INFORMATION SYSTEMS DEVELOPMENT

After completing this sub- chapter on Information System Development, you will be able to:
• Describe the stages in the systems development Lifecycle (SDLC)
• Discuss the alternative to SDLC such as Prototyping
• Analyze the Software outsourcing process
• Justify the factors to consider while selecting a software package

Information systems have to be developed and improved. This could be done with, prototyping,
application software packages acquisition, end-user development, and outsourcing as systems-
building alternatives to the traditional systems lifecycle method.

1. The Traditional Systems Lifecycle

The systems lifecycle is the oldest method for building information systems and is still used
today for medium or large complex systems projects. The lifecycle methodology has a very
formal division of labor between end users and information systems specialists. Technical
specialists such as systems analysts and programmers are responsible for much of the
systems analysis, design, and implementation work; end users are limited to providing
information requirements and reviewing the technical staff's work. Formal agreements
between end users and technical specialists are required as each stage is completed.

Stages of the Systems Lifecycle

Traditional systems development life cycle (SDLC) consist of several stages or steps. Each
stage consists of basic activities that must be performed before the next stage can begin.
Specialists tend to differ as to the number of stages, the order of stages and even the
terminologies used in systems lifecycle.
SDLC employs systems approach (SA) to problem solving. In SA, a problem is solved by
examining it as a whole first and then the parts that make it up. This way, the problem
through analysis into parts can easily be understood. By examining the problem as a whole,
the relationships among its parts are considered in problem solution. The resulting solution
would fit the parts as well as the problem as a whole. This is why SA is used and is
applicable to information development.
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 SDLC may consist of the following steps: Systems investigation; Systems analysis; Systems
design; Systems implementation; Systems maintenance

i. Systems investigation
• Determines whether a business problem exists
• Conducts a feasibility study to determine whether or not a new or improved
information system is a feasible solution
• Develop a project management plan and obtain management approval
The product is feasibility study.
ii. System analysis
• Describes what a system should do to meet the information needs of end-users
• Analyze the information needs of end-users, the organization environment and
any system currently used
• Develop the functional requirements of a system that can meet the needs of end-
users covering: interface requirements; processing requirements; storage
requirements; control requirements.
The product is functional requirements.
iii. Systems design
• Specifies how the system will accomplish the objective of developing a system
that meets the information needs of end-users
• In this step then, the following specifications are developed:
o Hardware
o Software
o People
o Data resources
o Information products
The product is systems specifications.
iv. Systems implementation
• Involves several activities
• Acquisition of hardware and software (software might be developed)
• Testing of systems – programs and procedures
• Performance of a variety of installation activities

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 • Training people to operate and use systems
• Development of documentation
• Converting to new system
The product is operational system.

Conversion approaches are several and include:

• Direct approach where the old system is abandoned and new one is started
• Parallel approach where an old and new systems are operated side by side until
the new one shows it is reliable
• Pilot approach where a new system is tried out in a part of the organization. Later
it is implemented throughout the other parts of the organization when it proves
successful
• Phased approach where a new system is implements gradually over a period of
time in phases
A combination of the approaches could be used, the choice being based on a number of
factors which include:
• Risks involved in the approach
• Costs expected
• Size of the system
• Extent of the systems tests
• Extent of expected user knowledge of the new system and ability to use it
• Complexity of system and the value of the old (or existing) system.
v. Systems maintenance
• Involves the monitoring, evaluating and modifying of a system to ensure that it
works as expected.
Product is improved system.

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 Limitations of the Lifecycle Approach
The systems lifecycle is still used for building large transaction processing systems and
management information systems where requirements are highly structured and well defined.
It will also remain appropriate for complex technical systems such as space launches, air
traffic control, and refinery operations. Such applications need a rigorous and formal
requirements analysis, predefined specifications, and tight controls over the systems-building
process.
However, the systems lifecycle approach is costly, time consuming, and inflexible. Volumes
of new documents must be generated and steps repeated if requirements and specifications
need to be revised. Because of the time and cost to repeat the sequence of lifecycle activities,
the methodology encourages freezing of specifications early in the development process,
discouraging change. The lifecycle method is ill-suited to decision-oriented applications
where decision makers may need to experiment with concrete systems to clarify the kinds of
decisions they wish to make. Formal specification of requirements may inhibit system-
builders from exploring and discovering the problem structure. Likewise, the lifecycle
approach is not suitable for many small desktop systems, which tend to be less structured and
more individualized.

Alternative System-Building Approaches

• Alternative system-building approaches can solve some of the problems of the traditional
systems lifecycle. These approaches include prototyping, application software packages,
end-user development, and outsourcing. In addition, to these approaches, computer aided
systems engineering (CASE) could be used.

