Chapter 12 Developing Business/IT Solutions James A. O'Brien, and George Marakas. Management Information Systems with MISource 2007, 8 th ed. Boston, MA: McGraw-Hill, Inc., 2007. ISBN: 13 9780073323091
Nov 13, 2014
Chapter 12 Developing Business/IT Solutions
James A. O'Brien, and George Marakas. Management Information Systems with MISource 2007, 8th ed. Boston, MA: McGraw-Hill, Inc., 2007. ISBN: 13 9780073323091
Chapter 12 Developing Business/IT Solutions 2
Use the systems development process outlined in this chapter and the model of IS components from Chapter 1 as problem-solving frameworks to help you propose IS solutions to simple business problems
Describe and give examples to illustrate how you might use each of the steps of the IS development cycle to develop and implement a business IS
Explain how prototyping can be used as an effective technique to improve the process of systems development for end users and IS specialists
Learning Objectives
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Learning Objectives Understand the basics of project management
and their importance to a successful system development effort
Identify the activities involved in the implementation of new IS
Compare and contrast the four basic system conversation strategies
Describe several evaluation factors that should be considered in evaluating the acquisition of hardware, software, and IS services
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IS Development
When the systems approach is applied to the development of an information systems solution to business problems, it is called information systems development or application development
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Case 1 Customer-Driven Development At Intuit, development of new product ideas are
driven by a psychologistPlaying niceFree-association sessions
Focus is always on the customerMaking “pain points” less painfulCapturing pencil-and-paper usersFollow-me-homesSimplifying language
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Case Study Questions Should Intuit’s “far-out thinking” and acceptance of failure
as part of the application software development process be duplicated at large software development companies like Microsoft? Should it be duplicated at the thousands of
small independent software companies that exist? Which do you prefer?
Intuit’s customer-driven development process where hundreds of employees and managers are sent to consult with customer in their homes or places of business, or
Microsoft’s process of using professional anthropologists to do such research
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Case Study Questions Intuit developed the wildly successful
QuickBooks: Simple Start Edition, which eliminated all accounting jargonCould this idea be the foundation of a new
version of Intuit’s top-selling TurboTax software, which removed all tax accounting jargon from that product to reach the 20 million Americans who do not use tax preparation software or a professional tax preparer?
Would such a product be possible or successful?
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The Systems Approach A problem solving technique that uses a systems
orientation to define problems and opportunities and develop appropriate and feasible solutions
Analyzing a problem and formulating a solution involves these interrelated activities: Recognize and define a problem or opportunity
using systems thinking Develop and evaluate alternative system solutions Select the solution that best meets your
requirements Design the selected system solution Implement and evaluate the success of the system
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What is Systems Thinking?
Seeing the forest and the trees in any situationSeeing interrelationships among systems
rather than linear cause-and-effect chainsSeeing processes of change among systems
rather than discrete snapshots of change See the system in any situation
Find the input, processing, output, feedback and control components
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Systems Thinking Example
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Systems Analysis and Design
SA&D is the overall process by which IS are designed and implemented Includes identification of business problems
Two most common approachesObject-oriented analysis and designLife cycle
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Systems Development Lifecycle (SDLC)
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Systems Development Process
Systems InvestigationThe first step in the systems development
processMay involve consideration of proposals
generated by a business/IT planning processAlso includes the preliminary feasibility study
of proposed information system solutions
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Systems Development Process
Feasibility Studies: a preliminary study to determine the Information needs of prospective usersResource requirementsCostsBenefitsFeasibility
In some cases, a feasibility study is unnecessary
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Operational Feasibility How well the proposed system will
Support the business priorities of the organization
Solve the identified problemFit with the existing organizational structure
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Economic Feasibility An assessment of
Cost savings Increased revenueDecreased investment requirements Increased profitsCost/benefit analysis
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Technical Feasibility Determine the following can meet the needs of a
proposed system and can be acquired or developed in the required timeHardwareSoftwareNetwork
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Human Factors Feasibility Assess the acceptance level of
EmployeesCustomersSuppliersManagement support
Determine the right people for the various new or revised roles
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Legal/Political Feasibility Assess
Possible patent or copyright violationsSoftware licensing for developer side onlyGovernmental restrictionsChanges to existing reporting structure
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Systems Analysis An in-depth study of end user information needs
It produces the functional requirements used as the basis for the design of an IS
It typically involves a detailed study of the Information needs of a company and end usersActivities, resources, and products of one or
more of the information systems currently being used
Information system capabilities required to meet the information needs of business stakeholders
