case study 4-5 Pages + charts
Mbab4
romney_ais14_inppt_211.pptxAccounting Information Systems
Fourteenth Edition
Chapter 21
AIS Development Strategies
Copyright © 2018 Pearson Education, Inc. All Rights Reserved
Copyright © 2018 Pearson Education, Inc.
Chapter 21: AIS Development Strategies
Slide 1 - ‹#›
If this PowerPoint presentation contains mathematical equations, you may need to check that your computer has the following installed:
1) MathType Plugin
2) Math Player (free versions available)
3) NVDA Reader (free versions available)
1
Learning Objectives
Describe how organizations purchase application software, vendor services, and hardware.
Explain how information system departments develop custom software.
Explain why organizations outsource their information systems, and evaluate the benefits and risks of this strategy.
Explain how business process management (BPM), prototyping, agile development, and computer-aided software engineering can help improve system development.
Copyright © 2018 Pearson Education, Inc.
Chapter 21: AIS Development Strategies
Slide 1 - ‹#›
2
How to Obtain an AIS
Purchase
When canned software is used for systems acquisition, the conceptual design phase of the systems development life cycle (SDLC) involves a make-or-buy decision.
When canned software is used for systems acquisition, the maintenance aspect of the operations and maintenance phase of the SDLC is usually the responsibility of the vendor.
Develop in-house
Outsource to outside organization
Copyright © 2018 Pearson Education, Inc.
Chapter 21: AIS Development Strategies
Slide 1 - ‹#›
Obtaining an AIS can be done in one of three ways.
Purchasing software can be a “canned” software solution. A good example of canned software is Quickbooks. In addition, a company can also rent software (e.g., Quickbooks online essentially allows you to rent the software monthly to use it online).
The AIS can be developed in-house to meet the end user’s needs or you can hire an organization outside of your company by outsourcing the data processing activities.
3
Purchasing
Select a vendor (from referrals, trade shows, etc.)
Issue a Request for proposal (RFP) that meets needs and requires that vendors include detailed specifications for the AIS.
Evaluate proposals
Eliminate proposals that are missing important information or fail to meet minimum requirements.
Point scoring can be used to compare alternative vendor proposals
Top vendors invited to give demonstrations on how their system will fit your needs
Make a final selection based upon your criteria
Copyright © 2018 Pearson Education, Inc.
Chapter 21: AIS Development Strategies
Slide 1 - ‹#›
An RFP can help you save time and can simplify the decision-making process. It is important that when doing an RFP with software vendors that if any requirement requires specialized programming from the vendor, it should not be considered functionality from the canned software. Many vendors will answer yes, but with constraints or require additional investment to meet the requirement. These “special considerations” should be noted in the RFP.
Evaluation of software for purchase includes:
Hardware evaluation
Software evaluation
Vendor evaluation
4
Develop Software In-House
Advantages
Provides a significant competitive advantage e.g. JIT inventory
Risks
Requires significant amounts of time
Complexity of the system
Poor requirements defined
Insufficient planning
Inadequate communication and cooperation
Lack of qualified staff
Poor top management support
Copyright © 2018 Pearson Education, Inc.
Chapter 21: AIS Development Strategies
Slide 1 - ‹#›
Compared to the previous slide of purchasing, the major decision in obtaining an AIS is “build or buy”.
Developing the software in-house means that you plan to build the AIS and be in control of the design, development, and program coding of the AIS.
5
End-User Computing
Advantages
Disadvantages
Saves time
Allows for end-users to create, control, and implement simple systems
More likely to meet user needs
Frees up system resources
Easy to use and understand
Lack of testing of application and possible calculation errors
Inefficient systems
Poorly controlled
Poorly documented
System incompatibilities
Duplication of data
Increase costs in later years with upgrades
Copyright © 2018 Pearson Education, Inc.
Chapter 21: AIS Development Strategies
Slide 1 - ‹#›
End-user computing focuses on the end-user in control of creating and implementing simple systems instead of the function occurring in the IS department.
A good example of this may be an accounting department putting their fixed assets and depreciation in an Access database instead of the IS department creating, developing, and testing a fixed asset system.
6
Outsourcing
Advantages
Disadvantage
Allows companies to concentrate on core competencies
Asset utilization
Access to greater expertise and better technology
Lower costs by standardizing user applications and splitting development and maintenance costs between projects
Less development time
Elimination of peaks-and-valleys usage
Facilitates downsizing
Inflexibility
Loss of control
Reduced competitive advantage
Locked-in system
Unfulfilled goals
Poor service
Increased risk
Copyright © 2018 Pearson Education, Inc.
Chapter 21: AIS Development Strategies
Slide 1 - ‹#›
Business Process Management Systems
Business Process Management views business processes as strategic organizational assets.
Automate and facilitate business process improvements:
BPM systems are process-centered and ERP systems are data-centered.
Organizations can use both ERP and BPM systems at the same time.
ERP and BPM systems rely heavily technology for communication and coordination.
Process engine to model and execute applications and business rules
Business analytics to identify issues, trends, and opportunities
Copyright © 2018 Pearson Education, Inc.
Chapter 21: AIS Development Strategies
Slide 1 - ‹#›
Business process management (BPM) is a continuous approach to improving and optimizing business processes. Business processes help the organization get things done (e.g., sell and ship goods to customers). It is understood that information technology can leverage the business process for organizations to achieve their goals and objectives. The fundamental principles for BPM are:
Business processes can produce competitive advantages.
Business processes must be managed end to end.
Business processes should be agile.
Business processes must be aligned with organizational strategy and needs.
8
Prototyping: focuses on what output should be produced rather than how it should be produced. Operational prototypes are developed and Non-operational prototypes are rejected.
Advantages
Disadvantages
Results in well-defined user needs
Higher user satisfaction and involvement
Faster development time
Fewer errors
Opportunities to suggest changes
Less costly
Requires significant user time
Resource efficiency may not be achieved
Inadequate testing and documentation
Negative behavioral reactions
Continuous development of iterations leaves a feeling of no project completion
Copyright © 2018 Pearson Education, Inc.
Chapter 21: AIS Development Strategies
Slide 1 - ‹#›
Prototyping is a way to create a simplified model of an AIS to get feedback from users. It is used sometimes in the development stage when there is uncertainty meaning that users may be unable to specifically define their needs, the tasks are not well structured, or the inputs and outputs are not known.
9
Computer-Aided Software (or Systems) Engineering (CASE)
Advantages
Disadvantages
Documentation is generated automatically.
Improved productivity
Improved program quality
Cost savings
Improved control procedures
Incompatibility with other systems
Unmet expectations
Copyright © 2018 Pearson Education, Inc.
Chapter 21: AIS Development Strategies
Slide 1 - ‹#›
Key Terms
Canned software
Turnkey systems
Application service provider (ASP)
Request for proposal (RFP)
Benchmark problem
Point scoring
Requirement costing
Custom software
End-user computing (EUC)
Help desk
Outsourcing
Business process reengineering (BPR)
Business process management (BPM)
Business Process Management System (BPMS)
Prototyping
Operational prototype
Nonoperational (throwaway) prototype
Computer-aided software (or systems) engineering (CASE)
Copyright © 2018 Pearson Education, Inc.
Chapter 21: AIS Development Strategies
Slide 1 - ‹#›
Copyright © 2018 Pearson Education, Inc.
Chapter 21: AIS Development Strategies
Slide 1 - ‹#›
12
