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Chapter 10

Information Systems Development

Learning Objectives

Upon successful completion of this chapter, you will be
able to:
• Explain the overall process of developing a new

software application
• Explain the differences between software development

methodologies
• Understand the different types of programming

languages used to develop software
• Understand some of the issues

surrounding the development of
websites and mobile applications

• Identify the four primary
implementation policies

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Programming

• Needed to take ideas or business solutions and
bringing them to reality.

• Small changes can be implemented in a short
timeframe with a streamlined process

• Larger changes will require a software
development methodology to guide and manage
the process:
– Systems development life cycle (SDLC)
– Rapid application development (RAD)
– Agile methodologies
– Lean methodology

Systems Development Life Cycle (SDLC)

• Developed in 1960s to manage large software
development projects

• Still in wide use today and called waterfall
methodology

• Very structured
– each phase has an end deliverable requiring approval to next phase
– each phase must be completed before the next phase can start

• Phases:
1. Preliminary Analysis
2. Systems Analysis
3. Systems Design
4. Programming
5. Testing
6. Implementation
7. Maintenance

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SDLC Phases
1. Preliminary Analysis – requests are reviewed

– Deliverable – feasibility analysis document

2. Systems Analysis – if approved, determine the system
requirements for new system
– Deliverable – systems requirement document

3. Systems Design – converts system analysis requirements into
system design document deliverable

4. Programming – coding commences using design documents
5. Testing – ensures that the code functions according to

requirements
6. Implementation – converting from old system to

new system
– Training, documenting functions, and data

conversion

7. Maintenance – support for reporting
prioritizing, and fixing bugs

Rapid Application Development (RAD)

Overall requirements are
defined, team formed, and
feasibility determined

Design the system in
JAD sessions

Go live and placed
in production

As the user design is
being created,
programs are being
created with the
ability to still make
changes

• Focuses on quickly building a working model and getting
feedback from users to update the working model for
smaller projects and giving users the ability to provide
feedback during the process

• Phases: Overall requirements are
defined, team formed, and
feasibility determined

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Agile Methodologies

• Group of methodologies for incremental changes
focused on quality and attention to detail

• Each increment is released with very specific
objectives

• Characteristics:
– Small cross-functional teams are used
– Daily status meetings are held
– Short timeframe increments for each

change
– A working project is completed at

end of each iteration and
demonstrated to stakeholders

Lean Methodology
• Takes an initial idea and develops a minimal visible

product (MVP)

– Has just enough functionality to demonstrate
the idea behind the project

• Works best in entrepreneurial environment
While moving through the
phases, feedback is key
and is generated in 2
forms:
1. Direct observation and

discussion with users
2. Usage statistics

gathered from the
software itself

Usually requires several
iterations as the team uses
the feedback to determine
whether to continue in same
direction or pivot in a new
direction or MVP

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Quality Triangle

• Decisions are made during development that
affect 3 factors – time, cost, and quality

• Only 2 can be addressed requiring
compromise/tradeoffs

Spend more or
less money on
the project?

Spend more or less
time on project?

• Meets or doesn’t
meet requirements?

• Minimal or no bugs
at implementation?

Programming Languages

• Used to develop new systems

• Multiple generations:

• Machine Code

• Zeros and Ones

• Machine
dependent

1st
• Assembly Language

• Used some English
like phrases

• Machine
dependent

2nd
• Similar to spoken

languages

• Machine
independent

• E.g., JAVA

3rd

• Fast development

• Use developer
environments that
help generate the
code

• Machine
independent

• E.g., SQL and SPSS

4th

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Software Development Decisions

Development Decision Advantages Disadvantages

Purchasing Software • Less expensive
• Available more quickly
• Tested already
• Bugs worked out

• Same software may be
used by competitors

• Fewer/none
customizations

Building Yourself • Customized to your
businesses’ needs

• Would not be used by
your competitors to
maintain your
competitive edge

• More expensive
• Not available quickly
• Requires testing and

bugs being worked out

• Every new development project should decide
whether to create it themselves using in-house
personnel or buy one that has already been
developed

• Web Services – purchase functions from vendors

– For Example, using Google

End User Computing
• Others (non-IT) develop their own solutions that are

not trained in programming or software
development

• Needs to be managed and guidelines established
• Advantages:

– Development is closer to those that will use them
– May receive it sooner than from IT

