Rais11 ch19

C HAPTER 19
AIS Development Strategies
2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart 1 of 172
INTRODUCTION
Questions to be addressed in this chapter include:
How do organizations buy software, hardware, and
vendor services?
How do information systems departments develop
custom software?
How do end users develop, use and control
computer-based information systems?
Why do organizations outsource their information
systems, and what are the benefits and risks of doing
so?
How are prototypes used to develop an AIS, and what
are the advantages and disadvantages?
What is computer-aided software engineering, and
how is it used in systems development?
INTRODUCTION
Companies can experience a number of

difficulties in developing an AIS, including:
Projects are backlogged for years because of the high
demand for resources.
The newly designed system doesnt meet user needs.
The process takes so long that by the time its
complete, its obsolete.
Users cant adequately specify their needs.
Changes to the AIS are often difficult to make after
requirements have been written into the
specifications.
INTRODUCTION
Well be discussing how to obtain a new

information system by:
Purchasing prewritten software;
Developing software in-house; or
Outsourcing.
Well also discuss how to hasten or improve the
development process through:
Business process reengineering
Prototyping
Computer-aided software engineering (CASE) tools
INTRODUCTION

Purchasing prewritten software
Developing software in-house; or
Outsourcing.
Prototyping
PURCHASING PREWRITTEN SOFTWARE
In the early days of computers,

companies were rarely able to buy
software to meet their needs.
But commercially available packages
are now outpacing custom-developed
software as old systems are replaced.
Canned software is sold on the open

market to a broad range of users with
similar requirements.
Some companies sell hardware and software
together as a package.
These systems are called turnkey systems.
Many are written by vendors who specialize in a
particular industry.
A major problem with canned software:

It often does not meet all of a companys
information needs.
Can be overcome by modifying the canned
software.
Usually best done by the vendor.
Unauthorized modifications may render the
program unreliable and unstable.
Companies can also acquire software through

application service providers (ASPs).
ASPs host Web-based software and deliver it to
clients over the Internet.
Companies dont have to buy, install, or maintain
canned software; they simply rent it.
If you used an online version of a package like Turbo-
Tax to prepare your taxes, thats a consumer version
of renting software over the Internet.
Advantages of ASPs:
Reduction of software costs and administrative
overhead.
Automated software upgrades.
Scalability as the business grows.
Global access to information.
Access to skilled IT personnel.
Ability to focus on core financial competencies
rather than IT.
Purchasing software and the SDLC:

Companies that buy rather than develop
software still follow the SDLC process,
including:
Systems analysis
They conduct an initial investigation,
systems survey, and feasibility study, as
well as determining AIS requirements.

including:
Systems analysis
Conceptual design
An important aspect is determining
whether software that meets AIS
requirements is already available.
If so, a make-or-buy decision must be
made.

including:
Systems analysis If software is purchased,
program design and coding
Conceptual design can be omitted.
Physical design But software modifications
may be needed.
Companies also may design
inputs, outputs, files, and
control procedures.
These activities must still take place,
including:
Purchasing software
Selecting and personnel
and training the SDLC:
Companies Installing
that buy andrather
testingthan
hardware and software
develop
Documenting procedures
Converting from old to new AIS
including:
However, the software modules do not
Systems analysis
have to be developed and tested.
Conceptual
And design
the computer programs do not need
Physical
todesign
be documented.
Implementation and conversion

including:
Systems analysis
Conceptual design
Physical design
Implementation and conversion
Operation and maintenance
The AIS is operated like any other software.
The vendor usually maintains the software.
Selecting a vendor
Deciding whether to make or buy software
can be made independently of the decision to
acquire hardware, service, maintenance, and
other AIS resources.
And the preceding resources can be bought
independently of the software.
But hardware and vendor decisions may
depend on the software decisions.
Vendors can be found by:

Looking in phone book
Obtaining referrals
Scanning computer or trade magazines
Attending conferences
Using search organizations
Beware of fly-by-night companies that can
leave your organization high and dry.
Acquiring hardware and software

Once AIS requirements have been defined,
the organization can buy software and
hardware.
Companies needing only a PC and some
office software can usually complete their own
research and make a selection.
When buying large or complex systems, a

request for proposal (RFP) should be
prepared:
The RFP is an invitation to bidders to propose
a system by a specific date.
Each proposal is evaluated.
Finalists are investigated in depth.
The formal approach is important for

several reasons:
Saves time The same information is
provided to all bidders.

