Solution Manual for Essentials of System Analysis and Design, 4th Edition

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Chapter 1The Systems Development Environment1Chapter 1The Systems Development EnvironmentChapter OverviewChapter 1 is a foundation chapter, introducing students to basic, core systems analysisand design concepts. These basic concepts include a definition of information systemsanalysis and design, an overview of systems analysis and design core concepts, adiscussion of a system and its parts, an introduction to the modern approach to systemsanalysis and design, an overview of the systems analyst’s role in systems development,and a review of the types of information systems and systems development. Thechapter concludes with an introduction to the systems development life cycle, its fourphases, and alternative approaches to development.Instructional ObjectivesSpecific student learning objectives are included at the beginning of the chapter.Froman instructor’s point of view, the objectives of this chapter are to:1.Define information systems analysis and design.2.Define and discuss the modern approach to systems analysis and design.3.Illustrate how systems development extends to different types of information systemsand not just transaction processing systems.4.Introduce the traditional information systems development life cycle, which serves asthe basis for the organization of the material in this book.5.Show students that the life cycle is a flexible basis for systems analysis and designand that it can support many different tools and techniques, such as prototyping andJAD.6.Discuss the importance and role of CASE in systems development.7.Discuss information systems development options, including IT services firms,packaged software producers, enterprise-wide solutions, open-source software, andin-house developers.8.Discuss the different approaches to systems development, including prototyping,CASE tools, joint application development, rapid application development,participatory design, and Agile Methodologies.

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Chapter 1The Systems Development Environment2Classroom Ideas1.Emphasize the differences between methodologies, techniques, and tools. Suchdifferences are not obvious to students; often they think of methodologies as just aset of techniques and that techniques and tools are synonymous.2.Give concrete examples during class discussion of the following types of IS:transaction processing systems, management information systems, and decisionsupport systems. Ask students to talk about the information systems with whichthey are familiar.3.When discussing different types of information systems, discuss the differencesbetween systems that support back room operations, such as basic accountingfunctions, and systems that directly affect the bottom line. If students are aware ofsuch systems, they usually are not aware of how these systems provide competitiveadvantage. Discussing different types of systems provides a chance to talk aboutthe differences between these two categories of systems.4.When introducing the life cycle model in the text, you may want to introduce otherlife cycle models from other textbook authors or in other forms. This showsstudents that there is no one standard life cycle model and that the model they willrely on when they begin work as a systems analyst will likely differ from the lifecycle model in the text. The point is to show them they can use the life cycle as anarchetype to understand other models, and they should understand there is no one“correct” life cycle model. The life cycle represents activities that must be done, andthe phases are a way to introduce, in an organized way, the methods, techniques,tools, and skills necessary for successful systems analysis and design.5.Give a brief overview of the activities and outputs from each of the four life cyclephases, based on your own experience or from your reading of the rest of the book.Table 1–4 identifies the products of the four SDLC phases.6.Although prototyping and joint application design are covered in more depth later inthe book, you can provide a more in-depth introduction to these techniques thandiscussed in Chapter 1. Figure 1–13 is a good point of departure for a discussion ofprototyping and what it adds to structured development techniques.7.Participatory Design is briefly introduced in this chapter but can be discussed inmore depth. A brief overview of the Participatory Design concept is available athttp://www.cpsr.org/issues/pd/index_html. Several books are available on this topic,as well as numerous Web sites. You can also ask your students to find recentarticles about this topic.8.Spend a few minutes discussing the importance of analytical, technical, managerial,and interpersonal skills for a systems analyst. Ask students to identify which of theskills categories they think is the most important and why.9.Figure 1–2 is an excellent tool for illustrating the basic system components.

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Chapter 1The Systems Development Environment310.Use Table 1–1 and an updated version of the same information from the mostrecent Software Magazine survey to begin a discussion of the many, varied sourcesof software in the marketplace.11.Use Table 1–2 to summarize the alternative sources for software and how tochoose among them for specific software needs. This table can serve as the basisfor a discussion of the “make versus buy” decision and can be expanded to includethe “not invented here” syndrome.12.Compare and contrast Agile Methodologies with the traditional SDLC.Lecture NotesWhat Is Information Systems Analysis and Design?All organizations have information systems, and use them for operational, tactical, andstrategic advantage. For information systems to remain effective, these systems mustefficiently capture, store, process, and distribute information according to businessobjectives. To properly maintain these systems,systems analystswill performinformation systems analysis and design. Information systems analysis and designis based on an understanding of the organization’s objectives, structure, and processes,as well as the analyst’s knowledge of how to exploit information technology forcompetitive advantage.Systems Analysis and Design: Core ConceptsImproving organizational information systems is the major goal of systems analysis anddesign.Figure 1–1illustrates the four systems development life cycle phases. Althougha systems analyst’s primary role isapplication softwaredevelopment, an analysis ofthe other computer-based information systems components is warranted. AsFigure 1–2shows, these components include hardware, controls, specific job roles, users of thesystem, system software, and documentation and training manuals. As shown inFigure1–3, methodologies, techniques, and tools are central to the software engineeringprocess.SystemsThis section introduces students to the definition of a system, its parts, and otherimportant system concepts. The textbook defines asystemas a group of interrelatedprocedures used for a business function, with an identifiable boundary, working togetherfor some purpose. A system has nine characteristics.Figure 1–4shows seven of thenine characteristics. The nine characteristics are:components,interrelatedcomponents,boundary,purpose,environment,interfaces, input, output, andconstraints.Figure 1–5describes a university as a system. A systems analyst shouldalso be familiar withdecomposition,modularity,coupling, andcohesionsystemconcepts.Figure 1–6illustrates decomposition.

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Chapter 1The Systems Development Environment4A Modern Approach to Systems Analysis and DesignSystems integration and enterprise-wide systems are two alternatives for companysystems. The client/server model, illustrated inFigure 1–7,stresses the importance ofsystems integration, which is the focus of today’s systems development efforts.Organizations may also purchase an enterprise-wide system from companies like SAPor Oracle.The systems analyst is the person primarily responsible for performing systems analysisand design within an organization. A job advertisement for a systems analyst position isprovided inFigure 1–8. As this job advertisement indicates, a systems analyst’s skillsset should include analytical, technical, managerial, and interpersonal skills.Types of Information Systems and Systems DevelopmentFigure 1–9illustrates that an organization has three classes of information systems:transaction processing systems (TPS), management information systems (MIS), anddecision support systems (DSS). Each of these systems has certain characteristics andsuggested systems development methods.Table 1–1summarizes the IScharacteristics and suggested systems development methods.Developing Information Systems and the Systems Development Life CycleOrganizations use asystems development methodologyto develop and support theirinformation systems. Asystems development life cycle(SDLC) is a commonmethodology for systems development, and each organization will use a slightly differentversion. The life cycle presented in the textbook has four phases: (1) systems planningand selection; (2) systems analysis; (3) systems design; and (4) systems implementationand operation.Figure 1–10illustrates these phases.Figure 1–11illustrates thecircular nature of the systems development life cycle.Systems planning and selectionhas two primary activities: (1) identifying a potentialproject and (2) investigating the system and determining the proposed system’s scope.Systems analysisconsists of three subphases: requirements determination,requirements structuring, and alternative generation and selection.Systems design, thethird life cycle phase, has two primary activities: logical design and physical design.Figure 1–12illustrates the differences between logical and physical design. The finalphase,systems implementation and operation, involves implementing and operatingthe system.Table 1–2summarizes the products of each SDLC phase.Approaches to DevelopmentThis chapter discusses six approaches to systems development. These approachesare: prototyping, computer-aided software engineering (CASE) tools, joint applicationdesign (JAD), rapid application development (RAD), participatory design (PD), and theuse of Agile Methodologies.Prototypingis the process of building a scaled-downversion of the desired information system.Figure 1–13illustrates the prototypingmethod.Computer-aided Software Engineering (CASE)tools provide automated

