Com 3kd3 Midterm Exam Time: 3:30 -5:30 pm Monday Oct. 25 Place: classroom KTH B104 Coverage: Lecture note and textbook Format:

True/False 15 points Multiple choice: 15 points Short answer questions: 20 points

Requirement Priority and Implementation Strategy

Learning Objectives Describe the strategic decisions

that integrate the application deployment environment and the design approach for the new system

Determine alternative approaches for system implementation

Learning Objectives (continued) Evaluate and select an implementation

approach based on the needs and resources of the organization

Describe key elements of a request for proposal (RFP) and evaluate vendors’ proposals for outsourced alternatives

Develop a professional presentation of findings to management

Overview Last three activities of analysis

Prioritize systems requirements Generate and evaluate alternatives Review recommendation with management

Refocus project direction Transition from discovery and analysis to

solutions and design Set direction for design and

implementation of solution system

Deciding on Scope and Level of Automation

Prioritize the system requirements based on the desired scope and level of automation for the new system

Scope determines which business functions will be included in system

Level of automation is how much computer support exists for functions included in scope

Users typically request more business functions than budget allows

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Determining the Level of Automation

Low level Functions automated for simple computer

record keeping Medium level

Midrange point that combines features from low and high alternatives

High level System automates most processing of

business functions

RMO Customer Support System Functions, Priority, and Three Levels of Automation

Selecting Alternatives Entire group of alternatives is evaluated

together to provide “big picture” view of proposed system

Key criteria that are used Strategic plan Economic feasibility Schedule and resource feasibility Technological feasibility Operational, organizational, and cultural

feasibility

Defining the Application Deployment Environment

Configuration of Computer hardware System software Networks Development tools

Existing environment generally considered and compared with proposed environment

Range of Application Types

Stand-alone applications on mini- and personal computers

Online interactive applications Distributed applications Web-based applications

Deployment Environment Characteristics to Consider

Compatibility with system requirements Compatibility among hardware and

system software Required interfaces to external systems Conformity with IT strategic plan and

architecture plans Cost and schedule

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Development Tools Development environment – programming

languages, CASE tools, and other software used to develop application software

Java and Visual Studio .NET are examples Application deployment environment

decisions limit development tool choices Operating system environment Database management system (DBMS) Distributed software standard

Sun’s JavaEE Java Platform, Enterprise Edition or

Java EE is a widely used platform for server programming in the Java programming language. It adds libraries which provide functionality to deploy fault-tolerant, distributed, multi-tier Java software, based largely on modular components running on an application server.

IBM's WebSphere WebSphere is IBM’s integration software

platform. It includes the entire middleware infrastructure -- such as servers, services, and tools--needed to write, run, and monitor 24x7 industrial-strength, on demand Web applications and cross-platform, cross-product solutions. WebSphere provides reliable, flexible, and robust integration software.

Microsoft .NET framework The Microsoft .NET Framework is a

software framework that can be installed on computers running Microsoft Windows operating systems. It includes a large library of coded solutions to common programming problems and a virtual machine that manages the execution of programs written specifically for the framework.

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Existing Processing Environment at RMO

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Processing Environment Alternatives

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Strategic Directions for RMO Processing Environment

Implementation Strategy

Choosing Implementation Alternatives

Variations on obtaining system Facilities management – outsource all IS

support Packaged software, turnkey system, ERP

system Custom-built software systems In-house development

Selection dimensions Buy vs. build In-house vs. outsource

Implementation Alternatives

The impact of the Internet Traditional vs. Web-based

development Software as a service (SaaS)

Traditional vs. Web-based Development

Traditional development System design is influenced by

compatibility issues Security issues are less complex

Web-based development Treats the Web as the platform rather than

a communication channel Treat software application as a service Easily scalable, enterprise-wide solution

Software as a Service (SaaS)

A model of software deployment where an application is hosted as a service provided to customers across the Internet.

Reduce the up-front expense of software purchases, through less costly, on-demand pricing.

Alleviates the customer's burden of software maintenance, ongoing operation, and support.

Relinquish control over software versions or changing requirements; costs to use the service become a continuous expense.

Outsourcing Outsourcing is the transfer of

information systems development, operation, or maintenance to an outside firm that provides these services.

A way of controlling costs and dealing with rapid technological change

Has become part of an overrall IT strategy

The Growth of outsourcing services

Application service providers Deliver a software application or access

to an application by charging a usage or subscription fee

Internet business services or managed hostingProvide Web-based support for transactions such as order processing, billing, and customer relationship management.

