In: Operations Management
The chapter discusses alternative methods for building information systems including the traditional systems life cycle, prototyping, application software packages, end-user development, and outsourcing. How do these methods compare to the “new approaches” for system building in the digital firm era discussed in the chapter? Should all organizations utilize the “new approaches”? Why or why not? Which method do you think is the best? Why do you think the method you chose is the best method for developing information systems? Explain your reasoning for your point of view.
The earlier method used for building systems is the systems life cycle for which the information system should be made in formal phases. These phases should be carried in sequential form, with defined outputs and with formal process to follow. It is required for large projects which are executed in the tighter management control with formal requirements but are very expensive. Prototyping is more like an experiment and less expensive to evaluate. It encourages end user involvement during the development of systems with many design iteration. It is useful for those systems which have not been fully tested or inadequate for production environment. Where as, software packages are helpful for those organization who does not have internal information system but carries more developmental costs. Likewise, end-user development can be done informally and can be done rapidly but may not meet the quality based in the given standards and cannot controlled by traditional means. Lastly, outsourcing is totally dependent on external vendor to operate information system and saves costs too but at the same time leads to hidden costs and also organizations may lose control over their information systems.
Mostly all big organization aims for transformational change based on their product competitiveness in the marketplace and this is like moreover a planned organizational change which is carried by applying automation, business process redesign, rationalization of procedures, paradigm shift and all of these carries risks and rewards. Most of the organization looks for business process management in terms of redesigning their business work flows and processes to achieve maximum productivity. It is useful to have total quality management or six sigma, etc. for incremental process improvement.
Each one of the new approach has their own usage based on organization need, such as rapid application design, agile development, joint application design and reusable software components. In my view, web services are the ones which offer a common set of standards along with the plug and play architecture, which enable organization to link their information system irrespective of technology.