System Analysis — Mr Ahmad Al-Ghoul Learning

System Analysis - Mr. Ahmad Al-Ghoul

Learning Objectives n n Describe software trends, including the concept of software as a service Explain software acquisition alternatives, including traditional versus Web-based software development strategies Describe software outsourcing options Explain advantages and disadvantages of developing software in-house versus other alternatives Avicenna System Analysis and Design System Analysis 2

Development Strategies Overview n Selecting the best development path is an important decision that requires companies to consider three key topics The impact of the Internet n Software outsourcing options n In-house software development alternatives n Avicenna System Analysis and Design System Analysis 3

The Impact of the Internet n The Internet has triggered enormous changes in business methods and operations, and software acquisition is no exception n n 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 Web-based services remove the responsibility for installation, maintenance, and upgrades from a company’s in house staff The Changing Software Marketplace n n Avicenna 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 System Analysis and Design System Analysis 4

The Impact of the Internet on Systems Development n n n As analyst, you must consider whether development will take place in a web-centric framework, or in traditional environment the web becomes an integral part of the application, rather than just a communication channel Let’s consider the differences between traditional and web-based systems n Avicenna Traditional development n System design is influenced by compatibility issues, including existing hardware and software platforms and legacy systems n Systems are designed to run on local and wide-area company networks n Web-based features are treated as enhancements rather than core elements of the design System Analysis and Design System Analysis 5

The Impact of the Internet on Systems Development Traditional development n Development follows one of three main paths n In-house development n Purchase of a software package n Use of outside consultant n Many applications require substantial desktop computing power and resources n Security issues are less complex than with Web -based systems, because the system operates on a private telecommunication network, rather than internet Avicenna System Analysis and Design System Analysis 6

The Impact of the Internet on Systems Development n Web-based development n n n Avicenna Systems are developed and delivered in an Internetbased framework such as. NET or Web. Sphere Internet-based development treats the Web as the platform, rather than just a communication channel Web-based systems are easily scalable, and can run on multiple hardware environment Web-based software treats the software application as a service that is less dependent on desktop computing power and resources Limit in –house involvement to minimum, and have the vendor install, configure, and maintain the system Web-based software usually requires additional layers, called middleware, to communicate with existing software and legacy systems System Analysis and Design System Analysis 7

Outsourcing n n Avicenna Is the transfer of information systems development, operation, or maintenance to an outside firm that provides these services, for a fee Can refer to relatively minor programming tasks, the rental of software from a service provider, the outsourcing of a basic business process (often called business process outsourcing, or BPO), or the handling of a company’s entire IT function System Analysis and Design System Analysis 8

Outsourcing n A firm that offers outsourcing solutions is called a service provider n Application service providers (ASP) ASP is a firm that delivers a software application, or access to an application n ASP rents commercially available software such as databases and accounting packages n ASPs design, develop, implement, or maintain the package n Avicenna System Analysis and Design System Analysis 9

Outsourcing n Outsourcing issues and concerns n n n Mission-critical 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 raises issues such as control, culture, communication A company must plan outsourcing carefully issues relating to insurance, potential liability, licensing and information ownership, warranties, and disaster recovery Outsourcing can be especially attractive to a company whose volume fluctuates widely, such as a defense contractor Risks include possibly n n n Avicenna Losing confidential information Losing control over future development Losing learning opportunities System Analysis and Design System Analysis 10

Outsourcing n Outsourcing guidelines n n n Avicenna Keep lines of communication open between you and your outsource Define and stabilize requirements before signing a contract View the outsourcing relationship as a partnership Select the vendor, or service provider carefully Assign a person to manage the relationship with the outsource Don’t outsource what you don’t understand System Analysis and Design System Analysis 11

In-House Software Development Options n n 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) [1] Avicenna System Analysis and Design System Analysis 12

In-House Software Development Options n Make or Buy Decision n n Avicenna The choice between developing versus purchasing software often is called a make or buy, or build or buy decision The company’s IT department makes, builds, and develops in-house software Companies that develop software for sale are called software vendors A firm that enhances a commercial package by adding custom features and configuring it for a particular industry is called a value-added reseller (VAR) System Analysis and Design System Analysis 13

In-House Software Development Options n Software packages are available for every type of business activity Horizontal application: a software package that can be used by many different types of organizations, like an accounting package n Vertical application: a software package developed to handle information requirements for a specific type of business, like collage, banks, hospitals, real state, and airlines n Avicenna System Analysis and Design System Analysis 14

