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10-1McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.
Developing Business/IT Solutions
Systems Development Life CyclePrototyping
End User DevelopmentProject ManagementChange Management
Chapter
10
McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.
10-3
Learning Objectives
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 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.
10-4
Learning Objectives
3. Explain how prototyping can be used as an effective technique to improve the process of systems development for end users and IS specialists.
4. Understand the basics of project management and their importance to a successful systems development effort.
5. Identify the activities involved in the implementation of new information systems.
10-5
Learning Objectives
6. Compare and contrast the four basic system conversion strategies.
7. Describe several evaluation factors that should be considered in evaluating the acquisition of hardware, software, and IS services.
8. Identify several change management solutions for end user resistance to the implementation of new information systems.
10-6
Case 1: In-House Development is Alive and Well
Proprietary software can give companies an competitive edge
But in-house development isn’t cheapH&R Block, Morgan Stanley and others still
choose in-house developmentWhen and why?
10-7
Case Study Questions
1. 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?
2. Can a modern organization be competitive without developing any applications in-house? Why or why not?
3. 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?
10-8
Real World Internet Activity
1. Despite all the media coverage concerning the loss of jobs in IS/IT, there is still a strong and growing need for in-house developers. Using the Internet,
See if you can find examples, beyond those discussed in the case, of companies that are doing their development in-house.
Are they using the SDLC or some other method?
10-9
Real World Group Activity
In-house development is costly, to be sure. Yet many companies believe that their core applications require personal attention by their developers. In small groups,Discuss how an organization determines what
applications to buy from a vendor and what applications to develop in-house.
What are the criteria for making the decision?
10-10
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 the following interrelated activities:1. Recognize and define a problem or opportunity
using systems thinking2. Develop and evaluate alternative system solutions3. Select the system solution that best meets your
requirements4. Design the selected system solution5. Implement and evaluate the success of the
designed system
10-11
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
See the system in any situation:Find the input, processing, output, feedback and
control components
10-12
Systems Thinking Example
10-13
Systems Analysis and Design
SA & DOverall process by which IS are designed and
implemented within organizationsTwo most common approaches to SA & D
Object-oriented analysis and designSystems Development Life Cycle
10-14
Systems Development Lifecycle (SDLC)
10-15
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?
10-16
Feasibility Study
A preliminary study where the information needs of prospective users the resource requirements, costs, benefits, and feasibility of a proposed project
are determined
10-17
Feasibility Categories
Operational FeasibilityEconomic FeasibilityTechnical FeasibilityHuman Factors FeasibilityLegal/Political Feasibility
10-18
Operational Feasibility
How well the proposed system supports the business priorities of the
organization.solves the identified problem.fits within the existing organizational structure.
Schedule feasibility – can we solve the problem in a reasonable period
10-19
Economic Feasibility
Assess:Cost savingsIncreased revenueDecreased investment requirementsIncreased profits
Cost/benefit analysis
10-20
Cost/Benefit Analysis
Costs versus BenefitsTangible costs and benefits can be quantified
with a high degree of certaintyExample: decrease in operating costs
Intangible costs and benefits are harder to estimateExample: improved customer service
10-21
Technical Feasibility
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 timeHardwareSoftwareNetwork
10-22
Human Factors Feasibility
AssessEmployee, customer, supplier acceptanceManagement supportThe right people for the various new or revised
roles
10-23
Legal/Political Feasibility
AssessPossible patent or copyright violationsSoftware licensing for developer side onlyGovernmental restrictionsChanges to existing reporting structure
10-24
Systems Analysis
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
10-25
Systems Analysis
Detailed study ofThe 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 stakeholders
End users are important members of the development team
10-26
Organizational Analysis
Study of the organization including:Management StructurePeopleBusiness ActivitiesEnvironmental SystemsCurrent Information Systems
