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B. INFORMATION TECHNOLOGY (IS)CISB434: DECISION SUPPORT SYSTEMS
Chapter 9:System Development & Acquisition
LEARNING OBJECTIVES
Describe the basic concepts of systems development Discuss the major steps in developing
decision support system (DSS) management support system (MSS)
2
LEARNING OBJECTIVES List the major MSS application develop-ment
options along with the benefits and limitations describe the four phases of the system
development life cycle: planning analysis development implementation
3
LEARNING OBJECTIVES
Discuss various MSS application out-sourcing options including the use of an application service
provider (ASP) utility computing
4
LEARNING OBJECTIVES
Describe prototyping methodology explain why MSSs are typically developed using
these methods describe the factors that lead to success or
failure discuss the learning process that occurs during
development discuss the concept of end-user computing
5
LEARNING OBJECTIVES
Give some major MSS software pack-ages and MSS application suites examine the criteria for selection
Describe various methods for connect-ing an MSS application to back-end systems and databases discuss the value and technical foundation of
Web Services in integrated applications
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LEARNING OBJECTIVES
Describe the criteria used in selecting an outsourcing vendor and package
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SYSTEM DEVELOPMENT & ACQUISITIONBasic Concepts of Systems Development
MSS DEVELOPMENTINTRODUCTION Types of Support Systems
Infrastructure Data Warehouses and Business Intelligence Knowledge Management Systems Enterprise Information Systems Portals
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MSS DEVELOPMENTINTRODUCTION Types of Support Systems
Specific applications Tools and tool kits Platforms
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MSS DEVELOPMENTTHE LANDSCAPE & FRAMEWORK
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MSS DEVELOPMENTTHE LANDSCAPE & FRAMEWORK Step 1:
Planning, identifying, and justifying MSS Step 2:
Creating an MSS architecture MSS architecture
A plan for organizing the underlying infrastruc-ture and applications of the MSS project
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MSS DEVELOPMENTTHE LANDSCAPE & FRAMEWORK Step 3:
Selecting a development option Build the system in house Have a vendor build a custom-made system Buy an existing application and install it, with or
without modifications, by yourself or through a vendor
13
MSS DEVELOPMENTTHE LANDSCAPE & FRAMEWORK Step 3:
Selecting a development option Lease standard software from an ASP, utility
computing, or set up a software-as-a-service arrangement
Enter into a partnership or an alliance that will enable the company to use someone else's application
Use a combination of these approaches
14
MSS DEVELOPMENTTHE LANDSCAPE & FRAMEWORK Step 4:
Installing, testing, connecting, and deploy-ing MSS applications
Step 5: Operations, maintenance, and updating
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MSS DEVELOPMENTTHE LANDSCAPE & FRAMEWORK Managing the development process
The development process can be fairly complex and must be managed properly
For medium to large applications, a project team is usually created to manage the process and the vendors Project management software
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SYSTEM DEVELOPMENT & ACQUISITIONDevelopment Options
MSS DEVELOPMENTDEVELOPMENT OPTIONS
In-house development (in-sourcing) Outsourcing
Buy from off the shelf Lease from vendor
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MSS DEVELOPMENTDEVELOPMENT OPTIONS In-house development - Insourcing
Development options for in-house development Building from scratch Building from components Integrating applications
Need to have the expertise/ skills in house Good for specialized application
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MSS DEVELOPMENT IN-HOUSE DEVELOPMENT-METHODS USED
Methods used in in-house development System Development Life Cycle (SDLC)
A systematic process for the effective construc-tion of large information systems
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MSS DEVELOPMENTIN-HOUSE DEVELOPMENT-METHODS USED
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MSS DEVELOPMENTIN-HOUSE DEVELOPMENT-METHODS USED
Rapid application development (RAD) A development methodology that adjusts a
system development life-cycle so that parts of the system can be develo-ped
quickly enabling users to obtain some functionality as
soon as possible Includes methods of phased development e.g. prototyping, and throwaway prototyping
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MSS DEVELOPMENTIN-HOUSE DEVELOPMENT-METHODS USED
Prototyping A strategy in which a scaled-down system or
portion of a system is constructed in a short time, tested, and
improved in several iterations
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MSS DEVELOPMENTDEVELOPMENT OPTIONS Buying applications - cost,
maintenance/support provided… Leasing applications
Lease from an outsourcer and then install it on the company’s premises
Lease from an ASP that hosts the application at its data center
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MSS DEVELOPMENTDEVELOPMENT OPTIONS Methods used in in-house development
Software-as-a-service (SaaS) Software that is rented instead of sold
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MSS DEVELOPMENTDEVELOPMENT OPTIONS Factors driving the switch to software-as-a-
service: Reducing the risks involved in acquiring new
software Influencing product and service quality via an
ongoing relationship with vendors
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MSS DEVELOPMENTDEVELOPMENT OPTIONS Factors driving the switch to software-as-a-
service: Changing usage commitments as business
circumstances change Preparing financially justifiable business cases More accurately predicting ongoing expen-ses
27
DEVELOPMENT OPTIONS
If custom software is required, the alternatives of insourcing and outsourcing should be compared. A key consideration is the availability of in-house
resources.
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DEVELOPMENT OPTIONS
If do not have the resources to build in-house, need to consider buy off the shelf (package) or lease from vendor: if the application is sufficiently popular
that packages and/or ASPs exist for it their total cost of ownership (TOC) should
be compared for the firm’s planning horizon.
