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Page 1: 10-1 McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved

10-1McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.

Page 2: 10-1 McGraw-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

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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.

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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.

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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.

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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?

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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?

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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?

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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?

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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 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

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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

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Systems Thinking Example

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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

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Systems Development Lifecycle (SDLC)

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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?

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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

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10-17

Feasibility Categories

Operational FeasibilityEconomic FeasibilityTechnical FeasibilityHuman Factors FeasibilityLegal/Political Feasibility

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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

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10-19

Economic Feasibility

Assess:Cost savingsIncreased revenueDecreased investment requirementsIncreased profits

Cost/benefit analysis

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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

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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

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10-22

Human Factors Feasibility

AssessEmployee, customer, supplier acceptanceManagement supportThe right people for the various new or revised

roles

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Legal/Political Feasibility

AssessPossible patent or copyright violationsSoftware licensing for developer side onlyGovernmental restrictionsChanges to existing reporting structure

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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

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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

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Organizational Analysis

Study of the organization including:Management StructurePeopleBusiness ActivitiesEnvironmental SystemsCurrent Information Systems

Document input, processing, output, storage and control

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Logical Analysis

Construction of a logical model of the current system

Logical modelA blueprint of what the current system does

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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.

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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

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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

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10-31

Prototyping

The rapid development and testing of working models

Used in design phaseEspecially useful when end user requirements

are hard to define

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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

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User Interface Design

Focuses on supporting the interactions between end users and their computer-based applications

Frequently prototype the user interface

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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

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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

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System Specifications

Formalize design of User interface methodsProductsDatabase structuresProcessingControl procedures

Specifications for hardware, software, network, data, and personnel

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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

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End User Development

Source: Adapted from James N. Morgan, Application Cases in MIS, 4th ed. (New York: Irwin/McGraw-Hill, 2002), p. 31.

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Encouraging End User Web Development

Look for tools that make senseSpur creativitySet some limitsGive managers responsibilityMake users comfortable

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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?

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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?

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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?

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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?

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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

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Implementation Process

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Project Management

IT and business unit managers enforce a project plan which includes

job responsibilities, time lines for major stages of development, andfinancial budgets

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Sample Implementation Process Plan

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Project

A projectIs a set of activities with a clear beginning and

endEach project has

GoalsObjectivesTasksLimitations

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Managing a project

To manage a project need:ProcessToolsTechniques

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Five phases of project management

1. Initiating/defining State the problems/goals Identify the objectives Secure resources Explore costs/benefits in feasibility study

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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

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Five phases of project management

4. Controlling Establish reporting obligations Create reporting tools Compare actual progress with baseline Initiate control interventions if necessary

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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

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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

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Hardware Evaluation Factors

PerformanceCostReliabilityCompatibilityTechnologyErgonomicsConnectivityScalabilitySoftwareSupport

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Software Evaluation Factors

QualityEfficiencyFlexibilitySecurityConnectivityMaintenanceDocumentationHardware

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Examples of IS Services

Developing a company websiteInstallation or conversion of hardware or

softwareEmployee trainingHardware maintenanceSystem integrationSystem designContract programmingConsulting services

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IS Services Evaluation Factors

PerformanceSystems developmentMaintenanceConversionTrainingBackupAccessibilityBusiness PositionHardwareSoftware

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System Testing

Testing and debugging softwareTesting website performanceTesting new hardwareReview of prototypes of displays, reports and

other output

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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

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Importance of Data Conversion

Improperly organized and formatted data is major causes of failures in implementing new systems.

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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

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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

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Conversion

Conversion from use of present system to operation of new system

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Four major forms of conversion

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Direct Conversion

Turn off old systemTurn on new system

Direct is least expensive methodRiskiest method

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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

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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

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Phased Conversion

Incremental approach to conversionBring in new system as a series of functional

components

Lower riskTakes the most time

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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

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Post-implementation review

Ensure new system meets the business objectives

Periodic review or audit

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Implementation Challenges

New system involves major organizational change

Manage changes to Business processesOrganizational structuresManagerial rolesWork assignments Stakeholder relationships

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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

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Reasons for User Resistance to Knowledge Management Systems

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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.

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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

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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.

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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

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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?”

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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?

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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?