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Chapter 14 - Acquiring information systems and applications. In this chapter, the learning objectives are: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan, discuss the four business decisions that companies must make when they acquire new applications,. | 14 Acquiring Information Systems and Applications Planning for and Justifying IT Applications Strategies for Acquiring IT Applications Traditional Systems Development Life Cycle Alternative Methods and Tools for Systems Development Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan. Discuss the four business decisions that companies must make when they acquire new applications. Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle. Describe alternative development methods and the tools that augment these methods. Peoples State Bank Transforms Its Information Technology Discuss the problems with PSB’s legacy systems that led to the information technology conversion. Why did PSB decide to outsource their IT rather than developing new systems in-house as they had in the past? What are the potential disadvantages that PSB might encounter from . | 14 Acquiring Information Systems and Applications Planning for and Justifying IT Applications Strategies for Acquiring IT Applications Traditional Systems Development Life Cycle Alternative Methods and Tools for Systems Development Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan. Discuss the four business decisions that companies must make when they acquire new applications. Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle. Describe alternative development methods and the tools that augment these methods. Peoples State Bank Transforms Its Information Technology Discuss the problems with PSB’s legacy systems that led to the information technology conversion. Why did PSB decide to outsource their IT rather than developing new systems in-house as they had in the past? What are the potential disadvantages that PSB might encounter from outsourcing its IT function? Planning for and Justifying IT Applications 14.1 IT Planning Evaluation and Justifying IT Investment: Benefits, Costs, and Issues 6 Figure 14.1: The IS Planning Process IT Planning Organizational Strategic Plan IT Strategic Plan IT Steering Committee IS Operational Plan 8 IT Strategic Plan Three Objectives of an IT Strategic Plan: Must be aligned with the organization’s strategic plan Provide for an IT architecture Efficiently allocate IS development resources 9 IT Steering Committee Major Tasks of an IT Steering Committee Link corporate strategy with IT strategy Approve the allocation of resources for the MIS function Establish performance measures for the MIS function and ensure they are met 10 IS Operational Plan Elements of an IS Operational Plan: Mission IS Environment Objectives of the IS Function Constraints on the IS function Application Portfolio Resource Allocation and Project Management 11 Evaluation and Justifying IT Investment: Benefits, Costs, and .