Information Technology Reference
In-Depth Information
Figure 12.2
Problems with existing
system
Typical Reasons to Initiate a
Systems Development Project
Desire to exploit new
opportunities, such as a
new e-commerce initiative
Increasing competition
Perception of a problem
or potential benefit by individual
capable of initiating change
Desire to make more
effective use of
information
Systems development
process initiated
Organizational growth
Merger or acquisition
Change in market or
external environment
New laws or regulations
by all of its customers, Dairy Products benefitted from the technology by streamlining its
inventory processing. By putting RFID tags on every pallet of dairy products that it ships to
customers, the company cut in half the time it used to take to load pallets onto delivery trucks.
Systems development can also be initiated when a vendor no longer supports an older
system or older software. When this support is no longer available, companies are often forced
to upgrade to new software and systems, which can be expensive and require additional
porting their older software a few years after new software has been introduced. Some printer
and computer vendors do the same. They stop providing support for their older systems after
newer ones are introduced and sold in the market. This lack of support is a dilemma for many
companies trying to keep older systems operational.
The federal government can foster new systems development projects in the private sector.
As a result of some financial scandals, the government has instituted new corporate financial
reporting rules under the Sarbanes-Oxley Act. These regulations have caused many U.S.
companies to initiate systems development efforts. To comply with this law, companies can
spend hundreds of thousands or millions of dollars in new systems development efforts.
Information Systems Planning and Aligning Corporate and
IS Goals
Information systems planning and aligning corporate and IS goals are important aspects of
objective of systems development.
