Managing the Networked Enterprise MBA 501 WEEK 5: FEBRUARY 9

Transcription

1 Managing the Networked Enterprise MBA 501 WEEK 5: FEBRUARY 9 Methods of acquiring information systems Systems development life cycle Initiating systems development Systems analysis and design

2 Today s Lecture To distinguish between the typical stages involved in the development of a BIS To examine the management issues related to how BIS are acquired To examine some of the management issues related to the real time enterprise

3 Stages of the Systems Development Life Cycle Maintenance Post implementation review System improvement Initiation Input: evaluation of IT problems/needs Output: Ideas for new system Implementation Input: Working system not tested by users Output: signed-off operational system installed in all locations Feasibility study Input: Ideas for new system Output: feasibility report and go/no go recommendation System build Input: Requirements and design specifications Output: working software, manuals, documentation Requirement (systems) analysis Input: Terms of reference from feasibility report Output: Detailed requirements / system specification. DFDs, ERDs etc System design Input: Requirements specification Output: Detailed design specification (database, interface, data capture and storage etc)

4 Considerations on System Implementation

5 Considerations on System Implementation Structural Behavioural

6 The Sequence of Phases in the SDLC Structured analysis and design provides a systematic approach to developing systems: The model indicates that each step should be satisfactorily completed before the next begins Each step also has a link back to the previous stage, to correct errors/problems (eg. at the build stage, design errors or oversights may need to be corrected Analysis and design errors detected in the later phases of the SDLC cost more to fix than if detected in earlier phases Problems with highly structured methodologies has given rise to alternative models of systems development eg. Rapid Application Development and Extreme Programming also known as Agile methods

7 Failure points for traditional structured methods of systems development Gap of understanding between users and developers Tendency of developers to isolate themselves from users Quality measured by closeness of product to specification rather than comparing deliverables to requirements Long development times Business needs change during the development process What users get isn t necessarily what they want

8 Reasons for the development of Rapid Application Development (RAD) / Agile RAD was launched in the early 90 s in response to 2 conditions increased speed and turbulence of doing business the ready availability of high-powered, computer-based tools to support systems development and maintenance Problems with traditional waterfall method long cycles - system may be obsolete before it is built RAD and similar systems based on prototyping became increasingly legitimate and are widely used in the mainstream Flavours of RAD: Agile, Extreme Programming (XP), Joint Application Development (JAD), Scrum, Lean Software Development

9 The role of prototyping within the SDLC Initiation Feasibility analysis, project planning, Change and Risk Management PROTOTYPING (analysis and design) Change requests TEST AND REVIEW ANALYSIS Requirements specification DESIGN Prototype produced DEVELOP Design, test, specification Final implementation System and acceptance testing Data migration and changeover Maintenance Monitoring and enhancing 9

10 MANAGEMENT ISSUES RELATED TO HOW BUSINESS INFORMATION SYSTEMS ARE ACQUIRED

11 So you need some new software? Drivers for information systems acquisition External business environment Internal business processes Business strategy and policies Information system needs (requirements)

12 Typical software acquisition alternatives that must be evaluated Bespoke development Off-the-shelf (on-premise or SaaS) User-developed In-house Standard Outsourced Tailored

13 Bespoke development Where an information system is developed from scratch by an IS professional (or team) to suit the business requirements of the application Can be either in-house or outsourced Benefits Can be tailored to the precise business need Proprietary system may be a core business asset that competitors cannot match Difficulties Cost - the most expensive way to develop a new BIS Time - notorious for time overruns, especially when using formal structured methodologies (but Agile methodologies help to mitigate this problem) Quality may be buggy (insufficient testing) or may not meet business requirements - often due to poor analysis of system requirements

14 Purchasing off-the-shelf software (can be on-premise or SaaS) Direct purchase of a pre-written application used by more than one company written to offer broad functionality to suit a wide range of businesses Fewer bugs because software developed for commercial market Cheaper than bespoke Difficulties May offer features not needed Requires business processes to be organized in a particular way May have inflexible/unsuitable features (eg. specified # of characters for customer code) Some packaged software can be tailored to some extent to suit particular business requirements (usually done by the vendor)

15 End-user developed software Written by non-is professionals - ie. the business users themselves for end-user applications These apps are personal or departmental in nature and tend to be output or report-oriented Examples: spreadsheets, small databases, websites Advantage is that there will be good fit between the user s requirements and the system Disadvantages there may be the use of inappropriate software tools hard to maintain (didn t work to standards) buggy software because of lack of knowledge little or no design, planning or documentation

