Lecture Management information systems - Chater 12: Developing business/IT solutions

The learning objectives for Chapter 12 include: 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 information systems solutions to simple business problems; describe and give examples to illustrate how you might use each of the steps of the information systems development cycle to develop and implement a business information system;...

1 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

information systems solutions to simple

business problems.

2 Describe and give example to illustrate how

you might use each of the steps of the

information systems development cycle to

develop and implement a business information system.

Learning Objectives

Learning Objectives

3 Explain how prototyping improves the process

of systems development for end users and IS specialists.

4 Identify the activities involved in the

implementation of new information systems.

5 Describe several evaluation factors that

should be considered in evaluating the

acquisition of hardware, software, and IS

services.

Learning Objectives

6 Identify several change management

solutions for end user resistance to the implementation of new information

systems

Why Study IS Development?

• When the systems approach to problem

solving is applied to the development of

information systems solutions to business problems, e-business systems and

applications can be developed that meet the business needs of a company and its employees and stakeholders

Case #1: Development Challenges

• Customer satisfaction soars

• Call center costs plummet

Case #1: Development Challenges

Bad Web-Based Self-Service:

• Frustrated customers click to a

competitor’s site

• Frustrated customers dial up your call

center

Case #1: Development Challenges

1 Why do more than a third of all Web

self-service customers get frustrated and end up calling a help center? Use the

experiences of Blue Cross-Blue Shield

and AT&T Wireless to help you answer

2 What are some solutions to the

problems users may have with Web service? Use the experiences of the

self-companies in this case to propose

several solutions

Case #1: Development Challenges

3 Visit the websites of Blue Cross-Blue Shield

and AT&T Wireless Investigate the details of obtaining an individual health plan or a new

cell phone plan What is your appraisal of the self-service features of these websites?

Explain your evaluations.

4 What are your top three complaints about the

self-service features of the websites you visit regularly? Defend the value of several

solutions you propose to address your

complaints.

What is the Systems Approach?

• A problem solving technique that uses a

systems orientation to define problems and

opportunities and develop solutions.

• Analyzing a problem and formulating a solution involves the following interrelated activities:

• Recognize and define a problem or opportunity using systems thinking

• Develop and evaluate alternative system solutions

• Select the system solution that best meets your

requirements

• Design the selected system solution

• Implement and evaluate the success of the designed system

What is Systems Thinking?

• Seeing the forest and the trees in any

situation by:

• Seeing interrelationships among systems

rather than linear cause-and-effect chains whenever events occur

• Seeing processes of change among systems rather than discrete snapshots of change,

whenever changes occur

Systems Thinking Example

Systems Development Lifecycle (SDLC)

Definition:

• The rapid development and testing of

working models, or prototypes, of new

applications in an interactive, iterative

process that can be used by both IS

specialists and business professionals

Prototyping Process

Systems Investigation Stage

• Do we have business opportunities?

• What are our business priorities?

• How can information technologies provide

information systems solutions that

address our business priorities?

Feasibility Study

Definition:

• A preliminary study where the information

needs of prospective users and the

resource requirements, costs, benefits,

and feasibility of a proposed project are

determined

Feasibility Categories

• Organizational – how well a proposed

system supports the strategic business

priorities of the organization

• Economic – whether expected cost

savings, increased revenue, increased

profits, reductions in required investment, and other types of benefits will exceed the costs of developing and operating a

proposed system

Feasibility Categories

• Technical – determine if reliable hardware and software capable of meeting the

needs of a proposed system can be

acquired or developed by the business in the required time

• Operational – willingness and ability of the management, employees, customers,

suppliers, and others to operate, use, and support a proposed system

Feasibility

Systems Analysis

Systems Analysis

Definition:

• An in-depth study of end user information

needs that produces functional

requirements that are used as the basis

for the design of a new information

system

Systems Analysis

Systems Analysis

What does Systems Analysis Study?

• The information needs of a company and end

users.

• The activities, resources, and products of one or more of the present information systems being used.

• The information system capabilities required to meet information needs of users, and those of

other business stakeholders that may use the

system.

Functional Requirements

Definition:

• End user information requirements that

are not tied to the hardware, software,

network, data, and people resources that end users presently use or might use in

the new system

Functional Requirement Categories

• User Interface

• Processing

• Storage

• Control

Systems Design

Definition:

• Design activities that produce system

specifications satisfying the functional

requirements that were developed in the systems analysis process

Systems Design

System Design Categories

User Interface Design

Definition:

• Focuses on supporting the interactions

between end users and their

computer-based applications

Checklist for Corporate Websites

• Remember the customer – successful websites are built solely for the customer, not to make

company vice presidents happy

• Aesthetics – successful designs combine

fast-loading graphics and simple color palettes for

pages that are easy to read

• Broadband Content – the Web’s coolest stuff

can’t be accessed by most Web surfers; don’t

make it the focus of a site

Checklist for Corporate Websites

• Easy to navigate – make sure it’s easy to get from one part of site to another

• Searchability – include a useful search

engine

• Incompatibilities – test site with target web browsers

Checklist for Corporate Websites

• Registration forms – short registration

forms are a useful way to gather customer data

• Dead links – be sure to keep links

updated

System Specifications

Definition:

• Hardware, software, network, data, and

personnel specifications for a proposed

system that formalize the design of an

application’s user interface methods and products, database structures, and

processing and control procedures

End User Development

Definition:

• IS professional plays a consulting role,

while end user does his/her own

application development

End User Development

Encouraging End User Web Development

• Look for tools that make sense

• Spur creativity

• Set some limits

• Give managers responsibility

• Make users comfortable

Case #2: Implementation Strategies

InterContinental’s Strategy:

• Partner with end users from the start

• Hire subcontractors to deploy the new

system and train

• Staff does application programming

because they know the business better than an outsider would

Case #2: Implementation Strategies

Del Taco’s Strategy:

• Outsource hardware installation

• Hire consultants to design database

• Mix of internal and external development

teams gets you the most skills at the

lowest cost

Case #2: Implementation Strategies

1 What are the benefits and limitations of

the key implementation strategies that

are being used by InterContinental

Hotels?

