BIC 21003 – System Analysis and Design - Chapter 6 Design Phase

Design Phase: Moving into Design

Learning Objectives

• Explain the initial transition from analysis to design.
• Create a system specification.
• Describe three ways to acquire a system: custom, packaged, and outsourced alternatives.
• Create an alternative matrix.

Transition from Requirements to Design

Brief Preview

Key Ideas

• Systems Analysis: Figure out what the business needs.
• System Design: Figure out how to build the system that fulfills those needs.
• All the “logical” work from Systems Analysis is converted to the “physical”.

Key Definitions

• Design phase:
  • Decides how to build the system.
  • Creates system requirements that describe all technical details for building the system.
  • Determination of the overall system architecture consisting of physical processing components, hardware, software, people, and communication among them to satisfy system requirements.
• System specification:
  • Final deliverable from design phase.
  • Conveys exactly what system the development team will implement during the implementation phase.

Design Phase Steps

• Determine system acquisition strategy (make, buy, or outsource).
• Determine the technical architecture for the system.
• Address security concerns and globalization issues.
• Make hardware and software selections.
• Determine the way that users will interact with the system (interface, inputs, and outputs).
• Design the programs for the underlying processes.
• Design the way data will be stored.
• Create final deliverable - the system specification.

Elements of System Specification

• Recommended System Acquisition Strategy
• System Acquisition Weighted Alternative Matrix
• Architecture Design
• Hardware and Software Specification
• Interface Design
• Physical Process Model
• Program Design Specifications
• Physical Data Model
• Data Storage Design
• Updated CRUD Matrix
• Updated CASE Repository Entries

System Acquisition Strategies

What is the best way to acquire this system?

Ways to Acquire a New System

1. Custom development (build from scratch) in-house
2. Purchase software package (and possibly customize it)
   • Install on our own computers, or
   • Obtain access from a software provider (host)
3. Outsource development to third party, who might
   • Build system from scratch for us, or
   • Purchase software for us, customize and install it

Custom Development: Pros and Cons

• Pros:
  • Get exactly what we want.
  • New system built consistently with existing technology and standards.
  • Build and retain technical skills and function knowledge in-house.
  • Allows team flexibility and creativity.
  • Unique solutions created for strategic advantage
• Cons:
  • Requires significant time and effort.
  • May add to existing backlogs.
  • May require skills we do not have.
  • Often costs more.
  • Often takes more calendar time.
  • Risk of project failure

Purchased Software

• Application service providers (ASP) supply access to software on a pay-as-you-go basis
• Many applications today are “in the cloud”
  • ASP – provider hosts someone else’s software
  • SaaS – software vendor hosts its own software
• Considerable savings – no hosting infrastructure needed; host provides everything
• Risks include:
  • Fear of losing confidential information
  • Performance
    *Analyze the vendor as well as the software functionality
    *Verify vendor claims with others
    *Look carefully at vendor support
    *Assess long-term viability of vendor as an on-going business
    *A new software company may have a great idea, but can they survive as a business over the long haul?
    *If the vendor is an acquisition target, what will happen to the product?*

Purchased Software Packages: Pros and Cons

• Pros: (purchased or obtained from ASP or SaaS)
  • No need to “reinvent the wheel” for common business needs.
  • Tested, proven product.
  • Cost savings.
  • Time savings.
  • Utilize vendors’ expertise.
  • Some customization may be possible
• Cons:
  • Rarely a perfect fit.
  • Organizational processes must adapt to software.
  • Reliance on vendor for maintenance and future enhancements.
  • Won’t develop in-house functional and technical skills.
  • Unique needs may go unmet.
  • May require system integration

Systems Integration

• Building systems by combining packages, existing (legacy) systems, and custom software written for integration
• Integrating data between various parts of the system is the key challenge
• Many consultants specialize in systems integration

Outsourcing: Pros and Cons

• Hiring an external vendor, developer, or service provider to supply the system.
• Can also obtain custom system created by outsourcer.
• Can reduce costs and/or add value (resources, experience).
• Risks include:
  • Losing confidential information.
  • Losing control over future development.
  • Losing learning opportunities
• Pros:
  • Hire expertise we don’t have.
  • May save time and money.
  • Lower risk
• Cons:
  • No opportunity to build in-house expertise.
  • Reliance on vendor.
  • Future options limited.
  • Security – potential loss of confidential information.
  • Performance based on contract terms

