TUTORIAL: BAP 71 AIS DISCUSSION QUESTIONS

Lecture Week: 4 Chapter 5: Systems Planning & Development

Discussion Questions:
5.1 Describe the stages of the systems development lifecycle and discuss the importance
of organisational strategy as the basis for systems development.
There are 5 stages to the systems development lifecycle, with these being:

• Investigation
• Analysis
• Design
• Implementation and
• Maintenance and review.
Investigation is aimed at identifying any problems with the current system.
Analysis develops potential solutions to the identified problems and evaluates them based on their
feasibility.
The design stage prepares a logical and physical design for the newly proposed system and will
culminate in the preparation of the RFP. The returned vendor proposals will be assessed by the
organisation and a final vendor selected.
This then leads to the Implementation stage, which relies heavily on the role of user training and
education. Implementation can occur using a direct, parallel or phased approach.
Once implemented, a system will be Monitored (Maintenance and Review) for any errors or problems
in its operations, as well as being improved with new features.
Organiational strategy needs to be the basis for evaluating systems development project ideas. A
system that does not meet an organisation’s strategic priorities can distract it from doing the things it
does best and will weaken the distinctive nature of the organization. The notion of organizational fit
between what the system does and what the organization aims to do is important.
5.2 Describe the key activities that occur in the investigation stage of the systems
development lifecycle.
The key activities that occur in the investigation stage of the systems development lifecycle are
concerned with the identification of problems with existing systems or identifying opportunities for the
development of new systems. This can be driven by both organisational need and technological
developments. As the investigation occurs organisational fit between the system and the organisation
will be kept in mind.
Key activities as part of this stage include problem identification, scope definition, feasibility
analysis and the formation of the steering committee.
Problem identification involves gaining feedback on the current system from a representative user
group, as well as from stakeholders who are impacted by the system (eg customers), as well as
carrying out periodic reviews of the system’s performance and adequacy.

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Scope definition involves the constraining of the problems that are to be addressed in the
development. Having too many problems being addressed at once, or being uncertain about the
precise nature of the systems development can be disastrous.
Feasibility analysis assesses the options available and evaluates their legitimacy on the dimensions
of financial, legal, schedule, technical and strategic feasibility.
A steering committee will also be formed, with this group providing leadership throughout the
systems development effort.

5.3 Describe the key activities that occur in the analysis stage of the systems development
lifecycle.
The key activities that occur in the analysis stage of the systems development lifecycle are
requirements analysis and specification.
This stage centres on understanding the operations of the current system and beginning to formulate
ideas about what is required in a new system.
This will involve viewing the current system in operation, as well as assessing systems
documentation and other records.
Users will generally be consulted at this stage, eliciting feedback and suggestions that can be used
in the systems development.

5.4 Describe the key activities that occur in the design stage of the systems development
lifecycle.
The key activities that occur in the design stage of the systems development lifecycle are determining
the outputs and inputs, preparing a logical design, preparing a technical design and selecting
vendors.
Determining outputs and inputs – This activity is focused on understanding the information and
reports that users require from the system and working backwards from these outputs to determine
the inputs required to generate them.
The logical design for the system will map out the operations of the system but will be hardware
independent.
The technical design elaborates on the logical design by providing specifications in the area of
hardware and resources required for the system. At this stage the design of screens within the system
will also be considered.
Selecting vendors – Once the design of the system is specified the focus moves towards finding
vendors who can meet these requirements. This will involve preparation of a Request for Proposal,
receiving completed proposals from vendors and evaluating them to determine the best vendor.

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5.5 Describe the key activities that occur in the implementation stage of the systems
development lifecycle.
The key activities that occur in the implementation stage of the systems development lifecycle are
deciding about networks, databases and programs, testing, determining an implementation
approach and system conversion.
When deciding about networks, databases and programs one of the major decisions will be whether
to develop the system in-house or acquire the system from a third party vendor. Depending on the
method selected the necessary tasks will vary.
Testing of in-house developed programs will be performed at the stub, unit and system levels.
Testing will also focus on comparing the outputs of the old and new system to ensure comparable
results.
Implementation will see the system put into operation within the business. This can be done using
one of three approaches – direct, parallel or phased in conversion. During this stage users will also
need to be prepared for the new system and documentation updated as necessary.