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Organizational Analysis Study of the organization, including…
Management structurePeopleBusiness activitiesEnvironmental systemsCurrent information systems
Input, processing, output, storage, and control
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Analysis of the Present System Before designing a new system, it is important to
study the system to be improved or replacedHardware and softwareNetworkPeople resources used to convert data
resources into information productsSystem activities of input, processing,
output, storage, and control
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Logical Analysis
A logical model is a blueprint of the current system It displays what the current system does,
without regard to how it does it It allows an analyst to understand the
processes, functions, and data associated with a system without getting bogged down with hardware and software
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Functional Requirements
This step of systems analysis is one of the most difficultDetermine what type of information each
business activity requiresTry to determine the information processing
capabilities required for each system activityThe goal is to identify what should be done,
not how to do it
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Examples of Functional Requirements User Interface: automatic entry of product
data and easy-to-use data entry screens for Web customers
Processing: fast, automatic calculation of sales totals and shipping costs
Storage: fast retrieval and update of data from product, pricing, and customer databases
Control: signals for data entry errors and quick e-mail confirmation for customers
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Systems Design Systems design focuses on three areas
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Prototyping
Prototyping is the rapid development and testing of working modelsAn interactive, iterative process used during
the design phaseMakes development faster and easier,
especially when end user requirements are hard to define
Has enlarged the role of business stakeholders
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Prototyping Life Cycle
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User Interface Design
Focuses on supporting the interactions between end users and their computer-based applicationsDesigners concentrate on the design of
attractive and efficient forms of user input and output
Frequently a prototyping processProduces detailed design specifications for
information products, such as display screens
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Checklist for Corporate Websites
Remember the customer Aesthetics Broadband content Easy to navigate Searchability Incompatibilities Registration forms Dead links
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System Specifications Formalizing the design of
User interface methods and productsDatabase structuresProcessing proceduresControl procedures
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Examples of System SpecificationsUser interface specifications
Use personalized screens that welcome repeat Web customers and that make product recommendations
Database specifications
Develop databases that use object/relational database management software to organize access to all customer and inventory data and to multimedia product information
Software specifications
Acquire an e-commerce software engine to process all e-commerce transactions with fast responses, i.e., retrieve necessary product data and compute all sales amounts in less than one second
Hardware and network specifications
Install redundant networked Web servers and sufficient high-bandwidth telecommunications lines to host the company e-commerce website
Personnel specifications
Hire an e-commerce manager and specialists and a webmaster and Web designer to plan, develop, and manage e-commerce operations
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End User Development
IS professionals play a consulting role, while uses do their own application developmentA staff of user consultants may be available
to help with analysis, design, and installation Other support
Application package trainingHardware and software adviceHelp gaining access to organization
databases
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Focus on IS Activities
End user development should focus on the fundamental activities of an IS InputProcessingOutputStorageControl
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Focus of End User Development
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Doing End User Development
Application development capabilities built into software packages make it easier for end users to develop their own solutions
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Encouraging End User Web Development Look for tools that make sense
Some are more powerful or costly than needed Spur creativity
Consider a competition among departments Set some limits
Limit what parts of a web page or site can be changed and who can do it
Give managers responsibility Make them personally responsible for content
Make users comfortable Training will make users more confident It can save the IT department the trouble of fixing problems
later on It can limit the need for continuous support
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Implementing New Systems
The systems implementation stage involvesHardware and software acquisitionSoftware developmentTesting of programs and proceduresConversion of data resourcesConversion alternativesEducation/training of end users and
specialists who will operate the new system
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Implementation Process
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Case 2 Managing Radical Change HP is embarking on a makeover of its internal
tech systemsReplacing 85 loosely connected data centers
around the world with 6 cutting-edge facilitiesCutting thousands of smaller projects to focus
on a few corporate-wide initiativesScrapping 784 databases for one data
warehouseLaying off thousands of IT workersBuilding its own fiber-optic network to connect
the six data centers
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Case Study Questions Will the initiatives being undertaken by CIO Randy Mott to
implement major changes to the IT function at HP make IT a more efficient and vital contributor to HP’s business success? Defend your position on each of the major initiatives he
is implementing Do you approve of the change management job Mott is
doing, including his meetings with HP employees throughout the world, and having “coffee talks” with them?