Outsourcing Contracts

• Time and arrangements
• Fixed-price
• Value-added

Outsourcing Guidelines

• Keep lines of communication open
• Define and stabilize requirements before signing the contract
• View the relationship as a partnership
• Select vendor, developer, or provider carefully
• Assign someone to manage the relationship
• Don’t outsource what you don’t understand
• Emphasize flexible requirements, long-term relationships, and short-term contracts

Influences on the Acquisition Strategy

What factors do we consider?

Acquisition Strategy Selection Factors

Business Need

• If the business need for the system is common and the technical solutions already exist, packaged software is a solution.
• A custom solution should be explored when the business need is unique.
• Outsourcing is used in situations where the business need is not a critical element of company strategy.

In-House Experience

• If in-house experience exists for all the functional and technical needs of the system, it will be easier to build a custom application.
• A packaged system may be a better alternative for companies that do not have the technical skills to build the desired system.

Project Skills

• The skills that are applied during projects are either technical (e.g., SQL) or functional (e.g., e-commerce).
• Different design alternatives are more viable, depending on how important the skills are to the company’s strategy.

Project Management

• Custom applications require excellent project management and a proven methodology.
• There are so many things that can push a project off track, such as funding obstacles, staffing, and overly demanding business users.
  *The project team should choose to develop a custom application only if it is certain that the underlying coordination and control mechanisms will be in place.
  *Packaged and outsourcing alternatives also must be managed; however, they are more shielded from internal obstacles.*

Time Frame

• When time is a factor, the project team should probably start looking for a system that is already built and tested.
• If a custom alternative is chosen, and the time frame is very short, consider using techniques like timeboxing to manage the problem.
• An outsourcing solution could take as long a custom development initiative.

Selecting an Acquisition Strategy

How Do We Choose?

Developing Our Options

• Start by collecting information

  • What tools and technologies are needed for a custom development project?
  • What vendors make products that address the project needs?
  • What service providers would be able to build this application if outsourced?
    *Vendors and consultants are usually willing to provide information about various tools and solutions in the form of brochures, product demonstrations, and information seminars
    *Project teams employ several approaches to gather additional information that is needed.*

• Request for Proposal (RFP)

  • Solicits formal proposals from vendor, developer, or service provider,
  • RFPs describe in detail the system or service that is needed, and vendors respond by describing in detail how they could supply those needs, the price, schedule

• Request for Information (RFI)

  • Smaller budget, shorter and less detailed version
  • Is sent to potential vendors to obtain general information about their products and services.
  • Sometimes, the RFI is used to determine which vendors have the capability to perform a service. It is often then followed up with an RFP to the qualified vendors

• Request for Quote (RFQ)

  • Is used when you just need a price without any analysis or description of what is needed

Typical RFP Contents

• Description of desired system
• Special technical needs or circumstances
• Evaluation criteria
• Instructions on how to respond
• Desired schedule
• Other information that will help the submitter to make a more complete or accurate proposal

Developing an Alternative Matrix

• Combine several feasibility analyses into one matrix
• Include technical, economic, and organizational feasibilities
• Assign weights to indicate the relative importance of the criteria
• Assign scores to indicate how well the alternative meets the criteria

Sample Alternative Matrix

• This denotes how well the alternative meets the criteria. 1 = poor fit; 5 = perfect fit.

Chapter Summary: Key Abilities

• Identify and describe the steps associated with the design phase of the project.
• Explain the meaning and purpose of the components of the system specification.
• Explain the pros and cons of obtaining the new system through a custom development project.
• Explain the pros and cons of obtaining the new system through a purchasing a software package.
• Explain the pros and cons of obtaining the new system through an outsourcing firm.
• Explain how the characteristics of the project influence the selection of the acquisition strategy.
• Explain the use of RFPs, RFIs, and RFQs as ways of gathering information from vendors.
• Discuss the use of an alternatives matrix to systematically evaluate and compare alternatives.