several reasons:
Saves time
Simplifies the decision-making process
The bidders all respond in the
same format and based on
the same information.

several reasons:
Saves time
Reduces errors Less likely to look over
important factors in
evaluating proposals.

several reasons:
Saves time
Reduces errors
Avoids potential for disagreement
Both parties have the same
expectations and information
in writing.
When an RFP is solicited based on exact

hardware and software specifications:
Total costs are usually lower.
Less time is required for vendor preparation
and company evaluation.
However, the vendor cannot recommend
alternatives.
A generalized RFP contains a problem

definition and requests a system that
meets specific performance objectives and
requirements.
Leaves technical issues to the vendor.
However, makes it more difficult to evaluate
proposals.
May produce more costly bids.
Usually, the more information a company

provides to the vendors, the better their chances
of receiving a system that meets their
requirements.
Detailed specifications should include:
Required applications
Inputs and outputs
Files and databases
Frequency and methods of file updating and inquiry
Unique characteristics or requirements
Be sure to distinguish between mandatory and
desirable requirements.
Evaluating proposals and selecting a system

Eliminate any proposals that:
Are missing important information.
Fail to meet minimum requirements.
Are ambiguous.
Those that pass the preliminary screening should be
compared with the proposed AIS requirements to
determine:
If they meet all mandatory requirements.
How many desirable requirements they meet.
Finalists can be invited to demo their system using
company-supplied data.
In reviewing the proposals, you need to

evaluate:
Hardware
Software
Vendors

evaluate:
Hardware
Software
Vendors
Criteria to evaluate hardware include:

Cost Availability
Ability to run required Compatibility with existing
software hardware, software, and
Processing speed and peripherals
capabilities Performance compared to
Secondary storage competitors
capability Cost and availability of
Input and output speeds support and maintenance
Communication Warrantees and guarantees
capabilities Financing arrangements
Expandability Ability to meet mandatory
Recency of technology requirements

evaluate:
Hardware
Software
Vendors
Criteria to evaluate software include:

Conformity with User-friendliness
specifications Ability to be demonstrated
Need for modification and test-driven
Performance (speed, Warranties
accuracy, reliability) Flexibility and
Use by other companies maintainability
Satisfaction of other users Capability for online inquiry
Documentation of files and records
Compatibility with existing Vendor upgrades
software

evaluate:
Hardware
Software
Vendors
Criteria to evaluate vendors include:

Size Reputation for reliability
Financial stability and and dependability
security Hardware and software
Experience support and maintenance
Quality of support and Implementation and
warranties installation support
Regularity of updates Quality and
Ability to provide financing responsiveness of
personnel
Willingness to sign
contract Willingness to provide
training
Willingness to provide
references Responsiveness and
timeliness of support
Approaches to comparing system

performance:
Benchmark problem
Point scoring
Requirements costing

performance:
Benchmark problem
Point scoring
Benchmark problem
The new AIS performs a data processing task
with input, processing, and output jobs typical
of what would be required of the new system.
Processing times are calculated and
compared.
The AIS with the lowest time is judged most
efficient.

performance:
Benchmark problem
Point scoring
Point scoring:
A weight is assigned to each criterion used to
evaluate the system, based on the relative
importance of that criterion.
Each criterion is rated for each product.
Each rating is multiplied times the weight
assigned to the criterion to develop a
weighted score.
The weighted scores are added for each
product.
Example:
Zorba Co. is evaluating systems offered by three
different vendors: Able Co., Baker Co., and Cook Co.
Zorba has determined three criteria that they will use
to evaluate the different systems: cost, speed, and
vendor reliability.
They have provided the following weights to each
criteria, with vendor reliability being the most critical:
Vendor reliability9
Cost6
Speed4
Zorba examined the packages offered by the three

vendors and rated them based on these three criteria.
Ratings were from 15 with 5 being the highest score.
Criteria Able Co. Baker Co. Cook Co.
Vendor reliability (9) 2 5 4
Cost (6) 5 3 4
Speed (4) 3 4 2
The weighted scores are then computed by multiplying

the rating given to each vendor on each criterion times
the weight assigned to that criterion.
Vendor reliability (9) X 2 = 5 4
Cost (6) 5 3 4
Speed (4) 3 4 2
WEIGHTED SCORES
Cost (6) 30 18 24
Speed (4) 12 16 8
The weighted scores for each company are

summed:
Able = 60 points
Baker = 79 points
Cook = 68 points
Based on the preceding scores, the bid would
probably be awarded to Baker Co.
WEIGHTED SCORES
Cost (6) 30 18 24
Speed (4) 12 16 8
The preceding example is a simplification.