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Chapter 1The Systems Development Environment5support for some portion of the systems development process. Computer-aidedSoftware Engineering tools use arepository.Joint Application Design (JAD)bringsusers, managers, and analysts together for several days in a series of intensivemeetings to specify or review system requirements.Rapid Application Development(RAD)radically decreases the time necessary to design and implement informationsystems.Figure 1–14compares the RAD systems development life cycle with thestandard systems development life cycle.Participatory Design (PD),developed innorthern Europe, has as its central focus users and the improvement of their work lives.Agile Methodologiesfocus on adaptive methodologies, people instead of roles, and aself-adaptive process.Key Terms Checkpoint SolutionsAnswers for the Key Terms Checkpoint section are provided below. The numberfollowing each key term indicates its location in the key term list.1.systems planning and selection (28)16.Interface (12)2.information systems analysis and design (11)17.constraints (7)3.participatory design (PD) (16)18.systems implementation and operation (27)4.application software (2)19.systems development methodology (26)5.systems analyst (23)20.systems development life cycle (SDLC) (25)6.Joint Application Design (JAD) (14)21.decomposition (9)7.prototyping (17)22.modularity (15)8.system (21)23.coupling (8)9.component (5)24.cohesion (4)10.interrelated components (13)25.Computer-Aided Software Engineering(CASE) (6)11.boundary (3)26.repository (20)12.purpose (18)27.Rapid Application Development (RAD) (19)13.systems design (24)28.Agile Methodologies (1)14.systems analysis (22)15.environment (10)Review Questions Solutions1.What is information systems analysis and design?Information systems analysis and design is the process of developing andmaintaining an information system.

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Chapter 1The Systems Development Environment62.What is systems thinking? How is it useful for thinking about computer-based information systems?Systems thinking involves identifying something as a system, visualizing thesystem and translating it into abstract terms, and thinking about the characteristicsof the specific situation. Systems thinking is useful for thinking about computer-based information systems because information systems can be seen assubsystems in larger organizational systems, taking input from, and returningoutput to, their organizational environments.3.What is decomposition? Coupling? Cohesion?Decomposition is the process of breaking down a system into its componentparts. Coupling is the extent to which subsystems are dependent on each other.Cohesion is the extent to which a system or a subsystem performs a singlefunction.4.In what way are organizations systems?Organizations are systems because they are made up of interrelated componentsworking together for a purpose. They take input from and return output to theirenvironments. Organizations can be redesigned through a systems analysis anddesign process by which system components are replaced while preservinginterconnections between components.5.List the different classes of information systems described in this chapter.How do they differ from one another?(1) Transaction processing systems, (2) Management information systems, and(3) Decision support systems (for individuals, groups, and executives).Transaction processing systems (TPS) automate data handling about businessactivities and transactions. TPS systems can generate reports based on datainput from transactions and other activities. A management information systemcan take data from the TPS and convert them into a meaningful aggregated form.They typically use information from several TPSs. Decision support systemsprovide an interactive environment where decision makers can quickly manipulatedata and models of business operations to attempt to make predictions.6.List and explain the different phases in the systems development life cycle.A systems development life cycle is a set of phases that mark the development ofan information system. The systems development life cycle in the textbookconsists of four phases: (1) systems planning and selection; (2) systems analysis;(3) systems design; and (4) systems implementation and operation. Duringplanning and selection, an organization’s total information systems needs areanalyzed and prioritized, a potential information systems project is identified, andan argument for continuing or not continuing with the project is made. During theanalysis phase, the current system is studied, and new requirements aredetermined and structured according to their interrelationships. Afterrequirements determination, alternative design strategies are generated. Duringdesign, the chosen alternative design strategy is converted into logical andphysical design specifications. During implementation and operation, the

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Chapter 1The Systems Development Environment7information system is coded, tested, and installed in the organization. Once thesystem is put into production, the system is systematically repaired and improved.7.What is prototyping?Prototyping is an iterative process of systems development by which requirementsare converted to a working system, which is continually revised through closework between an analyst and users.8.What are CASE tools? What is a CASE repository and how is it used?CASE tools provide automated support for some portion of the systemsdevelopment life cycle. CASE tools include diagramming tools, computer displayand report generators, analysis tools, a central repository, documentationgenerators, and code generators. CASE tools are built around a repository thatcontains all of the metadata (such as data names, format, uses, and location) fordata elements as well as the system specifications. CASE tools automate therepository for easier updating. CASE tools automate routine tasks to helpprogrammers and analysts to do their jobs better.9.What is JAD? What is Participatory Design?Joint Application Design (JAD) is a group process involving users and systemsdevelopment staff in which all parties discuss the needs for an information systemand reach a shared understanding. Participatory Design (PD) is a systemsdevelopment approach that originated in northern Europe in which users and theimprovement in their work lives is the central focus.10.What is RAD? How does it compare to the typical SDLC?Rapid application development (RAD) is a systems development methodologycreated to decrease the time needed to design and implement an informationsystem. One of the hallmarks of RAD is extensive user involvement throughtraditional JAD sessions as well as evaluation of prototypes. RAD also includesintegrated CASE tools and code generators.11.What are Agile Methodologies?Agile Methodologies promote a self-adaptive software development process.While other methodologies focus on roles that individuals play in a project team,Agile Methodologies focus more on the individual. As software is developed, theprocess used to develop it is refined and improved through a review process doneby the development team. Agile Methodologies differ from traditional systemdevelopment methodologies in that there is less focus on process and more focuson the people involved in the project.Problems and Exercises Solutions1.Why is it important to use systems analysis and design methodologieswhen building a system? Why not just build the system in whatever wayseems to be “quick and easy”? What value is provided by using an“engineering” approach?