Common features associated with ASPs

ASP fully owns and operates the software application(s)

ASP owns, operates and maintains the servers that support the software

ASP makes information available to customers via the Internet or a "thin client"

ASP bills on a "per-use" basis or on a monthly/annual fee

Oracle CRM On Demand Oracle CRM On Demand bring clarity to your

sales processes; build loyal, long-term customer relationships; accelerate productivity; boost call center efficiency; and derive customer intelligence.

With Oracle CRM On Demand you can do all this and more – leveraging an easy-to-use and highly tailorable solution offered at a predictable per user, per month price.

Advantages of using ASP

Cost control Software costs for the application are

spread over a number of clients Reduction of internal IT costs to a

predictable monthly fee. Redeploying IT staff and tools to focus

on strategic technology projects that impact the enterprise's bottom line

Advantages of using ASP

Better Service Vendors have more application experience Systems are kept up to date, available,

and managed for performance by experts Improved reliability, availability, scalability

and security of internal IT systems Guarantees a certain level of service Access to product and technology experts

dedicated to available products

Outsourcing issues and concerns

Cost control / lack of technology expertise

Self control of mission-critical IT Operation and security issue Quality and stability of the

service provider Internal IT job security

Offshore outsourcing Shifting IT development, support,

and operations to other countries Driven by global Internet

connection and wage differences Lower bottom-line cost Risks and concerns regarding

project control, security issues, disparate cultures, and communication problems

In-house software development

Make or Buy decision Make: develop in-house software

system Buy: purchase a software package

Reasons for in-house development Satisfy unique business requirement Minimize changes in business

procedures and policies Meet constraints of existing systems Meet constraints of existing

technology Develop internal resources and

capabilities Satisfy unique security requirements

Reasons for purchasing a software package Lower costs Requires less time to implement Proven reliability and performance

benchmarks Requires less technical development

staff Future upgrades provided by the vendor Obtain input from other company

Customizing a software package

Request vendor customize it to meet your needs

Paying vendor extra for enhancement

Make your own modification with vendor’s permission

The software acquisition process Evaluate the information system

requirements Identify potential vendors or

outsource options Evaluate the alternatives Perform cost-benefit analysis Prepare a recommendation Implement the solution

Selecting an Implementation Alternative Identifying criteria for selection

Comparisons can be difficult Different proposed systems have

strengths in different areas Three major areas to consider

General requirements Functional requirements Technical requirements

General Requirements Considerations that are important but

not directly associated with the computer system. Such as: Development cost Length of time until deployment Requirement for internal resource Organizational impact Warranties and support services …

Functional Requirement The functions that must be included

within the system. For example, for an order processing system, they could be: Handling orders and backorders Support discount and sales promotion Allowing different payment methods Order tracking and reporting …

Technical requirement The operation, performance, and

maintenance requirements, such as: Robustness Performance Scalability Flexibility Compatibility …

Making the Selection First, rate each implementation

alternative with raw score for each criterion.

Weighted scores are then tabulated and compared to make a choice

Contracting with Vendors Generate request for proposal (RFP)

Formal document sent to vendors if in-house development is not selected

States requirements and solicits proposed solutions

Considered a competitive contract offer

Bid on supplying hardware, software, and/or support services

How to write an RFP

Sample RFP Table of Contents

I. Introduction and Background

II. Overview of Need

III. Description of Technical Requirements

IV. Description of Functional Requirements

Sample RFP Table of Contents

V. Description of General Requirements

VI. Requested Provider and Project Information

VII. Details for Submitting Proposal

IV. Evaluation Criteria and Process

Sample RFP Table of Contents (continued)

Benchmarking and Choosing a Vendor Observe in use or install trial version Benchmark – evaluate the system against a

standard Visit another company using a particular

system Develop a contract

Fixed-dollar – risk is on vendor Cost-plus-percentage – risk is on purchaser Cost-plus-fixed-fee – risk is shared by both

Presenting Results and Making Decisions

Compile and organize documentation

Present alternatives and critical issues in easy-to-understand but complete manner

Final choice generally made by executive steering committee

Format of documentation and presentation style varies with organization

The Transition to Systems Design If the management decides to

develop the system in-house, then the transition to systems design begins

From logical design (what is required) to physical design (how is implemented)

System Design Objectives The goal of system design is to

build a system that is effective, reliable, and maintainable.

Data design Interface design Architecture design