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Chapter 10
Systems Development
Teaching Objectives
Students should be able to answer the following questions:
1. How could developing a new system change the way an organization works?
2. How can a company make sure that the new information systems it develops fit its
business plan?
3. What are the steps required to develop a new information system?
4. What alternative methods for developing information systems are available?
5. Are there any techniques or systems development approaches to help us develop
electronic commerce (e-commerce) and electronic business (e-business)
applications more rapidly?

Key Terms
The following alphabetical list identifies the key terms discussed in this chapter. The
page number for each key term is provided.
Acceptance testing, 339
Application software package, 344
Automation, 330
Benchmarking, 335
Business process reengineering, 331
Conversion, 340
Critical success factors (CSFs), 328
Customization, 344
Direct cutover, 340
Documentation, 340
End-user development, 345
End-user interface, 344
Enterprise analysis, 327
Feasibility study, 337
Information centre, 346
Information requirements, 337
Information systems plan, 327
Joint application design (JAD), 350
Maintenance, 341
Outsourcing, 346
Paradigm shift, 331
Parallel conversion strategy, 340
Phased approach, 340
Pilot study, 340

Postimplementation audit, 341

Production, 340
Programming, 339
Prototype, 343
Prototyping, 343
Rapid application development (RAD), 349
Rationalization of procedures, 330
Request for Proposal (RFP), 345
Six sigma, 334
SOAP (Simple Object Access Protocol), 350
Systems analysis, 336
Systems design, 337
Systems development, 336
Systems development life cycle, 342
Systems testing, 339
Test plan, 339
Testing, 339
Total quality management (TQM), 334
UDDI (Universal Description, Discovery, and
Integration), 350
Unit testing, 339
WSDL (Web Services Description Language),
350
Web services, 350
Work flow management, 333

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Teaching Suggestions
This chapter provides students with an introduction to the methodology of systems
development. While some of the techniques and methods are considered older or less
satisfactory, students have a good chance of seeing these methods in the workplace. It
is not a good idea to engage in a lengthy, philosophical discussion of the superiority of
methods. However, it is a good idea to help students understand that there is no one
best method, that each method is appropriate depending upon the situation and the
requirements. You should remind students of the largest problems: It takes too long to
develop systems, and they often do not work as intended. Of course, this is not always
true, but developing systems is difficult and labour intensive. The point is to familiarize
students with methods, which after all, are certainly better than no formal methods at all.
The traditional systems development lifecycle methodology is usually only used for very
large, complex systems. It is inflexible and does not allow easy changes at any step
along the way. However, it can be effective for highly-structured systems such as
accounting, payroll or complex manufacturing systems. Government defense or space
systems often are mandated to use the system life cycle methodology because of the
rigorous milestones generated by the method.
End-user development is a hot area. You may want to note that originally, personal
computers and spreadsheets were attempts by end users to provide their own end-user
tools to get around application backlogs. End-user computing is difficult to manage and
support. However, if user needs are not met, they have a strong incentive to get around
the rules and restrictions. Make sure you emphasize that whether the organization uses
end-user development or some other approach, the purpose of the system is to serve
the strategies of the company and the end users.
Both object-oriented software development and Web services are very important to the
changes and advancements in developing information systems because they contribute
significantly to faster, easier programming. You should review these terms and concepts
with your students to help them see why they are important and see the growing trend
toward simplification.
Change certainly should be a theme throughout the entire course. It takes a change
agent to carry out major changes, such as business process reengineering. Business
process reengineering is a good example of the problems that information systems can
face. First, people react negatively to what they may view as a buzzword. Secondly,
business process reengineering implies, probably correctly, that the organization is
either not doing things correctly or that the environment has changed and the old ways
will not work anymore. It takes some crises or changes in the environment to induce or
engender the call for reengineering. ERP is often the computer enterprise incarnation of
business process engineering.
An excellent way to reinforce the importance of this chapter is to share your favorite
systems development horror stories with students. If you have the time, ask your
students to review current literature to locate recent horror stories and then share their
findings with the class, or ask your students who work to share their personal stories
from their jobs.