In a real-life scenario, several factors
would be different:
There would probably be many more criteria
being considered.
Several people would be rating the criteria,
and the final scores for each vendor would
probably be a composite of those individual
scores.

performance:
Benchmark problem
Point scoring
Requirements costing:
Estimates cost of purchasing or developing
features that are not included in a particular
AIS.
The total AIS cost is calculated by adding the
acquisition cost to the purchasing and
development costs.
Total cost = cost of system with all required
features.
To verify that the AIS that looks best on

paper is actually the best in practice:
Test-drive the software.
Contact other users for references.
Evaluate vendor personnel.
Confirm details of the proposal.
INTRODUCTION

Developing software in-house
Outsourcing
Prototyping
DEVELOPING SOFTWARE IN-HOUSE
Despite the availability of good canned

software, many organizations develop
their own because:
Their requirements are unique; or
The GAO reports that
Their size and complexity
31% ofnecessitates
federal a
custom package. government IT projects
are poorly planned or do
Developing custom software is difficult
not meet intended
and
error prone and consumes much time and
objectives.
resources.
The most difficult hurdles:

Lack of time.
Complexity of desired system.
Poor requirements and systems planning.
Inadequate communication and cooperation
between departments and users.
Lack of qualified staff.
Poor senior executive support.
After end users define their requirements,

the analysts:
Work with the end users to determine the
format of paper and screen outputs.
Identify:
Data required for each input.
Data to be retained in files.
Develop detailed program specs to be
interpreted and coded by programmers.
The process requires much discipline and

management supervision.
Accountants may help as project
supervisors, users, or development team
members.
Custom software is usually developed and

written in-house.
Alternately, organizations may engage an
outside company to develop a package or
assemble one from their inventory of
modules.
These modules are adapted, combined, and
organized to form a customized product that
meets specific requirements.
When contracting with an outside organization,

maintain control over development and observe
the following guidelines:
Carefully select a developer
Look for:
Experience in the industry
A good understanding of:
Business in general
How your company
conducts business

Sign a contract to clearly define responsibilities

Plan and monitor each step
Design all aspects in detail.
Include frequent checkpoints.

Maintain effective and frequent communication

Maintain effective and frequent communication
Control all costs
Cash outflows should be minimized until
the project is completed and accepted.
Information systems consultants suggest that

clients develop their own software only if it
provides a significant competitive advantage.
Payroll and A/R systems are not good candidates for
in-house development.
There might be significant benefits to developing
sophisticated product manufacturing software.
If there is no significant competitive advantage,
buy software from an outside supplier.
Trend appears to be in that direction.
There is no pat answer to the make-or-buy
decision.
Another approach to developing software

in-house is to take the lions share of the
effort out of the hands of the IS
department and place it in the laps of the
ultimate information users.
End-user developed software

End-user computing (EUC) is the hands-on
development, use, and control of computer-based
information systems by users.
With EUC, individuals use IT to meet their own IS
needs rather than rely on systems professionals.
Why?
The demand for information systems has grown
exponentially since the introduction of the computer.
One solution to meeting these needs is to have end users
meet their own information needs.
Technology has evolved to automate

much of the system development process.
Factors contributing to EUC are:
Increased computer literacy.
Easier-to-use programming languages.
Inexpensive PCs.
A variety of powerful and inexpensive
software packages.
Consequently, users have begun to

develop their own systems to:
Create and store data.
Access and download company data.
Share data and computer resources in
networks.
As end users began to meet their initial

needs, two things happened:
Users realized computers could be used to
meet more and more information needs.
Increased access to data created many new
uses and needs for information.
Result: A tremendous growth in end-user
computing that is expected to continue.
EUC has altered the role of the IS staff:

They continue to develop and maintain transaction
processing systems and company-wide databases
from which end users draw information.
They provide users with technical advice and
operational support and make as much information
available to them as possible.
While the support work has increased for the IS staff,
this work is counter-balanced by a decreased
demand for traditional IS services.
EUC may make up 7595% of all IS processing by
2010.
Because accountants will be end users, they
need an understanding of EUC concepts.
Appropriate end-user development and

use
End user development (EUD) happens when
information users (e.g., managers,
accountants, auditors) develop their own
applications using computer specialists as
advisors.
Inappropriate for complex systems.
Not used for large-scale processing, such as
payroll, receivables, payables, general ledger, or
inventory.
End user development may be most

appropriate for:
Retrieving info from company databases to
produce simple reports or answer single queries.
Performing what if, sensitivity, or statistical
analyses.
Developing applications that use prewritten
software (e.g., spreadsheet or database software).
Preparing schedules (such as aging of accounts)
and lists.
Benefits of end-user computing:

User creation, control, and implementation
Users control the development process, decide
what info needs are important, and if a system
should be developed.
Ownership helps them build better systems.