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Chapter 1The Systems Development Environment8Methodologies, techniques, and tools help ensure the quality and appropriatenessof the system being built. Following a systems methodology, applying techniques,and using appropriate tools provides structure to the systems developmentprocess, since they have been tested and perfected by others. The quick andeasy approach to building systems may be easier, cheaper, and quicker in theshort run, but it almost always results in a poorly developed system, meaning thatthe system will be less than optimal and require extra work to maintain. In thelong run, a poorly developed system requires more time and money to make right.Following an engineering-type approach ensures that systems analysis anddesign is rigorous, structured, and systematic.2.Describe your university or college as a system. What is the input? Theoutput? The boundary? The components? Their interrelationships? Theconstraints? The purpose? The interfaces? The environment? Draw adiagram of this system.Students will identify a variety of inputs and outputs for the selected university orcollege. Possible inputs include high school transcripts, applications, tuitionpayments, and state and federal regulations. Outputs include diplomas,transcripts, billing statements, and inventions. A university’s boundary is moredifficult to define. Does the physical boundary of the campus serve as the logicalboundary for the organization? What if the school delivers outreach education inthe community, state, or region? What if the school delivers technology-baseddistance education across the globe? How would you classify a university-sponsored high-tech start-up business that is not located on campus?It should be easy for students to list the components of a university. They typicallyhave “business” functions, such as procurement, facilities management, andaccounting. In addition, they have academic colleges and departments, and theyhave academic functions such as registration and advising. Universities areusually organized along a functional hierarchy much like traditional businessorganizations, with vertical reporting relationships and interdisciplinary committeesand task forces for horizontal coordination. Nearly all universities are faced withconstraints on funding.Many universities are also constrained by their state-granted mission. Forexample, they may be defined by state law as being an exclusively teaching orresearch institution. Alternatively, state law may mandate from where and whattypes of students may be admitted. The mission of most universities includesproviding education, conducting research, and/or serving their communities.Universities interact with other universities, community colleges, high schools,business organizations, professional organizations, alumni, and many otherexternal entities. The interfaces with these external entities are sometimes formaland sometimes informal. Some examples of formal interfaces include researchcollaborations between professors and researchers in business or “shadowing”programs where business faculty or students go into the field and learn from abusiness executive.

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Chapter 1The Systems Development Environment93.A car is a system with several subsystems, including the brakingsubsystem, the electrical subsystem, the engine, the fuel subsystem, theclimate-control subsystem, and the passenger subsystem. Draw a diagramof a car as a system and label all of its system characteristics.The purpose of this question is to encourage your students to begin viewingvarious entities as systems, and decompose these systems into theircomponents. A simple diagram, showing examples of the car system’scharacteristics, is provided below. The car’s purpose is to provide safetransportation to wherever the driver needs to go. A constraint is the number ofpassengers that can ride in the vehicle.

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Chapter 1The Systems Development Environment104.Your personal computer is a system. Draw and label a personal computeras a system as you did for a car in Problem and Exercise 3.Student answers for this question will vary. However, a suggested answer,showing examples of a personal computer system’s characteristics, is providedbelow. The purpose of the computer is to perform operations for the user. Aconstraint for the system is its processing speed.BrakingSubsystemE lectricalSubsystemE ngineFuelSubsystemClimate-Control SubsystemPassenger SubsystemE nvironmentBoundaryInterrelationshipInputInterfaceOutputInterfaceInputInterface

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Chapter 1The Systems Development Environment115.Choose a business transaction you undertake regularly, such as using anATM machine, buying groceries at the supermarket, or buying a ticket for auniversity’s basketball game. For this transaction, define the data, draw thedata-flow diagram, and describe processing logic.For an ATM transaction, the data include customer name, customer accountnumber, customer personal identification number, customer account balance,transaction type, and transaction amount. At this point, the student should not beexpected to know the structure or nomenclature of a data-flow diagram or ofprocessing logic. For the ATM example, they should be able to explain that acustomer’s name is read from the account identification number on his/her ATMcard. Customers input their personal identification number by hand and, if thisnumber is matched with their account identification number, they are grantedaccess to begin an ATM transaction. They will either request to inquire into thestatus of their account, withdraw money, or deposit money. If, for example, theyrequest to withdraw money, their request will be matched with their availablefunds and the allowable daily limit for that ATM machine. If acceptable, the cashwill be dispensed, their account will be debited, and a receipt will be provided. Donot worry whether or not the student knows the technique or nomenclature at thispoint. It is more important that the student can analyze the transaction, break itdown into its component parts and pieces of data, and understand the process.6.How is the Joint Application Design (JAD) approach different from theParticipatory Design (PD) approach developed in northern Europe? (Youmay have to do some digging at the library to answer this questionadequately.) What are the benefits in using approaches like this in buildinginformation systems? What are the barriers?Both Joint Application Design and Participatory Design are developmentprocesses designed to help build better systems by engaging the directparticipation of users. The primary difference between them lies in the locus ofcontrol for systems development. With the JAD approach, control of systemsdevelopment typically still rests with the systems staff. Indeed, the outputs fromJAD sessions are commonly summarized and handled by the systems staff afterusers have a chance to review the transcripts. With the PD approach, control ofsystems development is either shared by systems personnel and users or restssolely with the users and their managers. With the movement toward end-userdevelopment in the United States, we are moving more toward shared control ofsystems and systems development. The benefits to the JAD and PD approachesare that they are likely to result in better systems and higher user commitment tothe systems than would be the case if these techniques were not used. Some ofthe barriers to these approaches are that they require extra systems analyst skillsand knowledge; in the short run they add more time and expense to the systemsdevelopment process, and they require more time and effort from already busyusers and user managers.7.How would you organize a project team of students to work with a smallbusiness client? How would you organize a project team if you wereworking for a professional consulting organization? How might these twomethods of organization differ? Why?

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Chapter 1The Systems Development Environment12The student project team should be of a size that is adequate for the task at hand.The team members should also possess the necessary set of skills andexperience for the task at hand. It is important that there be diversity of skills andabilities across team members, but it is also helpful if the team members havesome common interests and values on which to build collegiality and trust. It isnot necessary that there be a clearly defined “leader” for the team (leadership canrotate by time or phase), but there should be clearly defined roles andresponsibilities for each of the team members. There should also be a rewardstructure (for example, a grade) that promotes shared responsibility andaccountability. Finally, because their project is for a small business client, theteam members must act professionally and deliver a quality product on time.Surprisingly, these steps do not necessarily change much for organizing a projectteam within a professional consulting organization. One difference might be that,because you would be concerned more with the long-term professional growth ofthe team members, you might make team member selections and projectassignments that take into account the long-term career development of each ofthe team members.8.How might prototyping be used as part of the SDLC?Prototyping is useful for requirements determination, helping to clarify andcommunicate user requirements.Also, a prototype can serve as the basis for thefinal system. Imagine that an analyst is helping to develop a system that willenable a sales representative to access information about inventory levels in realtime rather than having to phone someone in production who then physicallychecks inventory levels and calls the sales representative back. The analystmight begin by asking the sales representative what kinds of information aboutinventory he/she needs, including when and where he/she needs to access thisinformation. The analyst might then use a graphical, object-oriented developmenttool, such as Microsoft’s VB.Net, to quickly build some sample interface displaysthat meet the sales representative’s needs. The analyst would then have thesales representative review these displays and give the analyst feedback. Theanalyst could then modify the displays and, again, solicit feedback from the salesrepresentative. Given the ease-of-use of VB.Net, the analyst could even build thesample interface “on-the-fly” with the sales representative present and helping tobuild the displays. The sample interface could then be used to build the actualsystem, either in VB.Net or in some other development environment.9.Describe the difference in the role of a systems analyst in the SDLC versusprototyping?The role of the systems analyst in the SDLC is essentially the same as that inprototyping. The primary difference is that in prototyping, the analyst issimultaneously performing tasks from the analysis, logical design, and physicaldesign phases of the SDLC. In cases where all or part of the prototype will beused for the actual system, the analyst is also performing tasks from theimplementation phase of the SDLC. In cases where the analyst builds theprototype with the direct, real-time assistance of the users, the analyst and usersare collaboratively completing several steps of the SDLC in one step.10.Compare Figures 1–10 and 1–11. What similarities and differences do yousee?

