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Chapter 7
Development Strategies
288
Apply Your Knowledge
Apply Your Knowledge
This section contains four mini-cases. Each case describes a situation, explains your role, and requires you to apply
what you learned in the chapter.
1
Sandy Shores Time Shares
Sandy Shores Time Shares is one of the largest time-sharing and rental brokers for vacation cottages
along the North Carolina coast. After 10 successful years of matching up owners and renters, Sandy
Shores decided to acquire a computerized reservation and booking system. Tim Burns, the owner of
Sandy Shores, read an article about software packages, and he asked you, as an IT consultant, for your
advice.
Tasks
1. W
ould the new reservation and booking system be a horizontal or a vertical application? Explain
your answer.
2. What software development and acquisition strategies should Sandy Shores consider?
3. Conduct an Internet search for online reservation systems, software, and services that Sandy Shores
might consider. Describe your findings.
4. As a systems analyst, what would your role be in helping Sandy Shores develop a new system?
Would the acquisition strategy affect your role? Why or why not?
2
Atrium Bio-Medical Supply, Inc.
Atrium Bio-Medical Supply is a medium sized regional supplier of medical and laboratory equipment.
Since starting the company 12 years ago, Victoria Dawn has built Atrium into a competitive supply company across several metro areas, but her growth potential is limited because the firm does not have an
integrated sales and logistics system. Victoria asked you to evaluate Atrium’s options for acquiring a new
system.
Tasks
1.
2.
3.
4.
What options does Atrium have for acquiring a new system?
What are the pros and cons of in-house development versus purchasing a system?
If the decision is made to purchase a new system, what are three options for customizing the software?
Based on Part C of the Systems Analyst’s Toolkit, what financial analysis tools should you use to evaluate the software acquisition options for Atrium? Explain how you would apply each of the tools.
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Phase 2
Systems Analysis
Apply Your Knowledge
3
289
Leading Edge Climbing Equipment
Leading Edge Climbing Equipment is a retail rock climbing equipment vendor that is planning to install a
new order entry and transaction processing system. As Leading Edge’s IT manager, you are preparing for
a follow-up meeting to confirm the owner’s decision to move forward with the system.
Tasks
1.
2.
3.
4.
4
In deciding on your proposal, what options do the owners have?
If the owners decide to purchase or customize a software package, what steps will you take?
Explain the difference between logical and physical design.
Describe the steps typically performed in systems design.
IT News and Views
You are a staff writer at IT News and Views, a popular online newsletter aimed at IT professionals. Your
editor has asked you to prepare a special report for next week’s edition. Specifically, she wants you to
research the subject of software outsourcing, and other significant trends that might affect software development in the future. She wants you to cite specific sources for your information, including current IT
employment statistics and employment forecasts from the U.S. Bureau of Labor Statistics.
Tasks
1. S earch for information about software outsourcing generally, using the search techniques described
in Part D of the Systems Analyst’s Toolkit.
2. Visit the Bureau of Labor Statistics site at www.bls.gov and search for information about employment trends affecting systems analysts, computer programmers, and software engineers.
3. Does the Bureau of Labor Statistics offer any comments or insights into the subject of outsourcing
generally? What conclusions does it reach?
4. In your report, comment on whether the offshore outsourcing of IT jobs is just another step in the
progression that began with manufacturing jobs, or represents a whole new trend. Be sure to cite
Web research sources and your own reasons.
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Chapter 7
Development Strategies
290
Case Studies
Case Studies
Each chapter includes a Chapter Case, a Continuing Case, a Capstone Case, and an Online Case Simulation. You can
learn more about the Online Case Simulation in the MIS CourseMate Features section.
Chapter Case: Campus Bikes (Part 2)
In Chapter 6, you learned that Campus Bikes is a popular bicycle shop located near a major university. The shop sells several brands of new bikes, including everything from high-end racing
models to beach cruisers. In addition to sales of new bikes and accessories, Mark’s service department is always busy. The staff includes Mark himself, a bookkeeper, two part-time sales reps, a
full-time mechanic, and several part-time service helpers who assemble bikes.
Background
Until now, the owner, Mark Turner, kept the business records on his personal computer. He created a simple database to keep track of inventory, but it is not always up-to-date. He also developed spreadsheets to track expenses and payroll. The business has grown and Mark wants to
install a new computer system to handle all business functions.
You are a lab assistant in the computer information department at the college. You earned
a computer science degree at a two-year school, and you recently decided to work toward your
four-year degree. Mark recently asked you to help him plan a system for Campus Bikes. You used
an object-oriented approach to create a model of the business functions and actors involved.
Now Mark wants you to do a “make or buy” analysis. Specifically, you will look into the pros
and cons of in-house development versus purchase of a software package. Your research indicates
that the most popular bike shop package is offered by a vendor called BikeData.
In your last meeting, Mark said that tangible savings for a new system would be hard to measure, but improved customer care, better service department records, and increased productivity
are expected. Mark estimates that these benefits will add up to about $3,000 per year, whether the
system is developed in-house, or purchased from BikeData.
