Systems Analysis & Design 1

10th Edition

CHAPTER 5
Development Strategies
 Phase Description
2

 PLANNING
 ANALYSIS
 Requirements Modeling
 Data & Process Modeling
 Development Strategies
 DESIGN
 IMPLEMENTATION
 SYSTEMS OPERATION, SUPPORT &
SECURITY
 Content
3

 Development Strategies
 Outsourcing
 In-House & Alternatives
 Software Acquisition process
 Transition to system design
 Prototyping
 Development Strategies
Overview
4

 Traditionally
 Developed in-house
 Purchase and modify
 Hire consultants

 Today
 Application Service Providers
 Web hosted software
 Enterprise-wide software solutions
 Development Strategies
Overview
5

 Consider 3 key topics:

 The impact of the Internet
 Software outsourcing options
 In-house software development alternatives
 The Impact of the Internet
6

 Software as a Service (SaaS)

 Removes installation, maintenance and
upgrade responsibility from in-house staff

 Traditional development vs Web-Based

Systems Development
 LAN/WAN/Internet
 security issues
 Legacy systems - middleware
 Outsourcing
7

 Transfer of IS development, operation or

maintenance to an outside firm that
provides these services for a fee on a
temporary or long term basis.

 Eg. Minor programming tasks, software

rental, basic business outsourcing, entire
IT function
 Outsourcing
8

 Why outsource?
 Control costs and deal with rapid technological
change

 Service provider – offers outsourcing solution

 Eg, order processing, billing

 Popular outsourcing options:

 Application Service Provider
 Internet Business Services
 Outsourcing Types
9

 Application Service Provider (ASP)

 Delivers a software application (or access) by
charging usage or subscription fee.
 Databases and accounting package.

 Internet Business Services (IBS)

 Provide powerful web-based support for
transactions such as order processing, billing
and customer relationship management
 Managed hosting
 Outsourcing Fees
10

 Fixed fee model

 set fee based on a specified level of service
and user support
 Subscription model
 variable fee based on the number of users
or workstations that have access to the
application
 Usage model or transaction model
 charges a variable fee based on the volume
of transactions or operations performed by
the application
 Outsourcing Issues & Concern
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Outsource only if the result is a cost-

attractive, reliable, business solution
that fits the company’s long-term
business strategy an acceptable risks
 Outsourcing Issues & Concern
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 Sensitive data – security, confidentiality and

quality
 Insurance, liability, licensing and information
ownership, warranties, and disaster recovery
 Stability of outsourcing firm
 Mergers and acquisitions

 Attractive if ….
 Volume fluctuates widely
 Lack of time and expertise
 Offshore Outsourcing
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 Global outsourcing
 Shifting IT development, support and
operations to other countries
 Lower bottom-line costs
 In-House Software Development
Options
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 In-House Software Development
Options
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 Software vendors
 Value-added reseller (VAR)
 Horizontal application
 Vertical application
 Why In-House Software
Development?
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 Satisfy unique business requirements

 Minimize changes in business
procedures and policies
 Meet constraints of existing systems
 Meet constraints of existing technology
 Develop internal resources and
capabilities
 Why Purchase Software Package?
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 Lower costs
 Requires less time to implement
 Proven reliability and performance
benchmarks
 Requires less technical development
staff
 Future upgrades provided by the vendor
 Input from other companies
 Customizing Software Package
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1. You can purchase a basic package that

vendors will customize to suit your needs

2. You can negotiate directly with the software

vendor to make enhancements to meet your
needs by paying for the changes

3. You can purchase the package and make

your own modifications, if this is permissible
under the terms of the software license
 Options ….
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 Outsource
 Develop In-house

 Acquire Software package

 Develop user applications

 System analyst + evaluation and

selection team
 Objective of Evaluation &
Selection Team
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 eliminate unworkable system

alternatives

 rank workable system

alternatives

 present the viable alternatives to

management for a final decision
 Analyzing Cost and Benefits
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 Financial Analysis Tools

 Payback Analysis
 Timeduration for system to pay for itself
through reduced costs and increased
benefits
 Return on investment (ROI)
 %rate – total net benefits vs total costs
 Net present value (NPV)
 Total net benefits – total costs
 The Software Acquisition
Process
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 Step 1: Evaluate the Information System

Requirements
 Step 2: Identify Potential Vendors or
Outsourcing Options
 Step 3: Evaluate the Alternatives
 Step 4: Perform Cost-Benefit Analysis
 Step 5: Prepare a Recommendation
 Step 6: Implement the Solution
 1: Evaluate the IS
Requirements
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 Identify key features