• Disadvantages:
– Several applications may perform the

same functions which may or may not
have same results

– May not be fully tested and bug-free
– Data is not always backed up

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Testing
• Critical part of any development project to

detect and fix bugs before the system is
implemented

• Process:

Unit Test
• Done by programmer for their standalone

modules

System Test

• Done once the individual units are bug free

• Integrated with other bug-free modules and tested as
a whole

User
Acceptance

Test

• Conducted by end users on meeting
requirements

• Any bugs, errors, or problems are
retested

Implementation Methodologies
Several implementation methodologies exist:

– Direct cutover – new system is turned on and old system
turned off
• Riskiest but least expensive – no need to support 2 systems

– Pilot implementation – a small group uses the new system
• Small impact on organization is something goes wrong – still have

old system running

– Parallel operation – all transactions are entered in new and
old system
• Very expensive to maintain 2 systems
• Least risky that you can identify bugs and

go back to old system if needed

– Phased implementation – new
functions are implemented as parts of old
system are turned off
• Slowly move from old system to new one

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Implementation Methodologies
Support

Every implementation requires support in 2 key areas:

1. Change management
– All proposed changes should be communicated to all

affected personnel, including IT

– IT should be managing which code has been tested and
signed off by the end users prior to implementation

2. Maintenance
– Often newly implemented systems still need

changes for fixing bugs

– Management needs to ensure that the
system continues to runs and is aligned
with business priorities

Summary

• Explained the overall process of developing a new
software application

• Explained the differences between software
development methodologies

• Understand the different types of programming
languages used to develop software

• Understand some of the issues surrounding the
development of websites and
mobile applications

• Identified the four primary
implementation policies

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Chapter 8

Does IT Matter?

Learning Objectives

Upon successful completion of this chapter, you
will be able to:

• Define the productivity paradox and explain the
current thinking on this topic.

• Evaluate Carr’s argument in “Does IT Matter?”

• Describe the components of competitive advantage.

• Describe information systems that can provide
businesses with competitive advantage.

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The Productivity Paradox

• Erik Brynjolfsson (1991) CACM, “The Productivity
Pardox”

• Studies on investment in IT and productivity
showed that gains in productivity were not
realized.

• Why?
– Mismeasurement of outputs and inputs

– Lags due to learning and adjustment

– Redistribution and dissipation of profits

– Mismanagement of information and technology

IT Doesn’t Matter

• Nicholas Carr (2003), “IT Doesn’t Matter”,
Harvard Business Review.

• As IT becomes more ubiquitous, it also
becomes less of a differentiator.

• Technology is so readily available and software
is so easily copied, that new tools
will not give companies
sustained competitive advantage.

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IT Doesn’t Matter (contd.)

• Carr suggests:

– Technology is a commodity and should be
managed like one.

– Low cost: Wait until it is cost effective to adopt.

– Low risk: Adopt slowly so other companies can
take the risks associated with new technologies.

– IT should operate as a utility in a
company. Good service with
minimal downtime.

Competitive Strategy

• Thinking comes from Michael Porter of
Harvard

• Late 70’s developed 3 models to help us think
about strategy.

– 5 Force Model

– Value Chain

– Generic Strategies

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Competitive Advantage

• Creating and sustaining superior performance.

• When a company can sustain profits that
exceed the average for the industry.

• Example: Google’s

Porter’s Generic Strategies

• Cost: Compete by offering the lowest prices.

• Differentiation: Product or service that offers
unique value.

• Focus: Narrow or Large, focus on an entire
industry or a small market segment.

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Generic Strategies

Samsung Galaxy Walmart

Big 5REI

The Value Chain

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Value Chain (contd.)

• Inbound Logistics: raw materials brought into
the company

• Operations: any part of the business that
converts raw materials into products and
services

• Outbound Logistics: Getting the products
and services to the customers.

Value Chain (contd.)

• Sales/Marketing: Entire buyers to purchase
products and services.

• Service: Support of products and services that
customers have purchased.

• Firm Infrastructure: All the organizational
functions that support the business.
Technology connected/supported.

• Human Resources Management: Recruiting
hiring, and retaining employees.

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Value Chain (contd.)

• Technology Development: Advances and
innovations adopted to add value to the
company.

• Procurement: Acquiring raw materials for
production/operations.

