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Management Information Systems - Class Note # 3 (Chap-12)

Prof. Yuan-Shyi Peter Chiu Feb. 2012

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12.1 Systems as planned organizational change

12.2 Business process reengineering andTotal Quality Management (TQM)

12.3 Overview of Systems Development

12.4 Alternative System-Building Approaches

Chap 12Redesigning the organization with information systemsRedesigning the organization with information systems

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How to develop an Information Systems Plan~ Road Map indicating direction of System development :

1. PURPOSE OF THE PLAN

2. STRATEGIC BUSINESS PLAN

3. CURRENT SYSTEMS

4. NEW DEVELOPMENTS

5. MANAGEMENT STRATEGY

6. IMPLEMENTATION PLAN

7. BUDGET REQUIREMENTS

( see p.383 )

◇◇12.1

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Enterprise analysis ( Business Systems Planning )

Organization-wide Information Needs in terms of : Organizational Units Functions Processes Data Elements

Helps Identify Key Entities & Attributes in Organization’s Data

12.1 ◇◇

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Critical Success Factors (CSFs)

■ small number, easily identifiableoperational goals

■ shaped by the industry, the firm, the manager, the broader environment

■ believed to assure firm’s success

■ used to determine organization’s information requirements

12.1 ◇◇

66

Critical Success FactorsCritical Success Factors & & GoalsGoals example: profit concern example: profit concern

Goals (Automobile industry) :

Earnings per share, Return on investment, Market share, New product

CSF :

Styling, Quality dealer system,Cost control, Energy standards

(Also see Table 12-1)

12.1 ◇◇

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Using CSFs to develop systems

Collect managers’ CSFs

Aggregate + analyze individuals’ CSFs

Develop agreement on company CSFs

Define company CSFs

Use CSFs to develop information system priorities

Define DSS & databases

(Also see Fig. 12-2)

12.1 ◇◇

88Fig 12-2: Using CSFs to develop systems.

◇◇

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Spectrum of Organizational Change

AUTOMATION

Using technology to perform tasks efficiently / effectively

RATIONALIZATION OF PROCEDURES

Streamline SOPs ; Eliminate bottlenecks

BUSINESS REENGINEERING

Radical redesign of processes to improve cost, quality, service; maximize benefits of technology

PARADIGM SHIFT

12.1 ◇◇

1010Fig 12-3: Organizational change carries risks and rewards.

◇◇

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Paradigm Shift

PARADIGM is a complete mental model of how a complex system functions

A PARADIGM SHIFT involves “rethinking” the nature of the business, the organization; a complete reconception of how the system should function

12.1 ◇◇

1212

Business Process Reengineering (BPR)& TQM

WORK-FLOW MANAGEMENT: Streamlining process to move

documents easily, efficiently

REENGINEERING:

Redesigning business processes to lower cost, speed development

12.2 ◇◇

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Process Improvement and Total Quality Management

Simplifying the Product or the Production Process.

Benchmarking

Use customer demands as a guide to improving products and services

Reduce cycle time

Improve the quality and precision of the design

Increase the precision of production

12.2

1414

Three basic solution alternativesexist for every systems problem

To DoNothing

To modifyor enhanceExisting systems

To Developa New system

12.3 ◇◇

1515Fig 12-5: Overview of System Development.

12.3

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Systems Development

The activities that go into producingAn information systems solution to

an organizational problem or opportunity

12.3

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Systems Development

CORE ACTIVITYCORE ACTIVITY DESCRIPTIONDESCRIPTION

SYSTEMS ANALYSISSYSTEMS ANALYSIS IDENTIFY PROBLEM(S)SPECIFY SOLUTIONSESTABLISH INFORMATION REQUIREMENTS

SYSTEMS DESIGNSYSTEMS DESIGN CREATE LOGICAL DESIGN SPECSCREATE PHYSICAL DESIGN SPECSMANAGE TECHNICAL REALIZATION OF SYSTEM