5.6 Describe the key activities that occur in the maintenance stage of the systems
development lifecycle.
The key activities that occur in the maintenance stage of the systems development lifecycle are
concerned with ensuring the ongoing operation of the system. This will include systems
improvement, system modification and bug correction.
At this stage a review of the new system’s performance may also be performed, with the review
potentially incorporating the development process and how well it operated within the organisation.

5.7 Discuss the advantages and disadvantages of a phased-in, direct switch-over and
Parallel conversion implementation strategy.
The phased in approach to implementation sees an organisation gradually introduce a system into
different parts of the organisation. Typically, they may start with an implementation in a smaller / less
busy area where any problems that are encountered will cause minimal disruption relative to if the
implementation had been carried out on a large scale.
The advantage of this approach is that any problems can be addressed and noted early on in less-
critical organisational areas, with these able to be addressed when implementing in other areas of the
organisation. Essentially, this provides a learning curve philosophy to implementation.
The disadvantage of such an approach is that it obviously takes longer for the full implementation to
be completed. Organisational politics may also present themselves when determining where to
commence the implementation.
The direct switch over implementation strategy sees an organisation switch directly over to the new
system. This approach essentially operates like an on-off switch. At the end of the day the switch on
the old system is turned off and the new system is turned on. This is done throughout the entire
organisation at the same time.
The advantage of this approach is that the switch over is instantaneous. This avoid the costs involved
in running both the old and new systems at the same time and, as it is organisation wide, politics
associated with the phased-in approach are less likely to exist.

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The major disadvantage of this approach is the risk – if the new system fails or strikes problems early
in the implementation there can be severe consequences for the organisation since the old system is
not there as a fallback option.
The Parallel conversion implementation strategy involves running the new system and the old
system together for a period of time, that is, operating them in parallel. This overcomes the risk of the
direct switch-over previously discussed: the impact of a problem with the new system on the
organisation is kept to a minimum because the old system is still operating.
Of course, the downside of the parallel approach is that for some time the two systems need to be
kept running, which can add to costs. Also, in many cases this may not be practicable. For example,
if checkout terminals in a supermarket are connected to the new system they cannot physically also
send data to the old system.

5.8 What is the role of the steering committee in a systems development project?
The role of the steering committee in the systems development project is to provide guidance and
leadership throughout the systems development project. Members of the steering committee also
provide a cross-sectional representation of the organisation, representing the major groups of
stakeholders in the systems development project.

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PROBLEMS:
5.1 Bina Memories is a small family photography business. The business has a good
reputation for high-quality photos and enjoys longstanding arrangements with many schools
for the provision of school photos.
Bina Memories has traditionally used a small accounting package to manage its operations,
with Make Your Business Profitable ‘MYBP’ being the package currently in use. Recently,
however, a few of the staff in the administration team have complained that MYBP has become
slow in processing transactions. The computer that runs the program is also fast approaching
its capacity, having not been updated for several years and now also handling some of the
business’s digital imaging requirements.
As a result of the strained system, Bina Memories is considering the possibility of an upgrade.
However, it is concerned that should it go ahead with an upgrade, it would have to employ a
programmer to develop its new system, as well as a full-time IT specialist to keep the system
running. It is also unsure of what needs to be done in managing the systems development
process.
One of the things particularly troubling Mr Cotton, the part owner of Bina Memories, is the
possibility of investing capital now and having to do so again in a couple of years time as
technology changes. However, he does not mind spending a large sum now if the system is a
long-term answer, since, as Cotton himself said, ‘Once the system is acquired then the
business can get back to normal and do what it does best — take photos — without having to
spend money on IT.’
In light of the details you have about Bina Memories, prepare a discussion in relation to the
following questions:
(a) How correct is Cotton’s statement that: ‘Once the system is acquired then the business
can get back to normal and do what it does best — take photos — without having to
spend money on IT’? Explain your reasoning.
(b) Explain how it may not be necessary for Bina Memories to employ a programmer to
design a new system.
(c) How could Bina Memories limit the costs of maintaining the system once it is in place
within the organisation?
(d) Identify the key user requirements that would need to be fulfilled by the new system.
(e) Would you recommend that Bina Memories make or buy the new system?
(f) Describe the process that Bina Memories could use for selecting a vendor for the new
system.
(g) What are some of the possible consequences for Bina Memories of relying on a single
vendor for the system?
(h) What typical systems development problems may Bina Memories face in developing
the new system? Suggest strategies for each potential problem.