2 Do you agree with how Del Taco is

managing the implementation of its IT

project?

Case #2: Implementation Strategies

3 What are several change management

techniques to ensure the successful

implementation of CRM projects? Use

Cardinal Health to illustrate your answer

4 Should companies outsource the tasks

required for the implementation of new

systems? Why or why not?

Systems Implementation

• Hardware and software acquisition

• Software development

• Testing of programs and procedures

• Conversion of data resources

• Conversion alternatives

• Education and training of end users and

specialists who will operate a new system

Project Management

Definition:

• IT and business unit managers enforce a

project plan which includes job

responsibilities, time lines for major

stages of development, and financial

budgets

Implementation Process

Hardware Evaluation Factors

Software Evaluation Factors

• Consulting services

• System integration

IS Services Evaluation Factors

System Testing

• Testing and debugging software

• Testing website performance

• Testing new hardware

• Review of prototypes of displays, reports

and other output

Data Conversion

• Converting data elements affected by new

application

• Correcting incorrect data

• Filtering out unwanted data

• Consolidating data from several databases

• Organizing data into new data subsets

Importance of Data Conversion

• Improperly organized and formatted data

is frequently reported to be one of the

major causes of failures in implementing new systems

Importance of Documentation

• Documentation serves as a method of

communication among the people

responsible for developing, implementing, and maintaining a computer-based

system

• Documentation is extremely important in

diagnosing errors and making changes,

especially if the end users or systems

analysts who developed a system are no longer with the organization

• Data entry

• All aspects of the proper use of a new

system

• Educate managers and end users in how

the new technology impacts the

company’s business operations and

management

Conversion Methods

• Parallel – both old and new systems are

operating until the project development

team and end user management agree to switch completely to the new system

• Plunge – no overlap of old and new

system

Conversion Methods

• Phased – only parts of a new application

or only a few departments at time are

converted

• Pilot – One department serves as a test site

Conversion Methods

Systems Maintenance

Definition:

• Monitoring, evaluating, and modifying of

operational business systems to make

desirable or necessary improvements

Systems Maintenance

Learning Curve

Definition:

• Personnel who operate and use the

system will make mistakes simply

because they are not familiar with it;

though such errors usually diminish as

experience is gained with a new system

Postimplementation Review

Definition:

• Periodic review or audit of a system to

ensure that it is operating properly and

meeting its objectives

Case #3: Enterprise Information Portals

• Companies typically plan and deploy

enterprise information portals to provide

employees, customers, and suppliers with

a single Web-based access point for data, content, and both new and legacy

applications across the enterprise

• 37% companies are disappointed with

lack of adequate interest among target

users

Case #3: Enterprise Information Portals

• The reason people aren’t using portals is

because there isn’t a strategy for keeping people involved

• Critical usability issues get shortchanged,

such as educating users about the

portal’s capabilities, training them to use it efficiently, and marketing the value of

using the portal, especially its value in

addressing very specific business

problems a company may have

Case #3: Enterprise Information Portals

1 Why do so many enterprise information

portals fail to attract “adequate interest among targeted users? What can be

done to improve the usage of portals in business?

2 What is the business value of their

enterprise portal to Du Pont’s

Performance Coatings group? How

could it be improved?

Case #3: Enterprise Information Portals

3 What are the business benefits of

Southwire’s enterprise portal? Describe several ways it might be improved

Case #4: Cost-Effective IT

Traditional Cost Cutting Measures:

• Paring back staff

• Consolidating servers and storage

equipment

• Renegotiating vendor contracts

• Conducting selective outsourcing

Case #4: Cost-Effective IT

New Cost Cutting Measures:

• Barter agreements with vendors

• Reselling services

• Joining purchasing consortiums for

volume price discounts on equipment

Case #4: Cost-Effective IT

1 Are the resource acquisition challenges faced

by CIOs any different than those faced by

other business managers in times of tight

budgets? Why or why not?

2 What are the business benefits and limitations

of Rick Dalzell’s IT resource acquisition

strategies for Amazon?

3 Are Dalzell’s strategies applicable to small as

well as large businesses? Explain your

answer.

• Business end users and IS specialists

may use a systems approach to help

them develop information system

solutions to meet business opportunities

• Prototyping includes the use of

prototyping tools and methodologies,

which promote an iterative, interactive

process that develops prototypes of user interfaces and other information system

components

• The application development capabilities

built into many end user software

packages have made it easier for end

users to develop their own business

applications

• End users should focus their development

efforts on the system components of

business processes that can benefit from the use of information technology

• Implementation involves acquisition,

testing, documentation, training,

installation, and conversion activities that transform a newly designed business

system into an operational system for end users

• Business professionals should know how to

evaluate the acquisition of information system resources.

• IT vendors’ proposals should be based on

specifications developed during the design

stage of systems development.

• A formal evaluation process reduces the

possibility of incorrect or unnecessary

purchases of hardware or software.