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Window On Boxes
Window on Management: Scotiabank Outsources with IBM
What issues would Scotiabank have considered during its due diligence review?
During its due diligence review, Scotiabank would have determined each companys
global expertise, current offering of technology services and solutions, and capability to
provide security, privacy, and protected access to customer data and information. They
were also interested in the outsourcing companys commitment to providing both a
diverse workplace and meaningful career opportunities for affected employees. Due
diligence should also determine whether the companies are ongoing concerns, that is,
whether they are likely to still be in business at the end of the contract.
What prompted Scotiabank to outsource some of its key information technology
functions?
The main reason to outsource key information technology functions was that Scotiabank
wanted to focus on their core business: delivering financial services.
Did Scotiabank outsource any strategic information technology functions?
Scotiabank did outsource at least one of its functions which could be viewed as either
operational or strategic when it signed a contract with Sanchez Computer Associates
Inc. to use their integrated banking platform to process mortgages and loans. This
system supports mortgage processing, mortgage business integration, and front-end
interfaces, all of which do provide a bank with certain level of strategic advantage.

Window on Technology: The Lure of Web Services

What are the benefits of using Web services technology?
The Window on Technology box identified several benefits for SGX and SembCorp
Logistics. These benefits include cost savings, the ability of companies to communicate
without having to modify their existing systems, device independence, reduced
complexity, lower integration costs for the customer, more functionality and features,
andplug and play" architecture.
How can they provide value to firms?
Web services provide a set of standards that enable companies to communicate with each other
without having to significantly modify their current software programs. In earlier times, one or
both of the parties would have to write or rewrite their sytems so they could communicate. Using
Web services alllows a company to reduce the complexity involved in linking to customers using
different technology platforms without worrying about the delivery mechanism.

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What management, organization, and technology issues must be addressed when

implementing Web services?
Web services can impact the organization's people, structure, operating procedures,
politics, and culture. Issues would address how the business processes will change,
security, standards, and what services are offered. Ask your students to identify
additional issues.

For Discussion Questions

1. Why is selecting a systems development approach an important business
decision? Who should participate in the selection process?
The development of new systems or major enhancements to existing systems is
often the result of significant changes made to the business processes supported
by the systems. Organizations are being faced with the requirement to meet higher
quality standards, but often with fewer resources. Basically, organizations need to
do more with less and do it better. This trend forces organizations to find simpler
and more efficient methods for performing their work. Usually the effort to simplify
the business processes themselves precedes any major systems development
effort. It is appropriate that the business processes be reviewed before systems
work begins, to avoid the unfortunate mistake of simply automating existing
cumbersome processes. Ideally, the efforts to simplify business processes will be
done by the functional office in conjunction with technical personnel, so that current
technology can be considered as the business processes are reviewed.
In some cases, particularly when a vendor package is selected for implementation,
the simplification of business processes may occur during the systems
development or installation process. One other issue is critical. A decision on the
selection of a development approach often is dependent upon the system itself. A
large, complex system simply cannot be done using a quick prototype method, for
example. Part of the decision has to be how important the system is, and if it is
important, what will be the quality of the system if a particular method is selected.
Therefore, business and functional managers should participate in the decision
along with IT personnel and managers.
2. Some have said that the best way to reduce system development costs is to
use application software packages or fourth-generation tools. Do you agree?
Why or why not?
Student views will likely vary because no simple, straightforward answer exists.
The answer to this question is dependent upon the type of problem to be solved.
For example, large transaction-heavy applications are not suited to end-user
software tools. Also, remember that purchasing and installing an application
software package or fourth-generation tool rather than developing a system from
scratch might save significant time, and often significant resources, in terms of
cost. However, there are many issues to consider when deciding whether to
purchase a product or develop a custom system. The following guidelines help
determine if the purchase of a vendor package should be considered:

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Whether packages are available on the market that can satisfy at least 80
percent of the functional requirements of the system. While it may not be
possible to find a package that exactly matches the specific functional
requirements, if less than 80 percent of the requirements are satisfied, then
the purchase of a package is likely to be more costly than custom
development.

Whether available packages are compatible with the organization's current

technical environment (or planned for installation in the immediate future).

