Tools and Approaches for Building Systems, Explained

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Tools and Approaches for Building Systems

System Analysis and Design · Chapter 2: Business Analysis Tools and Development MethodsSection 2.3 · lesson 9 of 699 min · free with a free account

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In this lesson

Build, buy, or outsource - and the software that helps build software.

  • Explain the build, buy, and outsource options and what favors each
  • Describe COTS software and its main trade-offs
  • Describe SaaS and how it differs from traditional COTS licensing
  • Explain CASE tools and distinguish upper CASE from lower CASE

Transcript

Everything said in the video, section by section (1,212 words). Read along, or search it.

Business Analysis Tools and Development Methods

Tools and Approaches for Building Systems

Once a systems request is approved, a practical question remains. How will the system actually be produced? This section covers the three broad answers: build it, buy it, or outsource it. Then we look closely at the buy option, through commercial off-the-shelf software, and software as a service. And finally, we look at the tools analysts and developers use while they build. They are called CASE tools.

The Core Decision

3 Ways to Produce an Approved System

There are three broad paths. The organization can build the system itself, using its own analysts and developers. It can buy an existing software product, and adapt its own processes to fit it. Or it can outsource the work, hiring an outside firm to build or run the system on its behalf. Picture the three sitting along a spectrum. At one end, building gives the most control, but demands the most in-house effort. At the other end, outsourcing asks the least in-house effort, and gives the least control. Buying sits between them. None of the three is universally correct. The right choice depends on how unique the organization's needs are, how much time and skill it has in-house, and how much control it wants to keep.

Comparing the Options

Build vs. Buy vs. Outsource

Let's compare the three on five factors. On customization, building is fully tailored to the organization's exact process. Buying is limited to what the product allows. Outsourcing depends on the contract. On time to deploy, building is usually the longest, since development starts from scratch. Buying is usually the fastest, since the product already exists. Outsourcing is often in between. On upfront cost, building is highest, driven by staff time and development effort. Buying is lower upfront, often through licensing or a subscription. On ongoing control, building keeps full control over features and priorities. Buying leaves the future to the vendor's roadmap. Outsourcing shares control, as the contract defines. And the best fit? Build when the process is a genuine source of competitive advantage. Buy when a proven product already solves a common, non-unique need. Outsource when in-house skills or capacity are limited, and a qualified partner is available.

Worked Example

A University's Course Registration

A university deciding how to handle student course registration shows the trade-off. Registration rules are fairly standard across universities. So most schools buy a proven registration product, rather than build one from scratch. Now imagine a university with an unusual, highly specific advising workflow. That workflow gives it a real recruiting advantage. It might choose to build that one piece in-house, even while buying the standard registration system around it. The lesson is that the decision is not all or nothing. One organization can buy the common parts, and build the parts that make it different.

The Buy Option

COTS: Commercial Off-the-Shelf Software

Let's look more closely at the buy option. Commercial off-the-shelf software, usually called COTS, is a pre-built product. A vendor develops it, and sells or licenses it to many different organizations. It is not created for any one organization's exact needs. Buying COTS is the most common form of the buy option. Its advantages are real. The upfront cost is lower than custom development. Deployment is faster, since the product already exists and has been tested. There is ongoing vendor support, with bug fixes. And there is the reliability that comes from many other organizations already using it. But there are trade-offs. Customization is limited to what the vendor allows. The organization may have to change its own processes to match the software, rather than the other way around. There are ongoing licensing costs, and new features arrive on the vendor's schedule, not yours.

Evaluating COTS

Fit-Gap Analysis

So how does an analyst evaluate a COTS product? A common approach is called fit-gap analysis. The analyst compares the organization's requirements against what the product actually offers. Any requirement the product does not meet is a gap. The point is to handle each gap deliberately, rather than discover it after purchase. There are three ways to handle a gap. Configure the product differently. Change the organization's own process. Or rule the product out altogether.

