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1
CHAPTER D2
     TRANSION TO
    SYSTEM DESIGN
( Selecting the Best Alternative
   Design Strategy)

                           2
Chapter Objectives
    ● Describe software trends, including the
      concept of software as a service
    ● Explain software acquisition alternatives,
      including traditional versus Web-based
      software development strategies
    ● Selecting the Best Alternative Design
      Strategy
     Learn to assemble the various pieces of an
      alternative design strategy.
     Learn how to generate at least three
      alternative design strategies.
     Discuss selecting the best design strategy
      using both qualitative and quantitative
      methods                                 3
Chapter Objectives
    Learn how to use the results of the analysis
      phase to update a Baseline Project Plan
      (BPP).
   * Describe software outsourcing options,
      including offshore outsourcing and the role
      of service providers Explain the transition
      from systems analysis to systems design,
   ● Explain the transition to systems design and
      the importance of prototyping
   ● Discuss guidelines for systems design


                                            4
Alternative generation and selection
    ● Alternative generation and selection is
      the third major analysis activity.
    (Requirements determination,
      structuring requirements, alternatives
      generation and selection)
    ● During alternative generation and
      selection, the system’s structured
      requirements are transformed into
      several alternative design strategies,
      and the best way to acquire the new
      system is identified
                                        5
Development Strategies Overview
   ● Selecting the best development path is
     an important decision that requires
     companies to consider three key
     topics
      – The impact of the Internet
      – Software outsourcing options
      – In-house software development alternatives




                                                     6
The Impact of the Internet
    ● The Internet has triggered enormous
      changes in business methods and
      operations, and software acquisition is
      no exception
    ● This section examines a trend that:-
     views software as a service,
     changing market-place for software,
     how Web-based development
      compares to traditional methods

                                        7
The Impact of the Internet
    ● Software as a Service
       – The Software and Information Industry Association
         (SIIA) is an industry group that focuses on the digital
         economy
       – SIIA believes that the concept of software as a service
         is redefining the way that companies develop and
         deploy their information systems




                                                         8
The Impact of the Internet
    ● The Changing Software Marketplace
      – In the traditional model, software vendors develop
        and sell application packages to customers
      – In addition to traditional vendors, the marketplace
        now includes many forms of outsourcing, including
        application service providers and firms that offer
        Internet business services




                                                      9
The Impact of the Internet
    ● The Impact of the Internet on Systems
      Development
       – Developers will focus on Web-based application
         development, where the Web becomes an integral
         part of the application rather than just a
         communication channel
          • IBM’s WebSphere
          • Microsoft’s .NET




                                                  10
The Impact of the Internet
   ● The Impact of the Internet on
     Systems Development
      – Traditional development
         • Systems design is influenced by compatibility issues
         • Systems are designed to run on local and wide-area
           company networks
         • Web-based features are treated as enhancements rather
           than core elements of the design




                                                          11
The Impact of the Internet
    ● The Impact of the Internet on
      Systems Development
       – Web-based development
          • Systems are developed and delivered in an Internet-
            based framework such as .NET or WebSphere
          • Internet-based development treats the Web as the
            platform, rather than just a communication channel
          • Web-based software usually requires additional layers,
            called middleware




                                                             12
13
Selecting the Best Alternative Design
  Strategy
       ●    Two basic steps:
           1. Generate a comprehensive set of alternative design
              strategies
           2. Select the one design strategy that is most likely to
              result in the desired information system
       ● Process:
           1. Divide requirements into different sets of
              capabilities
           2. Enumerate different potential implementation
              environments that could be used to deliver the
              different sets of capabilities
           3. Propose different ways to source or acquire the
              various sets of capabilities for the different
7.14          implementation environments                    14
Selecting the Best Alternative Design
  Strategy(continued)
       ● Deliverables
         1. At least three substantially different system design
            strategies for building the replacement
            information system
         2. A design strategy judged most likely to lead to the
            most desirable information system
         3. A Baseline Project Plan (BPP) for turning the
            most likely design strategy into a working
            information system



7.15                                                    15
Generating Alternative Design
       Strategies
       ● Best to generate three alternatives:
         – Low-End
            • Provides all required functionality users demand
              with a system that is minimally different from the
              current system
         – High-End
            • Solves problem in question and provides many
              extra features users desire
         – Midrange
            • Compromise of features of high-end alternative
              with frugality of low-end alternative

7.16                                                         16
Drawing Bounds on Alternative Designs
       ● Minimum Requirements
         – Mandatory features versus desired features
         – Forms of features
            • Data
            • Outputs
            • Analyses
            • User expectations on accessibility, response time,
              and turnaround time
         – Constraints on System Development:
            •   Time
            •   Financial
            •   Elements of current system that cannot change
            •   Legal
            •   Dynamics of the problem
7.17                                                            17
Criteria for Choosing
   Off-the-Shelf Software
       ● Cost
          – In-house versus purchased
       ● Functionality
          – Mandatory, essential, and desired features
       ● Vendor Support
          – Installation
          – Training
          – Technical support
       ● Viability of Vendor


7.18                                                     18
Criteria for Choosing
   Off-the-Shelf Software (continued)

       ● Flexibility
          – Ease of customization
       ● Documentation
          – User documentation
          – Technical documentation
       ● Response Time
       ● Ease of Installation


7.19                                    19
7.20   20
Validating Purchased Software
   Information
       ●   Information from Vendor
       ●   Software Evaluation Period
       ●   Customer References from Vendor
       ●   Independent Software Testing Service
       ●   Trade Publications




7.21                                      21
Hardware and Software Issues
             Existing Platform          New Hardware and System
       1. Lower costs                   Software
       2. Information system staff is   1. Some software
          familiar with operation and      components will only
                                           run on new platform
          maintenance
                                        2. Developing system for
       3. Increased odds of                new platform gives
          successfully integrating         organization
          system with existing             opportunity to upgrade
          applications                     technology holdings
       4. No added costs of             3. New requirements may
          converting old systems to        allow organization to
          new platform or                  radically change its
          transferring data                computing operations
7.22                                                      22
Hardware and Software Issues (continued)

       ● Request for Proposal (RFP)
         – A document provided to vendors to ask them to
           propose hardware and system software that will meet
           the requirements of your new system




7.23                                                  23
Implementation Issues

       ● Technical and social aspects of
         implementation need to be addressed
       ● Training
       ● Disruption of Work




7.24                                    24
25
Outsourcing
   ● The Growth of Outsourcing
      – Outsourcing has become part of an overall IT
         strategy for many organizations
      – On Demand
      – A firm that offers outsourcing solutions is called a
         service provider
      - Application service providers (ASP)
      – Internet business services (IBS)
          • Also called managed hosting



                                                       26
Outsourcing
   ● Outsourcing Fees
      – A fixed fee model uses a set fee based on a
        specified level of service and user support
      – A subscription model has a variable fee based on
        the number of users or workstations that have
        access to the application
      – A usage model or transaction model charges a
        variable fee based on the volume of transactions
        or operations performed by the application




                                                     27
Outsourcing
   ● Outsourcing Issues and Concerns
      – Mission-critical IT systems should be out-sourced
        only if the result is a cost-attractive, reliable,
        business solution that fits the company’s long-term
        business strategy
      – Outsourcing also can affect day-to-day company
        operations and can raise some concerns
      – Outsourcing can be especially attractive to a
        company whose volume fluctuates widely, such as a
        defense contractor
      – Many firms are sending IT work overseas at an
        increasing rate (Offshore/global outsourcing)

                                                    28
29
Software Development Options
   ● A company can choose to develop its
     own systems, or purchase, possibly
     customize, and implement a software
     package
   ● The most important consideration is
     total cost of ownership (TCO)
   ● Companies also develop user
     applications designed around
     commercial software packages

                                    30
Software Development Options
   ● Customizing a Software Package
      1.   You can purchase a basic package that vendors
           will customize to suit your needs
      2.   You can negotiate directly with the software
           vendor to make enhancements to meet your
           needs by paying for the changes
      3.   You can purchase the package and make your
           own modifications, if this is permissible under
           the terms of the software license




                                                      31
Software Development Options
   ● Creating User Applications
      –   A user application utilizes standard business software
      –   User interface
      –   Help desk or information center (IC)
      –   Screen generators
      –   Report generators




                                                       32
Role of the Systems Analyst
    ● When selecting hardware and
      software, systems analysts often
      work as an evaluation and selection
      team
    ● The primary objective of the
      evaluation and selection team is to
      eliminate system alternatives that
      will not work, rank the system
      alternatives that will work, and
      present the viable alternatives to
      management for a final decision
                                      33
Analyzing Cost and Benefits
   ● Financial Analysis Tools
      – Payback Analysis
      – Return on investment (ROI)
      – Net present value (NPV)




                                     34
Analyzing Cost and Benefits
    ● Cost-Benefit Analysis Checklist
       – List each development strategy being considered
       – Identify all costs and benefits for each alternative. Be
         sure to indicate when costs will be incurred and
         benefits realized
       – Consider future growth and the need for scalability
       – Include support costs for hardware and software
       – Apply the financial analysis tools to each alternative
       – Study the results and prepare a report to
         management


                                                         35
36
The Software Acquisition Process
   ● Step 1: Evaluate the Information
     System Requirements
      – Prepare a request for proposal or quotation
         • Request for proposal (RFP)
         • Evaluation model
         • Request for quotation (RFQ)




                                                      37
The Software Acquisition Process
   ● Step 2: Identify Potential Vendors or
     Outsourcing Options
      – The Internet is a primary marketplace
      – Another approach is to work with a consulting firm
      – Another resource is the Internet bulletin board
        system that contains thousands of forums, called
        newsgroups




                                                   38
The Software Acquisition Process
   ● Step 3: Evaluate the Alternatives
      –   Existing users
      –   Application testing
      –   Benchmarking - benchmark
      –   Match each package against the RFP features and
          rank the choices




                                                     39
The Software Acquisition Process
   ● Step 4: Perform Cost-Benefit Analysis
      – Identify and calculate TCO for each option you are
        considering
      – When you purchase software, what you are buying is
        a software license
      – If you purchase a software package, consider a
        supplemental maintenance agreement




                                                  40
The Software Acquisition Process
   ● Step 5: Prepare a Recommendation
      – You should prepare a recommendation that
        evaluates and describes the alternatives, together
        with the costs, benefits, advantages, and
        disadvantages of each option
      – At this point, you may be required to submit a
        formal system requirements document and deliver a
        presentation




                                                   41
The Software Acquisition Process
   ● Step 6: Implement the Solution
      – Implementation tasks will depend on the solution
        selected
      – Before the new software becomes operational, you
        must complete all implementation steps, including
        loading, configuring, and testing the software; training
        users; and converting data files to the new system’s
        format




                                                       42
Completion of Systems Analysis Tasks
   ● Presentation to Management
      –   Based on their decision, your next task will be one
          of the following
          1.   Implement an outsourcing alternative
          2.   Develop an in-house system
          3.   Purchase or customize a software package
          4.   Perform additional systems analysis work
          5.   Stop all further work




                                                          43
44
The Transition to Systems Design
   ● If management decides to develop the
     system in-house, then the transition
     to the systems design phase begins
   ● Preparing for Systems Design Tasks
      – It is essential to have an accurate and understandable
        system requirements document




                                                      45
The Transition to Systems Design
   ● The Relationship between Logical and
     Physical Design
      – The logical design defines the functions and features
        of the system and the relationships among its
        components
      – The physical design of an information system is a
        plan for the actual implementation of the system




                                                      46
47
Systems Design Guidelines
   ● The systems analyst must understand
     the logical design of the system before
     beginning the physical design of any
     one component
      – Data design
      – User interface
      – Systems design specification




                                       48
Systems Design Guidelines
   ● Systems Design Objectives
      – The goal of systems design is to build a system that
        is effective, reliable, and maintainable




                                                      49
Systems Design Guidelines
   ● System Design Objectives
      – User Considerations
      – Data Considerations
         • Data should be entered into the system where and when it
           occurs because delays cause data errors
         • Data should be verified when entered to catch errors
           immediately
         • Automated methods of data entry should be used whenever
           possible
         • Access for data entry should be controlled and all entries or
           changes to critical data values should be reported – audit
           trails

                                                              50
Systems Design Guidelines
   ● System Design Objectives
      – Data Considerations
         • Data should be entered into a system only once
         • Data duplication should be avoided
      – Architecture considerations
         • Use a modular design
         • Design modules that perform a single function are easier to
           understand, implement, and maintain




                                                            51
Systems Design Guidelines
   ● Design Trade-Offs
      – Design goals often conflict with each other
      – Most design trade-off decisions that you will face
        come down to the basic conflict of quality versus
        cost
      – Avoid decisions that achieve short-term savings but
        might mean higher costs later




                                                    52
Prototyping
   ● Prototyping produces an early, rapidly
     constructed working version of the
     proposed information system, called a
     prototype
   ● Prototyping Methods
      – System prototyping
      – Design prototyping
      – Throwaway prototyping



                                      53
Prototyping
   ● Prototyping Methods
      – Prototyping offers many benefits
         • Users and systems developers can avoid misunderstandings
         • Managers can evaluate a working model more effectively
           than a paper specification
      – Consider potential problems
         • The rapid pace of development can create quality problems
         • In very complex systems, the prototype becomes unwieldy
           and difficult to manage




                                                           54
Prototyping
   ● Prototyping Tools
      – Systems analysts can use powerful tools to develop
        prototypes
         •   CASE tools
         •   Application generators
         •   Report generators
         •   Screen generators
         •   Fourth-generation language (4GL)
         •   Fourth-generation environment




                                                    55
Prototyping
   ● Limitations of Prototypes
      – A prototype is a functioning system, but it is less
        efficient than a fully developed system
      – Systems developers can upgrade the prototype into
        the final information system by adding the necessary
        capability
      – Otherwise, the prototype is discarded
   ● Other Modeling Tools
      – Systems flowchart
      – American National Standards Institute (ANSI)

                                                     56
Chapter Summary
   ● This chapter describes system
     development strategies, the
     preparation and presentation of the
     system requirements document, and
     the transition to the systems design
     phase of the SDLC
   ● An important trend that views
     software as a service, rather than a
     product, has created new software
     acquisition options
   ● Systems analysts must consider Web-
     based development environments
                                    57
Chapter Summary
   ● Identify requirements and constraints
   ● Generate alternative design strategies
   ● Select the best design strategy
   ● Update the Baseline Project Plan (BPP) The
     systems analyst’s role in the software
     development process depends on the
     specific development strategy
   ● The most important factor in choosing a
     development strategy is total cost of
     ownership (TCO)
   ● The process of acquiring software involves a
     series of steps
                                           58
59
Hoosier Burger’s New Inventory Control
  System
       ● Replacement for existing system
       ● Figure 7-4 ranks system requirements
         and constraints




7.60                                     60
7.61   61
Hoosier Burger’s New Inventory Control
  System (continued)
       ● Figure 7-5 shows steps of current
         system
       ● When proposing alternatives, the
         requirements and constraints must be
         considered




7.62                                       62
7.63   63
Hoosier Burger’s New Inventory Control
  System (continued)

                                 ● Figure 7-7
                                   lists 3
                                   alternatives:
                                   – Alternative A is
                                     a low-end
                                     proposal
                                   – Alternative C is
                                     a high-end
                                     proposal
                                   – Alternative B is
                                     a midrange
                                     proposal


7.64                                        64
Hoosier Burger’s New Inventory Control
  System (continued)
     ● Selecting the Most Likely Alternative
        – Weighted approach can be used to compare the three
          alternatives
        – Figure 7-8 shows a weighted approach for Hoosier Burger
        – Left-hand side of table contains decision criteria
            • Constants and requirements
            • Weights are arrived at by discussion with analysis team, users,
              and managers
        – Each requirement and constraint is ranked
            • 1 indicates that the alternative does not match the request
              well or that it violates the constraint
            • 5 indicates that the alternative meets or exceeds
              requirements or clearly abides by the constraint
     ● Selecting the Most Likely Alternative
        – According to the weights used, alternative C appears to be the
7.65      best choice                                                  65
7.66   66
Updating the Baseline Project Plan (BPP)

       ● The Baseline Project Plan (BPP) was
         developed during systems planning and
         selection phase
       ● Baseline Project Plan (BPP) can be used as an
         outline of a status report at analysis phase
       ● Schedule will be updated to reflect actual
         activities and durations
       ● An oral presentation of project status is
         typically made at this phase



7.67                                               67
PVF WebStore:
   Selecting the Best Alternative Design Strategy


       ● Requirements and constraints were
         compiled by consultant and team (see
         Table 7-4)




7.68                                                68
7.69   69
PVF WebStore:
   Selecting the Best Alternative Design Strategy
        Proposed system is a scalable, three-tier approach
            Scalable
               The ability to seamlessly upgrade the system
                through either hardware upgrades, software
                upgrades or both
            Three-tier
               Web Server
                   Provides connection to the Internet and
                    presentation of HTML page
               Applications Server
                   Middle layer of software and hardware that lies
                    between Web server and corporate network
               Corporate network
7.70               Existing organizational computing infrastructure
                                                               70
7.71   71
72
WEB SEARCHES
● software acquisition alternatives,
● Selecting the Best Alternative Design
  Strategy
● software outsourcing options
● Analyzing Cost and Benefits
     – Financial Analysis Tools
         • Payback Analysis
         • Return on investment (ROI)
         • Net present value (NPV)
•   moodle.amriad.com
•   Imaginecup.com

                                          73

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Transition to System Design

  • 1. 1
  • 2. CHAPTER D2 TRANSION TO SYSTEM DESIGN ( Selecting the Best Alternative Design Strategy) 2
  • 3. Chapter Objectives ● Describe software trends, including the concept of software as a service ● Explain software acquisition alternatives, including traditional versus Web-based software development strategies ● Selecting the Best Alternative Design Strategy  Learn to assemble the various pieces of an alternative design strategy.  Learn how to generate at least three alternative design strategies.  Discuss selecting the best design strategy using both qualitative and quantitative methods 3
  • 4. Chapter Objectives  Learn how to use the results of the analysis phase to update a Baseline Project Plan (BPP). * Describe software outsourcing options, including offshore outsourcing and the role of service providers Explain the transition from systems analysis to systems design, ● Explain the transition to systems design and the importance of prototyping ● Discuss guidelines for systems design 4
  • 5. Alternative generation and selection ● Alternative generation and selection is the third major analysis activity. (Requirements determination, structuring requirements, alternatives generation and selection) ● During alternative generation and selection, the system’s structured requirements are transformed into several alternative design strategies, and the best way to acquire the new system is identified 5
  • 6. Development Strategies Overview ● Selecting the best development path is an important decision that requires companies to consider three key topics – The impact of the Internet – Software outsourcing options – In-house software development alternatives 6
  • 7. The Impact of the Internet ● The Internet has triggered enormous changes in business methods and operations, and software acquisition is no exception ● This section examines a trend that:-  views software as a service,  changing market-place for software,  how Web-based development compares to traditional methods 7
  • 8. The Impact of the Internet ● Software as a Service – The Software and Information Industry Association (SIIA) is an industry group that focuses on the digital economy – SIIA believes that the concept of software as a service is redefining the way that companies develop and deploy their information systems 8
  • 9. The Impact of the Internet ● The Changing Software Marketplace – In the traditional model, software vendors develop and sell application packages to customers – In addition to traditional vendors, the marketplace now includes many forms of outsourcing, including application service providers and firms that offer Internet business services 9
  • 10. The Impact of the Internet ● The Impact of the Internet on Systems Development – Developers will focus on Web-based application development, where the Web becomes an integral part of the application rather than just a communication channel • IBM’s WebSphere • Microsoft’s .NET 10
  • 11. The Impact of the Internet ● The Impact of the Internet on Systems Development – Traditional development • Systems design is influenced by compatibility issues • Systems are designed to run on local and wide-area company networks • Web-based features are treated as enhancements rather than core elements of the design 11
  • 12. The Impact of the Internet ● The Impact of the Internet on Systems Development – Web-based development • Systems are developed and delivered in an Internet- based framework such as .NET or WebSphere • Internet-based development treats the Web as the platform, rather than just a communication channel • Web-based software usually requires additional layers, called middleware 12
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  • 14. Selecting the Best Alternative Design Strategy ● Two basic steps: 1. Generate a comprehensive set of alternative design strategies 2. Select the one design strategy that is most likely to result in the desired information system ● Process: 1. Divide requirements into different sets of capabilities 2. Enumerate different potential implementation environments that could be used to deliver the different sets of capabilities 3. Propose different ways to source or acquire the various sets of capabilities for the different 7.14 implementation environments 14
  • 15. Selecting the Best Alternative Design Strategy(continued) ● Deliverables 1. At least three substantially different system design strategies for building the replacement information system 2. A design strategy judged most likely to lead to the most desirable information system 3. A Baseline Project Plan (BPP) for turning the most likely design strategy into a working information system 7.15 15
  • 16. Generating Alternative Design Strategies ● Best to generate three alternatives: – Low-End • Provides all required functionality users demand with a system that is minimally different from the current system – High-End • Solves problem in question and provides many extra features users desire – Midrange • Compromise of features of high-end alternative with frugality of low-end alternative 7.16 16
  • 17. Drawing Bounds on Alternative Designs ● Minimum Requirements – Mandatory features versus desired features – Forms of features • Data • Outputs • Analyses • User expectations on accessibility, response time, and turnaround time – Constraints on System Development: • Time • Financial • Elements of current system that cannot change • Legal • Dynamics of the problem 7.17 17
  • 18. Criteria for Choosing Off-the-Shelf Software ● Cost – In-house versus purchased ● Functionality – Mandatory, essential, and desired features ● Vendor Support – Installation – Training – Technical support ● Viability of Vendor 7.18 18
  • 19. Criteria for Choosing Off-the-Shelf Software (continued) ● Flexibility – Ease of customization ● Documentation – User documentation – Technical documentation ● Response Time ● Ease of Installation 7.19 19
  • 20. 7.20 20
  • 21. Validating Purchased Software Information ● Information from Vendor ● Software Evaluation Period ● Customer References from Vendor ● Independent Software Testing Service ● Trade Publications 7.21 21
  • 22. Hardware and Software Issues Existing Platform New Hardware and System 1. Lower costs Software 2. Information system staff is 1. Some software familiar with operation and components will only run on new platform maintenance 2. Developing system for 3. Increased odds of new platform gives successfully integrating organization system with existing opportunity to upgrade applications technology holdings 4. No added costs of 3. New requirements may converting old systems to allow organization to new platform or radically change its transferring data computing operations 7.22 22
  • 23. Hardware and Software Issues (continued) ● Request for Proposal (RFP) – A document provided to vendors to ask them to propose hardware and system software that will meet the requirements of your new system 7.23 23
  • 24. Implementation Issues ● Technical and social aspects of implementation need to be addressed ● Training ● Disruption of Work 7.24 24
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  • 26. Outsourcing ● The Growth of Outsourcing – Outsourcing has become part of an overall IT strategy for many organizations – On Demand – A firm that offers outsourcing solutions is called a service provider - Application service providers (ASP) – Internet business services (IBS) • Also called managed hosting 26
  • 27. Outsourcing ● Outsourcing Fees – A fixed fee model uses a set fee based on a specified level of service and user support – A subscription model has a variable fee based on the number of users or workstations that have access to the application – A usage model or transaction model charges a variable fee based on the volume of transactions or operations performed by the application 27
  • 28. Outsourcing ● Outsourcing Issues and Concerns – Mission-critical IT systems should be out-sourced only if the result is a cost-attractive, reliable, business solution that fits the company’s long-term business strategy – Outsourcing also can affect day-to-day company operations and can raise some concerns – Outsourcing can be especially attractive to a company whose volume fluctuates widely, such as a defense contractor – Many firms are sending IT work overseas at an increasing rate (Offshore/global outsourcing) 28
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  • 30. Software Development Options ● A company can choose to develop its own systems, or purchase, possibly customize, and implement a software package ● The most important consideration is total cost of ownership (TCO) ● Companies also develop user applications designed around commercial software packages 30
  • 31. Software Development Options ● Customizing a Software Package 1. You can purchase a basic package that vendors will customize to suit your needs 2. You can negotiate directly with the software vendor to make enhancements to meet your needs by paying for the changes 3. You can purchase the package and make your own modifications, if this is permissible under the terms of the software license 31
  • 32. Software Development Options ● Creating User Applications – A user application utilizes standard business software – User interface – Help desk or information center (IC) – Screen generators – Report generators 32
  • 33. Role of the Systems Analyst ● When selecting hardware and software, systems analysts often work as an evaluation and selection team ● The primary objective of the evaluation and selection team is to eliminate system alternatives that will not work, rank the system alternatives that will work, and present the viable alternatives to management for a final decision 33
  • 34. Analyzing Cost and Benefits ● Financial Analysis Tools – Payback Analysis – Return on investment (ROI) – Net present value (NPV) 34
  • 35. Analyzing Cost and Benefits ● Cost-Benefit Analysis Checklist – List each development strategy being considered – Identify all costs and benefits for each alternative. Be sure to indicate when costs will be incurred and benefits realized – Consider future growth and the need for scalability – Include support costs for hardware and software – Apply the financial analysis tools to each alternative – Study the results and prepare a report to management 35
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  • 37. The Software Acquisition Process ● Step 1: Evaluate the Information System Requirements – Prepare a request for proposal or quotation • Request for proposal (RFP) • Evaluation model • Request for quotation (RFQ) 37
  • 38. The Software Acquisition Process ● Step 2: Identify Potential Vendors or Outsourcing Options – The Internet is a primary marketplace – Another approach is to work with a consulting firm – Another resource is the Internet bulletin board system that contains thousands of forums, called newsgroups 38
  • 39. The Software Acquisition Process ● Step 3: Evaluate the Alternatives – Existing users – Application testing – Benchmarking - benchmark – Match each package against the RFP features and rank the choices 39
  • 40. The Software Acquisition Process ● Step 4: Perform Cost-Benefit Analysis – Identify and calculate TCO for each option you are considering – When you purchase software, what you are buying is a software license – If you purchase a software package, consider a supplemental maintenance agreement 40
  • 41. The Software Acquisition Process ● Step 5: Prepare a Recommendation – You should prepare a recommendation that evaluates and describes the alternatives, together with the costs, benefits, advantages, and disadvantages of each option – At this point, you may be required to submit a formal system requirements document and deliver a presentation 41
  • 42. The Software Acquisition Process ● Step 6: Implement the Solution – Implementation tasks will depend on the solution selected – Before the new software becomes operational, you must complete all implementation steps, including loading, configuring, and testing the software; training users; and converting data files to the new system’s format 42
  • 43. Completion of Systems Analysis Tasks ● Presentation to Management – Based on their decision, your next task will be one of the following 1. Implement an outsourcing alternative 2. Develop an in-house system 3. Purchase or customize a software package 4. Perform additional systems analysis work 5. Stop all further work 43
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  • 45. The Transition to Systems Design ● If management decides to develop the system in-house, then the transition to the systems design phase begins ● Preparing for Systems Design Tasks – It is essential to have an accurate and understandable system requirements document 45
  • 46. The Transition to Systems Design ● The Relationship between Logical and Physical Design – The logical design defines the functions and features of the system and the relationships among its components – The physical design of an information system is a plan for the actual implementation of the system 46
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  • 48. Systems Design Guidelines ● The systems analyst must understand the logical design of the system before beginning the physical design of any one component – Data design – User interface – Systems design specification 48
  • 49. Systems Design Guidelines ● Systems Design Objectives – The goal of systems design is to build a system that is effective, reliable, and maintainable 49
  • 50. Systems Design Guidelines ● System Design Objectives – User Considerations – Data Considerations • Data should be entered into the system where and when it occurs because delays cause data errors • Data should be verified when entered to catch errors immediately • Automated methods of data entry should be used whenever possible • Access for data entry should be controlled and all entries or changes to critical data values should be reported – audit trails 50
  • 51. Systems Design Guidelines ● System Design Objectives – Data Considerations • Data should be entered into a system only once • Data duplication should be avoided – Architecture considerations • Use a modular design • Design modules that perform a single function are easier to understand, implement, and maintain 51
  • 52. Systems Design Guidelines ● Design Trade-Offs – Design goals often conflict with each other – Most design trade-off decisions that you will face come down to the basic conflict of quality versus cost – Avoid decisions that achieve short-term savings but might mean higher costs later 52
  • 53. Prototyping ● Prototyping produces an early, rapidly constructed working version of the proposed information system, called a prototype ● Prototyping Methods – System prototyping – Design prototyping – Throwaway prototyping 53
  • 54. Prototyping ● Prototyping Methods – Prototyping offers many benefits • Users and systems developers can avoid misunderstandings • Managers can evaluate a working model more effectively than a paper specification – Consider potential problems • The rapid pace of development can create quality problems • In very complex systems, the prototype becomes unwieldy and difficult to manage 54
  • 55. Prototyping ● Prototyping Tools – Systems analysts can use powerful tools to develop prototypes • CASE tools • Application generators • Report generators • Screen generators • Fourth-generation language (4GL) • Fourth-generation environment 55
  • 56. Prototyping ● Limitations of Prototypes – A prototype is a functioning system, but it is less efficient than a fully developed system – Systems developers can upgrade the prototype into the final information system by adding the necessary capability – Otherwise, the prototype is discarded ● Other Modeling Tools – Systems flowchart – American National Standards Institute (ANSI) 56
  • 57. Chapter Summary ● This chapter describes system development strategies, the preparation and presentation of the system requirements document, and the transition to the systems design phase of the SDLC ● An important trend that views software as a service, rather than a product, has created new software acquisition options ● Systems analysts must consider Web- based development environments 57
  • 58. Chapter Summary ● Identify requirements and constraints ● Generate alternative design strategies ● Select the best design strategy ● Update the Baseline Project Plan (BPP) The systems analyst’s role in the software development process depends on the specific development strategy ● The most important factor in choosing a development strategy is total cost of ownership (TCO) ● The process of acquiring software involves a series of steps 58
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  • 60. Hoosier Burger’s New Inventory Control System ● Replacement for existing system ● Figure 7-4 ranks system requirements and constraints 7.60 60
  • 61. 7.61 61
  • 62. Hoosier Burger’s New Inventory Control System (continued) ● Figure 7-5 shows steps of current system ● When proposing alternatives, the requirements and constraints must be considered 7.62 62
  • 63. 7.63 63
  • 64. Hoosier Burger’s New Inventory Control System (continued) ● Figure 7-7 lists 3 alternatives: – Alternative A is a low-end proposal – Alternative C is a high-end proposal – Alternative B is a midrange proposal 7.64 64
  • 65. Hoosier Burger’s New Inventory Control System (continued) ● Selecting the Most Likely Alternative – Weighted approach can be used to compare the three alternatives – Figure 7-8 shows a weighted approach for Hoosier Burger – Left-hand side of table contains decision criteria • Constants and requirements • Weights are arrived at by discussion with analysis team, users, and managers – Each requirement and constraint is ranked • 1 indicates that the alternative does not match the request well or that it violates the constraint • 5 indicates that the alternative meets or exceeds requirements or clearly abides by the constraint ● Selecting the Most Likely Alternative – According to the weights used, alternative C appears to be the 7.65 best choice 65
  • 66. 7.66 66
  • 67. Updating the Baseline Project Plan (BPP) ● The Baseline Project Plan (BPP) was developed during systems planning and selection phase ● Baseline Project Plan (BPP) can be used as an outline of a status report at analysis phase ● Schedule will be updated to reflect actual activities and durations ● An oral presentation of project status is typically made at this phase 7.67 67
  • 68. PVF WebStore: Selecting the Best Alternative Design Strategy ● Requirements and constraints were compiled by consultant and team (see Table 7-4) 7.68 68
  • 69. 7.69 69
  • 70. PVF WebStore: Selecting the Best Alternative Design Strategy  Proposed system is a scalable, three-tier approach  Scalable  The ability to seamlessly upgrade the system through either hardware upgrades, software upgrades or both  Three-tier  Web Server  Provides connection to the Internet and presentation of HTML page  Applications Server  Middle layer of software and hardware that lies between Web server and corporate network  Corporate network 7.70  Existing organizational computing infrastructure 70
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  • 73. WEB SEARCHES ● software acquisition alternatives, ● Selecting the Best Alternative Design Strategy ● software outsourcing options ● Analyzing Cost and Benefits – Financial Analysis Tools • Payback Analysis • Return on investment (ROI) • Net present value (NPV) • moodle.amriad.com • Imaginecup.com 73

Editor's Notes