Document input, processing, output, storage and control
10-27
Logical Analysis
Construction of a logical model of the current system
Logical modelA blueprint of what the current system does
10-28
Functional Requirements Analysis and Determination
Determine specific business information needs
1. Determine what type of information each business activity requires.
2. Determine the information processing each system activity is needed to meet these needs.
10-29
Functional Requirements
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
What the system must doFunctional Requirement categories
User InterfaceProcessingStorageControl
10-30
Systems Design
Modify the logical model until it represents a blueprint for what the new system will do
Physical design:How the system will accomplish its objectives
10-31
Prototyping
The rapid development and testing of working models
Used in design phaseEspecially useful when end user requirements
are hard to define
10-32
Prototyping Life Cycle
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Prototyping
Can be used for small and large systemsBut if system is large, usually prototype just
partsDevelop quicklyRefine until acceptable
10-34
User Interface Design
Focuses on supporting the interactions between end users and their computer-based applications
Frequently prototype the user interface
10-35
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
10-36
Checklist for Corporate Websites
Easy to navigate – make sure it’s easy to get from one part of site to another
Searchability – make sure to have a useful search engine
Incompatibilities – test site with target web browsers
Registration forms – short registration forms are a useful way to gather customer data
Dead links – be sure to keep links updated
10-37
System Specifications
Formalize design of User interface methodsProductsDatabase structuresProcessingControl procedures
Specifications for hardware, software, network, data, and personnel
10-38
End User Development
IS professional plays a consulting roleEnd user does his/her own application
development
Contrast in traditional life cycle:End user is customerIS profession does development
10-39
End User Development
Source: Adapted from James N. Morgan, Application Cases in MIS, 4th ed. (New York: Irwin/McGraw-Hill, 2002), p. 31.
10-40
Encouraging End User Web Development
Look for tools that make senseSpur creativitySet some limitsGive managers responsibilityMake users comfortable
10-41
Case 2: Implementation Success or Failure
Success or failure is in the eye of beholderAt Indiana University, implementation of
PeopleSoft ERPLeft students without access to promised
financial aidProblem was not with software
What was the problem?
10-42
Case Study Questions
1. 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? Why?
2. Is it possible that some implementation problems cannot be easily foreseen or prevented? Give some examples.
3. What could Indiana University have done differently to prevent this unfortunate event from occurring? Is there evidence to suggest that they learned from this experience?
10-43
Real World Internet Activity
1. In many cases, we tend to hear about implementation failures more often than implementation successes. Using the Internet,
See if you can find some examples of implementation success stories.
Why were they successful?
10-44
Real World Group Activity
The project described in the case was an example of a large-scale software deployment of vendor software. In small groups,Discuss the differences between implementing
vendor-supplied software and in-house developed software.
Should an in-house project be implemented differently than a vendor supplied application? Why or why not?
10-45
Systems Implementation
Hardware and software acquisitionSoftware developmentTesting of programs and proceduresConversion of data resourcesConversion alternativesEducation and training of end users and
specialists who will operate a new system
10-46
Implementation Process
10-47
Project Management
IT and business unit managers enforce a project plan which includes
job responsibilities, time lines for major stages of development, andfinancial budgets
10-48
Sample Implementation Process Plan
10-49
Project
A projectIs a set of activities with a clear beginning and
endEach project has
GoalsObjectivesTasksLimitations
10-50
Managing a project
To manage a project need:ProcessToolsTechniques
10-51
Five phases of project management
1. Initiating/defining State the problems/goals Identify the objectives Secure resources Explore costs/benefits in feasibility study
10-52
Five phases of project management
2. Planning Identify and sequence activities Identify the “critical path” Estimate time and resources needed for
completion Write a detailed project plan
3. Executing Commit resources to specific tasks Add additional resources/personnel if
necessary Initiate project work
10-53
Five phases of project management
4. Controlling Establish reporting obligations Create reporting tools Compare actual progress with baseline Initiate control interventions if necessary
10-54
Five phases of project management
5. Closing Install all deliverables Finalize all obligations/commitments Meet with stakeholders Release project resources Document the project Issue final report
10-55
Evaluating Hardware, software and services
Must acquire hardware, softwareHow do we evaluate and select it?Companies may ask suppliers to present bids
and proposalsMay score different products
Determine evaluation factorsAssign each product points on each factorMay require benchmark tests
Simulate processing of task and evaluates the performance
10-56
Hardware Evaluation Factors
PerformanceCostReliabilityCompatibilityTechnologyErgonomicsConnectivityScalabilitySoftwareSupport
10-57
Software Evaluation Factors
QualityEfficiencyFlexibilitySecurityConnectivityMaintenanceDocumentationHardware
10-58
Examples of IS Services
Developing a company websiteInstallation or conversion of hardware or
softwareEmployee trainingHardware maintenanceSystem integrationSystem designContract programmingConsulting services
10-59
IS Services Evaluation Factors
PerformanceSystems developmentMaintenanceConversionTrainingBackupAccessibilityBusiness PositionHardwareSoftware
10-60
System Testing
Testing and debugging softwareTesting website performanceTesting new hardwareReview of prototypes of displays, reports and
other output
10-61
Data Conversion
Converting data elements from old database to new database
Correcting incorrect dataFiltering out unwanted dataConsolidating data from several databasesOrganizing data into new data subsets
10-62
Importance of Data Conversion
Improperly organized and formatted data is major causes of failures in implementing new systems.
