AIS Development Strategies

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AIS Development Strategies
Computer Auditing Week 7 pt 2

• Chapter 18

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Introduction

• Ann Christy was elated that the new system
  Shoppers Mart (SM) needed was approved.
• She needed answers to the following questions
• Was the software she needed available for her to
  purchase? If so, how should she approach the
  process of buying hardware and software and
  selecting a vendor?

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Introduction

• How do companies go about developing software in
  house, and is this the best approach for SM?
• How extensively should the system make use of
  end-user-developed software?
• If the company decided to develop the system in
  house, should it try and speed up the development
  process by using prototyping or computer-assisted
  software engineering?

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Introduction

• Should SM just make the needed improvements to
  its existing system, or should it
  consider reengineering its business processes
  and then develop a system to support the new
  processes?
• Was outsourcing the information system a viable
  alternative to obtaining a new system? Did the
  benefits outweigh its risks?

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Introduction

• This chapter discusses three ways to obtain a
  new information system purchasing prewritten
  software, developing software in house, and
  hiring an outside company (outsourcing).
• It also presents ways of speeding up or improving
  the development process.

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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 how end users develop, use, and control
  computer-based information systems.

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Learning Objectives

• Explain why organizations outsource their
  information systems, and evaluate the benefits
  and risks of this strategy.
• Explain the principles and challenges of business
  process reengineering.
• Describe how prototypes are used to develop an
  AIS, and discuss the advantages and disadvantages
  of doing so.

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Learning Objectives

• Explain what computer-aided software engineering
  is and how it is used in systems development.

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Learning Objective 1

• Describe how organizations purchase application
  software, vendor services, and hardware.

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Purchase Software

• Canned software is written by computer
  manufacturers or software development companies.
• It is sold on the open market to a broad range of
  users with similar requirements.
• Turnkey systems are a combination of software and
  hardware sold as a package.

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Purchasing Software and The SDLC

• Companies that buy rather than develop AIS
  software still go through the systems development
  life cycle (SDLC).
• Systems analysis
• Conceptual design
• Physical design
• Implementation and conversion
• Operation and maintenance

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The Systems Acquisition Process
Investigate software packages
Develop software internally
No
No
Yes
Yes
Send RFP for software and hardware
Send RFP for hardware, if necessary
Select best combination
Evaluate proposal
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Learning Objective 2

• Explain how information system departments
  develop custom software.

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Development by In-House IS Department

• In the past, most organizations had their
  information system departments develop custom
  software, because canned software that fit their
  specific needs was not available.
• Developing custom software is difficult and
  error-prone.
• It also consumes a great deal of time and
  resources.

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Development by In-House IS Department

• Custom software is usually developed and written
  in house.
• Alternatively, organizations may engage an
  outside company to develop a package or assemble
  it from their inventory of program modules.
• When contracting with an outside organization, a
  company should maintain control over the
  development process.

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Development by In-House IS Department

• What guidelines are recommended?
• carefully select a developer
• sign a contract
• plan and monitor each step
• maintain effective communication
• control all costs

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Learning Objective 3

• Explain how end users develop, use, and control
  computer-based information systems.

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End-User-Developed Software

• End-user computing (EUC) is the hands-on
  development, use, and control of computer-based
  information systems by users.
• When end users began to meet their initial
  information 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.

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End-User-Developed Software

• What are some examples of end user development
  uses?
• retrieving information from company data bases to
  produce simple reports or to answer one-time
  queries
• performing what if sensitivity or statistical
  analyses
• developing applications using prewritten software
  (spreadsheet or data base system)

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End-User-Developed Software
Benefits of End-User Computing User creation,
control, and implementation
Systems that meet user needs
Timeliness
Freeing up IS resources
Versatility and ease of use
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End-User-Developed Software
Risks of End-User Computing
Logic and development errors Inadequately
tested applications Inefficient
systems Poorly
controlled and documented systems Systems
incompatibility Duplication
of systems Increased costs
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End-User-Developed Software

• Which one is an approach organizations use to
  manage and control end-user computing?
• help desk
• What are some duties of the help desk?
• providing hot-line assistance to help resolve
  problems
• serving as a clearinghouse for information,
  coordination, and assistance

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End-User-Developed Software

• training end users, and providing corresponding
  technical maintenance and support
• evaluating new end-user hardware and software
  products
• assisting with application development
• developing and implementing standards
• controlling data

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Learning Objective 4

• Explain why organizations outsource their
  information systems, and evaluate the benefits
  and risks of this strategy.

