Chapter 13 acquiring information systems and applications. This chapter presents the following content: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan, discuss the four business decisions that companies must make when they acquire new applications,. | 16-12-09 INFORMATION SYSTEMS Supporting and Transforming Business Fourth Canadian Edition RAINER • PRINCE • SPLETTSTOESSER • SÁNCHEZ-RODRÍGUEZ CHAPTER 13 Acquiring Information Systems and Applications CHAPTER OUTLINE • • • • Planning for and Justifying IT Applications Strategies for Acquiring IT Applications The Traditional Systems Development Life Cycle Alternative Methods and Tools for Systems Development 1 16-12-09 LEARNING OBJECTIVES 1. Describe the different cost-benefit analyses that companies must take into account when formulating an IT strategic plan. 2. Discuss the four business decisions that companies must make when they acquire new applications. 3. Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle. 4. Describe alternative development methods and the tools that augment these methods. Case AVON WRITES OFF $125 MILLION ON FAILED SOFTWARE IMPLEMENTATION The Business Problem • Avon had over 6 million salespeople placing orders • The company wanted to bring IT solutions to its independent salespeople using iPads • The new system was to be linked to existing SAP ERP systems Case AVON WRITES OFF $125 MILLION ON FAILED SOFTWARE IMPLEMENTATION The Consequences A poorly implemented system lead to Aven sales reps who could not • Access the company web site • Inquire about inventory levels or • Place orders Management decreed that the new system had to be used, which may have lead to thousands of sales person resignations 2 16-12-09 Case AVON WRITES OFF $125 MILLION ON FAILED SOFTWARE IMPLEMENTATION Admission of Defeat • Avon decided to cancel implementation of the new system to other countries • It maintained its use in Canada, recruited new salespeople and trained them in the new systems Case AVON WRITES OFF $125 MILLION ON FAILED SOFTWARE IMPLEMENTATION Questions 1. Is the Avon failure the fault of Avon? SAP? IBM?