10-63
Documentation
User documentationSample data entry screens, forms, reports
Systems documentationCommunication among people responsible for
developing, implementing and maintaining system
Important in diagnosing errors and making changes
10-64
Training
End users must be trained to operate new system
Educate managers and end users in how the new technology impacts the company’s business operations and management
10-65
Conversion
Conversion from use of present system to operation of new system
10-66
Four major forms of conversion
10-67
Direct Conversion
Turn off old systemTurn on new system
Direct is least expensive methodRiskiest method
10-68
Parallel Conversion
New and old systems run simultaneously until end users and project coordinators are
satisfied that the new system is functioning correctly
Low riskHighest cost method: perform all functions
with both systems
10-69
Pilot Conversion
When new system is installed in multiple locations
Convert to new system in single locationOnce complete in pilot location,
Evaluate and make any necessary changes
10-70
Phased Conversion
Incremental approach to conversionBring in new system as a series of functional
components
Lower riskTakes the most time
10-71
Systems maintenance
Corrective: fix bugs and logical errorsAdaptive: add new functionality to
accommodate changes in business or environment
Perfective: improve performancePreventive: reduce chances of failure
10-72
Post-implementation review
Ensure new system meets the business objectives
Periodic review or audit
10-73
Implementation Challenges
New system involves major organizational change
Manage changes to Business processesOrganizational structuresManagerial rolesWork assignments Stakeholder relationships
10-74
User Resistance
New way of doing things generates resistanceKey to solving is
User involvement in organizational changes and development of new systems
User involvementEnd users on systems development teamsEnd user ownership of new system
10-75
Reasons for User Resistance to Knowledge Management Systems
10-76
Change Management Dimensions
Source: Adapted from Grant Norris, James Hurley, Kenneth Harley, John Dunleavy, and John Balls, E-Business and ERP:Transforming the Enterprise, p. 120. Copyright @2000 by John Wiley & Sons Inc. Reprinted by permission.
10-77
Change Management
Involve as many people as possible in planning and application development
Make constant change an expected part of the culture
Tell everyone as much as possible about everything as often as possible
Make liberal use of financial incentives and recognition
Work within the company culture, not around it
10-78
Process of Change Management
Source: Adapted from Martin Diese, Conrad Nowikow, Patric King, and Amy Wright, Executive’s Guide to E-Business: From Tactics to Strategy, p. 190. Copyright @ 2000 by John Wiley & Sons Inc. Reprinted by permission.
10-79
Case 3: There’s Nothing Like a Good Process
Nothing derails an IT development project faster than sloppy project management
Process management is the art and science of creating and continuously improving the process of developing and delivering systems
Best practices in process management:Industry best practicesWithin-the-company best practices
10-80
Case Study Questions
1. What is process management? How does it differ from project management or traditional development methodologies like the SDLC?
2. Is the SDLC an example of good process management?
3. What is meant in the case by the phrase:“implementing a standard approach to systems
development helps experienced staff and new hires to be more productive, because they spend less time wondering how to do something and more time doing it?”
10-81
Real World Internet Activity
1. We know that good project and process management are keys to successful systems development and implementation projects. Using the Internet,
See if you can find examples of companies that subscribe to the tenets set forth in the case.
Is there evidence to suggest that such companies are realizing competitive benefits as a result?
10-82
Real World Group Activity
We discussed issues related to user resistance, involvement, and change management in this chapter. In small groups,Discuss how these issues relate to good process
management.What specific change management approaches
are involved in ensuring high quality process management?