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Chapter 1The Systems Development Environment13Figure 1–11 illustrates an evolutionary model of the SDLC, and Figure 1–10illustrates the circular nature of the systems development life cycle. While bothfigures convey the iterative nature of systems analysis and design, Figure 1–11implies that we cycle through the systems development life cycle at varying levelsof detail.Discussion Question Solutions1.If someone at a party asked you what a systems analyst was and whyanyone would want to be one, what would you say? Support your answerwith evidence from this chapter.A good starting point for answering this question is to discuss the importance ofan organization’s information systems and the systems analyst’s role in thesystems development process. A systems analyst is a problem solver. Thechallenge of tackling a problem or opportunity, designing a solution, andimplementing a viable, valuable, and improved information system has muchappeal. Additionally, the results of the analyst’s work directly impact how theorganization operates and whether or not the organization can achieve andmaintain a competitive advantage. In addition, the analyst is paid quite well.2.Explain how a computer-based information system designed to processpayroll is a specific example of a system. Be sure to account for all ninecomponents of any system in your explanation.A payroll system can be thought of as a system because it is composed ofinterrelated subsystems that work together to accomplish a purpose. A payrollsystem has many components, including components that generate paychecks,make direct deposits, generate various internal reports, process time cards, andprocess various forms and tax returns. Many of these subsystems or componentsare related. For instance, the reporting component interacts with the tax,paycheck, and direct deposit components. A direct deposit made to anemployee’s bank account is an example of an interface. The payroll system’sboundary encompasses all of the payroll system’s activities. Employees, banks,and the local, state, and federal governments are part of the payroll system’senvironment. Hours worked, number of dependents, and number of sick days areexamples of input to the payroll system. The various reports, paychecks, and taxforms are types of output. Federal and state tax regulations are examples ofsystem constraints.

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Chapter 1The Systems Development Environment143.How does the Internet, and more specifically the World Wide Web, fit intothe picture of systems analysis and systems development drawn in thischapter?The Internet has opened up a new frontier for organizations, enabling them tocompete on a global basis. This new frontier of electronic commerce is having atremendous impact on the way that organizations are conducting business.Companies are using the World Wide Web to conduct business with theircustomers and suppliers, as well as facilitate internal operations. Companiesneed to reengineer their information systems to take advantage of the World WideWeb and all that it offers. Systems analysis and design is at the heart of thisrequired change.4.What do you think systems analysis and design will look like in the nextdecade? As you saw earlier in the chapter, changes in systemsdevelopment have been pretty dramatic in the past. A computerprogrammer suddenly transported from the 1950s to the 2000s would havetrouble recognizing the computing environment that had evolved just 50years later. What dramatic changes might occur in the next 10 years?As the textbook suggests, much of today’s systems development work focuses onsystems integration, which is likely to continue in the coming years. Companiesare recognizing the tremendous benefits of electronic commerce and the WorldWide Web, so we can expect a continued movement in that area. Over the past50 years, we have seen much improvement in the methodologies, techniques,and tools that are used for systems development work. This trend shouldcontinue. You should encourage students to find articles about the future ofsystems analysis and design. Many articles are available on the Web. Thesearticles will serve as a launching pad for class discussion.Case Problem Solutions1. Pine Valley FurnitureCase Exercisesa.How did Pine Valley Furniture go about developing its information systems?Why do you think the company chose this option? What other options wereavailable?As mentioned in the scenario, Pine Valley Furniture developed its applications in-house. Many reasons are plausible for why the company chose this option. Thecompany may have had unique processing needs that required the system to bebuilt in-house, as opposed to purchasing a prepackaged system. The companymay also have viewed its information systems as helping it achieve a competitiveadvantage. Pine Valley Furniture had several options, including purchasing asystem off-the-shelf, implementing an enterprise-wide system, or hiring aninformation technology services firm to develop its information systems.

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Chapter 1The Systems Development Environment15b.One option available to Pine Valley Furniture was an enterprise-widesystem. What features does an enterprise-wide system, such as SAP,provide? What is the primary advantage of an enterprise-wide system?To answer this question, encourage your students to visit a Web site devoted toenterprise-wide systems. Information about SAP can be found at its Web site:http://www.sap.com. You may wish to have your students compare enterprise-wide systems, such as SAP and PeopleSoft. Information about PeopleSoft canbe obtained athttp://www.oracle.com/applications/peoplesoft-enterprise.html.Enterprise-wide systems enable companies of all sizes to better manage theirfinancial, human resources, sales, production, and distribution processes. Theprimary advantage of an enterprise-wide system is its ability to integrateinformation across the organization.c.Pine Valley Furniture will be hiring two systems analysts next month. Yourtask is to develop a job advertisement for these positions. Locate severalWeb sites and/or newspapers that have job advertisements for systemsanalysts. What skills are required?Encourage yourstudents to classify the required skills into four categories:analytical, technical, management, and interpersonal. A good place to startlooking on the Web is athttp://www.monster.com. Students should be able to findnumerous systems analyst job advertisements at this Web site.d.What types of information systems are currently utilized at Pine ValleyFurniture? Provide an example of each.Pine Valley Furniture is currently using transaction processing systems,management information systems, and decision support systems. Although notspecified in the case scenario, students should be able to quickly identify orderprocessing, management reporting, and forecasting as examples of the differenttypes of information systems.2. Hoosier Burger Case Exercisesa.Apply the SDLC approach to Hoosier Burger.The systems development life cycle can be used to analyze, develop, and supportHoosier Burger’s information systems. During systems planning and selection,Bob, Thelma, and the analyst, recognize the need for improvement in the existingHoosier Burger systems. This need will translate itself into several projects, suchas new order-taking, inventory control, and management reporting systems. Also,needs are prioritized, a scope is identified, and feasibility is assessed.During systems analysis, the analyst examines Hoosier Burger to determinesystem requirements, structure these requirements, and generate alternativedesign strategies. During systems design, both logical and physical designs areprepared. During logical design, the analyst concentrates on the businessaspects of Hoosier Burger. During physical design, Hoosier Burger’s logicaldesign is translated into physical design specifications. During systemsimplementation and operation, the design specificationsfor the new Hoosier

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Chapter 1The Systems Development Environment16Burger system become a working system, and modifications to the newinformation system are made when warranted.b.Using the Hoosier Burger scenario, identify an example of each systemcharacteristic.The ordering system is an example of a component; the order and inventorysystems are interrelated components. The boundary encompasses the orderingsystem, inventory system, and management reporting system. Hoosier Burger’spurpose is to make a profit for its owners and to provide quality products andservices to its customers. Customers, suppliers, funding agencies, and regulatoryagencies exist in Hoosier Burger’s environment. An interface exists between thecustomer and the counter. An order serves as input; a sales receipt serves asoutput. Constraints would include health regulations.c.Decompose Hoosier Burger into its major subsystems.Hoosier Burger has four major subsystems. These systems are order-taking, foodpreparation, inventory, and management reporting. Students may classify thesesubsystems differently; however, the goal is for students to decompose theHoosier Burger system into its primary subsystems.d.Briefly summarize the approaches to systems development discussed inthis chapter. Which approach do you feel should be used by HoosierBurger?The textbook discusses several approaches, including systems development lifecycle (SDLC), prototyping, computer-aided software engineering (CASE), jointapplication design (JAD), rapid application development (RAD), participatorydesign (PD), and Agile Methodologies. The SDLC is a series of steps used tomark the phases of development for an information system. Prototyping involvesiteratively designing and building a scaled-down working model of a desiredsystem. CASE tools provide automated support for the systems developmentprocess. Joint Application Design is a structured process that brings together endusers, managers, and analysts in an effort to identify system requirements andreview system designs. Rapid Application Development quickly builds systemsthrough user involvement, JAD sessions, prototyping, integrated CASE tools, andcode generators. Participatory design is a systems development approach thatoriginated in Northern Europe in which users and the improvement in their work-lives is the central focus. Agile Methodologies focus on adaptive methodologies,people, and a self-adaptive process. Systems development at Hoosier Burger willprobably use the traditional SDLC. However, prototyping can be used to buildworking models of the system.3. Natural Best Health Food Stores Case Exercisesa.Identify the different types of information systems used at Natural BestHealth Food Stores. Provide an example of each. Is an expert systemcurrently used? If not, how could Natural Best benefit from the use of sucha system?From the description provided above, students should recognize the existence of