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Outsource the System

• What is outsourcing?
• It is hiring an outside company to handle all or
  part of an organizations data processing
  activities.
• In a mainframe outsourcing agreement, the
  outsourcers buy their clients computers and hire
  all or most of the clients employees.

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Outsource the System

• In a client/server or PC outsourcing agreement,
  an organization outsources a particular service,
  a segment of its business, a particular function,
  or PC support.

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Outsource the System
Benefits of Outsourcing A business solution
Asset utilization
Access to greater
expertise and more advanced
technology Lower costs
Improved development
time Elimination of peaks and valleys
usage Facilitation of downsizing
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Outsource the System
Risks of Outsourcing
Inflexibility
Loss of control
Reduced competitive advantage
Locked-in system
Unfulfilled goals
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Learning Objective 5

• Explain the principles and challenges of
  business process reengineering.

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Business Processes Reengineering

• What is business process reengineering (BPR)?
• It is the thorough analysis and complete redesign
  of business process and information systems to
  achieve performance improvements.
• It is a process that challenges traditional
  organizational values and cultures associated
  with underperformance.

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Business Processes Reengineering

• BPR reduces a company to its essential business
  processes and focuses on why they are done rather
  than on the details of how they are done.
• It completely reshapes organizational work
  practices and information flows to take advantage
  of technological advancements.

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Principles of Reengineering

• What are the seven principles of business
  processing reengineering?
• Organize around outcomes, not tasks.
• Have output users perform the process.
• Have those who produce information process it.
• Centralize and disperse data.
• Integrate parallel activities.

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Principles of Reengineering

• Empower workers, use built-in controls, and
  flatten the organization chart.
• Capture data once, at its source.

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Challenges Faced by Reengineering Efforts

• What are some of the obstacles to reengineering
  efforts?
• tradition
• resistance
• time requirements
• lack of management support
• risk

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Challenges Faced by Reengineering Efforts

• skepticism
• retraining
• controls

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Learning Objective 6

• Describe how prototypes are used to develop an
  AIS, and discuss the advantages and disadvantages
  of doing so.

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Prototyping

• What is prototyping?
• an approach to systems design in which a
  simplified working model of a system is
  developed.
• A prototype, or first draft, is quickly and
  inexpensively built and provided to users for
  testing.

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Prototyping

• What four steps are involved in developing a
  prototype?
• Identify basic systems requirements.
• Develop an initial prototype that meets the
  agreed-on requirements.
• Users identify changes, developers make changes,
  and the system is turned to the user.
• Use the system approved by the users.

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Prototyping
Advantages of Prototyping Better definition of
user needs Higher user involvement
and satisfaction Faster development time
Fewer errors
More opportunity for changes
Less costly
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End-User-Developed Software
Disadvantages of Prototyping Significant
user time Less
efficient use of system resources Incomplete
systems development Inadequately tested and
documented systems
Negative behavioral
reactions Unending development
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Learning Objective 7

• Explain what computer-aided software engineering
  is and how it is used in systems development.

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Computer-Aided Software Engineering (CASE)

• CASE is an integrated package of computer-based
  tools that automate important aspects of the
  software development process.
• CASE tools are used to plan, analyze, design,
  program, and maintain an information system.
• They are also used to enhance the efforts of
  managers, users, and programmers in understanding
  information needs.

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Computer-Aided Software Engineering (CASE)

• CASE tools do not replace skilled designers
  instead they provide a host of self-integrated
  tools that give developers effective support for
  all SDLC phases.
• CASE software typically has tools for strategic
  planning, project and system management, data
  base design, screen and report layout, and
  automatic code generation.

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Computer-Aided Software Engineering (CASE)
Advantages of CASE Technology Improved
productivity Improved program
quality Cost savings
Improved control
procedures Simplified documentation
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Computer-Aided Software Engineering (CASE)
Disadvantages of CASE Technology Incompatibility
Unmet
expectations
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Case Conclusion

• What did Ann Christy decide?
• against outsourcing the AIS
• What did she think about prototyping?
• that it would not work well
• What did she think about reengineering?
• that the system did not need reengineering

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Case Conclusion

• What were her options?
• purchase a system or design one in house
• No matter which approach she chose, Ann wanted to
  facilitate as much end-user development as was
  practical and useful.

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End of Chapter 18