery of the system.

 IT specialists complete many of the activities in

the development phase.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-40 Second Canadian Edition All rights reserved
 Knowledge Workers and Their Roles in the SDLC
Test

 Your role in the testing phase is as a quality

assurance expert
 Review the test conditions to ensure the IT specialists
have tested all of the system functionality and that
every single test condition has passed.
 You perform the User acceptance testing (UAT) -
determines if the system satisfies the business
requirements and enables the knowledge workers to
perform their jobs correctly.
Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-41 Second Canadian Edition All rights reserved
 Knowledge Workers and Their Roles in the SDLC
Implement

 During the implementation phase, your role

would be
 Attend training
 Help to perform training
 Ensure all of the knowledge workers have the
required training in order to use the system
correctly.
Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-42 Second Canadian Edition All rights reserved
 Knowledge Workers and Their Roles in the SDLC
Maintain

 Your primary role during the maintenance phase

is to
 Ensure all of the knowledge workers have the support
they require in order to use the system.
 Develop a help desk.
 Develop change request forms for your users to fill
out if they require a change to the system.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-43 Second Canadian Edition All rights reserved
 Knowledge Workers and Their Roles in the
SDLC
IT Specialists and Knowledge Workers Working Together

Team Work

Your Responsibilities During

Each Phase of the
Systems Development Life Cycle
(p. 229)

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-44 Second Canadian Edition All rights reserved
 WHY SYSTEMS FAIL
 KW = Knowledge Workers
 SDLC = Systems Development Life Cycle
KW & Roles
In SDLC

 Plan
 Analyze
 Design
 Develop
7 Phases Why Systems
 Test Of SDLC Fail ?
 Implement
 Maintain Systems
Development

Sourcing
Prototyping  In
 Self
 Out

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-45 Second Canadian Edition All rights reserved
 Why Systems Fail

 Only 20% of systems built today are successful, 80% of

systems development fail.

 Five primary reasons why systems fail include:

1. Unclear or missing requirements
2. Skipping SDLC phases
3. Failure to manage project scope
4. Failure to manage project plan
5. Changing technology

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-46 Second Canadian Edition All rights reserved
 Why Systems Fail
Unclear or Missing Requirements

 The business requirements drive the entire

system.

 If they are not accurate or complete there is no

way the system will be successful.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-47 Second Canadian Edition All rights reserved
 Why Systems Fail
Unclear or Missing Requirements

 Gathering inaccurate requirements?

 System must not allow students to add classes
 System must allow students to add classes

 Missing Requirement?
 Forgetting to include into the system the calculation of a student
grade point average

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-48 Second Canadian Edition All rights reserved
 Why Systems Fail
Skipping SDLC Phases

 The first thing individuals tend to do when a

project falls behind schedule is to start skipping
phases in the SDLC.

 Skipping any of the phases is sure to lead to

system failure.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-49 Second Canadian Edition All rights reserved
 Why Systems Fail
Failure To Manage Project Scope

 The project manager must track the status of each

activity and adjust the project plan if a activity is added or
taking longer than expected.

 What could happen in a project to this effect is

 Scope creep - occurs when the scope of the project increases.
 Feature creep - occurs when developers add extra features that
were not part of the initial requirements.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-50 Second Canadian Edition All rights reserved
 Why Systems Fail
Failure To Manage Project Plan

 Managing the project plan is one of the biggest

challenges during systems development

Figure 6.6
Sample Project
Plan
page 231

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-51 Second Canadian Edition All rights reserved
 Why Systems Fail
Failure To Manage Project Plan

 The project plan is the road map you follow during the
development of the system.

 Developing the initial project plan is the easy.

 Managing, revising, and updating the project plan is the

hard part.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-52 Second Canadian Edition All rights reserved
 Why Systems Fail
Changing Technology

 Technology changes so fast that it’s almost

impossible to deliver an information system
without feeling the pain of changing technology.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-53 Second Canadian Edition All rights reserved
 SOURCING
 KW = Knowledge Workers
 SDLC = Systems Development Life Cycle
KW & Roles
In SDLC

 Plan
 Analyze
 Design
 Develop
7 Phases Why Systems
 Test Of SDLC Fail ?
 Implement
 Maintain Systems
Development

Sourcing
Prototyping  In
 Self
 Out

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-54 Second Canadian Edition All rights reserved
 Insourcing