PROGRAMMINGPROGRAMMING TRANSLATE DESIGN SPECS INTOPROGRAM CODE

12.3

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CORE ACTIVITYCORE ACTIVITY DESCRIPTIONDESCRIPTION

TESTINGTESTING UNIT TEST SYSTEMS TEST ACCEPTANCE TEST

CONVERSIONCONVERSION PLAN CONVERSION PREPARE DOCUMENTATION TRAIN USERS & TECHNICAL STAFF

PRODUCTION &PRODUCTION & OPERATE SYSTEMMAINTENANCEMAINTENANCE EVALUATE SYSTEM

MODIFY SYSTEM

12.3

Systems Development

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Analysis of Problem to be solved with an Information System

Feasibility Study: Can problem be solved within constraints ?

12.3

Systems Analysis

2020

Feasibility Study

as part of the systems analysis process ,to determine whether the solution is achievable ,

given the organization’s resources and constraints

Technicalfeasibility

Economicfeasibility

Operationalfeasibility

12.3

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Feasibility TECHNICAL : Available hardware, software, technical

resources ECONOMIC : Will benefits outweigh costs OPERATIONAL : Is solution desirable within existing

conditions?

INFORMATION REQUIREMENTS: Detailed statement of new system needs

12.3

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System Design

Considering alternative technology configurations

Details how system will meet the information requirements

as determined by the systems analysis.

Management & control of the technical realization of systems

Details the system spec that will deliver the functions Identified during systems analysis

12.3 ◇◇

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Logical and Physical Design

Logical designLays out the components of the system and their relationship to each other as they would appear to Users .

Physical designProduces the actual spec for Hardware, software, physical database, I/O media,Manual procedures , and Specific controls.

12.3

See Table 12-4 for Design Specifications p.395See Table 12-4 for Design Specifications p.395

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Role of end users

Users drive systems effort

Must have sufficient control to ensure system reflects business priorities, needs

Functional users drive system needs

12.3 ◇◇

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Completing system development process

Programming:

Translating needs to program code

Testing:

Does system produce desired results?

Conversion:

Changing from the old to the new

12.3

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TestingTesting

Unit

Testing

( program

testing )

Acceptance

Testing

( final

certification)

System

Testing

( functions)

12.3

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TestingTesting Unit testing :

Tests each unit separately System testing :

Do modules function as planned? Acceptance testing :

Final certification

Test plan : Preparations for tests to be performed

12.3

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Conversion

Parallel

strategy

Pilot

study

Direct

cutover

Phasedapproach

12.3

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Conversion Parallel : Old & new run same problems.

Give same results? Direct cutover : Risky conversion to new system Pilot : Introduce into one area. Does it work?

Yes: introduce into other area

Phased : Introduce in stages

Conversion plan : schedule for conversion

12.3

Documentation Description of how system works

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Production & Maintenance

Production: Constant review by users & operators.

Does it meet goals?

Maintenance: Upkeep; Update; Corrections over time

12.3

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12.4Alternative System-Building

Approaches

Systems lifecycleSystems lifecycle

• Traditional methodology for developing Traditional methodology for developing information systeminformation system

• Partitions systems development process Partitions systems development process into formal stages that must be completed into formal stages that must be completed sequentiallysequentially

See Table 12-6 for The Systems Lifecycle p.399See Table 12-6 for The Systems Lifecycle p.399

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The Traditional System Lifecycle

Project Definition : Is there a problem? Can it be solved with a project ?

System Study : Analyze problems in existing systems;

define objectives, evaluate alternatives

Design : Logical & physical specifications for

systems solution Programming : Develop software code

12.4

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Installation : Construct, test, train, convert to new system

Post-Implementation : On-going evaluation, modifications for improvement

to meet new requirements

Necessary for Large , Complex Systems & Projects

12.4

The Traditional System Lifecycle

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Limitations of the LIFE CYCLE Approach

Building large TPS and MIS where requirements are highly structured and well-defined

Very resource intensive : costly and time-consuming

Inflexible and inhibits change

Ill-suited to decision-oriented applications

12.4

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Alternative System-building Approaches

Prototyping

Application Software Packages

End-user Development

Outsourcing

12.4

3636Fig 12-7: The prototyping process.