 Prepare a request for proposal or
quotation
 Request for proposal (RFP)
 Describes company, IT services/products needed,
features required
 Evaluation model
 Technique used to measure and compare vendor
ratings
 Request for quotation (RFQ)
 Obtain price quotation/bids
 2: Identify Potential Vendors or
Outsourcing Options
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 Internet is a primary marketplace

 Consulting firm

 Internet bulletin board systems that

contains thousands of forums, called

newsgroups
 3: Evaluate The Alternatives
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 Existing users
 Application testing
 Benchmarking -
benchmark
 Match each package
against the RFP
features and rank the
choices
 4: Perform Cost-Benefit
Analysis
26

 Identify and calculate TCO for each

option you are considering
 When you purchase software, what you
are buying is a software license
 If you purchase a software package,
consider a supplemental maintenance
agreement
 5: Prepare a Recommendation
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 Evaluates and describes the alternatives,

together with the costs, benefits,
advantages, and disadvantages of each
option
 Submit a formal system requirements
document and deliver a presentation
 6: Implement the Solution
28

 Depends on the solution selected

 Before the new software becomes
operational, you must complete all
implementation steps, including loading,
configuring, and testing the software;
training users; and converting data files
to the new system’s format
 Completion of Systems Analysis
Tasks
29

 System Requirements Document

 The system requirements document, or
software requirements specification
 Contains:
 the requirements
 alternatives that were considered
 specific recommendation to management
 Like a contract
 Format and organize it so it is easy to read
and use
 Completion of Systems Analysis
Tasks
30

 Presentation to Management
 Explain why the evaluation and selection
team chose the recommended alternative
 Allow time for discussion and for questions
and answers
 Obtain a final decision from management
or agree on a timetable for the next step in
the process
 Completion of Systems Analysis
Tasks
31

 Presentation to Management
 Depending on their decision, your next task
will be one of the following
1. Implement an outsourcing alternative
2. Develop an in-house system
3. Purchase or customize a software package
4. Perform additional systems analysis work
5. Stop all further work
 Systems Design Guidelines
32

 The systems analyst must

understand the logical design of the
system before beginning the physical
design of any one component
 Data design
 User interface
 Architecture
 System design specification
 Systems Design Objectives
33

To build a system that is

effective,
reliable,
and maintainable
 Design Considerations
34

 User Considerations
 User friendly I/O screen, anticipate future
needs, flexibility
 Data Considerations
 Data entry, verify, automation, control,
audit trail
 Architecture Considerations
 Modular/oo design
 Prototyping
35

 Early, rapidly constructed working

version of IS

 Prototyping Methods
 System prototyping
 Design prototyping
 Throwaway prototyping
 Prototyping Benefits &
Problems
36

 Benefits:
 Users and systems developers can avoid
misunderstandings
 Managers can evaluate a working model
more effectively than a paper specification
 Problems:
 The rapid pace of development can create
quality problems
 In very complex systems, the prototype
becomes unwieldy and difficult to manage
 Prototyping Tools
37

 CASE tools
 Application generators
 Report generators
 Screen generators
 Fourth-generation language (4GL)
 Fourth-generation environment
Chapter Summary
• This chapter describes system
development strategies, the preparation
and presentation of the system
requirements document, and the transition
to the systems design phase of the SDLC
• An important trend that views software as a
service, rather than a product, has created
new software acquisition options
• Systems analysts must consider Web-based
development environments
38
Chapter Summary
• The systems analyst’s role in the
software development process depends
on the specific development strategy
• The most important factor in choosing a
development strategy is total cost of
ownership (TCO)
• The process of acquiring software
involves a series of steps
• A prototype is a working model of the
proposed system
• Chapter 5 complete
39
Exercise
 QUESTION 1
A Company can choose either to develop
its own Systems or purchase any Software
packages available in the market. A
Software package can be purchased from
vendors or application Service provider.
Briefly describe THREE (3) advantages
of purchasing Software packages.
(6 marks)

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Exercise
 QUESTION 2
System changeover is the process of putting
the new information system online and retiring
the old system. Changeover can be rapid or
slow, depending on the method used. Discuss
TWO (2) methods of the system
changeover.
(4 marks)
 QUESTION 3
List and briefly explain THREE (3) common
reasons for the company to do in-house
development.
(6 marks)

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