 Now that you understand the SDLC, the next

question is “who will build the system?”. This is
referred to as “sourcing”.
 Insourcing: Using IT within the resources of the
organization
 Selfsourcing: Using KWs
 Outsourcing: Using another organization

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-55 Second Canadian Edition All rights reserved
 Insourcing

 Insourcing - IT specialists within your

organization will develop the system.
 Insourcing is one of the most common
methods to develop a system.
 Typically cheapest
 Company does not have to hire contractors

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-56 Second Canadian Edition All rights reserved
 Selfsourcing

 Selfsourcing (also called On Your Own

knowledge worker
development or end user
development) - the
development and support of IT How Have
systems by knowledge workers You Selfsourced?
with little or no help from IT (p. 235)
specialists.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-57 Second Canadian Edition All rights reserved
 Selfsourcing > The selfsourcing process

 Many parts of an IS can be created using the

smaller knowledge worker computing systems
 Customizing reports
 Creating macros
 Interfacing a letter in word
 Customer database
 Other parts are more complicated such as the student
registration system

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-58 Second Canadian Edition All rights reserved
 Selfsourcing > The selfsourcing process

 The key activities in selfsourcing include

 Plan
 Analyze
 Identify basic requirements
 Develop initial prototype
 KW reviewing
 Revise and enhance the prototype
 support

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-59 Second Canadian Edition All rights reserved
 Selfsourcing
The Selfsourcing Process

Figure 6.7 The Selfsourcing Process and Key

Activities in Selfsourcing page 233
Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-60 Second Canadian Edition All rights reserved
 Selfsourcing > The selfsourcing process

 During the selfsourcing process you

should consider the following issues
 Aligning your efforts with the organizational goals
 Determining what external support you will require
 Documenting the system once complete
 Providing ongoing support
 Advantages
 Pitfalls and risks

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-61 Second Canadian Edition All rights reserved
 Selfsourcing
The Advantages of Selfsourcing

 Some of the advantages of selfsourcing:

 Improves requirements determination.
 Increases knowledge worker participation and
sense of ownership.
 Increases speed of systems development.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-62 Second Canadian Edition All rights reserved
 Selfsourcing
Potential Pitfalls and Risks of Selfsourcing

 Some pitfalls and risks of selfsourcing

 Inadequate knowledge worker expertise leads to
inadequately developed systems.
 Lack of organizational focus creates “privatized” IT
systems.
 Insufficient analysis of design alternatives leads to subpar
IT systems.
 Lack of documentation and external support leads to
short-lived systems.
Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-63 Second Canadian Edition All rights reserved
 Outsourcing
Developing Strategic Partnerships
 Outsourcing - the
delegation of specific work
to a third party for a
specified length of time, at a
specified cost, and at a
specified level of service.

Figure 6.8
Major Forms of Outsourcing
Systems Development
page 236
Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-64 Second Canadian Edition All rights reserved
 Outsourcing
Developing Strategic Partnerships

 IT outsourcing takes on 1 of 4 forms:

1. Purchasing existing software.
2. Purchasing existing software and pay the publisher to make
certain modifications.
3. Purchasing existing software and pay the publisher for the right
to make modifications yourself.
4. Outsourcing the development of an entirely new and unique
system for which no software exists.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-65 Second Canadian Edition All rights reserved
 Outsourcing
Developing Strategic Partnerships

Team Work

How Many Outsourcing

Companies Are There?
(p. 238)

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-66 Second Canadian Edition All rights reserved
 Outsourcing
The Outsourcing Process

 Steps of the outsourcing process

1. Plan
2. Define project scope
3. Select a target system
4. Establish logical requirements

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-67 Second Canadian Edition All rights reserved
 Outsourcing
The Outsourcing Process

5. Develop a request for proposal

 Request for proposal (RFP) - a formal document that
describes in detail your logical requirements for a proposed
system and invites outsourcing organizations to submit bids for
its development.
6. Evaluate request for proposal returns and choose a
vendor
7. Test and accept solution
8. Monitor and reevaluate
Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-68 Second Canadian Edition All rights reserved
 Outsourcing
The Outsourcing Process

Figure 6.7 The Outsourcing Process

page 237
Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-69 Second Canadian Edition All rights reserved
 Outsourcing
The Advantages and Disadvantages of Outsourcing

 Advantages of outsourcing include:

 Focus on unique core competencies.
 Exploit the intellect of another organization.
 Better predict future costs.
 Acquire leading-edge technology.
 Reduce costs.
 Improve performance accountability.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-70 Second Canadian Edition All rights reserved
 Outsourcing
The Advantages and Disadvantages of Outsourcing

 Disadvantages of outsourcing include:

 Reduces technical know-how for future innovation.
 Reduces degree of control.
 Increases vulnerability of strategic information.
 Increases dependency on other organizations.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-71 Second Canadian Edition All rights reserved
 Outsourcing
The Advantages and Disadvantages of Outsourcing

On Your Own

An RFP and the SDLC

(p. 241)

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-72 Second Canadian Edition All rights reserved
 PROTOTYPING
 KW = Knowledge Workers
 SDLC = Systems Development Life Cycle
KW & Roles
In SDLC

 Plan
 Analyze
 Design
 Develop
7 Phases Why Systems
 Test Of SDLC Fail ?
 Implement
 Maintain Systems
Development

Sourcing
Prototyping  In
 Self
 Out

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-73 Second Canadian Edition All rights reserved
 Prototyping

 Prototyping - the process of building a model

that demonstrates the features of a proposed
product, service, or system.

 Prototype - a model of a proposed product,

service, or system.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-74 Second Canadian Edition All rights reserved
 Prototyping

 Prototyping can be used to perform a variety of

functions
 Gathering requirements
 Helping determine requirements
 Proof-of-concept prototype - used to prove the technical
feasibility of a proposed system.
 Selling prototype - used to convince people of the worth of a
proposed system.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-75 Second Canadian Edition All rights reserved
 Prototyping
The Prototyping Process

 The prototyping process involves four steps:

1. Identify basic requirements
2. Develop initial prototype
3. Knowledge worker review
4. Revise and enhance the prototype

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-76 Second Canadian Edition All rights reserved
 Prototyping
The Prototyping Process

Figure 6.11
Prototyping Steps for
Insourcing and
Selfsourcing
page 245

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-77 Second Canadian Edition All rights reserved
 Prototyping
The Advantages of Prototyping

 The advantages of prototyping include

• Encourages active knowledge worker participation.
• Helps resolve discrepancies among knowledge
workers.
• Gives knowledge workers a feel for the final
system.
• Helps determine technical feasibility.
• Helps sell the idea of a proposed system.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-78 Second Canadian Edition All rights reserved
 Prototyping
The Disadvantages of Prototyping

 The disadvantages of prototyping may include

• Leads people to believe the final system will follow shortly.
• Gives no indication of performance under operational
conditions.
• Leads the project team to forgo proper testing and
documentation.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-79 Second Canadian Edition All rights reserved
 Closing Case Study One
Some Prototypes Hit, Some Miss, and Some We Are Just Not Sure About

 There are many hilarious prototypes that failed

such as garlic cake and toaster eggs.

 How can prototyping help you develop a

successful system?

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-80 Second Canadian Edition All rights reserved
 Closing Case Study Two
Al’s Barbeque Restaurant

 Automating a manual business is an extremely

difficult task.

 How can the systems development life cycle

help you implement a new system?

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-81 Second Canadian Edition All rights reserved
 Summary
Student Learning Outcomes

1. List the seven steps in the systems

development life cycle and an associated
activity for each step.
2. List four reasons why your participation during
the systems development life cycle is critical.
3. Describe three reasons why projects fail.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-82 Second Canadian Edition All rights reserved
 Summary
Student Learning Outcomes

4. Define the three different ways you can staff a

system development project.
5. List two advantages of selfsourcing.
6. Describe prototyping and profile an example of
a prototype.
7. Describe the advantages of prototyping.

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-83 Second Canadian Edition All rights reserved
 Summary
Assignments & Exercises

1. SDLC and the real world

2. How creative are you?
3. Request for proposal
4. Understanding insourcing
5. Managing the project plan
6. Why prototype?
7. Business requirements
8. Why projects fail
9. Construction and the SDLC
Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-84 Second Canadian Edition All rights reserved
 Visit the Web to Learn More
www.mcgrawhill.ca/college/haag
 Using your computer for more than work
 Animating your computer screen
 Protecting your computer investment
 Searching for freeware and shareware
 Project planning and project management

Back Next
M
A
P
Management Information Systems Copyright 2004
for the Information Age The McGraw-Hill Companies, Inc.
6-85 Second Canadian Edition All rights reserved