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Chapter 1The Systems Development Environment17a transaction processing system, a management information system, and adecision support system. The transaction processing system is responsible fortaking customer orders, scheduling deliveries, and updating inventory. Themanagement information system is responsible for generating severalmanagement reports, including sales summary, delivery, and low-in-stock reportsfor each store location. Mr. Davis uses an Excel worksheet for decision support.The case scenario does not specifically mention an expert system. However,students should identify several potential uses of an expert system, includingusing the expert system to make product recommendations for customers.b.Figure 1–4 identifies seven characteristics of a system. Using the NaturalBest Health Food Stores scenario, provide an example of each systemcharacteristic.Inventory management and sales are two system components. Inventorymanagement and sales are interrelated, because a product cannot be sold unlessit is in stock or placed on back order. On a physical level, the boundary is definedby each store building. On a systems level, the boundary can be defined by theNBDS system activities, such as transaction processing, management reporting,and facilitating decision making. The purpose of Natural Best Health Food Storesis to provide healthy, quality products to its customers at an affordable price. Theenvironment includes customers, suppliers, banks, and regulatory agencies.Interfaces include order taking, product deliveries, management reports, and low-in-stock notifications. Inputs include the order information, packing slips, andcustomer profiles. Outputs include sales receipts, delivery slips, and managementreports. Constraints include the number of deliveries that can be made on a givenday, lack of data exchange between stores, and the inability to deliverprepackaged meals at the present time.c.What type of computing environment does Natural Health Food Best Storeshave?Natural Best Health Food Stores currently has a client/server environment. Theclients are responsible for capturing the sales data. Data are then transmitted to acentral server, which is responsible for processing this data and updating thecentral database.

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Chapter2The Sources of Software1Chapter 2The Sources of SoftwareChapter OverviewSystems Analysis and Development involves developing software, but also involvespurchasing or in other ways obtaining various types of software to accomplish variousSDLC activities. Chapter 2 discusses where software can be obtained, advantages anddisadvantages of various sources, and how the systems analyst decides on a vendorand manages software procurement decisions.Instructional ObjectivesSpecific student learning objectives are included at the beginning of the chapter.Froman instructor’s point of view, the objectives of this chapter are to:1.Identify and discuss information systems development options, including IT servicesfirms, packaged software producers, enterprise-wide solutions, application serviceproviders, open-source software, and in-house developers.2.Define and understand outsourcing and its implications.3.Discuss choosing off-the-shelf software.4.Make comparisons between off-the-shelf solutions and in-house solutions andvalidate purchased software.5.Understand how and why reusing software can be a useful option.Classroom Ideas1.This is a relatively short chapter. It may be easier to use the end of chapterelementsforlectures. The review questions and problems and exercises providetargeted topics for discussion in terms of discussing the many sources of software.2.Emphasize how many sources of software are available. Students shouldunderstand that being a systems analyst does not necessarily mean building codefrom scratch. Illustrate that, while a systems analyst might need a unique solutionfor their particular organization, there are many sourceswhere the analyst canacquire already existing pieces that can be brought together to build their uniquesolution.3.It can be useful to discuss the history of systems acquisition and show how changesin technology and availability have influenced where software can be acquired now.

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Chapter2The Sources of Software24.If possible, try to obtain off-the-shelf validation documents (RFP or RFQ) from anactual organization to illustrate what these documents contain.5.In lecturing about this chapter, you might want to use the tables and figures in thechapter to point out to students the major issues at stake in sourcing software.Lecture NotesIntroductionSoftware is available from many sources. Some firms still do in-house programming, butmany others acquire software from a variety of sources. This chapter discusses thevarious sources of software, from outsourcing to open source and off-the-shelf options.This chapter illustrates how systems analysts can make decisions about choosing fromthe many sources, and also discusses reusing software from previous sources.Systems AcquisitionConsidering how important information systems are to organizations, when did theybegin to be used, and where did they come from? GE produced an in-house payrolloption in 1954. Since then, in-house development has become a smaller component ofmany organizations’ systems development budgets as other sources of software havebecome available and more strategically advantageous than developing software in-house.OutsourcingOutsourcing is a practice where another organization develops or runs a computerapplication for your organization. Outsourcing can be very cost effective, and manyorganizations choose to outsource much, if not all of their IT functions. This has resultedin a very large market for outsourcing—$930 billion in 2006. Considering the availabilityand cost-effectiveness of outsourcing, analysts should be aware of the option andcarefully consideritas a potential alternative.Sources of SoftwareMethods of acquiringsoftware can be grouped into 6 major categories—(1)informationtechnology services firms, (2)packaged software providers, (3)vendors ofenterprise solution software, (4)application service providers and managedservice providers, (5)open-source software, and (6)in-house development. Eachof these sources are presented inFigure 2–1andTable 2–2provides a comparison ofthe 6 sources of software.Choosing Off-The-Shelf SoftwareIf an analyst choosesto purchase software, s/he should understand what criteria theyshould evaluate before making a decision, and how to compare the options available tothem. The most common criteria for evaluating off-the-shelf software relative to in-house

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Chapter2The Sources of Software3development are shown inFigure 2–2.Each of the criteria may be more important thanthe others depending on various aspects of the project.Another important consideration when evaluating off-the-shelf options is validating thesoftware information. This can be done by asking the vendor, but can also be carriedout by issuing aRequest for Proposal (RFP), where vendors can propose hardwareand software that will meet the requirements of your new system. Other users of thesoftware are also good sources for feedback and validation.ReuseIn addition to the sources of software already identified, some organizations may be abletoReusesoftware, or various components from already developed software. Reusemay apply to many pieces of previously developed software, but most often applies toobject-oriented and component-based technologies. Reuse requires the organization tobe able to leverage the cost of components across many users and projects.Figure 2–3shows a graph illustrating this concept. If an organization makes the decision to reuse,there are four approaches to reuse, which are presented inTable 2–3.Key Terms Checkpoint SolutionsAnswers for the Key Terms Checkpoint section are provided below. The numberfollowing each key term indicates its location in the key term list.1.Managed service provider (MSP) (3)4.Enterprise resource planning (ERP) systems(2)2.Application service provider (1)5.Request for proposal (RFP) (5)3.outsourcing (4)6.Reuse (6)Review Questions Solutions1.Describe and compare the six sources of software.The six sources of software identified in the textbook are: (1) informationtechnology services firms, (2) packaged software providers, (3) vendors ofenterprise solution software, (4) application service providers and managedservice providers, (5) open-source software, and (6) in-house development. ITservices firms help companies develop custom information systems for internaluse;they develop, host, and run applications for customers;or they provide otherservices. An IT services firm may be chosenif the system can’t be developedinternally or requires customer support.Packaged software providers arecompanies thatproduce software exclusively, like Microsoft or Intuit, and arepreferable if the task needing the system is generic. Vendors of enterprisesolution software create a system that is composed of a series of integratedmodules. Each module supports a business function, such as accounting, orhuman resources. ERP systems may be appropriate if a complete system is