In-House Software Development Options n Developing a system, buying a software package, or customizing a software package – each choice from above has advantages, disadvantages, and cost consideration Avicenna System Analysis and Design System Analysis 15

In-House Software Development Options n Developing Software In-House n Companies choose in-house development to: n Satisfy unique business requirements n n Minimize changes in business procedures and policies n n Installing a new software package almost always require changes in how a company does business; however, if the purchased package will be disruptive, it is better to develop the software in-house Meet constraints of existing systems n Avicenna No commercially available software package can meet their unique business requirements if the new system must interface with an existing system, a company could develop its own software to ensure that the new system will interface with the old system System Analysis and Design System Analysis 16

In-House Software Development Options n Developing Software In-House n Meet constraints of existing technology n n Develop internal resources and capabilities n n When developing the system in-house, the IT staff will understands the organization’s business functions and information support needs so they provide a competitive advantage by responding to business problems or opportunities Satisfy unique security requirements n Avicenna The new system must work with existing hardware and legacy systems. That could require a custom design not commercially available In some cases when security and confidently is one of the organization main issues, building in-house software might be the only choice System Analysis and Design System Analysis 17

In-House Software Development Options n Purchasing a Software Package n A commercially available software package might be in some cases an attractive to developing inhouse software n Lower costs n n Requires less time to implement n n The in-house developed software needs to designed, programmed, tested, and documented, when the purchased package, is already has been designed, programmed, tested, and documented Proven reliability and performance benchmarks n Avicenna Compare to software developed in-house, a software package almost always is less expensive If the product is popular, it almost certainly has been rated and evaluated by independent reviewers System Analysis and Design System Analysis 18

In-House Software Development Options n Purchasing a Software Package Requires less technical development staff n Future upgrades provided by the vendor n n n Input from other companies n Avicenna Adding improvements and enhancements regularly by software vendors You can contact users in other companies to obtain their input about the package, or you might be able to try the package before making your final decision System Analysis and Design System Analysis 19

In-House Software Development Options n Customizing a Software Package n n If the standard version of a software product does not satisfy a company’s requirements, the firm can consider adapting the package to meet its needs. Three ways to customize a software package are: n n n Avicenna You can purchase a basic package that vendors will customize to suit your needs You can negotiate directly with the software vendor to make enhancements to meet your needs by paying for the changes You can purchase the package and make your own modifications, if this is permissible under the terms of the software license. A disadvantage of this approach is that system analysts and programmers might be unfamiliar with the software. System Analysis and Design System Analysis 20

In-House Software Development Options n Customizing a Software Package n Disadvantages More cost than purchasing the standard package n The customized package will take longer time to obtain than the standard package n Vendors regularly upgrade their standard software packages, they might not upgrade a customized version n Avicenna System Analysis and Design System Analysis 21

Sequence Summary n n n 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, and various outsourcing options, including application service providers and internet business services If a company choose to handle its own software development needs, it can create in-house systems, or purchase and possibly customize commercially available software packages Companies choose in-house development to: Satisfy unique business requirements, Minimize changes in business procedures and policies, Meet constraints of existing systems, Meet constraints of existing technology, Develop internal resources and capabilities, and Satisfy unique security requirements A commercially available software package might be in some cases an attractive to developing in-house software for, Lower costs, Requires less time to implement, Proven reliability and performance benchmarks, Requires less technical development staff, and Future upgrades provided by the vendor Avicenna System Analysis and Design System Analysis 22

Sequence Summary n In this Sequence we have n Described software trends, including the concept of software as a service n Explained software acquisition alternatives, including traditional versus Web-based software development strategies n Described software outsourcing options n Explained why companies choose to develop in-house software or buy one n Defined and distinguished between horizontal and vertical applications n Explain advantages and disadvantages of developing software in-house versus other alternatives n Described the three ways to customize a software package Avicenna System Analysis and Design System Analysis 23

Reference [1] System Analysis and Design, Sixth Edition Authors: Gary B. Shelly, Thomas J. Cashman and Harry J. Rosenblatt , Publisher: SHELLY CASHMAN SEWIES. [2] system analysis and design, sixth edition Authors: Kenneth E. Kendall and Julie E. Kendall Publisher: Prentice Hall Avicenna System Analysis and Design System Analysis 24