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Modern Systems Analysis and Design: The Origins of Software

This chapter discusses the origins of software and different sources of software. It covers outsourcing and offshoring, describing the key reasons companies outsource IT functions. Six main sources of application software are covered: hardware manufacturers, packaged software producers, custom software producers, enterprise solutions, application service providers, and in-house development. The chapter also addresses evaluating off-the-shelf software and the role of reuse in software development.

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Marnie Omar
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58 views25 pages

Modern Systems Analysis and Design: The Origins of Software

This chapter discusses the origins of software and different sources of software. It covers outsourcing and offshoring, describing the key reasons companies outsource IT functions. Six main sources of application software are covered: hardware manufacturers, packaged software producers, custom software producers, enterprise solutions, application service providers, and in-house development. The chapter also addresses evaluating off-the-shelf software and the role of reuse in software development.

Uploaded by

Marnie Omar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Modern Systems Analysis and Design

Fourth Edition

Jeffrey A. Hoffer Joey F. George Joseph S. Valacich

Chapter 2 The Origins of Software

2-1

Learning Objectives
Explain outsourcing. Describe six different sources of software. Discuss how to evaluate off-the-shelf software. Explain reuse and its role in software development.
2-2

Global Sourcing
The process of deciding where in the world a firms activities will be performed and who will perform the activities.
Fundamentally any activities that does not require direct customer contact, extensive local knowledge, or complex interactions can be sourced anywhere

2-3

Global Resourcing

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Outshoring and Outsourcing

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Definition of Outsourcing
IS outsourcing is the commissioning of part or all of the IS activities an organization needs, and/or transferring the associated human and other IS resources, to one or more external IS suppliers IS Offshoring is the commissioning of part or all of the IS activities an organization needs to one or more other countries IS Insourcing is the sourcing of a business function within the firm (e.g., Kingland Systems)

2-6

System Acquisition: Outsourcing


Reasons to outsource
Cost-effective Take advantage of economies of scale Free up internal resources Reduce time to market Increase process efficiencies System development is a non-core activity for the organization

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Sources of Application Software

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Hardware Manufacturers
IBM is the leader in software sales and services. Hardware manufacturers tend to focus on system software and utilities.

2-9

Packaged Software Producers


Microsoft is the leader in prepackaged software production. Prepackaged software is off-the-shelf software. Often, prepackaged software is turnkey software (i.e. not customizable).
2-10

Criteria for Choosing Off-theShelf Software


Cost Functionality Vendor support Viability of vendor Flexibility Documentation Response time Ease of installation
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Custom Software Producers


Firms like Accenture and EDS are leading custom software producers. Consulting firms develop software to meet the clients specific requirements. Consulting firms are usually called when the client company does not have inhouse expertise or manpower available to develop the system.

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Enterprise Solutions Software


Enterprise Resource Planning (ERP) systems that integrate individual traditional business functions into modules enabling a single seamless transaction to cut across functional boundaries. SAP AG is the leading vendor of ERP systems.

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ERP System Example

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Application Service Providers


ASP: an organization that hosts and runs computer applications for other companies, typically on a per-use or license basis

2-15

What is ASP?
ASP- Application Service Provider
ASPs buy, install, and manage enterprise applications at remote data centers and host them for customers via a broadband connection, usually over the Internet. User only purchases use of application not an installation license User pays for use depending upon the specific arrangement with the ASP
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ASPs

Lee, Huynh, Kwok, and Pi, 2003

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In-House Development
If sufficient system development expertise with the chosen platform exists in-house, then some or all of the system can be developed by the organizations own staff. Often, there are a variety of sources used, with in-house staff playing a role as well as consultants or ERP vendors.

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Validating Purchased Software Information


Use a variety of information sources:
Vendors proposal Running software through a series of tests Feedback from other users of the vendors product Independent software testing services Articles in trade publications
2-20

What is an RFP?
Request for Proposal: a document provided to vendors to ask them to propose hardware and software products or services that will meet the requirements of a new information system. Based on vendor bids, analyst selects best candidates.

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Reuse
The use of previously written software resources in new applications Primary enabling technologies
Object-oriented development
Object class encapsulates data and behavior of common organizational entities (e.g. employees)

Component-based development
Components can be single objects or functional groupings of objects

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Costs and Benefits of Reuse

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Approaches to Reuse
low
Ad hoc: individual, unplanned use
Cost and commitment
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Facilitated: use informally managed and disseminated by expert guru evangelists

Managed: organizationally enforced reuse policies and practices

Designed: reusable components developed and maintained in-house high

Summary
In this chapter you learned how to:
Explain outsourcing. Describe six different sources of software. Discuss how to evaluate off-the-shelf software. Explain reuse and its role in software development.
2-25

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