Systems that meet user needs
Because users discover flaws that systems people
would not catch.
Also, the communication problem between user
analyst programmer are avoided.

Timeliness
Much of the expensive and time-consuming cost-
benefit analysis, requirements definitions, and red
tape are reduced.

Timeliness
Freeing up systems resources
The IS department can exert time and resources on
other information and maintenance activities.
Reduces both visible and invisible backlog of
systems development projects.

Timeliness
Freeing up systems resources
Versatility and ease of use
Most EUC software is easy to understand and use.
With a laptop, the work can be done at home or
almost anywhere.
Risks of end-user computing:

Logic and development errors
End users are inexperienced in systems development.
Consequently, they are more likely to make errors and less
likely to recognize them.
They may:
Solve wrong problem
Poorly define systems requirements
Apply inappropriate analytical methods
Use wrong software
Use incomplete or outdated information
Errors are often caused by faulty logic, formulas, or software
commands.

Inadequately tested applications
Users probably wont test rigorously.
They tend not to recognize the need for testing, the difficulty, or
the time involved.
Tend to have grossly inflated opinions of how error-free their
systems are.

Inefficient systems
They get the job done but arent always efficient.

Inefficient systems
Poorly controlled and documented
systems
Many end users dont implement controls to
protect their system.
Systems are often poorly documented because
they think its unimportant.
They fail to realize that others cannot understand
the system without documentation.

Inefficient systems
Poorly controlled and documented systems
System incompatibilities
Some companies add end-user equipment without
considering the technological implications.
May end up with a diversity of hardware and
software that is difficult to support or network.

Inefficient
If systems
end users arent aware that others have similar
information needs, duplication occurs.
Poorly controlled and documented systems
Inexperienced users may also bite off more than
System incompatibilities
they can chew, wasting time and resources.
Duplication of systems and data and
wasted resources

Buying
Inefficient PCs for multitudes of workers is costly.
systems
Regular updating of hardware and software is also
Poorly controlled
expensive. and documented systems
System EUC also increases costs if it diverts users from
incompatibilities
their primary jobs.
Duplication
EUC ofcansystems and data
increase demands and
on the wasted
company
resourcesmainframe and IS staff for support.
Increased costs
To achieve proper balance between

maximizing the benefits of end user
systems and minimizing the risks:
Systems analysts can act as advisers and
require user-created systems to be reviewed
and documented prior to use.
Users can be trained in systems analysis so
they can identify and adequately meet their
needs, as well as reviewing the work of
others.
Organizations use several approaches to

managing and controlling EUC.
If you give the systems department control over EUC:
Growth of EUC is discouraged.
The organization is denied most of its benefits.
Its not in the companys best long-term interests.
However, if there are no controls over the tools that
can be purchased or how they can be used:
Chaos can result
The system can be difficult to support.
Best to provide enough guidance and

support to adequately control the system
but allow users flexibility.
A help desk can encourage, support,
coordinate, and control end-user activities.
One level of help desk employees might be
trained with scripted answers.
A higher level might handle more complicated
issues.
Help desk duties include:

Providing hotline assistance to solve problems.
Serving as a clearinghouse for information, coordination,
and assistance.
Training end users how to use specific hardware and
software, and providing technical maintenance and
support.
Evaluating new end-user hardware and software products.
Assisting with application development.
Developing and implementing standards for:
Hardware and software purchases to ensure compatibility.
Documentation and application testing.
Overseeing security issues such as fraud, software piracy,
and viruses.
INTRODUCTION

Outsourcing
Prototyping
OUTSOURCE THE SYSTEM
Outsourcing is hiring an outside company

to handle all or part of an organizations
data processing activities.
In a mainframe outsourcing agreement:
The outsourcers buy the clients computers and
hire all or most of the clients employees.
Then operate and manage the entire system on
the clients site or migrate it to the outsourcers
computers.
Many of these contracts have terms of 10 or more
years and cost from hundreds of thousands to
millions of dollars a year.
In a client/server or a PC outsourcing
agreement the organization outsources:
A particular service (e.g., help desk services);
A segment of its business;
A particular function; or
PC support.
Examples of outsourced activities:

Installation
Training
Maintenance
Help desk
Technical support
The growth in outsourcing applications

Outsourcing was initially used for
standardized applications such as payroll,
accounting, and purchasing.
Also used by companies that were struggling
to survive and wanted a quick cash infusion
from selling their hardware.
Kodak and Xerox were very successful at

cutting capital expenditures and other
costs, which motivated others to outsource
their systems.
Outsourcing business
Now many Fortune 500 companies
processes is the fastest
outsource some or all of there
growing IS.
IT trendlarge
and small companies are
jumping on the band
wagon.
Most companies that outsource use

several different companies rather than a
single source in order to:
Increase flexibility
Foster competition
Reduce costs
Most companies do not outsource:
Strategic management of their IT environment
Business process management
IT architecture
Benefits of outsourcing:
Provides a business solution
Allows companies to concentrate on their core
competencies.
Asset utilization
Companies can improve cash position and reduce
expenses by selling their computers to an
outsourcer.
Asset utilization
Access to greater experience and more
advanced technology
The cost and time to stay at the cutting edge of
technology is escalating rapidly.
OUTSOURCE
OutsourcingTHE SYSTEM
can reduce IS costs by 15
30% because of economies of scale and
lower costs of outsourcers.
IBM outsources project management and
Provides aprogramming
business solution
to China where labor costs
are 1/3 of U.S. costs.
Asset utilization
advanced technology
Lower costs
Asset utilization
advanced technology
Lower costs
Improved development time
Experienced specialists can often develop and
implement a system faster and more efficiently.
Can also help the company cut through some of
the internal politics.
Asset utilization
advanced technology
Companies with seasonal fluctuations dont have
Lower costs
to staff an IT force or maintain hardware for peak
Improvedperiods.
development time
Elimination of peaks-and-valleys usage
Asset utilization
advanced technology
Lower costs
Companies
Improved development with in-house
time systems that downsize
are often left with an unnecessarily large AIS
Elimination of peaks-and-valleys usage
function.
Facilitation of downsizing
Risks of outsourcing
Many outsourcing contracts fail to meet
expectations for reasons including:
Inflexibility
Many outsourcing contracts are for 10 years.

If the company is dissatisfied, has problems, or
goes through extensive structural changes, the
contract is difficult and/or costly to break.
Risks of outsourcing:
Inflexibility
Loss of control
The company may lose control of its system and data.
Also risk of confidential data being shared with others.
Inflexibility
Loss of control
Reduced competitive advantage
Companies can lose a fundamental understanding of
their IS needs and how the system can provide it with
competitive advantages.
Outsourcers are not as motivated to meet the clients
competitive challenges.
Can be mitigated significantly by outsourcing the
portion of business processes considered standard
(e.g., payroll, accounts receivable) and customizing the
portion that provides competitive advantage.
Inflexibility
Loss of control
Locked in system
It is expensive and difficult to reverse outsourcing.
Inflexibility
Loss of control
Locked in system
Unfulfilled goals
Many outsourcing goals and benefits are never realized.
Inflexibility
Loss
Some
of control
companies complain of poor service from
their outsourcers,
Reduced competitive particularly
advantagewith respect to:
Slow or no responsiveness to changing business
Lockedconditions.
in system
Poorly
Unfulfilled planned migration to new technologies.
goals
Poor service
Inflexibility
Loss of control
Increased
Reducedriskscompetitive advantage
include loss of market position,
loss of human
Locked capital, and reputation
in system
impairment among others.
Unfulfilled goals
Poor service
Increased risk
INTRODUCTION

Outsourcing
Prototyping
BUSINESS PROCESS REENGINEERING
Business process reengineering (BPR) is

the analysis and redesign of business
processes and information systems to
achieve significant performance
improvements.
Reduces a company to its essential business
processes.
Reshapes organizational work practices and
information flows to take advantage of
technological advancements.
BPR:
Simplifies the system.
Makes it more effective.
Improves a companys quality and service.
BPR software has been developed to help
automate many BPR tasks.
Michael Hammer has set forth several principles

that help organizations successfully reengineer
business processes:
- Organize around outcomes, not tasks.
DO AWAY WITH: Assigning different parts of a business
process to different people, with the resulting handoffs,
delays, and errors.
INSTEAD: Each persons job is designed around an
objective, outcome, or process rather than a task needed
to complete a process.