Whether the overall cost of purchasing, installing, and maintaining a

package will be no more than (and preferably less than) the cost of custom
development and maintenance.

Whether or not the vendors for the packages have a proven track record of
installation and support and can show evidence of financial stability (this is
particularly critical for large systems).

Review Questions
1. Why can an information system be considered a planned organizational
change?
An information system is a sociotechnical entity, an arrangement of both technical
and social elements. Information systems change involves hardware and software,
but in addition, it involves changes in jobs, skills, management, and organization.
When we design a new information system, we are redesigning the organization,
reordering its technical and social elements. This must be well thought out and
planned in accordance with an appropriate methodology.
2. What are the major categories of an information systems plan?
The major categories of an information systems plan can be found in the MIS in
Action, Managers Toolkit box. The major categories include Purpose of the Plan,
Strategic Business Plan, Current Systems, New Developments, Management
Strategy, Implementation Plan, and Budget Requirements.
3. How can enterprise analysis and critical success factors be used to establish
organization-wide information system requirements?
Both approaches attempt to gain a clear understanding of the organization's longand short-term information requirements. Both use interviews of managers to gain
the information needed. And both rest ultimately on the strategy of the company.
Enterprise analysis approaches the problem by looking at the entire organization in
terms of organizational units, functions, processes, and data elements. This
approach takes a large sample of managers and asks them how they use
information, where they get the information, what their environment is like, what
their objectives are, how they make decisions, and what their data needs are. The

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data are aggregated into subunits, functions, processes, and data matrices. From
this information, conclusions are drawn about the organization-wide information
systems requirements.
The CSF approach interviews a smaller number of top managers who are asked to
identify their goals and the objectives essential to those goals. These critical
success factors (CSFs) are aggregated to develop a picture of the overall
organization's CSFs. Systems that are needed to deliver these critical success
factors are then developed.
4. Describe each of the four kinds of organizational change that can be
promoted with information technology.
Information technology enables automation, rationalization, reengineering, and
paradigm shifts. Automation uses the computer to speed up the performance of
existing tasks. This approach to organizational change changes the organization
less than the other three. It may release staff to other jobs, reduce the number of
employees needed, or enable the organization to process more transactions.
Rationalization of procedures refers to the streamlining of standard operating
procedures, eliminating obvious bottlenecks, so that automation makes operating
procedures more efficient. By making such changes, rationalization can eliminate
some tasks and enable the organization to make more changes than automation,
but the organization still has not made changes in the goals or strategy of the
company.
Business process reengineering refers to the radical redesign of business
processes, combining steps to cut waste and eliminating repetitive, paper-intensive
tasks in order to improve cost, quality, and services, and to maximize the benefits
of information technology. This is a more powerful type of organizational change
because an organization can use it to rethink and streamline its business
processes and to improve speed, service, and quality. A paradigm shift is a radical
reconceptualization of the nature of the business and the nature of the
organization. The strategy of the business can be changed, and sometimes even
the business the company is in.
5. What is business process reengineering? What steps are required to make it
effective?
The textbook defines business process reengineering as the radical redesign of
business processes, combining steps to cut waste and eliminate repetitive, paperintensive tasks in order to improve cost, quality, and service, and to maximize the
benefits of technology. Business process reengineering can be used to reshape
how the organization carries out its business, even the nature of the business itself.
The steps include developing the broad business vision and process objectives,
identifying the processes to be redesigned, understanding and measuring the
performance of existing processes, understanding the opportunities for applying
information technology, and developing a prototype of the new process. Examine
Figure 10-3 with the students to help them understand both the approach and the
impact of business process reengineering.