You decide to compare relative costs to establish a total cost of ownership (TOC) over the useful life of the system. Based on your research, you put together the following summary:
Costs for Option A: Develop In-house
•
•
•
The system will have a six-year useful life, be very flexible, and easiest to maintain.
It will cost $15,000 to develop, install, and configure the system, and $1,000 to load
existing data.
Mark and the bookkeeper can handle day-to-day support with no added expense.
Costs for Option B: Purchase BikeData Software Package
•
•
•
•
This is a vertical package with a four-year useful life.
The software is less flexible than an in-house system and some customizing will be needed.
It will cost $8,000 to purchase, $1,500 to install and configure, $2,500 to load existing
data, and $1,000 additional hardware will be needed
Support is free for the first year, then there is a $2,000 annual fee
Benefits for Both Options: $3,000 per year
Tasks
1.
2.
3.
4.
Prepare a detailed list of pros and cons of in-house versus software purchase.
Calculate ROI for both options.
Calculate NPV for both options. Use an 8% discount factor.
Create a PowerPoint presentation for Mark showing the results of your analysis, including
recommendations and reasons.
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Phase 2
Systems Analysis
291
Case Studies
Continuing Case: Personal Trainer, Inc.
Personal Trainer, Inc. owns and operates fitness centers in a dozen Midwestern cities. The centers
have done well, and the company is planning an international expansion by opening a new “supercenter” in the Toronto area. Personal Trainer’s president, Cassia Umi, hired an IT consultant,
Susan Park, to help develop an information system for the new facility. During the project, Susan
will work closely with Gray Lewis, who will manage the new operation.
Background
During data and process modeling, Susan Park developed a logical model of the proposed system.
She drew an entity-relationship diagram and constructed a set of leveled and balanced DFDs.
Now Susan is ready to consider various development strategies for the new system. She will investigate traditional and Web-based approaches and weigh the pros and cons of in-house development versus other alternatives. Before you begin, you should review the background information
and facts contained in Chapters 2, 4, and 5 of the case study.
Tasks
1. What options does Personal Trainer have for developing a new system? What are some specific issues and options that Susan should consider in making a decision?
2. Susan has been asked to prepare a system requirements document and deliver a presentation to the management team. What should be the main elements of the system requirements
document?
3. Based on the suggestions in Part A of the Systems Analyst’s Toolkit, what visual aids should
Susan use during her presentation?
4. Susan wants to prepare a presentation that will calculate the total cost of ownership for the
system. What financial analysis tools are available to her, and what are the advantages (and
possible disadvantages) of each tool?
Capstone Case: New Century Wellness Group
New Century Wellness Group offers a holistic approach to healthcare with an emphasis on
preventive medicine as well as traditional medical care. In your role as an IT consultant, you will
help New Century develop a new information system.
Background
Based on your earlier recommendations, New Century decided to continue the systems development process for a new information system. Now, at the end of the systems analysis phase, you
are ready to prepare a system requirements document and give a presentation to the New Century
associates. Many of the proposed system’s advantages were described during the fact-finding process. Those include smoother operation, better efficiency, and more user-friendly procedures for
patients and New Century staff.
You also must examine tangible costs and benefits to determine the economic feasibility of
several alternatives. If New Century decides to go ahead with the development process, the main
options are to develop the system in-house or purchase a vertical package and configure it to meet
New Century’s needs. You have studied those choices and put together some preliminary figures.
You know that New Century’s current workload requires six hours of office staff overtime per
week at a base rate of $15 per hour. In addition, based on current projections, New Century will
need to add another full-time clerical position in about six months. Neither the overtime nor the
additional job will be needed if New Century implements the new system. The current manual
system also causes an average of three errors per day, and each error takes about 20 minutes to
correct. The new system should eliminate those errors.
(continues)
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Chapter 7
Development Strategies
292
Case Studies
Capstone Case: New Century Wellness Group
You estimate that by working full-time you could complete the project in about 12 weeks.
Your consulting rate, which New Century agreed to, is $35 per hour. If you design the new system
as a database application, you can expect to spend about $2,500 for a networked commercial
package. After the system is operational and the staff is trained, New Century should be able to
handle routine maintenance tasks without your assistance.
As an alternative to in-house development, a vertical software package is available for about
$12,000. The vendor offers a lease-purchase package of $4,000 down, followed by two annual installments of $4,000 each. If New Century buys the package, it would take you about four weeks
to install, configure, and test it, working full-time. The vendor provides free support during the
first year of operation, but then New Century must sign a technical support agreement at an annual cost of $600. Although the package contains many of the features that New Century wants,
most of the reports are pre-designed and it would be difficult to modify their layouts.
No matter which approach is selected, New Century probably will need you to provide about
10 hours of initial training and support each week for the first three months of operation. After
the new system is operational, it will need routine maintenance, file backups, and updating. These
tasks will require about four hours per week and can be performed by a clinic staff member. In
both cases, the necessary hardware and network installation will cost about $12,500.
In your view, the useful life of the system will be about five years, including the year in which
the system becomes operational.
