Information Systems Development Stages & Feasibility Studies
1. Most Important Stage of System Development
The stages of system development are preliminary investigation, determining system requirements, system design, system building, testing, implementation, and evaluation. The most important stage is determining system requirements because it forms the foundation for the entire information system. This stage captures all user needs and functionalities that contribute to the system’s success.
2. Stages of a Feasibility Study
A feasibility study assesses the viability of a project. The types of feasibility are:
a) Technical Feasibility
Questions:
- Can the project be completed with existing equipment, software technology, and available personnel?
- If new technology is required, is it possible to develop or acquire it?
Example: Identifying the technical requirements of hardware and software needed to develop and utilize the system.
b) Economic Feasibility
Questions:
- Will the benefits of creating the system outweigh the costs?
- Are the costs associated with not building the system significant enough to justify the project?
Example: Identifying fixed costs (hardware, software), variable costs (paper, ink, supplies), and human resource costs involved in developing the information system (number of professionals, man-hour value).
c) Operational Feasibility
Questions:
- If the system is developed and implemented, will it be used effectively?
- Will there be resistance to change from users that could reduce the potential benefits of the application?
Example: Identifying user types and analyzing their level of computer literacy to determine their ability to use the information system.
4. Role of Users in System Development
Users, also known as information workers, utilize, process, manage, and exchange information. They are the individuals who interact with and benefit from the information system. Users can be categorized as direct or indirect, and internal or external to the company.
6. Advantages and Disadvantages of Insourcing Information System Development
Advantages:
- Close involvement in system processes allows for staying informed and up-to-date with development progress.
- Quick access to information enables modifications and additions as needed throughout the development process.
Disadvantages:
- Insourcing can be expensive, requiring the hiring of specialized staff with adequate knowledge and computational resources.
- Time constraints and unforeseen problems can arise, potentially leading to delays and resource allocation issues.
7. Conditions for Recommending Outsourcing for Information System Development
Several conditions may warrant outsourcing information system development:
- Cost savings: Outsourcing can be more cost-effective than internal development.
- Lack of internal resources: Organizations may lack the necessary expertise or personnel to develop the system in-house.
- Focus on core business: Outsourcing allows organizations to concentrate on their core competencies and strategic priorities.
- Leveraging external expertise: Outsourcing provides access to specialized skills and technologies.
- Faster development: Experienced outsourcing providers can often deliver systems more quickly.
- Reduced recurring costs: Outsourcing can eliminate the need for ongoing investments in infrastructure and support.
8. Advantages and Disadvantages of Insourcing Information System Development
Advantages:
- Leverages existing developers and organizational experience for new projects, maintenance, upgrades, and extensions.
- Facilitates better control over development and information security.
- Offers greater flexibility for customization and development.
- Simplifies management of company information.
Disadvantages:
- May struggle to adapt quickly to changing environments.
- Limited flexibility in scaling business capacity.
- May have restricted access to new technologies and next-generation systems.
9. Techniques for Information Gathering in Requirements Definition
Several techniques are used to gather information during the requirements definition stage:
- Interviews: Can be structured or open-ended, allowing for in-depth user engagement and exploration of needs.
- Observation: Direct observation of user tasks and processes can provide valuable insights, but may be time-consuming and potentially disruptive.
- Questionnaires/Surveys: Efficient for gathering specific information from a large number of users, but may lack the depth of interviews.
- Document Review: Analyzing existing documentation can reveal valuable information about processes, but relies on the availability and accuracy of such documents.
Test: Ensuring Organizational Success with Information Systems
1. Is the Incorporation of Information Systems Sufficient for Organizational Success?
No, achieving organizational success with information systems requires more than just their implementation. It necessitates a deep internal transformation and skilled users who can effectively manage and utilize the systems. A clear understanding of the purpose and goals of the information system within the organization is crucial for ensuring its success.
2. Definition and Functions of an Information System
Definition: An information system is a set of interconnected components that capture, process, store, and distribute information to support decision-making and control within an organization.
Functions:
- Provides a crucial source of background information for managers to make informed decisions.
- Adds value to product development and services, enhancing competitiveness and creating strategic advantages in the global market.
- Represents a vital organizational resource that requires effective management.