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Chapter2The Sources of Software4required that can cross functional boundaries. Application service providers hostand run software applications at remote sites. A more intense option for larger,more customizable solutions are Managed service providers who can providemore services than application service providers. ASPs and MSPs may beappropriate when instant access to an application is desired, and in the case ofASPs, when the task is generic. Open-source software is a type of software thatis developed by a community of interested people and it is freely available. Open-source software is preferable when the task is generic and cost is an issue.Finally, in-house development is still an option. In-house development refers tothe organization developing software with its own IT assets, rather thanpurchasing software elsewhere. In-house development may be appropriate whena system must be built from scratch and as long as the personnel and resourcesare available to the organization.2.What are the differences between ASPs and MSPs?ASPs host and run computer applications for other companies and usuallypurchase or license applications from other software vendors. MSPs providesimilar services, but can also provide more customization and may also includebusiness processes, engineering, security, and maintenance. MSPs can alsoprovide network-based series, customized applications, and even equipment andmay cost more than ASPs.3.How can you decide among various off-the-shelf software options? Whatcriteria do you use?To decide what off-the-shelf software to buy, compare products and vendors. Usethe following criteria (among others that may be more situation-specific): cost,functionality, vendor support, viability of vendor, flexibility, documentation,response time, and ease of installation.4.What is an RFP and how do analysts use one to gather information onhardware and system software?An RFP is a formal document that provides detailed specifications about a targetinformation system and asks vendors for information on how they would developthe system. Analysts use RFPs as a way to get vendors to perform the necessaryresearch into specific design strategies and the hardware and system softwarevendors believe are necessary for developing the new system.5.What methods can a systems analyst employ to verify vendor claims abouta software package?To verify vendor claims about a software package, an analyst can ask for asoftware demonstration, use the software (and its documentation and trainingmaterials), personally talk with other users of the software, ask specific questionsvia a questionnaire, and consult independent software testing and abstractingservices.6.What are ERP systems? What are the benefits and disadvantages of suchsystems as a design strategy?

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Chapter2The Sources of Software5ERP is a system that is composed of a series of integrated modules. Eachmodule supports a business function, such as accounting, or human resources.An advantage of ERP systems is that the modules are integrated across businessfunctional areas, so that, for instance, all aspects of a single transaction can occurseamlessly within one information system, where it would have had to have beenprocessed multiple times across several systems in a more traditionalenvironment focused on functional areas. Other benefits include having a singlerepository of data for all aspects of a business process and the flexibility of themodules; other modules can be added as needed and are immediately integratedinto the existing system. Disadvantages include complexity, lack of knowledgeamong organization’s personnel and reliance on consultants,and expense. Insome cases, an organization may be required to change how it does business tomore efficiently utilize ERP systems.7.Explain reuse and its advantages and disadvantages.Reuse refers to using previously written software resources, especially objectsand components, in new applications. It can be more efficient to reuse objects orcomponents,and research has shown that it can increase productivity, reducedefects, and reduce the amount of rework needed. Disadvantages includeorganizational lack of commitment, lack of proper training and rewards needed topromote reuse, and it is difficult to measure the economic gains from reuse.8.Compare and contrast the four approaches to reuse.“Ad Hoc” reuse refers to individuals finding ways to reuse objects andcomponents on their own. Facilitated reuse refers to reuse that is encouraged bythe organization, but with limited resources, infrastructure, and policies that wouldmake reuse easier. Managed reuse refers to reuse that occurs because theorganization enforces reuse through resources, infrastructure, policies, andpeople. Designed reuse refers to an organization carefully designing assets forreuse.Problems and Exercises Solutions1.Research how to prepare a request for proposal.The request for proposal (RFP) is used when the organization wants to solicitproposals from several competing vendors. RFPs usually first give somebackground information on the company and the business units involved in therequest, an explanation of the information system needs, a description of what iswanted from the vendors (i.e., what information they must provide or other actionsthey must take), and an explanation of any rules or procedures for the RFP andsystem development process. The bulk of the document then describes themandatory, essential, and desirable requirements in the areas of need (e.g.,functionality, hardware, software, and service).

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Chapter2The Sources of Software62.Review the criteria for selecting off-the-shelf software presented in thischapter. Use your experience and imagination and describe other criteriathat are or might be used to select off-the-shelf software in the real world.For each new criterion, explain how its use might be functional (i.e., it isuseful to use this criterion), dysfunctional, or both.In addition to cost, functionality, vendor support, viability of vendor, flexibility,documentation, response time, and ease of installation, there are a number ofother real world criteria that might be included. People often choose applicationpackages, such as word processors and spreadsheets, based solely on theirfamiliarity with the packages and/or their bias toward one hardware platform oroperating system over another. To a certain extent this can be functional.However, this could also be dysfunctional. For example, it would be useful toconsider the current staff’s familiarity with the new application software and theresulting need for retraining. However, it would be dysfunctional if a company didnot ever choose new software because of the employees’ lack of familiarity with it.Eventually, software will evolve and the market will change, and the employees(and the company) will be left behind using antiquated technology.Some other criteria include compatibility with currently used application software(so, for example, data can be shared), compatibility with existing hardware andsystem software, ability to support a range from novice to experienced (or power)users, and appeal of the user interface (ease of use).3.In the section on choosing off-the-shelf software, eight criteria are proposedfor evaluating alternative packages. Suppose the choice was betweenalternative custom software developers rather than prewritten packages.What criteria would be appropriate to select and compare among competingbidders for custom development of an application? Define each of thesecriteria.The list for evaluating alternative custom software developers would be verysimilar to that for selecting off-the-shelf application software or for computerhardware and system software. In addition to cost, functionality, vendor support,viability of vendor, flexibility, documentation, response time, and ease ofinstallation, we might include the current staff’s familiarity with the software, needfor retraining, compatibility and connectivity with current systems, and the trackrecord of the vendor in successfully implementing similar software in otherorganizations. Such vendors should have an established track record ofdeveloping similar software in other organizations. Their references should bechecked thoroughly, including visits to these other sites. If the developer’s rolewill end after the application is accepted, then the reputation of the vendor forhandling this transition from external development to internal maintenance isimportant. From a legal point of view, you may want to select a custom developerbased on the willingness to sign a non-disclosure agreement, so that they are notallowed to develop a similar system for one of your competitors, at least for someamount of time.4.How might the project team recommending an ERP strategy justify itsrecommendation as compared with other types of design strategies?

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Chapter2The Sources of Software7The project team would need to justify an ERP strategy by highlighting thestrategic advantage to reengineering business processesto integrate with ERPmodules. Doing so will provide a single repository for data, which can streamlineall IT within the organization and ensure that data is consistent and accurate.Furthermore, if expansion is required in the future, additional modules are able tobe integrated immediately. Finally, considering the regulatory climate, the ERPvendor (and consultants) will likely be better at ensuring the organization’scompliance with regulations,such as Sarbanes-Oxley, HIPAA, etc.