2. Computer aided software engineering

• Involves using software packages (case tools) to perform many of the systems
development cycle activities
• Included are software packages for:
o Project management
o User interface
o Database design
o Software development
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3. Prototyping
Prototyping consists of building an experimental system rapidly and inexpensively for end
users to evaluate. By interacting with the prototype, users can get a better idea of their infor-
mation requirements. The prototype endorsed by the users can be used as a template to create
the final system.
The prototype is a working version of an information system or part of the system, but it is
meant to be only a preliminary model. Once operational, the prototype will be further refined
until it conforms precisely to users' requirements. Once the design has been finalized, the
prototype can be converted to a polished production system.
The process of building a preliminary design, trying it out, refining it, and trying again has
been called an iterative process of systems development because the steps required to build a
system can be repeated over and over again. Prototyping is more explicitly iterative than the
conventional lifecycle, and it actively promotes system design changes. It has been said that
prototyping replaces unplanned rework with planned iteration, with each version more
accurately reflecting users' requirements.

Steps in Prototyping
Prototyping process involves the following steps:
Step 1: Identify the user's basic requirements. The system designer (usually an information
systems specialist) works with the user only long enough to capture his or her
basic information needs.
Step 2: Develop an initial prototype. The system designer creates a working prototype
quickly, using fourth-generation software, interactive multimedia, or computer-
aided software engineering (CASE) tools.
Step 3: Use the prototype. The user is encouraged to work with the system in order to de-
termine how well the prototype meets his or her needs and to make suggestions
for improving the prototype.
Step 4: Revise and enhance the prototype. The system builder notes all changes the user
requests and refines the prototype accordingly. After the prototype has been
revised, the cycle returns to step 3. Steps 3 and 4 are repeated until the user is
satisfied.
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 When no more iterations are required, the approved prototype then becomes an opera-
tional prototype that furnishes the final specifications for the application. Sometimes the
prototype itself is adopted as the production version of the system.

Advantages and Disadvantages of Prototyping

Prototyping is most useful when there is some uncertainty about requirements or design solu-
tions. For example, a major securities firm requests consolidated information to analyze the
performance of its account executives. But what should the measures of performance be?
Can the information be extracted from the personnel system alone, or must data from client
billings be incorporated as well? What items should be compared on reports? Initially users
may not be able to see how the system will work.

Prototyping is especially valuable for the design of an information system's end-user

interface (the part of the system that end users interact with, such as on-line display and data-
entry screens, reports, or Web pages). The prototype enables users to react immediately to
the parts of the system with which they will be dealing.

Prototyping encourages intense end-user involvement throughout the systems development

lifecycle and thus is likely to produce systems that fulfill user requirements. However, rapid
prototyping can gloss over essential steps in systems development. Once finished, if the
prototype works reasonably well, management may not see the need for reprogramming,
redesign, or full documentation and testing. Some of these hastily constructed systems may
not easily accommodate large quantities of data or a large number of users in a production
environment. Successful prototyping requires management and mechanisms for defining
expectations, assigning resources, signaling problems, and measuring progress.

4. Application Software Packages

Another alternative strategy is to develop an information system by purchasing an application
software package. An application software package is a set of prewritten, preceded
application software programs that are commercially available for sale or lease. Application
software packages may range from a simple task (e.g., printing address labels from a

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database on a PC) to more than 400 program modules with 500,000 lines of code for a
complex mainframe system.

Packages have flourished because there are many applications that are common to all
business organizations—for example, payroll, accounts receivable, general ledger, or inven-
tory control. For such universal functions with standard procedures, a generalized system will
fulfill the requirements of many organizations.

Advantages and Disadvantages of Software Packages

When an appropriate software package is available, it is often not necessary for a company to
write its own programs; the prewritten, predesigned, pretested software package can fulfill
most of the requirements and can be substituted instead. The package vendor has already
done most of the design, programming, and testing, so the time frame and costs for
developing a new system should be considerably reduced. Vendors provide much of the
ongoing maintenance and support for the system, supplying enhancements to keep the system
in line with ongoing technical and business developments.

To maximize market appeal, packages are geared to the most common requirements of all
organizations. What happens if an organization has unique requirements that the package
does not address? To varying degrees, package software developers anticipate this problem
by providing features for customization that do not alter the basic software. Customization
features allow a software package to be modified to meet an organization's unique require-
ments without destroying the integrity of the package software. For instance, the package
may allocate parts of its files or databases to maintain an organization's own unique pieces of
data. Some packages have a modular design that allows clients to select only the software
functions with the processing they need from an array of options. An alternative way of
satisfying organizational information requirements unmet by a software package is to
supplement the package with another piece of software.

Ultimately, required customization and additional programming may become so expensive

and time consuming that they eliminate many of the advantages of software packages.

Selecting Software Packages

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Application software packages must be thoroughly evaluated before they can be used as the
foundation of a new information system. The most important evaluation criteria are the func-
tions provided by the package, flexibility, user-friendliness, hardware and software resources,
database requirements, installation and maintenance effort, documentation, vendor quality,
and cost. The package evaluation process often is based on a Request for Proposal (RFP),
which is a detailed list of questions submitted to packaged software vendors.

When a system is developed using an application software package, systems analysis will
include a package evaluation effort. Design activities will focus on matching requirements to
package features. Instead of tailoring the system design specifications directly to user
requirements, the design effort will consist of trying to mold user requirements to conform to
the features of the package.