A Delivery Model

SaaS: Software as a Service

Software as a service, or SaaS, is a different way of delivering software. The vendor hosts the application on its own servers. The organization accesses it over the internet, usually paying a recurring subscription, rather than a one-time license fee. SaaS is still COTS in the broad sense. It is a pre-built product used by many organizations. What changes is how the product is acquired, installed, and maintained. With traditional, on-premises COTS, the software runs on the organization's own servers. With SaaS, it is hosted by the vendor, and accessed through a browser. Traditional COTS usually means a one-time license fee, often with separate support contracts. SaaS is a subscription, billed monthly or annually. With on-premises software, the organization's own IT staff install updates and patches. With SaaS, the vendor applies updates automatically, for all customers. And with SaaS, the organization no longer needs to provide and maintain servers at all.

The SaaS Trade-Off

Less Control, Lighter Maintenance

That brings a trade-off. Because the vendor manages hosting and updates, the organization gives up some control. For instance, it cannot simply delay an update it dislikes. In exchange, it carries a much lighter ongoing maintenance burden. This trade-off matters most for organizations with limited in-house IT staff. For them, maintaining on-premises servers is itself a significant cost.

Software That Builds Software

CASE Tools: Upper vs. Lower

Finally, the tools used while building systems. CASE stands for computer-aided software engineering. CASE tools support analysts and developers as they build a system. They are not part of the system being built. They fall into two broad categories, based on where in the process they are used. Upper CASE tools are used early, during planning, analysis, and design. They are diagramming and modeling tools, for data flow diagrams, entity-relationship diagrams, and process models. For example, a business analyst diagramming how customer orders flow through a proposed system, before any code is written. Lower CASE tools are used later, during construction and implementation. They turn design artifacts into working software, through code generators, database schema generators, and automated testing. For example, a tool that generates database table definitions directly from an approved entity-relationship diagram. Some products span both. They are sometimes called integrated CASE tools. Even then, the upper and lower distinction is useful. It tells you which phase of work a feature is actually supporting.

Key Terms

The Vocabulary of This Section

Let's lock in the key terms. COTS is commercial off-the-shelf software, a vendor's pre-built product licensed to many organizations. Fit-gap analysis compares requirements against what a product offers, so gaps are handled deliberately. SaaS, or software as a service, is vendor-hosted software, accessed over the internet for a recurring subscription. CASE tools are computer-aided software engineering tools, which support the people building a system. Upper CASE supports early planning, analysis, and design. Lower CASE supports later construction and implementation.

Key Takeaways

What to Carry Forward

To pull this together. Build, buy, and outsource are the three core ways to acquire a system. They trade off customization, cost, speed, and control. COTS software lowers cost and deployment time, but limits customization to what the vendor supports. A fit-gap analysis identifies where a COTS product falls short. SaaS is a hosting and payment model for COTS software, trading ongoing control for a lower maintenance burden. CASE tools support the people building a system, rather than being part of the system itself. And upper CASE supports early planning, analysis, and design, while lower CASE supports later construction and implementation.

About System Analysis and Design at UPI Study

System Analysis and Design (Computer Science 390) is a self-paced online course of 69 video lessons in 9 chapters, from the analyst's role and requirements to UML modeling, interface and database design, testing, maintenance and project management. It carries a NCCRS credit recommendation for 3 semester credits.

Every lesson transcript is free on pages like this one, and the videos are free with a free UPI Study account. Enrolling adds a practice quiz after each lesson, the graded work and final exam that earn the credit, lifetime access, and an official transcript on completion. UPI Study has helped over 130,000 students with college credits. ACE and NCCRS have over 2,100 cooperating colleges that will consider accepting credits; the final decision is with the universities.

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Why take it here

Why students take System Analysis and Design with UPI Study

From business problem to working systemSystem Analysis and Design teaches how analysts study a business need and turn it into a system design: requirements, UML and data-flow models, interface and database design, implementation and project management. It is a core course in information systems and IT degrees.
Credit at a fraction of the priceThe same 3 credits can cost $750 or more at a US college. Here it is one payment, self-paced, with lifetime access.
Finish your degree soonerTransfer credits reduce the courses you still owe, so you can graduate earlier or lighten a heavy semester.
Strengthen an applicationA completed college-level course on an official transcript shows admissions and scholarship committees you can do the work.
Study on your own scheduleNo start dates, no deadlines. Watch the lessons, practice, and take the final when you are ready.
130,000+students helped with college creditsACE and NCCRS have over 2,100 cooperating colleges that will consider accepting credits; the final decision is with the universities.