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Chapter 3Managing the Information Systems Project1Chapter 3Managing the Information Systems ProjectChapter OverviewThe purpose of this chapter is to introduce students to the process of managing aninformation systems project. Specifically, this chapter focuses on the systems analyst’srole in managing information systems projects through the four phases in the life of allprojects: initiation, planning, execution, and close down. You (and your students)should think of this chapter as a valuable reference throughout the systems developmentcourse and use the material in this chapter to assist in guiding and evaluating ongoingproject activities. You may want to emphasize that the skills and knowledge gained fromthis chapter are a critical foundation to the effective management of, not only informationsystems projects, but also, all types of projects and activities.Chapter 3 introduces students to Pine Valley Furniture and Broadway EntertainmentCompany, Inc., the textbook’s two running cases.These two fictional companies areused in the chapters to illustrate key systems analysis and design concepts. Wheneither of these companies is referenced in the textbook, an icon appears next to thematerial, making it easier for the reader to locate the references to the particularcompany. Pine Valley Furniture is a fictitious manufacturing company that manufactureshigh-quality wood furniture. Pine Valley Furniture provides a concrete example of asystems development project, reinforcing the analysis and design concepts presentedthroughout the textbook. Broadway Entertainment Company, Inc. is a fictitiousinternational company involved in the video, music, and game rental and sales business.The Broadway Entertainment Company, Inc. case demonstrates the concepts presentedin the chapters and provides students the opportunity to apply their newly acquiredknowledge to a realistic case.Instructional ObjectivesSpecific student learning objectives are included at the beginning of the chapter.Froman instructor’s point of view, the objectives of this chapter are to:1.Explain the process of managing an information systems project.2.Describe the skills required to be an effective project manager.3.List and describe the skills and activities of a project manager during projectinitiation, project planning, project execution, and project close down.4.Explain what is meant by critical path scheduling and describe the process ofcreating Gantt charts and Network diagrams.5.Explain how commercial project management software packages can be used toassist in representing and managing project schedules.

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Chapter 3Managing the Information Systems Project2Classroom Ideas1.This chapter introduces many concepts and terms that are central to themanagement of information systems projects. It is important that your studentsbecome familiar with the key terms listed at the end of the chapter. To reinforcestudents’ understanding of these key terms, you can use the matching questions asan in-class assignment, quiz, or out-of-class assignment.2.You may choose not to lecture from this chapter. Your students can read thechapter much as they might read a supplemental background reading (this isespecially true if your students have already been exposed to project managementconcepts in another course). When reading the chapter this way, you may want toask each student to apply the concepts of this chapter to a non-information systemsactivity, such as going on a date, vacation, etc. For this activity, ask students todescribe initiation, planning, execution, and close-down activities. Ask them tocreate a work breakdown structure that includes precedence relationships and timedurations for each activity. Additionally, ask them to construct Gantt charts andNetwork diagrams for these activities. You can have students do this as either anoutside class activity or have them do this during your class time. Within class, youcan call on students to describe their project and phases. Alternatively, you couldmake this a written assignment to be graded or reviewed.3.If you lecture from this chapter, you might want to use the tables and figures in thechapter to point out to the students the major project management activities.4.An alternative to lecturing on the main part of this chapter is to lecture from theReview Questions, Problems and Exercises, and Discussion Questions at the endof the chapter. Selected questions can be posed to students to help focus adiscussion on project management concepts and techniques.5.You should make sure that the students have the ability to construct Gantt chartsand Network diagrams. Working through the problems presented in the text or inProblems and Exercises 7, 8, 12, and 13 in class will be helpful to many students.6.Another effective, in-class exercise for teaching this chapter is to ask students whohave been on systems development teams to compare their experiences to theconcepts presented in Chapter 3. This discussion can be a good way to elaborateon alternative ways for managing systems development projects, especially ifsystems were constructed using different methodologies. Use this discussion toexplore if these student projects followed the discrete phases outlined in thechapter. Ask them to describe the activities of the project manager. What was thesame? What was different?7.If you have access to project management software, it is often engaging forstudents to see a demonstration of how a systems development project can berepresented. Such a demonstration will not only teach students projectmanagement techniques, but it also gives them greater confidence to try projectmanagement software for themselves.

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Chapter 3Managing the Information Systems Project38.If you have access to a practicing systems development project manager, a usefulactivity is to invite them to your class to discuss how they manage projects. Makesure that you ask this person about how to manage all four phases of a project(even if this is not the terminology he uses). Also, what tools are used? How doproject members communicate?9.If you can obtain a copy of the project management guidelines for a local systemsdevelopment firm or consulting organization, show students how extensive projectmanagement guidelines typically are. If you have students working in systemsdevelopment organizations, you might ask several of them to bring to class theirfirm’s guidelines. If possible, reproduce the table of contents of these manuals forall students and have them compare the various guidelines to see what eachorganization emphasizes.Lecture NotesThis chapter introduces students to the project manager’s role in the systemsdevelopment process. The project manager is responsible for initiating, planning,executing, and closing down the project.Figure 3–1illustrates these projectmanagement activities. Students are also introduced to techniques for reporting projectplans, as well as project management software.Pine Valley Furniture Company BackgroundPine Valley Furniture manufactures a variety of high-quality wood furniture items. Sinceits beginnings in the early 1980s, the company’s information systems have changedfrom manual-based information systems to application-oriented systems to a recentlyimplemented database approach.Figure 3–2illustrates the application-orientedapproach that Pine Valley Furniture used. Pine Valley Furniture’s new centralizeddatabase was developed in-house.Managing the Information Systems ProjectAprojectis a planned undertaking of related activities to reach an objective that has abeginning and an end. Aproject managerassures that a systems development projectmeets customer expectations and is delivered within budget and time constraints.Additionally, he/she is responsible for initiating, planning, executing, and closing down aproject. To successfully perform these tasks, a project manager must have a diverseskills set, including management, leadership, technical, conflict management, andcustomer relations skills.Systems development projects are often undertaken for two primary reasons: to takeadvantage of business opportunities and to solve business problems. The Pine ValleyFurniture’s Purchasing Fulfillment System is presented as an example of how a projectis undertaken to solve a problem. Juanita Lopez works in the order department, andChris Martin is a systems analyst. After contacting Chris about problems with theordering process, Chris and Juanita produced a Systems Service Request.Figure 3–3