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6. What is the difference between systems analysis and systems design? What
activities are involved in each?
Systems analysis is the analysis of the problem that the organization is trying to
solve with an information system. It consists of defining the problem, identifying its
causes, specifying solutions, and identifying the information requirements that must
be met by a system solution. Systems design shows how the system will fulfill the
information requirements specified in system analysis.
7. What are information requirements? Why are they difficult to determine
correctly?
Information requirements involve identifying who needs what information, where,
when, and how. They define the objectives of the new or modified system and
contain a detailed description of the functions the new system must perform.
Gathering information requirements is perhaps the most difficult task of the
systems analyst, and faulty requirements analysis is a leading cause of systems
failure and high systems development costs.
Information requirements are difficult to determine because business functions can
be very complex and poorly defined. A manual system or a routine set of inputs
and outputs may not exist. Procedures may vary from individual to individual, and
users may disagree on how things are or should be done. Defining information
requirements is a laborious process, requiring a great deal of research and often
several reworks by the analyst.
8. Why is the testing stage of systems development so important? Name and
describe the three stages of testing for an information system.
Testing is critical to the success of a system because it is the only way to ascertain
whether the system will produce the right results. Three stages of information
system testing are unit testing, system testing, and acceptance testing. Unit testing
refers to separately testing or checking the individual programs. With system
testing, the entire system as a whole is tested to determine whether program
modules are interacting as planned. With acceptance testing, the system
undergoes final certification by end users to ensure that it is ready for installation.
9. What role do programming, conversion, production, and maintenance play in
systems development?
Programming translates the design specification into software, thus providing the
actual instructions for the computer. Programming constitutes a smaller portion of
the systems development cycle than design and perhaps even testing activities.
Conversion is the process of changing from the old system to the new system.
Production is the operation of the system once it has been installed and conversion
is complete. The system will be reviewed during production by both users and
technical specialists to determine how well it has met its original objectives and to
decide whether any revisions or modifications are needed. Maintenance is
modifications to hardware, software, documentation, or procedures to a production
system to correct errors, meet new requirements, and improve processing
efficiency.

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10. What is the traditional systems development lifecycle? Describe each of its
steps and its advantages and disadvantages for systems developing.
The traditional systems lifecycle is a formal methodology for managing the
development of systems and is still the principal methodology for medium and
large projects. The overall development process is partitioned into distinct stages,
each of which consists of activities that must be performed to fashion and
implement an information system. The stages are usually gone through
sequentially with formal sign-off agreements among end users and data
processing specialists to validate that each stage has been completed. Users,
managers, and data processing staff have specified responsibilities in each stage.
The approach is slow, expensive, inflexible, and is not appropriate for many small
desktop systems.
The systems development lifecycle consists of systems analysis, systems design,
programming, testing, conversion, and production and maintenance. Systems
analysis is the phase where the problem that the organization is trying to solve is
analyzed. Technical specialists identify the problem, gather information
requirements, develop alternative solutions, and establish a project management
plan. Business users provide information requirements, establish financial or
operational constraints, and select the solution. During systems design, technical
specialists model and document design specifications and select the hardware and
software technologies for the solution. Business users approve the specifications.
During the programming phase, technical specialists translate the design
specifications into software for the computer. During the testing phase, technical
specialists develop test plans and conduct unit, system, and acceptance tests.
Business users provide test data and scenarios and validate test results.
During the conversion phase, technical specialists prepare a conversion plan and
supervise conversion. Business users evaluate the new system and decide when
the new system can be put into production. During the production and maintenance
phase, technical specialists evaluate the technical performance and perform
maintenance. Business users use the system and evaluate its functional
performance.
The advantages of using this method for developing information systems include it
is highly structured; it has a rigorous and formal approach to requirements and
specifications and tight controls over the system development process; it is
appropriate for developing large transaction processing and management
information systems and for developing complex technical systems. The
disadvantages include it is very costly and time-consuming; it is inflexible and
discourages change even though requirements will change during the project due
to the long time this method requires; it is ill-suited to decision-oriented applications
which can be rather unstructured and for which requirements may be difficult to
define.
11. What do we mean by information system prototyping? What are its benefits
and limitations? List and describe the steps in the prototyping process.
Information system prototyping is an explicitly interactive system design
methodology that develops an experimental model of a system as a means of

