Modern Systems Analysis
and Design
Fourth Edition
Jeffrey A. Hoffer
Joey F. George
Joseph S. Valacich
Chapter 2
The Origins of Software
© 2005 by Prentice Hall
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 © 2005 by Prentice Hall
System Acquisition: Outsourcing
Turning over responsibility of some or all of
an organization's information systems
applications and operations to an outside firm
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
2-3 © 2005 by Prentice Hall
Sources of Application Software
2-4 © 2005 by Prentice Hall
Hardware Manufacturers
IBM is the leader in software sales and
services.
Hardware manufacturers tend to focus
on system software and utilities.
2-5 © 2005 by Prentice Hall
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).
2-6 © 2005 by Prentice Hall
Criteria for Choosing Off-the-Shelf
Software
Cost
Functionality
Vendor support
Viability of vendor
Flexibility
Documentation
Response time
Ease of installation
2-7 © 2005 by Prentice Hall
Custom Software Producers
Firms like Accenture and EDS are leading
custom software producers.
Consulting firms develop software to meet the
client’s specific requirements.
Consulting firms are usually called when the
client company does not have in-house
expertise or manpower available to develop
the system.
2-8 © 2005 by Prentice Hall
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.
2-9 © 2005 by Prentice Hall
ERP System Example
2-10 © 2005 by Prentice Hall
Application Service Providers
ASP: an organization that hosts and
runs computer applications for other
companies, typically on a per-use or
license basis
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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 organization’s own staff.
Often, there are a variety of sources used,
with in-house staff playing a role as well as
consultants or ERP vendors.
2-12 © 2005 by Prentice Hall
2-13 © 2005 by Prentice Hall
Validating Purchased Software
Information
Use a variety of information sources:
Vendor’s proposal
Running software through a series of tests
Feedback from other users of the vendor’s
product
Independent software testing services
Articles in trade publications
2-14 © 2005 by Prentice Hall
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.
2-15 © 2005 by Prentice Hall
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
2-16 © 2005 by Prentice Hall
Costs and Benefits of Reuse
2-17 © 2005 by Prentice Hall
Approaches to Reuse
low
Ad hoc: individual, unplanned use
Cost and commitment
Facilitated: use informally managed and
disseminated by expert guru evangelists
Managed: organizationally enforced reuse
policies and practices
Designed: reusable components
high developed and maintained in-house
2-18 © 2005 by Prentice Hall
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.
2-19 © 2005 by Prentice Hall