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Chapter 3Managing the Information Systems Project4shows thisdeliverable. Once Pine Valley Furniture’s Systems Priority Board approvedthe Systems Service Request, afeasibility studywas conducted.Figure 3–4outlinesthe steps followed during the project initiation stage of the Purchasing Fulfillment Systemproject.Once a project has been identified, the size, scope, resource requirements, andprobability for successful completion are determined. To manage a project and bring itto a successful conclusion, the project manager juggles many activities;Figure 3–5illustrates this juggling process.Table 3–1lists the common activities and skills requiredof a project manager. As mentioned previously, the project manager is responsible forproject management, which consists of four phases: (1) initiating the project; (2)planning the project; (3) executing the project; and (4) closing down the project.Project initiationis the first phase of the project management process in whichactivities are performed to assess the size, scope, and complexity of the project and toestablish procedures to support later project activities.Figure 3–6lists the followingproject initiation activities: (1) establishing the project initiation team; (2) establishing arelationship with the customer; (3) establishing the project initiation plan; (4) establishingmanagement procedures; (5) establishing the project management environment andproject workbook; and (6) developing the project charter.Establishing the project team organizes an initial core of project team members to carryout the project initiation activities. The second activity, establishing a relationship withthe customer, encourages a strong working relationship between the analyst and theusers. Often management will assign a specific IS individual to work as a liaisonbetween the IS group and the business unit, thus fostering working relationshipsbetween the IS group and various business units. Establishing the project initiation planidentifies those activities required to organize the initiation team while it works to definethe project’s scope. Activities include defining an individual’s role, establishingcommunication plans, identifying required deliverables and project steps, andestablishing deadlines. When establishing management procedures, the projectmanager is concerned with how the team will communicate, establishing reportingprocedures, job assignments and roles, project change procedures, and how to handleproject funding and billing. Establishing the project management environment andproject workbook involves collecting and organizing the tools that will be used whilemanaging the project and starting aproject workbook. The project workbook can existin manual and/or electronic form. The project workbook is often made available via theWeb.Figure 3–7illustrates Pine Valley Furniture’s project workbook.Aprojectcharteris a short, high-level document prepared for both internal and externalstakeholders to formally announce the establishment of the project and to brieflydescribe the objectives, key assumptions, and stakeholders.Project planningis the second phase of the project management process, whichfocuses on defining clear activities and the work needed to complete each activity withina single project. AsFigure 3–8suggests, plans in the short term can be more detailedand specific, while longer-term plans will often not be as detailed. As illustrated inFigure 3–9, the project planning phase involves ten activities: (1) describing projectscope, alternatives, and feasibility; (2) dividing the project into manageabletasks; (3)estimating resources and creating a resource plan; (4) developing a preliminaryschedule; (5) developing a communication plan; (6) determining project standards and

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Chapter 3Managing the Information Systems Project5procedures; (7) identifying and assessing risk; (8) creating a preliminary budget; (9)developing a project scope statement; and (10) setting a Baseline Project Plan.During the first activity, the initiation team seeks to understand the content andcomplexity of the project. It is important that the team members define the scope,identify possible alternative solutions, and assess feasibility. When dividing the projectinto manageable tasks, the entire project is broken into smaller, more manageable tasks.These tasks are then ordered. Awork breakdown structureis a product of thisactivity.Figure 3–10uses aGantt chartto illustrate how activities can be broken downinto summary tasks and specific tasks. During the estimating resources and creating aresource plan activity, resource requirements for each project activity are estimated.This information is used to create a project resource plan. It is important to keep in mindthat the individuals assigned to specific tasks influence the resource requirements.Figure 3–11helps illustrate this point. When making task assignments, the projectmanager can use specialized, generalized, or middle-ground approaches.When developing a preliminary schedule, the time and resource availability informationis used to assign time estimates to each activity appearing in the work breakdownstructure. Gantt charts andNetwork diagramscan represent a project’s schedule.Figure 3–12shows a Network diagram. The activity of developing a communicationplan outlines the communication procedures among management, project teammembers, and customers.Table 3–2identifies several project team communicationmethods. Determining project standards and procedures specifies how variousdeliverables are produced and tested by the project team. It is important for the projectmanager to identify and assess sources of project risk. The identification of a project’srisk and its scope are related and often concurrently discussed. A preliminary budgetwill also be created; the preliminary budget outlines expected revenues and expenses.Figure 3–13shows a sample cost-benefit analysis for a systems development project.A Project Scope Statement is developed near the end of the project planning phase; thepurpose of this document is to ensure that everyone has a clear understanding of theintended project size, duration, and outcomes. The final project planning activityinvolves setting a Baseline Project Plan; the Baseline Project Plan estimates theproject’s task and resource requirements and guides project execution.Project executionis the third phase of the project management process and is whenthe plans created in prior phases are put into action.Figure 3–14lists the five projectexecution activities: (1) executing the Baseline Project Plan; (2) monitoring projectprogress against the Baseline Project Plan; (3) managing changes to the BaselineProject Plan; (4) maintaining the project workbook; and (5) communicating the projectstatus. Executing the Baseline Project Plan involves initiating the execution of projectactivities, acquiring and assigning resources, orienting and training new team members,keeping the project on schedule, and assuring the quality of project deliverables.Figure3–15shows how complete and incomplete activities can be represented on a Ganttchart. While monitoring the project progress against the Baseline Project Plan, theproject manager may need to adjust resources, activities, and budgets. Gantt andNetwork diagrams are beneficial tools for this activity. Managing changes to theBaseline Project Plan involves managing formal change requests and changes occurringoutside the project manager’s control. When events occur that impact the project, theproject manager must devise a way to get back on track or revise the Baseline ProjectPlan. During project execution, it is important that the project workbook is maintainedand that the project’s status is communicated to all interested parties.

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Chapter 3Managing the Information Systems Project6Project closedownbrings the project to an end. A project can have a natural orunnatural termination. When a project terminates, several activities are performed;including: (1) closing down the project; (2) conducting postproject reviews; and (3)closing the customer contract.Figure 3–16summarizes the project closedownactivities. When closing down the project, the project manager may assess each teammember, provide career advice to team members, handle negative personnel issues,notify all interested parties that the project is completed, finalize documentation andfinancial records, and celebrate the accomplishments of the team. When conductingpostproject reviews, the objective is to determine the strengths and weaknesses ofproject deliverables, the processes used to create them, and the project managementprocess. Closing the customer contract ensures that all contractual terms have beenmet.A project manager has a variety of graphical and textual documents available fordocumenting the project plans. Network diagrams and Gantt charts are two such tools.Figure 3–17illustrates a Gantt chart and a Network diagram.While Gantt charts showwhen a task should begin or end, Network diagrams show the sequencing of activities.Project management software enables the project manager to easily alter the projectplan.Figure 3–18illustrates this point. Network diagrams are acritical pathschedulingtechnique used for controllingresources. Network diagrams are moreoften used than Gantt charts for information systems projects because Networkdiagrams can represent how completion times vary for various tasks.Figure 3–19illustrates a Network diagram.PERTis a technique that uses optimistic, pessimistic,and realistic time to calculate the expected time for a particular task. Acritical pathisthe shortest time in which a project can be completed.Slack timeis the amount of timethat an activity can be delayed without delaying the project.Pine Valley Furniture’s Sales Promotion Tracking System (SPTS) is an example of howto represent a project plan. Jim Woo, the project’s manager, followed four steps torepresent the project plan. The steps are: (1) identify each activity to be completed inthe project; (2) determine time estimates and calculate the expected completion time foreach activity; (3) determine the sequence of the activities and precedence relationshipsamong all activities by constructing a Gantt chart and network diagram; and (4)determine the critical path.Figures 3–20through3–25reinforce these steps.Using Project Management SoftwareA wide variety of project management tools are available. These tools allow the projectmanager to define and order tasks, assign resources to tasks, and modify tasks andresources. Project management tools run on a variety of platforms and range in price.Figures 3–26through3–29can be used to discuss project management software.Key Terms Checkpoint SolutionsAnswers for the Key Terms Checkpoint section are provided below. The numberfollowing each key term indicates its location in the key term list.

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Modulo 7 DHCPv4

Build and troubleshooting Integration Challenge

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