Chapter 7

Moving into Design

SYSTEMS ANALYSIS AND DESIGN

SEVENTH EDITION

DENNIS, WIXOM, AND ROTH

Learning Objectives
• Explain the initial transition from analysis to design.
• Create a system specification.
• Describe three ways to acquire a system: custom, packaged, and
outsourced alternatives.
• Create an alternative matrix.

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Transition from Requirements to Design

BRIEF PREVIEW

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Key Ideas
• In Systems Analysis we figure out…
• What the business needs
• In System Design we figure out…
• How to build the system that fulfills those needs
• All the “logical” work from Systems Analysis is
converted to the “physical”

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Key Definitions
• Design phase
• Decide how to build the system
• Create system requirements that describe all technical
details for building the system
• System specification
• Final deliverable from design phase
• Conveys exactly what system the development team will
implement during the implementation phase

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Design Phase Steps
• Determine system acquisition strategy (make, buy, or outsource)
• Determine the technical architecture for the system
• Address security concerns and globalization issues
• Make hardware and software selections
• Determine the way that users will interact with the system
(interface, inputs, and outputs)
• Design the programs for the underlying processes
• Design the way data will be stored
• Create final deliverable - the system specification

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Elements of System Specification
• Recommended System Acquisition Strategy
• System Acquisition Weighted Alternative Matrix
• Architecture Design
• Hardware and Software Specification
• Interface Design
• Physical Process Model
• Program Design Specifications
• Physical Data Model
• Data Storage Design
• Updated CRUD Matrix
• Updated CASE Repository Entries

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System Acquisition Strategies
What is the best way to acquire this system?

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Ways to Acquire a New System
• Custom development (build from scratch) in-house
• Purchase software package (and possibly customize it)
• Install on our own computers, or
• Obtain access from a software provider (host)
• Outsource development to third party, who might
• Build system from scratch for us, or
• Purchase software for us, customize and install it

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Custom Development
pros cons
• Get exactly what we want • Requires significant time
• New system built consistently and effort
with existing technology and • May add to existing
standards backlogs
• Build and retain technical skills • May require skills we do not
and function knowledge in-house have
• Allows team flexibility and • Often costs more
creativity
• Often takes more calendar
• Unique solutions created for time
strategic advantage
• Risk of project failure

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Purchased Software (1 of 2)
• Application service providers (ASP) supply access to
software on a pay-as-you-go basis
• Many applications today are “in the cloud”…
• ASP – provider hosts someone else’s software
• SaaS – software vendor hosts its own software
• Considerable savings – no hosting infrastructure needed; host
provides everything
• Risks include
• Fear of losing confidential information
• Performance

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Purchased Software (2 of 2)
• Analyze the vendor as well as the software functionality
• Verify vendor claims with others
• Look carefully at vendor support
• Assess long-term viability of vendor as an on-going business
• A new software company may have a great idea, but can they
survive as a business over the long haul?
• If the vendor is an acquisition target, what will happen to the
product?

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Purchased Software
Packages (purchased or obtained from ASP or SaaS)

Pros cons
• No need to “reinvent the • Rarely a perfect fit
wheel” for common business • Organizational processes must
needs adapt to software
• Tested, proven product • Reliance on vendor for
• Cost savings maintenance and future
enhancements
• Time savings
• Won’t develop in-house
• Utilize vendors’ expertise functional and technical skills
• Some customization may be • Unique needs may go unmet
possible
• May require system integration

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Systems Integration
• Building systems by combining packages, existing (legacy)
systems, and custom software written for integration
• Integrating data between various parts of the system is the
key challenge
• Many consultants specialize in systems integration

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Outsourced Development
pros cons
• Hire expertise we • No opportunity to build in-
don’t have house expertise
• May save time and • Reliance on vendor
money
• Future options limited
• Lower risk
• Security – potential loss of
confidential information
• Performance based on
contract terms

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Outsourcing
• Hiring an external vendor, developer, or service provider to
supply the system
• Can also obtain custom system created by outsourcer
• Can reduce costs and/or add value (resources, experience)
• Risks include
• Losing confidential information
• Losing control over future development
• Losing learning opportunities

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Outsourcing Contracts
• Time and arrangements
• Fixed-price
• Value-added

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Outsourcing Guidelines
• Keep lines of communication open
• Define and stabilize requirements before signing the
contract
• View the relationship as a partnership
• Select vendor, developer, or provider carefully
• Assign someone to manage the relationship
• Don’t outsource what you don’t understand
• Emphasize flexible requirements, long-term relationships,
and short-term contracts

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Influences on the Acquisition Strategy
What factors do we consider?

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Acquisition Strategy Selection Factors
When to Use Custom When to Use a When to Use Outsourcing
Development Packaged System
Business need The business need is unique. The business need is The business need is not core to
common. the business.
In-house In-house functional and technical In-house functional In-house functional or technical
experience experience exists. experience exists. experience does not exist.
Project skills There is a desire to build in-house The skills are not strategic. The decision to outsource is a
skills. strategic decision.
Project The project has a highly skilled The project has a project The project has a highly skilled
management project manager and a proven manager who can project manager at the level of
methodology. coordinate vendor’s the organization that matches
efforts. the scope of the outsourcing
deal.
Time frame The time frame is flexible. The time frame is short. The time frame is short or
flexible.

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Selecting an Acquisition Strategy

How Do We Choose?

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Developing Our Options
• Start by collecting information
• What tools and technologies are needed for a custom
development project?
• What vendors make products that address the project
needs?
• What service providers would be able to build this
application if outsourced?

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Request for Proposals (RFP)
• Solicits proposals from vendor, developer, or service
provider
• Explains the system to be built and criteria for selecting
among applicants
• Request for Information (RFI) -- a shorter and less detailed
version
• Request for Quote (RFQ) – use when you just need a price

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Typical RFP Contents
• Description of desired system
• Special technical needs or circumstances
• Evaluation criteria
• Instructions on how to respond
• Desired schedule
• Other information that will help the submitter to make
a more complete or accurate proposal

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Developing an Alternative Matrix
• Combine several feasibility analyses into one matrix
• Include technical, economic, and organizational feasibilities
• Assign weights to indicate the relative importance of the
criteria
• Assign scores to indicate how well the alternative meets
the criteria

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Sample Alternative Matrix

* This denotes how well the alternative meets the criteria. 1 = poor
fit; 5 = perfect fit.
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After reading and studying this chapter,
you should be able to: (1 of 2)
• Identify and describe the steps associated with the
design phase of the project.
• Explain the meaning and purpose of the components
of the system specification.
• Explain the pros and cons of obtaining the new system
through a custom development project.
• Explain the pros and cons of obtaining the new system
through a purchasing a software package.

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After reading and studying this chapter,
you should be able to: (2 of 2)
• Explain the pros and cons of obtaining the new system
through an outsourcing firm.
• Explain how the characteristics of the project influence
the selection of the acquisition strategy.
• Explain the use of RFPs, RFIs, and RFQs as ways of
gathering information from vendors.
• Discuss the use of an alternatives matrix to
systematically evaluate and compare alternatives.

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Copyright
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