The cost of using a package should include any component integration costs. The cost of using an ASP should include estimated price increases.
29
SYSTEM DEVELOPMENT & ACQUISITIONMSS Application Outsourcing Options
MSS DEVELOPMENTOUTSOURCING OPTIONS Application Service Providers (ASP)
A software vendor that offers leased soft-ware applications to organizations
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MSS DEVELOPMENTOUTSOURCING OPTIONS Utility (on-demand) computing
Unlimited computing power and storage capacity that,
like electricity, water, telephone services, can be obtained on demand, used, and
reallocated for any application, and billed on a pay-per-use basis
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SYSTEM DEVELOPMENT & ACQUISITIONPrototyping
PROTOTYPINGADVANTAGES Short development time Short user reaction time
i.e. feedback from user Improved user understanding of the system
its information needs, and its capabilities Low cost
34
PROTOTYPINGLIMITATIONS Gains obtained from cautiously stepping
through each of the system’s lifecycle stages might be lost including: A thorough understanding of the informa-tion
system’s benefits and costs A detailed description of the business’s
information needs
35
PROTOTYPINGLIMITATIONS Gains obtained from cautiously stepping
through each of the system’s lifecycle stages might be lost including: An easy-to-maintain information system design A well-tested information system Well-prepared users
36
PROTOTYPINGDEVELOPMENT PROCESS Users and managers, as well as an exe-cutive
sponsor, must be involved The analysis, design, and prototype im-
plementation phases are iteratively per-formed until a small prototype is sufficiently deve-loped
37
PROTOTYPINGDEVELOPMENT PROCESS The final implementation takes place Simultaneously, further iterations occur
as other subsystems or capabilities are added to the deployed system
until a fairly stable, comprehensive system evolves
38
PROTOTYPINGDEVELOPMENT PROCESS
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PROTOTYPINGDEVELOPMENT PROCESS
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PROTOTYPINGCOLLABORATION IN PROTOTYPING The interaction of user, developer, and
technology is extremely important in the prototyping process
41
PROTOTYPINGEVALUATION IN PROTOTYPING Iterative design
A systematic process for system develop-ment that is used in MSS produce a first version of MSS then revise it and produce the second design version
and so on is an iterative design
42
PROTOTYPINGIMPLEMENTING PROTOTYPING Target small, tactical applications that show
quick results Use software components Make application deployment iterative and
open to customization Use commodity hardware Use object technology
including tools such as Java
43
PROTOTYPINGIMPLEMENTING PROTOTYPING Break major projects into manageable,
deliverable chunks Use packaged applications whenever
justifiable Consider IT service providers as well as utility
and grid computing Use Web services, if possible
44
PROTOTYPINGSUCCESSES FACTORS Users and managers should be invol-ved in
every phase and iteration Learning should be explicitly integrated into
the design process Prototyping should essentially bypass the
formal information requirement defi-nition in the SDLC
45
PROTOTYPINGSUCCESSES FACTORS A key criterion associated with proto-typing is
the short interval between iterations The initial prototype must be low cost
46
PROTOTYPINGFAILURES No prelaunch objectives or metrics Too many major projects were conduc-ted
simultaneously The CEO set budgets and deadlines before
the project team was involved The budget and deadlines were not rea-listic
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PROTOTYPINGFAILURES There was no insider presence on the data
warehouse project team An overburdened project manager was
involved The availability of source data was un-
confirmed at the outset
48
PROTOTYPINGFAILURES No user demand for sophisticated data
analysis was considered No routine meetings of executive spon-sors
and the project manager Business managers were not initially involved
49
PROTOTYPINGLESSONS LEARNED FROM FAILURE Most critical success factors for develo-ping a
data warehouse executive sponsorship partnership of the IT staff and end users
Unclear understanding of the business objectives and how they are measured
50
PROTOTYPINGLESSONS LEARNED FROM FAILURE An incremental pilot project should occur to
determine whether it is possi-ble to obtain the projected benefits
An organization should expect to make a major investment in ongoing manage-ment of the data warehouse
When all else fails, an organization should cut its losses and run
51
SYSTEM DEVELOPMENT & ACQUISITIONMSS Software Packages & Suites
MSS DEVELOPMENTCRITERIA FOR SELECTION Selection criteria to buy or lease deci-sion
Flexibility Information requirements User friendliness Hardware and software resources Installation
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MSS DEVELOPMENTCRITERIA FOR SELECTION Selection criteria for buy or lease deci-sion
Maintenance services Vendor quality and track record Estimating costs Personnel Technological evolution
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MSS DEVELOPMENTCRITERIA FOR SELECTION Selection criteria for buy or lease deci-sion
Scalability Sizing Performance Reliability Security
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MSS SOFTWARE PACKAGES & SUITES THIRD-PARTY PROVIDERS Specialized and functional software packages MSS suite
An integrated collection of a large number of MSS tools that work together for applica-tions development
56
MSS SOFTWARE PACKAGES & SUITES THIRD-PARTY PROVIDERS Representative MSS suites
MicroStrategy 8 Hyperion System 9 BI+ BusinessObjects XI Microsoft BizTalk Server 2004 Oracle’s MSS Products IBM’s WebSphere Commerce Suite
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MSS SOFTWARE PACKAGES & SUITES THIRD-PARTY PROVIDERS
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THE ENDTHANK YOU
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