IT Chapter 5.docx

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Management and Organizational Studies
Management and Organizational Studies 4463A/B
Muhammad Shuja

IT Chapter 5Systems Development and Program Change ActivitiesParticipants in systems development o System professionalssystem analystsengineersprogrammers who build the system o End usersthose for whom the system is built during systems development system professionals work with primary users to determine users needs and problems o Stakeholderspeople who have interest in the system but not end users ie auditors o Accountantsauditorsthose who address the controlsaccountingauditing issues for systems developmentOrganizations acquire IS in two ways 1 Inhouse developmentrequires maintaining a fulltime systems staff of analystsprogrammers who identify user info needs and satisfy their need with custom systems 2 Commercial systems from software vendorsa Trends in commercial software that have stimulated the growth of this market i Relative low cost of general commercial software compared to customized software ii Emergence of industryspecific vendorsiii Growing demand from businesses that are too small to afford an inhouse development staff iv Trend toward downsizing of organizational units and move towards the distributed data processing environment which makes commercial software more appealing to larger organizations b Types of commercial software packages i Turnkey systemscompletely finishedtested systems that are ready for implementation usually general purpose users have limited ability to customize them to their specific needsii General accounting softwaremass production of a standard systemdesigned to serve a wide variety of user needs These are usually designed in modules and users can purchase the modules that meet their specific needs ie AR AP iii Backbone systemsis a basic system structure on which to build it comes with the primary processing modules programmed The vendor designs and programs the user interface to suit the clients needs costlyiv Vendorsupported systemhybrids of customer and commercial software products are custommade but development service is commercially provided vendor serves as organizations inhouse systems development staff Client must rely on vendor to provide custom programming and onsite maintenance less costly Advantages of commercial software o Implementation timecustom systems can take months to years to developimplement whereas commercial software can be implemented immediately upon need o Costcost of commercial software spread across many users so that the unit cost is reduced o Reliabilityless likely to have errors than inhouse systems because they are thoroughly tested before release to the marketDisadvantages of commercial software o Independencefirm is dependent on the vendor for maintenanceruns risk that vendor may cease to provide support or go out of business o Need for customized softwareusers needs may be too complex or unique to be addressed by general commercial software o Maintenanceif users needs change it may be difficult to modify commercial softwareSystems development life cycleo Phase I System Planninglink individual system projects to the strategic objectives of the firmStrategic Systems Planninginvolves the allocation of system resources at the macro level 35 years helps to determine number of professionals to be hired number of mainframes funds to be allocated to new systems etc It provides authorization control for the SDLC and is a good costmgmt tool
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