Assume you have been hired as a management consultant or coach to CIO Mott What are several suggestions you might give him to
help him successfully implement his ambitious plans for IT changes at HP?
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Project Management
The skills and knowledge necessary to be a good project manager will translate into virtually any project environmentThe people who have acquired them
are sought after by most organizations
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What is a Project? Every project has
A set of activities with a clear beginning and endGoalsObjectivesTasksLimitations or constraintsA series of steps or phases
Managing a project effectively requiresProcessToolsTechniques
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Sample Implementation Process
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Phases of Project Management There are five phases in most projects
Initiating/DefiningPlanningExecutingControllingClosing
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Initiating/Defining Phase Example activities
State the problem(s) and/or goal(s) Identify the objectivesSecure resourcesExplore the costs/benefits in the feasibility
study
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Planning Phase Example activities
Identify and sequence activities Identify the “critical path”Estimate the time and resources needed for
project completionWrite a detailed project plan
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Execution Phase Example activities
Commit resources to specific tasksAdd additional resources and/or personnel
if necessary Initiate work on the project
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Controlling Phase Example activities
Establish reporting obligationsCreate reporting toolsCompare actual progress with baseline Initiate control interventions, if necessary
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Closing Phase Example activities
Install all deliverablesFinalize all obligations and commitmentsMeet with stakeholdersRelease project resourcesDocument the project Issue a final report
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Evaluating Hardware, Software, Services Establish minimum physical and performance
characteristics for all hardware and softwareFormalize these requirements in an RFP/RFP
Send RFQ to appropriate vendors Evaluate bids when received
All claims must be demonstratedObtain recommendations from other usersSearch independent sources for evaluationsBenchmark test programs and test data
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Hardware Evaluation Factors Major evaluation factors
PerformanceCostReliabilityCompatibilityTechnologyErgonomicsConnectivityScalabilitySoftwareSupport
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Software Evaluation Factors
Hardware evaluation factors apply to software, as do theseQualityEfficiencyFlexibilitySecurityConnectivityMaintenanceDocumentationHardware
Software that is slow, hard to use, bug-filled, or poorly documented is not a good choice
at any price
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Evaluating IS Services Examples of IS services
Developing a company website Installation or conversion of
hardware/softwareEmployee trainingHardware maintenanceSystem design and/or integrationContract programmingConsulting services
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IS Service Evaluation Factors IS evaluation factors include
PerformanceSystems developmentMaintenanceConversionTrainingBackup facilities and servicesAccessibility to sales and supportBusiness position and financial strengthHardware selection and compatibilitySoftware packages offered
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Other Implementation Activities
The keys to successful implementation of a new business systemTestingData conversionDocumentationTraining
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System Testing
System testing may involveTesting and debugging softwareTesting website performanceTesting new hardwareReview of prototypes
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Data Conversion Data conversion includes
Converting data elements from the old database to the new database
Correcting data errorsFiltering out unwanted dataConsolidating data from several databasesOrganizing data into new data subsets
Improperly organized and formatted data is a major cause of implementation failures
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Documentation User Documentation
Sample data entry screens, forms, reportsSystem operating instructions
Systems DocumentationMethod of communication among those
developing, implementing, and maintaining a computer-based system
Detailed record of the system designExtremely important when diagnosing
problems and making system changes
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Training End users must be trained to operate a new
business system or its implementation will failMay involve only activities, such as data
entry, or all aspects of system use
Managers and end users must understand how the new technology impacts business operations
System training should be supplemented with training related toHardware devicesSoftware packages