business processes:
- Require those who use the output to perform the
process.

business processes:
process.
- Require those who produce information to
process it.
You centralize operations to achieve economies
of scale and eliminate redundancy.
You decentralize operations to be more
responsive to customers and provide better
business processes:
service
- Organize around outcomes,
With technology, not tasks.
you dont have to choose.
- Require those who use
Corporate-wide the output
databases to perform
centralize data. the
process.
Telecommunications technology disburses it to the
organization.
- Require those who produce information to process it.
- Centralize AND disperse data.

business processes:
Example: In developing a new product, include on the
process.
development team at least one person from each involved
department,
- Require those so
whotheproduce
right hand will know what
information the left hand
to process it.
is doing and the process will be smoothly integrated.
- Centralize AND disperse data.
- Integrate parallel activities.

In a traditional
business processes: system, there is a layer of worker
bees and several layers of manager bees,
- Organize
auditoraround
bees, outcomes, not tasks.
and controller bees.
- Require those who usesystem,
In a reengineered the output
thetopeople
perform the do the
who
process.
work have decision-making responsibility.
- Require those who
Information produceenables
technology information to process it.
their decision
- accuracy.
Centralize AND disperse data.
Controls are built into the process itself.
- Integrate parallel activities.
- Empower workers, use built-in controls, and
flatten the organization chart.

business processes:
process.
- Require those who produce information to process it.
- Centralize
InsteadAND disperse
of having each data.
functional area running its own AIS
- Integrate parallelthe
and entering activities.
same data, use source data automation,
EDI, etc.
- Empower to capture
workers, usedata electronically
built-in controls,atand
the flatten
source and
disburse it tochart.
the organization where it needs to be used.
- Capture data onceat its source.
Underlying reengineering is the efficient

and effective use of the latest information
technology, e.g.:
Radio- and satellite-based communications.
Powerful handheld computers.
Image processing that lets multiple users
handle a document simultaneously.
Active documents.
Challenges faced by reengineering efforts:

Many BPR efforts fail or fall short of their objectives. A
company must overcome the following obstacles:
Tradition
Weve always done it this way!
Success requires changes in culture and beliefs.
Challenges Faced by Reengineering Efforts:

Tradition
Resistance
Change is always met with resistance.
Requires continual reassurance, persuasion, and
support.

Tradition
Resistance
Time and cost requirements
Two or more years are required to complete BPR.

Tradition
Resistance
Lack of management support
Managers are nervous about the big hypefew
results syndrome.
Without their support, the effort will fail.

Tradition
Resistance
Skepticism
BPR is sometimes viewed as just the same picture
in a different frame.

Tradition
Resistance
Skepticism
Retraining
The necessary retraining costs time and dollars.

Tradition
Resistance
Skepticism
Retraining
Controls
Cannot skip the inclusion of controls to ensure
reliability and integrity.
INTRODUCTION

Outsourcing
Prototyping
PROTOTYPING
Prototyping is an approach to systems design in

which a simplified working model of a system is
developed.
The prototype (first draft) is built quickly at low cost
and provided to users for experimentation.
Playing with the prototype allows users to determine
what they do and do not like.
Developers modify the system in response to user
comments and re-present it to them.
The iterative process continues until users are
satisfied that the system meets their needs.
PROTOTYPING
The basic premise is that its easier for

people to express what they like or dislike
than to imagine what they want in a
system.
In another words, it helps to have a straw man
to aim at.
Even a simple system that is not fully
functional demonstrates features far better
than graphics and verbiage.
PROTOTYPING
Developers who use prototyping still go through

the systems development life cycle.
But prototyping allows them to expedite some
analysis and design.
For example, prototyping captures user needs
and helps developers and users make many
conceptual and physical design decisions.
Current practice leans heavily toward
prototyping so that projects can be completed
quickly.
PROTOTYPING
Four steps are involved in developing a

prototype:
STEP ONE: Identify basic requirements
STEP TWO: Develop an initial prototype
STEP THREE: Repeated iterations
STEP FOUR: Use the system
PROTOTYPING

prototype:
PROTOTYPING
The first step is to identify basic

requirements by meeting with users to
agree on the size and scope of the system
and decide what it should include and
exclude.
Developer and users also determine:
Decision-making and transaction processing
outputs.
Inputs and data needed to produce those outputs.
The emphasis is on what outputs should be
produced rather than how.
PROTOTYPING
The developer must ensure:

User expectations are realistic.
Their basic information requirements are met.
The designer uses the information
requirements to develop cost, time, and
feasibility estimates for alternative AIS
solutions.
PROTOTYPING

prototype:
PROTOTYPING
The second step involves developing an

initial prototype that meets the agreed-on
requirements.
Emphasize speed and low cost rather than
efficiency of operation.
The goal is to implement the prototype within
a short time period.
PROTOTYPING
Because of time constraints, some

aspects are sacrificed. For example, at
this point, you ignore:
Non-essential functions
System controls
Exception handling
Validation of input data
Processing speed
Efficiency considerations
PROTOTYPING
Users must see and use tentative versions of:

Data entry display screens
Menus
Input prompts
Source documents
They must also:
Respond to prompts
Query the system
Judge response times
Issue commands
PROTOTYPING
When the prototype is finished, the

developer returns to the users and
demonstrates the system.
Users are instructed to:
Experiment.
Comment on what they do and do not like.
PROTOTYPING

prototype:
PROTOTYPING
The third step involves repeated iterations

of:
Users identifying changes.
Developers making the changes.
The system being turned back to users for
next round.
This step continues until users are
satisfiedusually 4 to 6 iterations.
PROTOTYPING

prototype:
PROTOTYPING
The final step involves using the system

approved by the users.
An approved prototype is typically used in
one of two ways.
PROTOTYPING
Half of the prototypes are turned into fully

functional systems referred to as
operational prototypes.
To make them operational, the developer
must:
Add needed controls.
Improve operational efficiency.
Provide backup and recovery.
Integrate the prototype with the systems with which
it interfaces.
PROTOTYPING
Changes may be necessary to allow the

program to:
Accept real input.
Access real data files.
Process data.
Make necessary computations and
calculations.
Produce real output.
PROTOTYPING
When its not practical to modify the

prototype to make a fully functional
system, non-operational or throwaway
prototypes can be used in several ways:
They may be discarded, and the systems
requirements identified in the process of
building them can be used to develop a new
system.
If so, the SDLC is followed to develop the system,
and the prototype is a model.
PROTOTYPING
Alternately, they may be used as the initial

prototype for an expanded system designed
to meet needs of many users.
As a final alternative, if users and developers
decide the system is unsalvageable, the
prototype can be discarded completely.
PROTOTYPING
When to use prototyping

Prototyping supports rather than replaces the SDLC.
It is appropriate when:
Users dont fully understand their needs, or the needs
change rapidly.
System requirements are difficult to define.
System inputs and outputs are not known.
The task to be performed is unstructured or semi-structured.
Designers are uncertain about what technology to use.
The system is crucial and needed quickly.
The risk of developing the wrong system is high.
PROTOTYPING
The users reactions to the new system are important
development considerations.
Many design strategies must be tested.
The design staff has little experience developing this type of
system or application.
The system will be used infrequently so that processing
efficiency is not crucial.
PROTOTYPING
Good candidates for prototyping:

Decision support systems.
Executive information systems.
Expert systems.
Information retrieval systems.
Systems that involve experimentation and
trial-and-error development.
Systems in which requirements evolve as the
system is used.
PROTOTYPING
Prototyping is usually inappropriate for:

Large or complex systems that:
Serve major organizational components; or
Cross numerous organizational boundaries.
Standard AIS components, such as:
Accounts receivable
Accounts payable
Inventory management
PROTOTYPING
Advantages of prototyping:
Better definition of user needs
Because of intensive end-user involvement.
PROTOTYPING
Higher user involvement and satisfaction
PROTOTYPING
Faster development time
It may take days or weeks to get a prototype up vs. a
year or more for a traditional system.
PROTOTYPING
Fewer errors
Errors are detected early because the users
experiment with each version.
Its also easy to identify and terminate an infeasible
AIS early.
PROTOTYPING
Fewer errors
More opportunity for changes
PROTOTYPING
Fewer errors
More opportunity for changes
Less costly
Some for 1020% of the cost of traditional systems.
PROTOTYPING
Disadvantages of prototyping:
Significant user time
PROTOTYPING
Less efficient use of system resources
Shortcuts in developing the system may
result in:
Poor performance and reliability
High maintenance and support costs
PROTOTYPING
Incomplete system development
PROTOTYPING
Inadequately tested and documented
systems Who wants to do that stuff?
PROTOTYPING
Inadequately tested and documented systems
Negative behavioral reactions
If the prototype is discarded, users may be upset
about using it and losing it.
May also be dissatisfied if all their suggestions are
not incorporated or if they have to go through too
many iterations.
PROTOTYPING
Inadequately tested and documented systems
Negative behavioral reactions
Never-ending development
If not managed properly, the development could get
stuck in a terminal loop.
INTRODUCTION