(a) This statement of Mr Cotton’s is not totally accurate. Mr Cotton is failing to take into account
the Total Cost of Ownership associated with the technology. Once the new system is acquired
there will still be costs involved, including user training, system maintenance and other such

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 costs. Mr Cotton is focusing on the initial capital investment and ignoring such ongoing costs
which represent the total cost for a system.
(b) Mr Cotton may not have to hire a programmer to design the new system since there could be
an already developed package that can be acquired off the shelf. Given that Bina Memories is
looking for an accounting solution, it is highly likely that there is a suitable off-the-shelf package
available for use in Bina Memories business.
(c) One avenue that Bina Memories may consider as a way of limiting the cost of the system once
in place within the organisation is the acquisition of the system through an ASP. These would
offer expertise and a ready developed product at the initial acquisition stage. Once acquired,
the ASP would offer Bina’s Memories ongoing maintenance and service, upgrades and so on
as part of the service level agreement between Bina Memories and the ASP. Additionally, Bina
Memories would benefit from the economies of scale that the ASP has established.
(d) Key user requirements that would need to be fulfilled by the new system would be in the areas
of functional, process, operational and person requirements.

Examples could include:

• Functional – producing necessary outputs on time – eg sales reports, customer invoices,

performance reports etc
• Process – the fit of the accounting system within the overall business process of providing
photography service. This could include links between the accounting system and the image
management system, online order and enquiry facility for customers
• Operational – online sale recording, online link to banking facilities
• Personal – easy order entry for staff, customer details readily available as customers call in
for personalised attention

(e) Arguments from students should be based around the cost and benefits of making versus
buying a ready made accounting system.

Given that Mr Cotton has expressed reservations about having to employ IT staff and programmers,
the development in house does not seem a likely option. Additionally, it should be kept in mind that
the business is a fairly typical small business and there are a wide range of highly developed packages
that could most probably be acquired and implemented within the organisation.

(f) The process for selecting a vendor would involve:

1. Preparing a Request For Proposal based on the logical and technical designs
2. Sending out RFPs to potential vendors
3. Receiving replies from vendors
4. Evaluating RFPs (The evaluation of the RFPs could be done along the lines of the nine-step
process described in AIS Focus 13.1)

(g) The consequences to consider from relying on one single vendor are that:

• a single vendor will result in a consistent look and feel to the program

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 • a single vendor overcomes the need to modify different programs in order for them to be
compatible and interact correctly
• a single vendor can promote the establishment of long-term and strong relationships between
the business and the vendor
• a single vendor makes us totally reliant on one party, which could be an issue if the vendor
goes out of business

(h) Five typical problems associated with systems development are conflict, escalation of
commitment, project goal issues, technical skills and interpersonal skills.

Conflict: This refers to disagreement between individuals involved in the project. Conflict is not
necessarily a negative aspect but it is something that needs to be managed. The classic development
conflict is the designer versus user difference of opinion. Trained mediators can be an option where
conflict is likely, with one popular alternative being the use of facilitator’s and managed sessions for
those involved in the development.
Escalation of Commitment: Escalation of commitment refers to the situation where a project is failing
and management still spends money towards its completion, effectively throwing good money after
bad.
Common theories for the occurrence of escalation of commitment include self-justification, prospect
theory and agency theory.
Project planning and management skills would seem viable techniques for reducing the threat of
escalation. Clearly laid out plans for project progress, monitoring of the attainment of targets and
deadlines and following up on slow moving tasks.
Accountability could also be argued to help – have a chain of accountability that reviews the project
and not the person on the project.
Management monitoring and involvement may also work towards reducing information asymmetry.
Delineating the people from the project could be effective since a lot of escalation comes from self-
justification.
Project Goal Issues: Issues relating to project goals can include poorly specified goals or goals that
are too broad in scope. Overcoming this problem requires a clearly defined project scope and
boundaries and a development team that knows the boundaries for the project they are working on.
Clearly specified documentation can be of use in this regard, as well as effective communication
strategies so those in the organisation are aware of the scope.
Technical Skills: For the development to succeed there must be adequate technical skills within the
organisation. Be wary of those who have ‘done something like that’. If the skills are not available
within the organisation the consultants or other sources of expertise are a viable alternative.
Interpersonal Skills: Development projects necessitate people from a wide cross-section of the
organisation working together. Perspectives of different groups may not be aligned, while some may
have difficulty clearly expressing their ideas. Interpersonal skills of those involved are important in
overcoming some of these issues, with strategies for their handling including the use of trained
mediators and the strong role for the steering committee in the early stages of the project.