21. Development Strategies

Question 1

How to obtain an AIS

Answer 1

Purchase or rent existing software

Develop in-house to meet the user’s needs

Outsource to outside organization. The company outsourcing the data processing activities

Question 2

How to purchase or rent existing software

Answer 2

Scout the market

Question 3

Develop Software In-House
by own developer

Advantages and risks?

Answer 3

Provides a significant competitive advantage

Risk: complexity, lack of qualified staff, poor top management support etc.

Question 4

Develop Software In-House
by external developer

Advantages and risks?

Answer 4

A company maintains control over the development process as follows:

We select the external developer, we make the contract, and planning the project in details.

We can control cost and minimize cash outflows until accepted projects.

Question 5

Outsourcing advantages and disadvantages

Answer 5

Advantages: allows companies to concentrate on core competencies

Disadvantages: loss of control, poor service, increased risks, unfulfilled goals.

Question 6

Business process management (BPM) is a continuous approach to improving and optimizing business processes. Business
processes help the organization get things done (e.g., sell and ship goods to customers).

What are the fundamental principes for BPM?

Answer 6

1. Business processes can produce competitive advantages.
2. Business processes must be managed end to end.
3. Business processes should be agile.
4. Business processes must be aligned with organizational strategy and needs.

Question 7

Explain Prototyping

Tip: way too early stage

Answer 7

Experimental with the prototype (demo) to create, modify and develop into the finished and fully functional information system.

Question 8

What are the advantages and disadvantages with creating prototypes?

Answer 8

Advantages
- Results in well-defined user
needs.
- Higher user satisfaction and
involvement.
-  Faster development time.
- Fewer errors.
- Opportunities to suggest
changes.

Disadvantages
- Requires significant user
time.
- Resource efficiency may not
be achieved.
- Negative behavioral reactions.
- Continuous development of
iterations leaves a feeling of
no project completion.