Outsourcing
Prototyping
Computer-aided software engineering (CASE)
tools
Computer-Aided Software Engineering
(CASE) Tools
Traditionally, software developers have created
software to simplify the work of others, but not
for themselves.
Computer-aided software (or systems)
engineering (CASE) tools are an integrated
package of computer-based tools that automate
important aspects of the software development
process.
Used to plan, analyze, design, program, and maintain
an information system.
Also used to enhance efforts of managers, users, and
programmers in understanding information needs.
(CASE) Tools
CASE tools do not replace skilled
designers, but provide developers with
effective support for all SDLC phases.
CASE software typically includes tools for:
Strategic planning
Project and system management
Database design
Screen and report layout
Automatic code generation
(CASE) Tools
Advantages of CASE technology:
Increased productivity
Can generate bug-free code from system
specifications.
Can automate repetitive tasks.
(CASE) Tools
Improved program quality
Can simplify enforcement of structured
development standards, which:
Improves quality of development.
Reduces threat of serious design errors.
Can check internal accuracy of design
and detect inconsistencies.
(CASE) Tools
Cost savings
Cost savings of up to 8090% are possible.
(CASE) Tools
Cost savings
Improved control procedures
Encourages development early in the
design process of:
System controls
Security measures
System auditability
Error handling procedures
(CASE) Tools
Cost savings
Improved control procedures
Simplified documentation
Automatically documents as the system
development progresses.
(CASE) Tools
Problems with CASE technology:
Incompatibility
Some tools dont interact effectively with
some systems.
(CASE) Tools
Incompatibility
Cost Some packages > $360,000.
(CASE) Tools
Incompatibility
Cost
Unmet expectations
Only 37% of CIOs believe they achieved expected
benefits.
SUMMARY AND CONCLUSIONS
Youve learned:
How organizations buy software, hardware,
and vendor services.
How information systems departments
develop custom software.
How end users develop, use, and control
computer-based information systems.
Why organizations outsource their information
systems, as well as the benefits and risks of
doing so.
SUMMARY AND CONCLUSIONS
Youve also learned:

What reengineering processes entail and
when they are appropriate.
How prototypes are used to develop an AIS
and when it is advantageous to do so.
What computer-aided software engineering is
and how its used in systems development.

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C HAPTER 19

AIS Development Strategies

Companies can experience a number of

Well be discussing how to obtain a new

Well be discussing how to obtain a new

In the early days of computers,

Canned software is sold on the open

A major problem with canned software:

Companies can also acquire software through

Purchasing software and the SDLC:

Purchasing software and the SDLC:

Purchasing software and the SDLC:

Purchasing software and the SDLC:

Vendors can be found by:

Acquiring hardware and software

When buying large or complex systems, a

The formal approach is important for

The formal approach is important for

The formal approach is important for

The formal approach is important for

When an RFP is solicited based on exact

A generalized RFP contains a problem

Usually, the more information a company

Evaluating proposals and selecting a system

In reviewing the proposals, you need to

In reviewing the proposals, you need to

Criteria to evaluate hardware include:

In reviewing the proposals, you need to

Criteria to evaluate software include:

In reviewing the proposals, you need to

Criteria to evaluate vendors include:

Approaches to comparing system

Approaches to comparing system

Approaches to comparing system

Zorba examined the packages offered by the three

The weighted scores are then computed by multiplying

The weighted scores for each company are

The preceding example is a simplification.

Approaches to comparing system

To verify that the AIS that looks best on

Well be discussing how to obtain a new

Despite the availability of good canned

The most difficult hurdles:

After end users define their requirements,

The process requires much discipline and

Custom software is usually developed and

When contracting with an outside organization,

When contracting with an outside organization,

When contracting with an outside organization,

When contracting with an outside organization,

When contracting with an outside organization,

Information systems consultants suggest that

Another approach to developing software

End-user developed software

Technology has evolved to automate

Consequently, users have begun to

As end users began to meet their initial

EUC has altered the role of the IS staff:

Appropriate end-user development and

End user development may be most

Benefits of end-user computing:

Benefits of end-user computing:

Benefits of end-user computing: