Modern Systems Analysis
and Design
Fifth Edition
Chapter 2
The Origins of Software
2.1
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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
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Introduction
There are various sources of software
for organizations.
There are criteria to evaluate software
from different sources.
The impact of reuse on software
development.
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Systems Acquisition
Outsourcing is the practice of turning over responsibility of some to all
of an organization’s information system application and operation to an
outside firm. See table 2 for the top 10 global software companies
Outsourcing Examples
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A company that runs payroll applications for clients.
A company that runs your applications at your site.
Reason for outsourcing:
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2.4
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
organisation
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Source of Software
Information technology services firm.
Packaged software producers.
Enterprise-wide solutions
Application service providers (ASPs)
Open source software.
In-house developers
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Source of Software
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Information Technology (IT)
Services Firms
Help companies develop custom
information systems for internal use.
Develop, host, and run applications for
customers.
Provide other services.
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Systems Acquisition
Packaged software producers
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Off-the-shelf software can be best meet
70% of an organization needs.
Some of these packaged cannot be
modifies which call turnkey systems
Customer software producers, if no
expertise in house and no suitable off-the-shelf
system you will likely consult a company such
EDS to help you develop you systems.
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Packaged Software Producers
Serve many market segments.
Software ranges from broad-based packages (i.e.
general ledger) to niche packages (i.e. day care
management).
Software runs on microcomputers to large
mainframes.
Prepackaged software is off-the-shelf software.
Prepackaged software is turnkey software (i.e. not
customizable).
Off-the-shelf software at best meets 70 percent of
organization’s needs.
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Packaged Software Producers
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Systems Acquisition
Enterprise Solution Software (ERP), is a
system that integrates individual
traditional business functions into series
of modules so that a single transaction
occurs seamlessly within a single
information system rather than several
separate systems.
Examples are SAP, JIT ..etc
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Application Service Providers
Application Service Providers (ASPs), is an
organization that hosts and runs computer
applications for other companies, typically on per-use
or license basis.
 Application service providers (ASPs) buy, install,
maintain, and upgrade the applications.
 Application service providers (ASPs) purchase or
license applications from other software vendors.
Examples Oracle ERP, Windows of Microsoft, and
EDS.
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Managed Service Provider (MSP)
An organization that remotely provides
customized computer applications and
network-based services for other
companies for a monthly or per-use fee.
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MSPs provide the ability to gain access to
large and complex systems without the
expense and time-consuming
implementation.
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Open Source Software
Freely available including source code.
Developed by a community of interested
people.
Performs the same functions as
commercial software.
Examples: Linux, mySQL, Firefox.
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In House development
In-House development, it becoming less an less used
by corporation to develop information systems inHouse.
If you choose to acquire software from outside
sources, this choice is made at the end of analysis
phase.
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.
Hybrid solutions involving some purchased and some
in-house components are common.
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Choosing OFF-The-Shelf
Software (COTS)
Most common Criteria used to choose
COTS:
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2.16
Cost
Functionality
Vendor support
Viability of vendor
Flexibility
Documentation
Response time
Ease of installation
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Choosing OFF-The-Shelf
Software (COTS)
Validating Purchased Software Information:
 Use a variety of information sources:
 Collect information from vendor.
 Software documentation.
 Technical marketing literature.
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2.17
Request for proposal (RFP) is a document
provided to vendors that asks them to propose
hardware and system software that will meet the
requirements of a new system.
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REUSE
REUSE,
 Is the use of previously written software resources,
especially objects and components, in new application.
 Many vendors are working on developing libraries of
components that can be retrieved and assembled as needed
into desired application.
It can effective especially for object classes, which increase productivity, reduce
defects, and reduce rework. For example for HP, a reuse programs result in
cutting time over 70% from 18 months to 5 months.
However for reuse to work, the following issues should be addressed:
- lack of methodology for creating, defining, and labeling reusable components.
- lack of commitment to reuse.
- lack of proper training
- difficulty in measuring the economic gains from reuse
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Summary
As a system analyst, you must be aware of where
you can be obtain software that meets some or all
of an organization’s needs.
You can obtain application from hardware
vendors, packaged software vendors, and
custom software developers, as well as from
internal systems development resources.
You can hire an organization all of your systems
development work.
You must know the criteria to use when choosing
COTS system.
2.19
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