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It is best suited for smaller applications oriented toward simple data manipulation.
Large systems with complex processing may be able to have only limited features
prototyped. The prototype may be built so rapidly that design is not well thought out
or must be reworked for a production environment. The problem arises when the
Define an application software package. Explain the advantages and
disadvantages of developing information systems based on software packages.
Application software packages are common to all business organizations and are built
around universal functions with standard processes that don’t change a great deal over
time. Examples include payroll, accounts receivable, general ledger, or inventory
control.
Software packages provide several advantages:
• The vendor has already established most of the design that may easily
consume up to 50 percent of development time.
• Programs are pretested, reducing testing time and technical problems.
• The vendor often installs or assists in the installation of the package.
The disadvantages of application software packages are:
• There are high conversion costs for systems that are sophisticated and already
automated.
• They may require extensive customization or reprogramming if they cannot
easily meet unique requirements.
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Define end-user development and describe its advantages and disadvantages.
Name some policies and procedures for managing end-user development.
End-user development refers to the development of information systems by end users
with minimal or no assistance from professional systems analysts or programmers.
This is accomplished through sophisticated user-friendly software tools and gives end
users direct control over their own computing.
End-user development is suited to solving some of the backlog problem because the
end users can develop applications themselves. It is suited to developing low-
Policies and procedures to manage end-user development include the following:
• The organization must establish sufficient support facilities for end-user
Management should develop controls over end-user computing in the following areas:
• Cost justification of end-user information system projects.
• Hardware and software standards for user-developed applications.
• Company-wide standards for microcomputers, word processing software,
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Describe the advantages and disadvantages of using outsourcing for building
information systems.
Outsourcing is the process of turning over an organization’s computer center
operations, telecommunications networks, or applications development to external
vendors who provide these services. Outsourcing is seen as a way to control costs or
to develop applications rather than try to use in-house staff.
Advantages of outsourcing are:
• Outsourcing firms possess skills, resources, and assets that clients don’t.
The main disadvantage is that firms hiring outsourcers tend to underestimate costs of:
• Identifying and evaluating vendors.
• Transitioning to a new vendor.
13-5 What are new approaches for system building in the digital firm era?
Define rapid application development (RAD) and agile development and explain
how they can speed up system-building?
RAD is a process for developing systems in a very short time period by using
prototyping, fourth-generation tools, and close teamwork among users and systems
specialists. RAD allows the creation of working software in a very short time by
using objects and by automating much of the code generation.
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Explain how component-based development and Web services help firms build
and enhance their information systems.
Component-based development expedites application development by grouping
objects into suites of software components that can be combined to create large-scale
business applications. Systems are built by assembling and integrating existing
software components such as shopping carts, user authentication, search engines and
online catalogs.
Explain the features of mobile application development and responsive Web
design.
Because mobile devices have a much smaller screen size, it’s easier to use fingers and
multi-touch gestures rather than a keyboard to maneuver through Web sites and
applications. Mobile apps must be optimized for specific tasks but not too many.
Saving resources such as bandwidth, screen space, memory, processing, data entry,
and user gestures is a top priority.
Discussion Questions
13-6 Why is selecting a systems development approach an important business
decision? Who should participate in the selection process?
Student answers to this question will vary.
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13-7 Some have said that the best way to reduce system development costs is to use
application software packages or user-friendly tools. Do you agree? Why or why
not?
Student answers to this question will vary.
13-8 Why is it so important to understand how a business process works when
trying to develop a new information system?
Student answers to this question will vary.
Hands-On MIS Projects
Management Decision Problems
13-9 Sears Repair Service: Customers purchasing appliances can purchase a three-year
service contract that provides free repair service and parts. When a customer needs
Sears’ appliance repair service they call for an appointment that make take up to two
weeks. The repairman arrives and diagnoses the problem. If the repair requires a new
part, the repairman will replace it if he is carrying it on his truck. If he doesn’t have
the part on hand, he must order it. If the part is not in stock at Sears, it is ordered and
sent to the customer. After the part arrives, the customer must make another
appointment to have the repair technician replace the part. It may take two weeks to
schedule the first repair visit, another two weeks to order and receive the part, and
another week to schedule a second repair visit after the part has been received.
• Diagram the existing process: Students should use Figure 13.2 as an example of
how to diagram this process. It’s important to remember the if-then rules that
• What is the impact of the existing process on Sears’ operational efficiency
and customer relationships? Customers can be inconvenienced and without the
• What changes could be made to make this process more efficient? How could
information systems support these changes? Diagram the new improved
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13-10 Agricultural chemicals corporation: Management at your agricultural chemicals
corporation has been dissatisfied with production planning. Production plans are
created using best guesses of demand for each product, which are based on how much
of each product has been ordered in the past. If a customer places an unexpected order
or requests a change to an existing order after it has been placed, there is no way to
adjust production plans. The company may have to tell customers it can’t fill their
orders, or it may run up extra costs maintaining additional inventory to prevent stock-
outs.