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Advantages & Disadvantages of Prototyping

Most useful when there is some uncertainty about requirements or design solutions

Especially valuable for the design of the end-user interfaceof an information system, decision-support applications

May not be appropriate for all applications,Better suited for smaller applications

Often not being fully documented and tested, not being carried out as a polished production system

12.4

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Developing systems with Application Software Packages

under the following circumstances

Where functions are common to many companies

Where information systems resources for in-house development are in short supply

When desktop microcomputer applications are being developed for end users

12.4

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Advantages of Packages

Design activities may easily consume up to 50 percent or more of the development effort

Testing the installed package can be accomplishedin a relatively shorter period

Vendor is responsible for making changes to keep the system in compliance with change; and enhancements

Cut the costs and free up internal staff for otherapplications; System and user documentation are

prewritten and kept up to date by the vendor.

12.4 ◇◇

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Disadvantages of Packages

Hamper the development effort byraising conversion costs

May not meet all of an organization’s requirements

Vendor refuses to support their products if changes havebeen made that altered the package’s source code

Customization may be so expensive and time-consuming

12.4 ◇◇

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A Substantially Customized Package

Front-end programs

Package

Back-end programs

12.4 ◇◇

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Package Evaluation CriteriaRequest For Proposal ( RFP)

Flexibility

FunctionsIncluded

Documentation

Cost

User-Friendliness

MaintenanceInstallation

Effort

Vendor Quality

Hardware& SoftwareResources

Database/ File

Characteristics

12.4 ◇◇

4343Fig.12-8: The effects of customizing a software package on

total implementation costs.

◇◇

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Staff

Staff

programmerSystemsanalyst

InformationSystem

management

Weeks or months

Design Program Test

Traditional systems (Life Cycle) Development

Middle or senior management

End-User development

End-user computing toolsQuery languages

Graphics languagesReport generators

Application generatorsVery-high-level languages

Microcomputer tools

Minutes or days

Middle or senior management

Fig.12-9: End-user versus system lifecycle development

◇◇

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Advantages of End-user-developed I.S.

Improved requirement determination

User involvement and satisfaction

Control of the systems development process by users

Reduced application backlog

12.4 ◇◇

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Disadvantages of End-user-developed I.S.

Insufficient review and analysis

Lack of proper quality assurance standards and controls

Uncontrolled data

Proliferation of “private” information systems

12.4 ◇◇

■

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When to use outsourcing

Low reward

for

excellence

Not

critical

Will notaffect futureinformation

systemsinnovation

The firm’sexisting

informationsystems

capabilitiesare limited

12.4

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Advantages of Outsourcing I.S.

Economy PredictabilityFlexibilityServiceQuality

Making fixedcosts variable

Freeing upHuman

resources

Freeing upFinancial capital

12.4 ◇◇

4949

Disadvantages of Outsourcing I.S.

Lossof

controlDependency

Vulnerabilityof strategicinformation

12.4 ◇◇

■

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Management Challenges onalternative systems building methods

Determining the right systems development strategy to use

Controlling information systems developmentoutside the I.S.Dept.

Selecting a system development strategy that fits intothe firm’s information architecture and strategic plan

12.4 ◇◇

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Summary Alternative systems building methods

Distinguishbetween

the variousalternatives

Solutions tomanagement

problemscreated by

theseapproaches

Understandtypes of

problemsfor which

each is bestsuited

Understandstrengths

and limitations

of eachapproach

12.4

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Homework for Chapter 12

#1 Describe the critical success factors? And how to use CSFs to develop systems?

#2 Describe how information systems contribute to TQM?

#3 What are the major stages of systems development?#4 In systems analysis, what main considerations are

when determining its feasibility?#5 What is the difference between logical design and

physical design?

#6 Name and describe the three stages of testing for aninformation system?

#7 Name and describe briefly five alternative system-building approaches.

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THE END THE END