Jody Fedor

IT2700: Systems Analysis & Design

Assignment #5 – Review Questions

Chapter #5 - Development Strategies

 1. Describe the trend that views software as a service rather than a product. What effect has this trend
had on software acquisition options?

Web-Based software trends have rocketed Application Service Providers (ASP), and firms offering
Internet Business Services (IBS) to a prominence in the software industry that believes in software as a service
instead of a product. With the popularity and advantages of the Internet, companies are viewing this trend as an
option to standard software development and acquisition.

Instead of buying a software application from a software company, producing it in-house, or hiring a
consultant or outside resource to produce a software package these web-based firms have provided a new
alternative based on three separate models. These models are a fixed fee model, subscription model or usage
model. Fixed fee does exactly that, provides a fixed fee or cost based on a service level required by the user.
The subscription model varies cost based on number of users and workstations accessing the application. The
usage model charges fees based on the transaction volume or number of operations performed by the
applications.

2. Explain the difference between horizontal application software and vertical application software.

Horizontal applications differ from vertical applications in that they provide a solution for many
companies based on a common need. Applications such as accounting, payroll, inventory, and office
integration packages are horizontal applications.

Vertical applications are those written for a specific industry or market. Examples such as a healthcare
system for a hospital, claim processing for an insurance company are vertical applications.

3. What is the most common reason for a company to choose to develop its own information system?
Give two reasons why a company might choose the in-house approach.

The most common reason for a company to develop its own information system is that it needs to satisfy
unique business requirements, meaning there is no commercially available software to meet their needs.

Two other reasons for an in-house approach would be to minimize changes to existing procedures and
policies and to allow for interfacing with a legacy system and its many constraits.

4. What is an RFP, and how does it differ from an RFQ?

An RFP is a Request For Proposal. An RFP differs from an RFQ (Request For Quote) in that it assumes
that a design is not concrete or the specifics of the product or service you need is not known. Specifically an
RFP describes your company, lists the services or products that are required, and specifies the features you
require along with what level of service and support is required.

An RFQ on the other hand is more specific than an RFP in that you know what you want and need and
just need a price quotation or bid from the software provider.

5. What is the purpose of a benchmark test?

Benchmark tests are used to put a software package through its transactional paces to show how a
system will work under stress or load. Typically, benchmarks provide a TPS or transactions per second rating.
These charts or graphs also display number of users and number of transactions.

IT2700 – CRN 53217 – Jody Fedor – Chapter 5 – Review Questions

6. Explain software licenses and maintenance agreements.

Software licenses enable a user to use the software by giving them permission or rights and states
limitations on that permission such as the number of computers it can be used on concurrently, weather or not
the application can be altered by the user for any reason, and weather it can be copied or archived.

Software maintenance agreements provides the means for software vendor to be paid for support of a
software package, and protection for the user in that if there are upgrades or updates or bugs in the software,
they will be fixed at no cost or at the determined agreed upon fees. It also provides for assistance to the user
when there are questions or problems.

7. What decisions might management reach at the end of the system analysis phase, and what would be
the next step in each case?

There are generally five alternatives for management to choose from along with the next step:

1. Go with an outsourcing alternative. This requires working with the service provider to provide a
smooth transition to the new environment.

2. Go with an In-house solution. This requires completion of the SDLC starting with the systems design
phase.

3. Go with an existing software package with or without customization. If software is purchased without
customization, negotiations with the vendor for the best price would be next. If packaged software with
customization is chosen, and it was going to be modified in-house, the systems design phase would be next
otherwise the vendor would make modifications and the next step would be testing and documentation as part
of the systems implementation phase.

4. Perform additional systems analysis work. This would require going back to the drawing board with
the Systems Analysis phase and re-present the work to management for approval.

5. Stop the project. There are no additional tasks to perform except for filing away the project for
possible future reopening.

8. What is a prototype, and how do systems developers use prototyping?

A prototype is a rapidly constructed working version of a proposed information system. There are two
different prototyping methods; System prototyping and Design prototyping.

System prototyping produces a full-featured, working model of the information system while Design
prototyping produces a throwaway version of the system that is a user-approved model that documents and
benchmarks the features of the finished system.

Design prototyping allows for users to touch and feel the system interface before the system is complete
to provide feedback from them to enhance the user experience on the system.

Satisfying system requirements is the ultimate goal of systems development, and prototyping is an
extremely valuable tool during the process.

IT2700 – CRN 53217 – Jody Fedor – Chapter 5 – Review Questions

9. What is a fourth-generation environment?

Fourth-generation environments provide a framework for rapid, efficient software development utilizing
prototyping with CASE tools, application generators, report generators, screen generators and fourth-generation
languages (4GLs).

10. What is a code? List and describe each of the common coding schemes.

A code is any set of letters or numbers that represent a data item.

There are 8 types of codes:

1. Sequence Codes – Numbers or letters assigned in a specific order – normally used for consecutive sequences
such that 2 follows 1 or D follows C. A number or letter can show order and history as in the case of an
employee number, 100 being hired before 101 etc.

2. Block Sequence Codes – Numbers assigned to group - for example, all 100 series numbers refer to beginners,
200 series intermediate and 300 series expert.

3. Alphabetic Codes – Letters used to distinguish on item from another based on a category, an abbreviation, or
an easy to remember value, called a mnemonic code.
a. Category Codes identify a group of related items. A computer store might use HDD for hard drives,
or HW for hardware, or SW for software.
b. Abbreviation Codes are alphabetic abbreviations. State abbreviations are codes. City codes can be
considered mnemonic codes like LAX, CLE, or DFW.

4. Significant Digit Codes – numbers subgrouped to distinguish items. A binning label in a warehouse can use
0041532 where 004 is what row it is in on the 15th shelf in the 32nd position.

5. Derivation Codes – build a code by extracting or combining data from different item attributes. A billing
system might use FEDJO44256 as a customer number consisting of the first 3 letters of the last name, the first 2
letters of the first name and all 5 digits of the zipcode.

6. Cipher Codes – encoding (encryption) numbers using a keyword. For example, using the alphabet to encode
the numbers 0 – 9 where A = 0 and J = 9. The number 123 would be BCD.

7. Action Codes – using a letter or number to be associated with an action on a menu. For example,
1. Run, 2. Slow, 3. Stop, 4. Go. Use 3 to Stop, or 4 to Go.

8. Self-Checking Codes – utilize check digits to verify validity of a numeric code. Any item that has a UPC
(universal product code) utilizes a check digit. The first 11 numbers are mathematically manipulated producing
a check digit, this 12 digit number can now be validated mathematically that a correct number was input.

The nine things to remember when developing a code are keep codes concise, allow for expansion, keep codes
stable, make codes unique, use sortable codes, avoid confusing codes, make codes meaningful, use a code for a
single purpose, and keep codes consistent.

IT2700 – CRN 53217 – Jody Fedor – Chapter 5 – Review Questions