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Major System Conversion Strategies
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Direct Conversion Direct conversion
The simplest conversion strategyThe most disruptive to the organizationSometimes referred to as the slam dunk or
cold-turkey strategyMay be the only viable solution in cases of
emergency implementation or if the old and new system cannot coexist
Has the highest risk of failure Involves turning off the old system and turning
on the new one
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Parallel Conversion Old and new systems are run simultaneously until
everyone is satisfied thatThe new system functions correctlyThe old system is no longer needed
Conversion to new system can be single cutover or phased cutover
Has the lowest risk, but the highest costCan cost 4 times more than using the old
system Best choice where an automated system is
replacing a manual one
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Pilot Conversion Scenarios best suited to a pilot conversion
Multiple business locationsGeographically diverse locations
Advantages of single location conversionCan select a location that best represents
the conditions across the organizationLess risky in terms of loss of time or delays
in processingCan be evaluated and changed before further
installations
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Phased Conversion A phased or gradual conversion
Takes advantage of both the direct and parallel approaches
Minimizes the risks involvedAllows the new system to be brought online
as logically ordered functional components Disadvantages
Takes the most timeCreated the most disruption to the
organization over time
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Post-Implementation Activities The single most costly activity
Correcting errors or faults in the system Improving system performanceAdapting the system to changes in the
operating or business environmentRequires more programmers than does
application developmentMay exist for years
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Systems Maintenance
There are four basic categories of system maintenanceCorrective: fix bugs and logical errorsAdaptive: add new functionalityPerfective: improve performancePreventive: reduce chances of failure
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Post-Implementation Review Ensures that the newly implemented system
meets the established business objectivesErrors must be corrected by the maintenance
process Includes a periodic review/audit of the system
as well as continuous monitoring
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Case 3 Indiana University Financial Aid
Success or failure is in the eye of the beholderA PeopleSoft implementation at Indiana
University resulted in denials of financial aid Contributors to the problem
Software did not align with business processes Limited time for testing and training Interface issues between the loan systems at
lending institutions and the universityTransactions blocked for minor exceptionsPoor project management and tracking
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Case 3 Indiana University Financial Aid Project management violations
Poor or no due diligenceNo user trainingAbsence of system alertsSystem interface problems were ignoredThe complex project wasn’t broken down
into smaller, progressively delivered chunks
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Case Study Questions As with any story, there are always two sides.
Indiana University sees the problem as a surprise; outside observers see the problem as predictable and preventable What do you think?
Is it possible that some implementation problems cannot be easily foreseen or prevented?
What could Indiana University have done differently to prevent this unfortunate even from occurring? Is there evidence to suggest that it learned
from this experience?
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Case 4 In-House Development
Custom code continues to be the secret sauce that gives many businesses an edgeMaking business processes faster and more
efficientDelivering new services Improving customer support Innovation in other ways, usually something
unique
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Case 4 In-House Development
The do-it-yourself approach isn’t cheapHigh salaries for developers and IT managersDozens or hundreds of personnel needed
Before, computer hardware dictated the choice of operating systems and development softwareDeveloping in C++ costs half as much as
developing in CobolNewer packages unhitch programmers from
mainframes and proprietary platforms
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Case Study Questions Jeff Brandmaier, senior VP and CIO at H&R Block
Inc., describes in-house developed applications as “the stuff that gives you competitive advantage.” Why do you think he feels this way?
Can a modern organization be competitive without developing any applications in-house?
The case points out that despite the use of vendor applications, there is “still a lot of manually intensive work that goes on in the development process.”Why do you think vendor applications still
require in-house developers?