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determining information requirements. Prototyping develops an experimental

system quickly and inexpensively for demonstration and evaluation so that users
can better determine information requirements. Preliminary models of a system or
important parts of the system are developed rapidly for users to experiment with.
The prototype is modified and refined until it conforms precisely to what users
want. Information requirements and design are determined dynamically as users
interact with and evaluate the prototype.
Prototyping is most valuable when requirements are uncertain and cannot be
entirely prespecified or when the appropriate design solution is unclear. Prototyping
is especially helpful for designing end-user interfaces (screens and reports) and for
determining elusive requirements of decision-support type applications. Prototyping
can help reduce implementation costs by capturing requirements more accurately
at an earlier point in the implementation process. It is not so useful for a very
structured, well-understood, or routine problem.
It is best suited for smaller applications oriented toward simple data manipulation.
Large systems with complex processing may only be able to have limited features
prototyped. A prototype may be developed so rapidly that design is not well thought
out or must be reworked for a production environment. The problem arises when
the prototype is adopted as the production version of the system without careful
analysis and validation. Prototypes are developed so rapidly that documentation
and testing are glossed over. The system is so easily changed that documentation
may not be kept up-to-date.
The steps in prototyping include identifying the user's basic requirements;
developing a working prototype of the system outlined in the basic requirements,
using the prototype, and revising and enhancing the prototype based on the users'
reaction. The third and fourth steps are repeated until users are satisfied with the
prototype.
12. What is an application software package? What are the advantages and
disadvantages of developing information systems based on software
packages?
An application software package is a set of prewritten, precoded application
software programs that are commercially available for sale or lease. Packages
range from very simple programs to very large and complex systems,
encompassing hundreds of programs. Packages are normally used when functions
are common to many companies, data processing resources, for in-house
development, are in short supply, or when desktop microcomputer applications are
being developed for end users.
Software packages provide several advantages: (1) the vendor has already
established most of the design that may easily consume up to 50 percent of
development time; (2) programs are pre-tested, cutting down testing time and
technical problems; (3) the vendor often installs or assists in the installation of the
package; (4) periodic enhancement or updates are supplied by the vendor; (5)
vendors also maintain a permanent support staff well-versed in the package,
reducing the need for individual organizations to maintain such expertise in-house,
and (6) the vendor supplies documentation.

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The usage of software packages has several disadvantages: (1) there are high
conversion costs for systems that are sophisticated and already automated; (2)
packages may require extensive customization or reprogramming if they cannot
easily meet unique requirements, and (3) a system may not be able to perform
many functions well in one package alone.
13. What do we mean by end-user development? What are its advantages and
disadvantages? Name some policies and procedures for managing end-user
development.
End-user development refers to the development of information systems by end
users with minimal or no assistance from professional systems analysts or
programmers. This is accomplished through sophisticated "user-friendly" software
tools and gives end users direct control over their own computing.
Advantages include improved requirements determination, realizing large
productivity gains when developing certain types of applications, enabling end
users to take a more active role in the systems development process, many enduser systems can be used for prototyping, and some have new functions such as
graphics, modelling, and ad hoc information retrieval.
Disadvantages include not being suited for large transaction-oriented applications
or applications with complex updating requirements, standards for testing and
quality assurance may not be applied, and proliferation of uncontrolled data and
private information systems.
End-user development is suited to solving some of the backlog problem because
the end users can develop their needed applications themselves. It is suited to
developing low-transaction volume systems. End-user development is valuable for
creating systems that access data for such purposes as analysis (including the use
of graphics in that analysis) and reporting. It can also be used for developing
simple data-entry applications.
Policies and procedures to manage end-user development include the following:

The organization must establish sufficient support facilities for end-user

computing: information centers or distributed end-user computing centers.
Training and support should be targeted to the specific needs of those
being trained.
End-user application development should not be allowed to be undertaken
randomly but should be incorporated into the organization's strategic plan.

Management should develop controls over end-user computing in the following

areas:

Cost justification of end-user information system project.

Hardware and software standards for user-developed applications.

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Company-wide standards for microcomputers, word processing software,

database management systems, graphics software, and query and
reporting tools.
Quality assurance reviews that specify whether the end-user systems must
be reviewed by information systems and internal audit specialists.
Control for end-user developed applications covering testing,
documentation, accuracy, and completeness of input and update, backup,
recovery and supervision.
Critical applications that supply data to other important systems should be
flagged and subjected to more rigorous standards.

