4. IT Deployment Risks

8/22/2019 4. IT Deployment Risks

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ITDeployment

Risks


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Strategic Plans

Strategic planning serves as the primaryguideline for allocating scarce resourcesthroughout the firm and keeping the

organization headed in a profitabledirection.


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Putting it all together

VISION

MISSION

OBJECTIVES

POLICIESSTRATEGY


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IT Planning Process

Mission ObjectivesStrategy Policies

CompanyVision

Overall Company


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Vision

Represents what might be or an image ofthe future

The growth and success of a businessorganizations are limited only by theirvision of what they believe they can

accomplish


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Mission

Represents the guiding light fordeveloping a set of objectives

A mission statement translates thevision and articulates it in a crisp,understandable language.


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Objectives

Help shape the articulation of aformal strategy


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IT Objective

Serves as the foundation for setting anexplicit IT strategy, which details how theIT function will achieve its objectivesthrough its organizational structure,relationships with others and ITconfigurations.


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Strategy

Used to develop a set of policies

It should support the mission andobjectives of the organization


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Policies

Designed to enact the

realization of the strategy


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Participants inSystems Development

1) Systems Professionals

2) End Users3) Stakeholders

4) Accountants/ Auditors


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Information SystemsAcquisition

In-houseDeveloped

CommercialSystems

In-houseDeveloped

CommercialSystems

In-houseDeveloped

CommercialSystems


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Types of Commercial System

Turnkey Systems General Accounting System (GAS)

Special Purpose System

Office Automation System

Backbone System

Vendor-supported System


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Advantages & Disadvantagesof a Commercial Software

PROs

ImplementationTime

Cost

Reliability

CONs

Independence Need for customized

systems

Maintenance


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Important Policy Areasfor IT Function

1) Planning

2) Organizational

3) HumanResources

4) Software

5) Hardware

6) Network

7) Security

8) Operations9) Contingency

10) Financial and

Accounting


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ManagingDevelopment Projects

The overall purpose of a project is to solvea problem

Each Project should be properly managedto meet time, cost and quality objectives


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IT Function Scorecard

OrganizationalContribution

UserSatisfaction

OperationalPerformance

AdaptabilityAnd Scalability

IT FunctionStrategy


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Project Manager

overall responsible for the project

should have a great deal of experience inthe domain area and skill at managing

projects

should work with representatives fromsenior management, the IT staff, and

affected users in planning and executingthe project


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First Phase

Plan the project

Involves setting the time, scope and cost

parameters for the entire project

Project resources are identified and

project outcome is clearly articulated


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Work Breakdown Structure(WBS)

a) Who is responsible

b) What resources are available

c) How the work will proceedd) What are the deliverables

e) What are the constraining parameters

(cost, scope, time)


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Second Phase

Schedule the specific sequencing andtiming of each activity and associatedresources

( e.g. Gantt Charts, Critical Path Analysis)


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Third Phase

Monitoring of activities

As the project unfolds, one should usebenchmarks, milestones and deliverables(including QA) to track progress


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Fourth Phase

Controlling

Development of specific actions aimed atkeeping a project moving forward in themost efficient and effective mannerpossible, considering unexpected issues,

delays and problems that arise.


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Fifth Phase

Close the project

PM should obtain client acceptance (in

writing), release and evaluate projectpersonnel, identify and reassign remainingproject assets, consider a post-project

evaluation and chronicle the history of theproject


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Acquiring Software

How does the software maps into theStrategic Plan of the organization?

Software acquired should be in the bestinterest of the company


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Software Acquisition Policy

1) Map upcoming application needs to thestrategic plan

2) Begin formal selection process, starting

with highest priority3) Identify and compare alternative

solutions

4) Consider total cost of ownership


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Developing Software

First Step?~ alignment with the strategic plan

I f ti S t


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Information SystemsDevelopment Proposal

formally documents the reasons why theproject should be considered and how itmaps to the strategic plan

reviewed by theSteering Committee


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Feasibility Study

Technical Feasibility

Financial Feasibility

Cultural Feasibility

Additi l S t


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Additional SystemDevelopment Issues

Business Process Analysis Development and Testing

Development, Production, Test Library

Security and Controls Conversions and Interfaces

Implementation Testing

Unit, Module, System and Stress Testing

Training and Documentation


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Implementation Strategies

Parallel Implementation

o The new application is placed into productionalongside the existing application and both

are used to simultaneously process live data.


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Big Bang Implementation

o The organization ceases using the old systemand immediately begins operating the new

system


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Partial Implementation

o The system is phased in one piece at a time


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Focused Implementation

o The company identifies a relatively smallgroup of users (defined perhaps by a single

office, plant or region) to first use the newsystem before placing it into use throughoutthe organization

o Can be used in conjunction with the first threestrategies


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Implementation Issues

Affected parties are involved(representatives, open lines of communication)

Work breakdown structure

(timing and sequencing) Formal change management policy

(during implementation)

Training and educational programs


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When is testing done? Application acquisition

Development

Modification

Final Testing (during implementation)Development to Test

Final Data conversion

Production Library

Post- implementation

4. IT Deployment Risks

Documents