16 Other factors affecting software acquisition Where the software is generic (such as office productivity packages) organizations will purchase off-the-shelf Where the function of the software is at the Unique stage of the Software Maturity Model more likely to be acquired via bespoke development Where niche software is needed for particular purposes or to create business advantage, then the bespoke approach is more common Organization size In-house IS/IT expertise IS/IT expertise among end-users Linkages with existing applications software - amount of integration required Complexity of the required system Uniqueness of the required system

17 Application complexity versus uniqueness HIGH Off-the-shelf package Bespoke development Complexity of application High complexity Low uniqueness Off-the-shelf package or end-user development High complexity High uniqueness Bespoke or end-user development LOW Low complexity Low uniqueness Low complexity High uniqueness LOW Uniqueness of application HIGH

18 OPEN SOURCE SOFTWARE

19 Open source software A definition (from the Open Source Initiative (OSI)) "Open source promotes software reliability and quality by supporting independent peer review and rapid evolution of source code. To be OSI certified, the software must be distributed under a license that guarantees the right to read, redistribute, modify, and use the software freely." Open source software is developed through public collaboration between programmers

20 Videos What is Open Source UpStart Workshop - Episode 23 - What is Open Source Software? UpStart Workshop - Episode 24 - What does it mean for open source software to be viral? Two other videos by Computer Floss on the same topic

21 Open Source Software Open Source is about how software is developed, enhanced, and managed The detailed Open Source definition (Open Source Initiative) The complete (uncompiled) source code must be distributed with any and all distributions Anyone can modify and redistribute the code for anyone else to use Licensed for these purposes (eg. under a GPL) It is the opposite of proprietary software, which is sold only in its compiled state that is indecipherable by humans

22 So, is it free? It depends UpStart Workshop - Episode 27 - Is Open Source Software Cost-Free? Definition of free software Customization, integration, installation, support, maintenance, training Definitely not free Red Hat s revenue stream comes from subscriptions to services that support the use of Linux (Open Source OS)

23 Drivers towards Open Source adoption Report from The Standish Group (registration needed) 1. Fashion 2. Community 3. Security 4. Quality and reliability 5. Initial cost 6. Development speed 7. Vendor initiative 8. Support 9. Skills 10. Ongoing costs

24 What are the risks and benefits of using open source software? UpStart Workshop - Episode 25 - What are the risks and benefits of using open source software?

25 Business issues re Open Source Now seen as disruptive technology Viability was underestimated Stats showing Server OS (Netcraft, January 2014 survey) Stats for browsers and desktop OS (W3Counter, December 2013) Microsoft underestimated the threat normal rules of competition don t apply Not possible to undercut the price Not possible to buy the company to get rid of competition Probably not possible to buy the people Negotiations / arguments are all done in public forums Better way is to find ways to work together and co-operate IBM is a prime example of an established company working within the open source movement Forrester s 5 stages of open source adoption (Video of CodePlex panel) 6m

26 THE REAL-TIME ENTERPRISE

27 The Real-Time Enterprise The essence of the real-time enterprise is that organizations can know what they are doing at the moment, rather than waiting days, weeks or months for the information, as has been the case Without a real-time feedback loop it is like driving a car without being able to see the road McNurlin, Sprague & Bui. Information Systems Management in Practice. Pearson. 2008

28 Some uses of real-time technology Enterprise nervous systems: to coordinate company operations eg. A car arrives on a dealer s lot data is instantly available Straight-through processing: to reduce distortion in supply chains Communicating objects: to gain real-time data about the physical world (rg. RFID) Vigilant information systems: to move to a sense-and-respond culture (not just receiving, but acting) Real time customer relationship management: to automate decision making about customers McNurlin, Sprague & Bui. Information Systems Management in Practice. Pearson. 2008

29 Real-time CRM Real-time response between a firm and its customer eg. Via web site Collaborative filtering (automated) amazon.com Sense and respond (automated) Customer service (two-way, always-on) Advertising networks Via call centre Information needs to be available in real-time to call-centre workers (HUDS etc) McNurlin, Sprague & Bui. Information Systems Management in Practice. Pearson. 2008

30 So why don t all organization go Getting closer... But not so easy to achieve real-time? Expensive: sophisticated technology and a seamless integrated platform needed Assessment needed to decide what really needs to be real-time and what metrics should be used to help make automated decisions Needs care and attention from employees real-time expectations Privacy considerations McNurlin, Sprague & Bui. Information Systems Management in Practice. Pearson. 2008

31 CASE STUDY DISCUSSION

32 Friday February 16 Class Go to website: Review readings, etc. See you next week