14. What is outsourcing? Under what circumstances should it be used for

developing information systems?
Outsourcing is the process of turning over an organization's computer centre
operations, telecommunications networks, or applications development to external
vendors who provide these services. Outsourcing is an option often considered
when the cost of information systems technology has risen too high. Outsourcing is
seen as a way to control costs or to develop applications when the firm lacks its
own technology resources to do this on its own. It is seldom used for a system that
is strategically important.
15. What is the difference between object-oriented software development and
traditional systems development? What are the advantages of using objectoriented software development in developing systems?
The traditional structured methodology focuses on what the new system is
intended to do and then develops the procedures and data to do it. Object-oriented
development de-emphasizes system procedures and instead creates a model of a
system composed of individual objects that combine data and procedures. The
objects are independent of any specific system. These objects can then be placed
into any system being developed that needs to make use of the data and functions.
In addition, in traditional structured methodologies all work is done serially, with
work on each phase begun only when the previous phase is completed. Objectoriented development theoretically allows simultaneous work on design and
programming. These systems usually are easier to develop and more flexible.
Moreover, any objects created this way are reusable for other programs.
16. What is rapid application development (RAD)? How can it help system
developers?
RAD is a process for developing systems in a very short time period by using
prototyping, fourth-generation tools, and close teamwork among users and
systems specialists. RAD allows the creation of working software in a very short
time through objects and automation of much of the code generation. Usually they
depend on interfaces to databases.

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17. What are Web services? How can they help firms develop and enhance their
information systems?
Web services are software components that are deliverable over the Internet. They
enable one application to communicate with another with no translation required.
They allow this communication and sharing of data regardless of operating system,
programming language, or client device. The benefit is the ease of enabling the
exchange of data and the major savings that result when the traditional translations
no longer have to be created or maintained.

Application Software Exercise

This is actually quite a challenging assignment and will take much longer to solve
than the other Application Software exercises. Students will have to perform a
systems analysis and then design a system solution using database software.
They will need to identify information requirements and then map out entities,
attributes, and relationships to guide the design of database tables. They will need
to populate the database and generate queries and reports that satisfy
management information requirements. This project should not be assigned unless
students have the requisite database skills.
Aces customer information is primarily paper-based. There is valuable customer
information in those paper records, but it is of little use to the company because it
cannot be easily organized or analyzed. The company cannot easily find out which
customer touch points are most effective, customer preferences in models or
luxury options, or whether repeat customers or Subaru owners return again to
become buyers. The dealership is wasting dollars by not being able to channel its
advertising and promotions more precisely. By not fully understanding their
customers, the overall business performance of both Ace and Subaru may be
negatively impacted.
A new system with a database of customers and prospects could help Ace make
better sales and marketing decisions. The system could help Ace find the most
important sources of customers, better allocate advertising and promotional
budgets, and identify trends in customer preferences and demographics. If Ace
automated this information, it would be more useful to Subaru in helping it stock
dealers inventory with models and options that are the most popular. The company
could also have more accurate numbers on customer acquisition costs.
Key information requirements include:
Identifying where potential customers are obtaining information about the
dealership
Identifying repeat customers or Subaru owners
Identifying prospects and buyers
Identifying what car models and options customers are purchasing
Identifying how much is being financed
Some organizational changes will be required. Sales associates will need to make
sure that customer and prospect information has been entered into the database.

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Managers will need to learn how to make use of the information in the database to
help them run their dealership.
The solution file represents one of many alternative database designs that would
satisfy Aces requirements. This particular design simplifies information on options
to prevent the design from becoming too complicated for students. The base price
of the car is assumed to be the list price. The total price paid by the customer is the
list price (which includes the cost of luxury options) minus the discount offered by
the dealer at the time of sale. A VIN number is used to identify the model of interest
to the showroom visitor, which assumes that all models of interest to showroom
visitors are actual vehicles with VIN numbers that are in dealer inventory. The VIN
number of interest during the visit may not necessarily be the VIN number
identifying the vehicle the customer actually purchased. The Customer_Prospect
table contains information on both customers and prospects, including everyone
who has visited the dealer, with customers identified when this table is joined to the
Orders table.

