Outsourcing The Advantages and Disadvantages of Outsourcing

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• Chapter 6
• Systems Development
• Steps, Tools, and Techniques

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Introduction

• Systems development life cycle (SDLC) - a
  structured step-by-step approach for developing
  information systems.

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Seven Phases in the SDLCPhase 1 Plan

• Define the system to be developed.
• Set the project scope.
• Develop the project plan including tasks,
  resources, and timeframes.

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Seven Phases in the SDLCPhase 2 Analysis

• Gather the business requirements for the system.

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Seven Phases in the SDLCPhase 3 Design

• Design the technical architecture required to
  support the system.
• Design system models.

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Seven Phases in the SDLCPhase 3 Design
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Seven Phases in the SDLCPhase 4 Development

• Build the technical architecture.
• Build the database and programs.

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Seven Phases in the SDLCPhase 5 Test

• Write the test conditions.
• Perform the testing of the system.

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Seven Phases in the SDLCPhase 6 Implement

• Write detailed user documentation.
• Provide training for the system users.

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Seven Phases in the SDLCPhase 7 Maintain

• Build a help desk to support the system users.
• Provide an environment to support system changes.

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Knowledge Workers and Their Roles in the SDLC

• Your participation in the systems development
  process is vitally important because you are (or
  will be) a
• Business process expert
• Liaison to the customer
• Quality control analyst
• Manager of other people

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Knowledge Workers and Their Roles in the SDLC
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Why Systems Fail

• 20 of systems are successful, 80 of systems
  fail.
• Five primary reasons why systems fail include
• Unclear or missing requirements
• Skipping SDLC phases
• Failure to manage project scope
• Failure to manage project plan
• Changing technology

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Sourcing

• Three choices for building a system include
• IT specialists within your organization
  Insourcing
• Knowledge workers such as yourself Selfsourcing
• Another organization Outsourcing

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Selfsourcing The Selfsourcing Process
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Selfsourcing The Advantages Disadvantages of
Selfsourcing

• Advantages
• Improves requirements determination.
• Increases knowledge worker participation and
  sense of ownership.
• Increases speed of systems development.
• Disadvantages
• Inadequate knowledge worker expertise leads to
  inadequately developed systems.
• Lack of organizational focus creates privatized
  IT systems.
• Insufficient analysis of design alternatives
  leads to subpar IT systems.
• Lack of documentation and external support leads
  to short-lived systems.

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OutsourcingDeveloping Strategic Partnerships

• Outsourcing - the delegation of specific work to
  a third party for a specified length of time, at
  a specified cost, and at a specified level of
  service.

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OutsourcingThe Outsourcing Process
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OutsourcingThe Advantages and Disadvantages of
Outsourcing

• Advantages of outsourcing include
• Focus on unique core competencies.
• Exploit the intellect of another organization.
• Better predict future costs.
• Acquire leading-edge technology.
• Reduce costs.
• Improve performance accountability.

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OutsourcingThe Advantages and Disadvantages of
Outsourcing

• Disadvantages of outsourcing include
• Reduces technical know-how for future innovation.
• Reduces degree of control.
• Increases vulnerability of strategic information.
• Increases dependency on other organizations.

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Prototyping

• Prototyping - the process of building a model
  that demonstrates the features of a proposed
  product, service, or system.
• Prototype - a model of a proposed product,
  service, or system.
• Proof-of-concept prototype - used to prove the
  technical feasibility of a proposed system.
• Selling prototype - used to convince people of
  the worth of a proposed system.

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PrototypingThe Prototyping Process
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PrototypingThe Advantages of Prototyping

• Encourages active knowledge worker
  participation. 
• Helps resolve discrepancies among knowledge
  workers. 
• Gives knowledge workers a feel for the final
  system. 
• Helps determine technical feasibility.
• Helps sell the idea of a proposed system. 

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PrototypingThe Disadvantages of Prototyping

• Leads people to believe the final system will
  follow shortly.
• Gives no indication of performance under
  operational conditions.
• Leads the project team to forgo proper testing
  and documentation.