When a software package solution is selected, the organization no longer has total control
over the system design process. At best, packages can meet only 70 percent of most
organizations’ requirements. If the package cannot adapt to the organization, the
organization will have to adapt to the package and change its procedures.

Software Evaluation Factors

i. Efficiency: Is the software a well-written system of computer instructions that does

not use much memory capacity or CPU time?
ii. Flexibility: Can it handle its processing assignment easily without major
modification?
iii. Security: Does it provide control procedures for errors, malfunctions, and improper
use
iv. Language: Is it written in a programming language that is used by our computer
programmers and users
v. Documentation: Is the software well documented? Does it include helpful user
instructions?
vi. Hardware: Does existing, hardware have the feature required to best use this
software?
vii. Other factors: What are its performance, cost, reliability, availability, compatibility,
technology, ergonomics, and support characteristics?

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5. End-user Development
In many organizations, end users are developing a growing percentage of information system
with little or no formal assistance from technical specialists. This phenomenon is called end-
user development. End-user development has been made possible by the special fourth-
generation software tools. With fourth-generation languages, graphics languages and PC
software tools, end users can access data, create reports, and develop entire information
systems on their own, with little or no help from professional systems analysts or
programmers. Many of these end-user developed systems can be created much more rapidly
than with the traditional systems lifecycle.

End-User Computing Tools: Strengths and Limitations

Many organizations have reported gains in application development productivity by using
fourth generation tools that in a few cases have reached 300 to 500 percent. Fourth-
generation tools have capabilities such as graphics spreadsheets, modeling, and ad hoc
information retrieval that meet important business needs.

Unfortunately, fourth-generation tools still cannot replace conventional tools for some
business applications because their capabilities remain limited. Fourth-generation software is
relatively inefficient, processing individual transactions too slowly and at too high a cost to
make these systems suitable for very large transaction processing systems. Slow response
time and computer performance degradation often result when very large files are used.

Most fourth-generation tools likewise cannot easily handle applications with extensive
procedural logic and updating requirements, such as systems used for optimal production
scheduling or tracking daily trades of stocks, bonds, and other securities, that require comp:
processing and often the matching of multiple files.

Management Benefits and Problems

Benefits
Improved requirements determination as users specify their own business needs.
Increased user involvement and satisfaction.
As users develop their systems themselves and control the system development process,
they are more likely to use the system.

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 Reduced application backlog as users are no longer totally reliant on overburdened
information systems specialists.

Problems
At the same time, end-user computing poses organizational risks because it occurs outside of
traditional mechanisms for information system management and control. Most organizations
have not yet developed strategies to ensure that end-user-developed applications meet
organizational objectives or meet quality assurance standards appropriate to their function.
When systems are created rapidly, without a formal development methodology, testing and
documentation may be inadequate.

Control over data can be lost in systems outside the traditional information systems de-
partment. When users create their own applications and files, it becomes increasingly
difficult to determine where data are located and to ensure that the same piece of information
(such as product number or annual earnings) is used consistently throughout the organization.

6. Outsourcing

If a firm does not want to use its internal resources to build or operate information systems, it
can hire an external organization that specializes in providing these services to do the work.
The process of turning over an organization's computer center operations,
telecommunications networks, or applications development to external vendors is called
outsourcing.

Its own computer center, which would be underutilized when there is no peak load.
Outsourcing has become popular because some organizations perceive it as a cost effective
measure that eliminates the need for maintaining their own computer center and information
systems staff. The provider of outsourcing services benefits from economies of scale (the
same knowledge, skills, and capacity can be shared with many different customers) and
likely to charge competitive prices for information systems services. Outsourcing allows a
company with fluctuating needs for computer processing to pay for only what it uses rather
than build

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Some firms outsource because their internal information systems staff cannot keep pace with
technological change or innovative business practices or because they want to free scarce and
costly talent for activities with higher payback. By outsourcing, companies hope to exploit
the benefits of information technology in key business processes and improve the
productivity of their information system resources.

When to Use Outsourcing

Not all organizations benefit from outsourcing, and the disadvantages of outsourcing can
create serious problems for organizations if they are not well understood and managed. When
a firm allocates the responsibility for developing and operating its information systems to
another organization, it can lose control over its information systems function. Also, if the
organization lacks the expertise to negotiate a sound contract, the firm's dependency on
vendor could result in high costs or loss of control over technological direction. Trade secrets
or proprietary information may leak out to competitors when a firm's information systems are
run or developed by outsiders. This could be harmful if a firm allows an outsourcer to
develop or to operate applications that give it; type of competitive advantage.

Despite such drawbacks, there are a number of circumstances in which outsourcing

application development to an external vendor is advantageous.
• To reduce costs or offload some of the information systems department's work
• When the firm's existing information system capabilities are limited, ineffective, or
technically inferior.
• To improve the contribution of information technology to business performance
• To create new sources of revenue and profit from technology assets.

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