Where the credit goes

Universities that work with NCCRS

System Analysis and Design carries a NCCRS credit recommendation. These universities work with NCCRS; some are UPI Study's signed partners. ACE and NCCRS have over 2,100 cooperating colleges that will consider accepting credits; the final decision is with the universities.

Thomas Edison State UniversityThomas Edison State UniversitySigned partnerUniversity of the PeopleUniversity of the PeopleSigned partnerCharter Oak State CollegeCharter Oak State CollegeSigned partnerStrayer UniversityStrayer UniversitySigned partnerColumbia Southern UniversityColumbia Southern UniversitySigned partnerIndiana TechIndiana TechSigned partnerPenn StatePenn StateWorks with NCCRSSouthern New Hampshire UniversitySouthern New Hampshire UniversityWorks with NCCRSSUNYSUNYWorks with NCCRS +many more cooperating universitiesFind my college →

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FAQ

Questions students ask us

About Tools and Approaches for Building Systems

How do you decide whether to build, buy, or outsource a system?
The choice depends on how unique the needs are, the time and skills available in-house, and how much control the organization wants. Building suits processes that are a genuine source of competitive advantage but takes longest and costs most upfront. Buying suits common, non-unique needs and deploys fastest. Outsourcing suits limited in-house skills or capacity when a qualified partner exists. Organizations often mix them, buying common parts and building distinctive ones.
What are the advantages and disadvantages of COTS software?
Commercial off-the-shelf (COTS) software offers lower upfront cost, faster deployment, vendor support, and proven reliability, but limits customization. Because a vendor sells the same product to many organizations, a buyer may have to change its own processes to fit the software, pay ongoing licensing fees, and wait for new features on the vendor's schedule. A fit-gap analysis helps identify where a product falls short before purchase.
How is SaaS different from traditional off-the-shelf software?
Software as a service (SaaS) is hosted by the vendor and accessed over the internet for a recurring subscription, whereas traditional COTS typically runs on the organization's own servers under a one-time license fee. With SaaS, the vendor applies updates for every customer and the buyer maintains no servers. The trade-off is less control, such as being unable to delay an unwanted update, in exchange for a much lighter maintenance burden.
What is the difference between upper CASE and lower CASE tools?
Upper CASE tools support early planning, analysis, and design, while lower CASE tools support later construction and implementation. Computer-aided software engineering (CASE) tools help the people building a system and are not part of the system itself. Upper CASE includes modeling tools for data flow and entity-relationship diagrams. Lower CASE includes code generators, database schema generators, and automated testing tools. Products covering both are sometimes called integrated CASE tools.

About the System Analysis and Design course

How many college credits is System Analysis and Design?
System Analysis and Design (Computer Science 390) carries a NCCRS credit recommendation for 3 semester credits. ACE and NCCRS have over 2,100 cooperating colleges that will consider accepting credits; the final decision is with the universities.
How much does System Analysis and Design cost and what is included?
$250, paid once, with lifetime access: all 69 video lessons, a practice quiz after each, the graded work and final exam, and an official transcript when you finish. Students who want several courses choose UPI Study PRO instead.
Which universities accept UPI Study credits?
UPI Study has signed partner agreements with universities such as Thomas Edison State University, University of the People and Charter Oak State College, and works with universities such as Penn State, SNHU and SUNY. ACE and NCCRS have over 2,100 cooperating colleges that will consider accepting credits; the final decision is with the universities. Use "Find my college" on this page to check yours.
How long does System Analysis and Design take?
It is self-paced with no deadlines. The 69 lessons total about 9 hours of video; most students add reading and practice time and finish in a few weeks to a few months, on their own schedule.
How are the exams done?
Quizzes and assignments are online in the course. The final exam is taken online with proctoring; a person on the UPI Study team checks assignments, usually within two days.
How do my credits reach my college?
When the course shows 100% complete, request the official transcript from your dashboard. It is sent to the college you name, and you can send it to more than one. Check your college first with "Find my college" on this page, or ask Athena.

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69 video lessons, a quiz after each one, and the graded work that earns the credit. Recommended for credit by NCCRS.

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