You are scheduled to deliver a presentation to New Century next week, and you will submit a
system requirements document at that time. To prepare yourself, you reviewed the skills described
in Part A of the Systems Analyst’s Toolkit, and you listed tips to remember, as follows:
Presentation Tips
•
•
•
•
•
Use suitable visual aids.
Use presentation software, if possible.
Distribute handouts before, during, or after the presentation.
Follow the guidelines in Part A of the Systems Analyst’s Toolkit.
Keep your presentation to 30 minutes, including 5 minutes for questions.
System Requirements Document Tips
•
•
•
•
Follow the guidelines in Part A of the Systems Analyst’s Toolkit.
Include charts, graphs, or other helpful visual information in the document. Also include
other material to help the audience understand the new system and decide on the next
step.
Spell check and carefully proofread the entire document.
For readability, try to keep the Flesch Reading Ease score above 60, and aim for a FleschKincaid Grade Level of 8.0 to 9.0.
Tasks
1. Provide an overview of the proposed system, including costs and benefits, with an explanation of the various cost-benefit types and categories.
2. Develop an economic feasibility analysis, using payback analysis, ROI, and present value
(assume a discount rate of 10%).
3. Prepare a context diagram and diagram 0 for the new system.
4. Provide a brief explanation of the various alternatives that should be investigated if development continues, including in-house development and any other possible strategies.
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Phase 2
Systems Analysis
293
CASE Tool Workshop
CASE Tool Workshop
Systems analysts use CASE tools to help them plan, build, and maintain information systems. To learn more about
CASE tools, turn to Part B of the Toolkit that follows Chapter 12. You can complete these tasks with the Visible
Analyst® CASE tool, which is available with this textbook, or a similar tool.
Background
Suppose your company wants to create a logical model of a proposed information system, and then decide
whether to develop the system in-house and purchase a software package. You have been asked to use a CASE
tool to construct the model.
Tasks
1. After you perform fact-finding, you begin to work on the model. What diagrams will you create, and
why? Will you use DFDs, object models, or both? Will you create an entity-relationship diagram?
Explain your answers.
2. Most CASE tools can generate program code directly from diagrams and a central repository, and some
tools are able to export the repository to a database management program, where the design can be
implemented. Since you don’t know whether the new system will be developed in-house, it would be
helpful to know more about this in advance. Perform research on the CASE tool you are using to learn
what code-generation and export features are available, and describe your findings.
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BUIS 361 – Individual Assignment 7 – due by 11:59PM on Wed 11/22
I. Answer the following questions, based on the material in Chapter 7, Development Strategies.
1. Describe the concept of software as a service rather than a product. Is this an important
trend? Why or why not?
2. What are three typical reasons why companies develop their own information systems?
3. What are main steps in the software acquisition process? What is an RFP, and how does it
differ from an RFQ?
4. Explain the relationship between logical and physical design.
5. How has the proliferation of mobile devices affected IT professionals?
II. Complete the Apply Your Knowledge Mini Cases #1 Sandy Shores Time Shares, Tasks 1-4, page 288 in
the .pdf file and #4 IT News and Views, Tasks 1-4, page 289 in the .pdf file.
Chapter 7
Development Strategies
Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied
or duplicated, or posted to a publicly accessible website, in whole or in part.
Describe the concept of Software as a
Service
Define Web 2.0 and cloud computing
Explain software acquisition alternatives,
including traditional and Web-based
software development strategies
Describe software outsourcing options,
including offshore outsourcing and the role
of service providers
Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied
or duplicated, or posted to a publicly accessible website, in whole or in part.
2
Explain advantages and disadvantages of inhouse software development
Discuss cost-benefit analysis and financial
analysis tools
Describe a request for proposal (RFP) and a
request for quotation (RFQ)
Describe the system requirements document
Explain the transition from systems analysis
to systems design
Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied
or duplicated, or posted to a publicly accessible website, in whole or in part.
3
Earlier, certain work functions in the company
required:
◦ Development of software by in-house efforts
◦ Employing the services of external entities
Today, organizations have following choices
for software acquisition
◦ Application service providers
◦ Web-hosted software options
◦ Firms that offer enterprise-wide software solutions
Selecting the best development path is an
important decision
Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied
or duplicated, or posted to a publicly accessible website, in whole or in part.
4
Software as a Service (SaaS)
◦ Software deployment model that hosts an
application as a service provided to customers over
the Internet
◦ Reduces the customer’s need for software
maintenance, operation, and support
Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied
or duplicated, or posted to a publicly accessible website, in whole or in part.
5
Traditional vs. Web-Based Systems
Development
◦ Service-oriented architecture (SOA)
A way of engineering systems in which reusable
business functionality is provided by services through
well-defined interfaces
Technically, not software architecture but an
architectural style
Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied
or duplicated, or posted to a publicly accessible website, in whole or in part.
6
Traditional vs. Web-Based Systems
Development
◦ Traditional Development
System design is influenced by compatibility issues
Systems are designed to run on local and wide-area
networks
Systems often utilize Internet links and resources
Development typically follows one of three main paths:
In-house development
Purchase of a software package with possible modification
Use of outside consultants
Scalability is affected by network limitations and
constraints
Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned …
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