Accounting Essay 2 pages must answer all questions
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romney_ais14_stppt_21.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
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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 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
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How to Obtain an AIS
Purchase
Develop in-house
Outsource to outside organization
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Chapter 21: AIS Development Strategies
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Purchasing
Select a vendor (from referrals, trade shows, etc.)
Request for proposal (RFP) that meets needs
Evaluate proposals
Top vendors invited to give demonstrations on how their system will fit your needs
Make a final selection based upon your criteria
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Develop Software In-House
Advantages
Provides a significant competitive advantage
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
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Chapter 21: AIS Development Strategies
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End-User Computing
Advantages
Disadvantages
Allows for end-users to create, control, and implement simple systems
More likely to meet user needs
Saves time
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
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Chapter 21: AIS Development Strategies
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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
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Business Process Management Systems
Automate and facilitate business process improvements using:
Process engine to model and execute applications and business rules
Business analytics to identify issues, trends, and opportunities
Collaboration tools to remove communication barriers
Content manager to store electronic documents and images
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Chapter 21: AIS Development Strategies
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Prototyping
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
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Computer-Aided Software (or Systems) Engineering (CASE)
Advantages
Disadvantages
Improved productivity
Improved program quality
Cost savings
Improved control procedures
Simplified documentation
Incompatibility with other systems
Unmet expectations
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Chapter 21: AIS Development Strategies
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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 - ‹#›
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