At the end of each month, orders are totaled and manually keyed into the company’s
production planning system. Data from the past month’s production and inventory
• Draw a diagram of the existing production planning process. Students should
use Figure 13.2 as a guide for diagramming the existing production planning
process.
• Analyze the problems this process creates for the company. The main problem
this process creates for the company are the potentially lost sales or extra costs in
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• How could an enterprise system solve these problems? In what ways could it
lower costs? Diagram what the production planning process might look like
if the company implemented enterprise software. The first step is to eliminate
having to manually key in any data into any system. Production planning should
be based on data derived from both systems (production planning system and the
Improving Decision Making: Using Database Software to Design a Customer
System for Auto Sales
Software skills: Database design, querying, reporting, and forms
Business skills: Sales lead and customer analysis
13-11 Prepare a systems analysis report detailing Ace’s problem and a system solution
that can be implemented using PC database management software. Then use database
software to develop a simple system solution. Your systems analysis report should
include the following:
1. Description of the problem and its organizational and business impact.
3. Costs and benefits of the solution you have selected. The company has a PC with
Internet access and the full suite of Microsoft Office desktop productivity tools.
5. Management, organization, and technology issues to be addressed by the solution,
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The example solution file represents one of many alternative database designs that would
satisfy Ace’s requirements. This file can be found in the Microsoft Access file named:
Achieving Operational Excellence: Analyzing Web Site Design and Information
Requirements
Software skills: Web browser software
Business skills: Information requirements analysis, Web site design
13-12 Visit the Web site of your choice and explore it thoroughly. Prepare a report
analyzing the various functions provided by that Web site and its information
requirements. Your report should answer these questions: What functions does the Web
site perform? What data does it use? What are its inputs, outputs, and processes? What
are some of its other design specifications? Does the Web site link to any internal
systems or systems of other organizations? What value does this Web site provide the
firm?
Collaboration and Teamwork Project
13-13 In MyMISLab, you will find a Collaboration and Teamwork Project dealing
with the concepts in this chapter. You will be able to use Google Drive, Google Docs,
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Google Sites, Google +, or other open source collaboration tools to complete the
assignment.
Case Study: SourceGas Goes for Better Workforce Scheduling Systems
13-14 Analyze SourceGas’s problems with its old system. What management,
organization, and technology factors were responsible for these problems? What
was the business impact of these problems?
Management: The number of work orders (authorizing specific work or repairs to be
done) processed per mile traveled is a key performance indicator for utility companies,
especially SourceGas. The company incurs very heavy fuel, maintenance, and other
operational costs when work orders must be rerouted. The work order and dispatch
Organizational: Dispatchers were highly experienced and had the requisite knowledge
to assign technicians with the appropriate set of skills to perform the work. But they had
Technology: The outdated system could no longer be easily modified to keep up with
new requirements. Even though the system has to be able to accommodate rapid and
constant change, enhancements to the system were just too costly. SourceGas needed a
13-15 What role did end users play in developing SourceGas’s new work order and
dispatch system? How did the project team make sure users were involved? What
would have happened to the project if they had not done this?
SourceGas took user input and user training very seriously. The system project had a
committee of super-user technicians as well as an operations team to make sure the
system was built to the right specifications. Its technicians had provided important input
during the requirements gathering and design stages of system building. Twenty percent
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13-16 What types of system-building methods and tools did SourceGas use for
building its system?
SourceGas used an iterative approach and agile development methodology. Agile
development focuses on rapid delivery of working software by breaking a large project
into a series of small subprojects that are completed in short periods of time using
iteration and continuous feedback. Each mini-project is worked on by a team as if it were
a complete project, including planning, requirements analysis, design, coding, testing,
and documentation. Improvement or addition of new functionality takes place within the
13-17 Discuss the issue of software package customization at SourceGas.
The system had to be designed to schedule and route all the field technician work
according to various rules and conditions. The system had to be familiar and easy to use
for mobile workers with the new mobile app user experience mirroring field workers’
existing user experience as much as possible. This was especially critical for time
reporting, which required some simplification while adhering nevertheless to company
business rules for proper accounting.
SourceGas was able to enhance the software while maintaining the same user experience.
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13-18 What other steps did SourceGas take to make sure the new system was
successful?
The testing process had end users on SourceGas’s operations team perform all of the
approximately 225 types of service orders handled by the company using the new
application to make sure the system was able to handle every single business scenario.
13-19 What were the benefits of the new system? How did it change the way
SourceGas ran its business? How successful was this system solution?
Management has received positive feedback about the new system capabilities for
automated scheduling, timesheet preparation, as well as its improved usability compared
to the previous system. Managers can more accurately gauge their workload in their
divisions. Dispatchers can see their workloads more accurately and determine the
13-20 Describe four system conversion strategies.
Visit MyMISLab for suggested answers.
13-21 Describe the role of end users in developing systems using the traditional
systems life cycle, prototyping, application software packages, and end-user
development.
Visit MyMISLab for suggested answers.
For an example illustrating the concepts found in this chapter, view the
videos in mymislab.com.
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