An Introduction to Information Systems - Principles of Information Systems - page 27

don't work correctly. 46 In previous years, some have claimed that over $300 million was spent
on systems that couldn't pay welfare benefits on time, issue overtime payments to road crews,
issue license plates correctly, or accurately track unemployment benefits. A new Colorado
vehicle registration system may also have to be abandoned because of faulty systems devel-
opment procedures, costing Colorado taxpayers over $10 million. 47 Systems development
failures can be a result of poor planning and scheduling, insufficient management of risk,
poor requirements determination, and lack of user involvement. 48 Training people to use a
new or modified system can be critical to the successful implementation of these systems and
can help avoid systems development failures. 49
People inside a company can develop systems, or companies can use outsourcing , hiring
an outside company to perform some or all of a systems development project. 50 Outsourcing
allows a company to focus on what it does best and delegate other functions to companies
with expertise in systems development. Outsourcing, however, is not the best alternative for
all companies.
Developing information systems to meet business needs is highly complex and
difficult—so much so that it is common for IS projects to overrun budgets and exceed
scheduled completion dates. One strategy for improving the results of a systems development
project is to divide it into several steps, each with a well-defined goal and set of tasks to
accomplish (see Figure 1.16). These steps are summarized next.

Figure 1.16

An Overview of Systems
Development

SYSTEMS INVESTIGATION
Understand problem

SYSTEMS ANALYSIS
Understand solutions

SYSTEMS DESIGN
Select and plan best solution

SYSTEMS IMPLEMENTATION
Place solution into effect

SYSTEMS MAINTENANCE
AND REVIEW
Evaluate results of solution

Systems Investigation and Analysis
The first two steps of systems development are systems investigation and analysis. The goal
of the systems investigation is to gain a clear understanding of the problem to be solved or
opportunity to be addressed. After an organization understands the problem, the next ques-
tion is, “Is the problem worth solving?” Given that organizations have limited resources—
people and money—this question deserves careful consideration. If the decision is to continue
with the solution, the next step, systems analysis , defines the problems and opportunities of
the existing system. During systems investigation and analysis, as well as design maintenance
and review, discussed next, the project must have the complete support of top-level managers
and focus on developing systems that achieve business goals.