Topic 2.2 AIS And Development Strategies Flashcards
How to obtain an AIS?
Purchasing
Developing
Outsource to outside organisation
What does purchasing an AIS involve?
- select a vendor
- request for proposal that meet needs
- evaluate proposals
- make a final selection
What are the types of software you can purchase?
- Off the shelf or canned software
- turnkey system
- hardware and software sold as a package
- application service provider
- MYOB, XERO
Developing software in house risk and advantages
Advantages
- Can make it to meet all the needs you require. Provides a significant competitive advantage
Risks
- requires a lot of time - complexity of the system - insufficient planning - lack of qualified staff - poor top management support
What is end user computing?
Refers to a system that non programmers can create working applications
What are the advantages and disadvantages of end user computing
Advantages
- more likely to meet user needs
- saves time
- frees up system resources
- easy to use and understand
Disadvantages
- lack of testing of application and possible calculation errors
- inefficient systems
- poorly controlled
- poorly documented
- duplication of data
What does outsourcing the system mean
Hiring outside firm to manage all or part of the data processing requirements
Started with applications such as payroll
Now whole accounting systems e.g smaller firms adopt applications like Xero
What are outsourcing advantages And disadvantages
Advantages
- allows companies to concentrate on core competencies
- improve asset utilisation
- access to greater expertise and better technology
- less development time
- facilitates down sizing
Disadvantages
- inflexibility
- loss of control
- locked in system
- poor service
- increased risk
What are the 3 types of methods to develop an AIS
Business process management
What are the four major components of business process management systems
- process engine to model and execute applications and business rules
- business analytics to identify issues, trends and opportunities
- collaboration tools to remove communication barriers
- content manager to store electronic electronic documents and images
Internal controls in BPMS
- BPMS uses an organisation’s business process rules to determine the correct person to preform a task and authorise that person to preform it
- separation of duties can also be improved
- reduces delays and costs by instantaneously transferring items needing approval to a manager
- built in audit trail.
- BPMS uses a proactive process management approach
Steps of Prototyping
A simplified model is developed
- identify basic requirements
- develop an initial prototype
- repeated iterations
- use the system
What are the advantages and disadvantages of prototyping
Advantages
- results in well defined user needs
- higher user satisfaction and involvement
- faster development
- fewer errors
- opportunities to suggest change
- less costly
Disadvantages
- requires significant user time
- resource efficiency may not be achieved
- inadequate testing and documentation
- negative behavioural reactions
- continuous development
What is CASE
Computer aided software engineering
Software to help plan, analysis, design, program, and maintain an information system
- strategic planning
- project and system management
- database design
- screen and report layout
- automatic code generation
What are the advantages and disadvantages of CASE
Advantages
- improved productivity
- improved program quality
- cost savings
- improved control procedures
- simplified documentation
Disadvantages
- Unmet expectations
- incompatibility with other systems
When a systems vendor provides both the software and hardware needed to run a system as a package, this is known as
A turnkey system
Although Gillette uses canned software in its business operations, it does so with the intention of creating a competitive advantage. Identify how Gillette aims to gain a greater competitive advantage from using canned software.
From decided how the system should be used
Firms should consider developing custom software only if
it will contribute to development of a significant competitive advantage.
Why might outsourcing cause employee resistance?
Outsourcing often facilitates downsizing.
Identify a key advantage of a business process management system (BPMS) as compared to an event-based system.
Built in audit trail
Carmie Iria, the director of a systems project committee, has received management approval for the implementation of a new accounting information system. After sending out an RFP to multiple vendors, the committee settled on purchasing a system from Sysys, a vendor who will provide a standard software package and post-sale technical support. Carmie’s committee has decided to go with
Canned software
When a request for proposal (RFP) is solicited based on ________, total costs are usually lower and less time is required for vendor preparation and company evaluation.
exact hardware and software specifications
What is a drawback to using the requirement costing method of software and hardware evaluation?
Intangible factors such as reliability and vendor support are overlooked.
Identify the system below that end users should not be allowed to develop.
A payroll processing program.
Why are end-user created systems often poorly documented?
Users often consider systems documentation to be unimportant.
Sabella Cycles declared bankruptcy in 2013 and has since closed 5 outlets, or approximately 25% of its locations. Sabella needs to reduce the costs of operating the firm’s information systems. To accomplish this, Sabella might decide to
outsource system operations.
A process that embraces customers frequently changing their minds about what they need or want and with the focus on flexibility, responding to new requirements, adapting to evolving changes in technology, and quickly delivering a system the customer can evaluate is called
Scrum development
Types of cloud computing service
Infrastructure as a service
- buying time on computing hardware or storage
Software as a service
-use a complete application running on someone else’s system
Platform as a service
- develop applications using web based tools so they run on systems software and hardware provided by another company
Benefits of cloud computing
Availability
- access from anywhere as long as you have internet access - providers maintain the backups. They are experts in storage
Cost effective
- no need to buy expensive hardware - if software is provided updates are made automatically - monthly fee makes IT cost ps an expense rather than a capital expenditure item
Scalability
- ability of a computer application to function well when it’s changed in size and volume - MYOB different products for different sized organisations
Risks of cloud based computing
Loss of service - provider going out of business or running foul of the law and being closed down
Security breach - unauthorised access by other cloud customers who may include competitors. Lack of control contractors
Denial of service attacks on the cloud computing provider
Compliance issues e.g where records are kept
Obscurity - vendors not transparent
Cloud computing codes of practice
Improve the standard of services being provided by cloud computing
Set a standard of disclosure within the industry
Create openness between providers and customers
