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Chapter 7

ITM 102 Chapter Notes - Chapter 7: Systems Development Life Cycle, Software Development Process, Project Manager


Department
Information Technology Management
Course Code
ITM 102
Professor
David Atkinson
Chapter
7

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CHAPTER 7 CREATING IS SOLUTIONS AND
MANAGING IS PROJECTS
CRITITCAL PRE-DEVELOPMENT QUESTIONS
pre-development questions because they happen before organization decides to
start a system design project concept design and inception stage:
1. WHAT ARE WE PLANNING AND WHY?
To improve performance of business process by automating, informating, and
transforming; ways IS could add value to its new or existing products and
services
Begins by understanding its high level system requirements and also the
business case for why it makes sense to build the system
2. IS THE PROJECT FEASIBLE?
Feasible study: detailed investigation and analysis of a proposed
development project that is undertaken to determine whether it is technically
and economically possible to successfully build the proposed system
Project is feasible if the required technology is available
Study must conclude that company is technically capable of both
acquiring and deploying required technology for the IS solution
Technically feasible: examine potential solutions and evaluating
solutions based on its capabilities and capabilities of any technology partners
Financially feasible: if organization can pay for project and it is a
sound investment of organizations limited resources
Common financial measures show if benefits of implementing the
system (payback period) or how much benefit it can expect (return
on investment [ROI], net present value [NPV], internal rate of
return [IRR])
Difficulty of calculating it is obtaining the list of all costs and
benefits, and then placing a monetary value on each of them; the
costs and benefits can be tangible or intangible
3. SHOULD WE BUILD OR BUY/LEASE?
One of three primary options for obtaining an IS: buying, leasing, or
building
Must consider time-to-market (unless we get the market fast, we are
going to lose the opportunity)
DEVELOPMENT
CHOICEADVANTAGES DISADVANTAGES
BUYINGGenerally faster and less costly
than building entire system from
scratch
Little or no competitive
advantage; may need to compromise
on some features
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Dependent on vendor for product
updates
LEASING (SaaS
OR ASP MODEL)Lowest cost and fastest to put in
place
Vendors are in charge of
maintenance and updates
Does not require an in-house IS
staff
No competitive advantage
Little to no control over system
features
Dependence on vendor for entire
system
Can get locked into an
undesirable contract
BUILDINGMost likely to provide a
competitive advantage
Retain complete control over
sytem
Customization of system
Longest time and highest cost to
put into place
Requires IS staff with time and
development knowledge
4. SHOULD WE DEVELOP IN-HOUSE OR OUTSOURCE?
If building an entirely new system, whether or not to use its own staff
(in-housing) or hire another company (outsourcing)
Considerations include any time-to-market imperative (which puts the
priority on speed), current financial performance, and organizations risk
tolerance (risk between building or buying an IS, while meeting the most
important requirements of the system)
IS DEVELOPMENT
SOURCEADVANTAGEDISADVANTAGE
IN-HOUSE
DEVELOPMENTFirm retains complete
control of the project
Process builds internal
knowledge through learning
and experience
Generally higher
development time and costs
Distraction of in-house IS
staff from other duties
OUTSOURCINGHigh level of skill and
expertise
Internal staff provides
project oversight, which is less
time intensive than full
development
Generally lower time and
costs
Firm loses some control of
project since it is necessary to
give outsourcer some decision-
making authority
Internal staff has less
opportunity to build
experience
Requires good contracts
and oversight
IS DEVELOPMENT TEAMS
Those associated with IS project fall into two groups:
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