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After studying this chapter, you will know: Describe how organizations purchase application software, vendor services, and hardware; explain how information system departments develop custom software; explain how end users develop, use, and control computer-based information systems; explain why organizations outsource their information systems, and evaluate the benefits and risks of this strategy. | Chapter 21 AIS Development Strategies Copyright © 2012 Pearson Education 21-1 Learning Objectives Describe how organizations purchase application software, vendor services, and hardware. Explain how information system departments develop custom software. Explain how end users develop, use, and control computer- based information systems. Explain why organizations outsource their information systems, and evaluate the benefits and risks of this strategy. Explain the principles and challenges of business process management. Describe how prototypes are used to develop an AIS, and discuss the advantages and disadvantages of doing so. Explain what computer-aided software engineering is and how it is used in systems development. Copyright © 2012 Pearson Education 21-2 Ways to Obtain an AIS Purchase the software Develop software in-house Hire and external company to develop and maintain new software Copyright © 2012 Pearson Education 21-3 Purchasing Software Off the Shelf (OTS) Canned System | Chapter 21 AIS Development Strategies Copyright © 2012 Pearson Education 21-1 Learning Objectives Describe how organizations purchase application software, vendor services, and hardware. Explain how information system departments develop custom software. Explain how end users develop, use, and control computer- based information systems. Explain why organizations outsource their information systems, and evaluate the benefits and risks of this strategy. Explain the principles and challenges of business process management. Describe how prototypes are used to develop an AIS, and discuss the advantages and disadvantages of doing so. Explain what computer-aided software engineering is and how it is used in systems development. Copyright © 2012 Pearson Education 21-2 Ways to Obtain an AIS Purchase the software Develop software in-house Hire and external company to develop and maintain new software Copyright © 2012 Pearson Education 21-3 Purchasing Software Off the Shelf (OTS) Canned System capabilities for users with similar requirements Turnkey System Hardware and software sold as a package Application Service Provider (ASP) Software is provided to user via the Internet Copyright © 2012 Pearson Education 21-4 In-House System Development Main criteria for in-house development Provides a significant competitive advantage Risks of in-house development Significant amounts of time required Complexity of the system Poor requirements defined Insufficient planning Inadequate communication and cooperation Lack of qualified staff Poor top management support Copyright © 2012 Pearson Education 21-5 End-User Computing (EUC) Hands-on development, use, and control of computer- based information systems by users Advantages of EUC User creation, control, and implementation Users decide whether a system should be developed and what information is important. Systems that meet user needs Users discover flaws that IS people do not catch. Many of the user-analyst-programmer communication .