The Value Chain Model & CRM

Graphic from Docstock.com

Enterprise
Resources Planning

Supply Chain
Management

Customer
Relationship

Management

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Porter’s 5 Force Model

Industry
Rivalry

Threat of
New Entrants

Threat of
Substitute
Products

Bargaining
Power of
Suppliers

Bargaining
Power of

Buyers

Government
Regulation

5 Forces

• Bargaining Power of Buyers (customers): Ability of the
customers to put the firm under pressure to reduce
prices.

• Bargaining Power of Suppliers: Power of suppliers to
control prices.

• Intra-Industry Rivalry: Competitiveness of a given
industry. Threat of New Entrants: Profitable industries
attract new competitors. (Amazon producing TV shows)

• Threat of substitute products and services:
Other entities that consumers can use,
instead of your product. (bike instead of car)

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Entry Barriers
• Creating a barrier to entry to would be

competitors.

• Southern California Edison
– Utility, captive market

– To open an electric company would require a massive
infrastructure

• Bar
– Liquor license is a cost that might prohibit entrants

• Online mega-store like Amazon
– New entrants cannot compete with branding,

infrastructure and supply chain

Switching Costs

• Switching Cost – The cost of a customer to
switch to another product or service.

• Used to reduce the threat of new entrants and
substitute products.

• Increasing Switching Costs

– Deals for Staying with You (loyalty programs)

– Memberships

– Contracts

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Strategies and Forces

Using Information Systems for
Competitive Advantage

• Business Process Management Systems
– Control of processes gives competitive advantage

because ___.

• Electronic Data Interchange
– Automation of the value chain gets products to

market quicker.

– Allows for integration of partners in the value
chain.

– Allows for flexible value chain because of
automation.

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Competitive Advantage (contd.)

• Collaborative Systems – Easier ways for people
to collaborate in work and processes.

– Google Drive

– MS SharePoint

– Cisco WebEx

– Atlassian Confluence

– IBM Lotus Notes

Competitive Advantage (contd.)

• Decision Support Systems

– Assist with decision making at all levels,
particularly semi-structured.

– Data Analytics

– Internally: Having centralized data can give
opportunities to see what the data is telling you.

– Externally: Data sources can inform
strategic decisions about new technologies
and your industry.

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Summary

• Defined the productivity paradox.

• Evaluated Carr’s argument in “Does IT
Matter?”

• Reviewed the components of competitive
advantage.

• Reviewed how information systems that can
provide businesses with competitive
advantage.

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Chapter 5

Networking and Communication

Learning Objectives

Upon successful completion of this chapter, you
will be able to:

• understand the history and development of
networking technologies.

• Define the key terms associated with
networking technologies.

• Understand the importance of broadband
technologies.

• Describe organizational networking.

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A Brief History of the Internet

• ARPANET: Advanced Research Projects Agency Network
– Cold War – military or intelligence advantage
– ARPA requested proposals for communication technology
– Bolt, Beranek, and Newman (BBN) completed project in 1

year
– Four nodes: UCLA, Stanford, MIT, & University of Utah

• Introduction of the Internet
– New networks but different languages (protocol)
– Solution: transmission control protocol/Internet protocol

(TCP/IP)
– Internet: an interconnected network of networks

Internet Terms

• Packet – data sent over the internet

• Hub – connects other devices to the network and
sends packets to all devices connected to it.

• Bridge – connects two networks together and
filters packets.

• Switches – connects multiple devices and filters
packets based upon destination.

• Router – receives and analyzes packets, then
sends them to specific destinations.

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Internet Terms (contd.)

• Internet Protocol (IP) Address – Unique number that identifies a
device.
– IPv4: ###.##.###.###

• Limit 4,294,967,296 addresses

– IPv6: ####.####.####.####.####.####.####.####
• Hexadecimals are base 16 (0 1 2 3 4 5 6 7 8 9 a b c d e f)
• Limit 3.4 x 1038 addresses

• Domain Name (Google – 74.125.224.72) – common name for a
Website so you don’t have to remember the IP address.

• Domain Name System (DNS) – throughout the internet. Translates
domain names to IP addresses.

• Packet-switching – How packets travel across a network, through
routers. Multiple packets may be broken up and sent different
routes.

• Protocol – Set of rules that allow devices to exchange information.

Internet and the World Wide Web

• Primary Internet users in 1980s:
government, academic, and research
organizations

• Driven by use of e-mail

• World Wide Web project
– Graduate Student Tim Berners-Lee, needed a way to link

his dissertations advisors comments together: Hypertext.

