Information Systems Development: Stages, Feasibility, and User Roles
Stages of System Development: Determining System Requirements
The development of an information system involves several stages: preliminary investigation, determining system requirements, system design, system building, testing, implementation, and evaluation. The most crucial stage is determining system requirements, as it forms the foundation for the entire system’s construction and development. This stage involves identifying all the user’s needs and expectations, ensuring that the system effectively addresses them.
Feasibility Study: Technical, Economic, and Operational Aspects
A feasibility study evaluates the viability of a proposed system. It considers three key aspects:
Technical Feasibility
This aspect assesses whether the project can be implemented using existing equipment, software technology, and available personnel. It also explores the possibility of acquiring or developing new technologies if necessary. For example, identifying the technical requirements of hardware and software for system development and use.
Economic Feasibility
This aspect evaluates the financial viability of the project. It considers whether the benefits of the system outweigh the costs. It also assesses the costs associated with not developing the system. For example, identifying fixed costs (hardware, software), variable costs (paper, ink, supplies), and human resource costs (number of professionals, man-hour value) involved in system development.
Operational Feasibility
This aspect assesses the system’s usability and acceptance by users. It considers whether the system will be used effectively and whether there will be resistance to change from users. For example, identifying user types and analyzing their computer knowledge to determine their ability to use the system.
The Role of Users in System Development
Users play a vital role in system development. They are the information workers who use, process, manage, and exchange information. Users can be direct or indirect, internal or external to the organization. Their input is essential for ensuring that the system meets their needs and expectations.
Insourcing vs. Outsourcing: Advantages and Disadvantages
Insourcing
Advantages
- In-house developers and experience within the organization can undertake new projects, maintenance, upgrades, and extensions.
- Facilitates control over development and security of information.
- Greater flexibility for the organization to develop its own systems.
- Easy to manage company information.
Disadvantages
- May not be able to react quickly to changing environments.
- Limited flexibility to increase business capacity.
- Limited access to new technologies and next-generation systems.
Outsourcing
Advantages
- Cost savings.
- Access to external computing resources.
- Faster application development.
- Purchasing experience prevents recurrent costs (supplies, contracts) when evaluated over time.
Disadvantages
- May be expensive.
- Requires hiring qualified staff with appropriate knowledge.
- May not have enough time to address problems that arise.
- May not have all the right people, leading to delays.
Conditions for Recommending Outsourcing
Organizations should consider outsourcing system development when:
- Cost savings are a priority.
- They lack the internal resources for development.
- They want to focus on their core business areas.
- They need to quickly build an information systems infrastructure.
Techniques for Collecting Information in the Requirements Definition Stage
Several techniques can be used to gather information during the requirements definition stage:
- Interviews: Can be directed or open, require user engagement, allow for expansion, and are less formal.
- Observation: Requires less user time but could annoy the user and needs to be planned carefully.
- Questionnaires or Surveys: Provide specific process information, are more formal, and require more user time.
- Review Documents: Offer a good way to understand processes, but few processes are properly documented.
Information Systems: Definition and Functions
An information system is a set of interrelated components that capture, process, store, and distribute information to support decision-making and control within an organization. It serves as a valuable source of background information for managers, enabling them to make effective decisions. Information systems also contribute to product development and service enhancements, making businesses more competitive in the global market. They are a crucial resource for organizations, and their effective management is essential.