Group Project
With three or four of your classmates, select a system described in this text
that uses the Web. Examples might include the WestJet site in this chapter,
the RadioShack Canada Web site in Chapter 9, or the Direct Wines Web site
in Chapter 6. Review the Web site for the system you select. Use what you
have learned from the Web site and the description in this book to prepare a
report describing some of the design specifications for the system you
select. Present your findings to the class.
Because Web systems play such a central role in today's information systems
world, the purpose of this project is to give the students experience in evaluating a
Web system and think through how well it meets IS requirements. After selecting
the Web system, the groups should begin this project by developing a set of
requirements they conclude the system will have met (strengths and weaknesses
must be measured against some standards).
Students also need to ask hardware and operating system requirements questions,
such as: What are the operating systems under which it will run? What are the
minimum and optimal amounts of RAM needed and the minimum and optimal
amounts of disk storage space required (including holding data)?
Finally, students need to examine the user interface with such questions as: Does
it use or require a mouse? How many keystrokes are necessary to access a given
function? Is it easy to learn? Is there an expert operating mode so that the expert
will not need to go through a long series of menus to access a function?

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Case Study Albertans Get ASP Solution for HealthCare

1. Analyze the Internet and World Wide Web as a source of opportunities for
Alberta Wellnet.
Students will have several reasons why the Internet and World Wide Web provide
opportunities for the Alberta Wellnet project. In general, the Internet and World
Wide Web provide a globally-accessible, redundant, high-speed network that can
transmit any type of information securely, using the proper technology. If the
Wellnet project was to use its own communications infrastructure, it would lose the
benefits the Internet has to offer, and definitely cost millions of dollars more.
2. What additional Web-based systems not mentioned in the case do you think
Alberta Wellnet could implement?
Students will come up with several Web-based systems that the Alberta Wellnet
initiative could implement. Some example systems are:

A central repository for specialized information about newly-discovered

diseases and problems.

First-aid services and instructions using the Web, in the form of an expert
system.

Instant messaging service between doctors to allow the sharing of

knowledge and expert advice when diagnosing or treating patients.

3. Do you think using the pilot conversion strategy helped Alberta Wellnet?
How?
The pilot project had two goals: to prove the scalability and reliability of the
Microsoft platform for handling mission-critical applications with an ASP delivery
model in both urban and rural environments, and to demonstrate the value of such
a model to physicians. Using the pilot conversion strategy helped to prove the
viability of the project, work out any problems that may occur on a large scale
rollout, and acclimatize the users to this new information system.
4. Was the ASP model a good way to implement the practice management
application? Would a different model, such as in-house development, have
worked as well? Why, or why not?
Student answers will vary for this question. Implementing the practice management
application using an ASP model provided an end-to-end managed solution, which
eliminates many of the technological barriers at clinics. It also replaces the costly
one-time investment with an affordable monthly subscription fee. The ASP system
from Microsoft provided a scalable architecture that can easily and remotely handle
large numbers of concurrent users, saving both time and money. In addition to
losing all the benefits of the ASP service model, in-house development would
require permanent expert staff, in-house development and maintenance teams,
and require clinic to implement expensive technological solutions.

Copyright 2005 Pearson Education Canada Inc.

Instructor's Manual, Chapter 10

Management Information Systems, Second Canadian Edition

10-15

5. What are the management, organization, and technology issues that Alberta
Wellnet need to consider in implementing its ASP solution? The
Pharmaceutical Information Network? The human resources and payroll
systems? Are these all the same issues for each system?
The number of management, organization, and technology issues that the
implementers of these systems needed to consider is limitless. Students will come
up with several different types of concerns, ranging from privacy, security,
efficiently, vendor trustworthiness, and human acceptance. In general, the issues
seem to be very similar between the different systems, since all initiatives involve
ASP models. Some key issues to concern are:

Alberta Wellnet: maintaining high speeds and connectivity, security

concerns, scalability, and physician acceptance.

Pharmaceutical Information Network: protection of client medical

information, non-repudiation mechanisms, and employee training.

Human Resource and Payroll Systems: privacy of employee information,

security, and error checking and correction.

Copyright 2005 Pearson Education Canada Inc.