– 1993 Mosaic browser allowed combinations of text and
graphics

– 1994 Netscape Navigator first commercial web browser

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Dot-Com Bubble

• National Science Foundation (NSF)
– Managed Internet until early 1990s
– Restricted commercial ventures

• 1991 NSF transfers control to US Government
– Commercial use of the Internet is now possible
– Surge of investment in online companies
– Investors understood e-commerce would be highly profitable
– Poor business models led to widespread failures
– 2000-2001, many internet companies went bust (Dot-Com

Bubble, Dot-Bomb)
– Companies needed better strategies and management to

survive

Web 2.0

• Web 1.0
– Web pages

– Not interactive

– People find and view information but don’t‘ interact
with it

• Web 2.0
– Users can communicate with Web sites and each

other

– YouTube, Wiki, Flickr, Facebook…etc.

• Web 3.0 – Semantic Web – emerging now

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Sidebar: Internet vs. WWW

• What is the difference?

– Not the same

– WWW is part of the Internet

• Internet: A network of networks, across the
planet.

• WWW: Web servers with HTML pages that are
viewed on devices with Web browsers.

Growth of Broadband

• In the 70s/80s people used dial up modems to connect to
computers.
– Tied up phone lines
– Hindered usage – too slow
– Speed measured in bps

• Cable or DSL (or satellite) offered higher speed
• Broadband

– Connections faster than 256,000 bps (speeds are much higher
now)

– Average home broadband speed is between 3 mbps and 30
mbps

– Enabled growth of new businesses and ways that people use
technology

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Wireless Networking

• Wi-Fi

• Mobile Network

• Bluetooth

• VoIP

Organizational Networking

• Intranet – within the
organization.

• Extranet – allowing
partners into your
network for specific things
(eg. Supply Chain
Management)

• Internet

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Cloud Computing

= Internet

Cloud Computing

In house
cloud

farm

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Google’s Server Farms or Data Centers

Data Farms

• Headlines
– Fjord Cooled Data Center in Norway is the Worlds

Greenest Data Center

– Facebook to Build Server Farm at the Artic Circle

• Economies
– Maintenance

– Labor

– Dynamic Scaling

– Backup and Recovery

– Cost

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Cloud Computing Problems

• Security

• Access – if you lose Internet, it’s over

• Isn’t always as easy as it seams

• Service from a giant host might not be as good
as what you get in-house

• Locked in to a specific service provider

Services from the Cloud

• Platform as a Service (PaaS)

• Software as a
Service (SaaS)

• Infrastructure as a
Service (IaaS)

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Summary

• Reviewed the history and development of
networking technologies.

• Defined the key terms associated with
networking technologies.

• Review the importance of broadband
technologies.

• Describe organizational networking at a high
level.

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Important
Announcements

Individual ReJection Report –
Due June 17 over Turnitin

Individual ReRection Repor t – Due JuneIndividual ReRection Repor t – Due June
17 over Turnitin17 over Turnitin
by Ali SherAli Sher – Monday, 6 June 2022, 10:51 AM

Individual ReRection Repor t – Due JuneIndividual ReRection Repor t – Due June
17 over Turnitin17 over Turnitin

Submission InstructionsSubmission Instructions

You will write a short reRection report
describing the key learning from this course of
IT for Managers and future trends in IT. This
report will be organized as follows:

1. Description – Describe up to three keythree key
learning pointslearning points from the course.

2. Analysis – Connect the learnings
described in the previous section with the real-
world. Analyze how these learnings are
applicable in the real business world. Highlight
two takeawaystwo takeaways from your learnings.

3. Future trends – Discuss what you
envision in the future. You can discuss the role
of new IT systems that will revolutionize
business.

The report should not be more than 500 words.

Evaluation and FeedbackEvaluation and Feedback

The report will be marked in its entirety out of
100. The following rubric indicates the criteria
students are to adhere to, and their relative
weights to the assignment overall.

Activities/CompetenciesActivities/Competencies
DemonstratedDemonstrated

% of % of
FinalFinal
GradeGrade

1Writing Quality – Writing
must be logically organized
and free of grammatical
and typographical errors.

/15

2Content – The submission
must demonstrate solid
research and insightful
observations.

a. Discussion of the
lessons learned

/25

b. Highlighted takeaways /25

c. Future trends /25

3References – All references
cited as per the APA style
manual.

/10

Total /100

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