REDESIGNING THE ORGANIZATION WITH INFORMATION SYSTEMSbryongaskin.net/education/MBA TRACK/CURRENT/MBA621... · Laudon & Laudon MIS, 7th Edition. Pg. 10.1 © 2002 by Prentice Hall 10.1

Laudon & Laudon MIS, 7th Edition. Pg. 10.1

10.1© 2002 by Prentice Hall

c h a p t e r

1010REDESIGNING THE REDESIGNING THE

ORGANIZATION ORGANIZATION WITH WITH

INFORMATION INFORMATION SYSTEMSSYSTEMS


•• DEMONSTRATE HOW BUILDING NEW DEMONSTRATE HOW BUILDING NEW SYSTEMS CAN PRODUCE SYSTEMS CAN PRODUCE ORGANIZATIONAL CHANGEORGANIZATIONAL CHANGE

•• EXPLAIN INFORMATION SYSTEM EXPLAIN INFORMATION SYSTEM DEVELOPMENT TO FIT BUSINESS PLANDEVELOPMENT TO FIT BUSINESS PLAN

•• IDENTIFY CORE ACTIVITIES IN SYSTEMS IDENTIFY CORE ACTIVITIES IN SYSTEMS DEVELOPMENT PROCESSDEVELOPMENT PROCESS

**

LEARNING OBJECTIVESLEARNING OBJECTIVES


LEARNING OBJECTIVESLEARNING OBJECTIVES

•• APPRAISE ALTERNATIVES FOR APPRAISE ALTERNATIVES FOR BUILDING SYSTEMSBUILDING SYSTEMS

•• EVALUATE OBJECTEVALUATE OBJECT--ORIENTED ORIENTED DEVELOPMENT & RAPID APPLICATION DEVELOPMENT & RAPID APPLICATION DEVELOPMENTDEVELOPMENT

**



MANAGEMENT CHALLENGESMANAGEMENT CHALLENGES

•• SYSTEMS AS PLANNED SYSTEMS AS PLANNED ORGANIZATIONAL CHANGESORGANIZATIONAL CHANGES

•• PROCESS REENGINEERING & PROCESS REENGINEERING & TOTAL QUALITY CONTROLTOTAL QUALITY CONTROL

•• OVERVIEW OF SYSTEMS OVERVIEW OF SYSTEMS DEVELOPMENTDEVELOPMENT

•• ALTERNATIVE APPROACHESALTERNATIVE APPROACHES**


INFORMATION SYSTEMS INFORMATION SYSTEMS PLANPLAN

1. PURPOSE OF THE PLAN: 1. PURPOSE OF THE PLAN: Overview of plan Overview of plan contents, changes in current situation, firm’s contents, changes in current situation, firm’s strategic plan, current organization, key business strategic plan, current organization, key business processes, management strategyprocesses, management strategy

2. STRATEGIC BUSINESS PLAN: 2. STRATEGIC BUSINESS PLAN: Current situation, Current situation, current organization, changing environments, current organization, changing environments, major goals of planmajor goals of plan

**


3. CURRENT SYSTEMS: 3. CURRENT SYSTEMS: Major systems supporting Major systems supporting business functions & processes, major current business functions & processes, major current capabilities (hardware, software, database, capabilities (hardware, software, database, telecommunications), difficulties meeting telecommunications), difficulties meeting

requirements, anticipated future demandsrequirements, anticipated future demands

4. NEW DEVELOPMENTS: 4. NEW DEVELOPMENTS: New system projects New system projects (project descriptions, business rationale), new (project descriptions, business rationale), new capabilities required (hardware, software, capabilities required (hardware, software, database, telecommunications, internet)database, telecommunications, internet)

**




5. MANAGEMENT STRATEGY: 5. MANAGEMENT STRATEGY: Acquisition plans, Acquisition plans, milestones & timing, organizational realignment, milestones & timing, organizational realignment, internal reorganization, management controls, internal reorganization, management controls, major training initiatives, personnel strategymajor training initiatives, personnel strategy

6. IMPLEMENTATION PLAN: 6. IMPLEMENTATION PLAN: Anticipated difficulties, Anticipated difficulties, progress reportsprogress reports

7. BUDGET REQUIREMENTS: 7. BUDGET REQUIREMENTS: Requirements, Requirements, potential savings, financing, acquisitionpotential savings, financing, acquisition

* *



ENTERPRISE ANALYSISENTERPRISE ANALYSIS(BUSINESS SYSTEMS PLANNING)(BUSINESS SYSTEMS PLANNING)

ORGANIZATIONORGANIZATION--WIDE INFORMATION WIDE INFORMATION NEEDS IN TERMS OF:NEEDS IN TERMS OF:

•• ORGANIZATIONAL UNITSORGANIZATIONAL UNITS•• FUNCTIONSFUNCTIONS•• PROCESSESPROCESSES•• DATA ELEMENTSDATA ELEMENTS

HELPS IDENTIFY KEY HELPS IDENTIFY KEY ENTITIES & ATTRIBUTES ENTITIES & ATTRIBUTES IN ORGANIZATION’S DATAIN ORGANIZATION’S DATA

**


CRITICAL SUCCESS CRITICAL SUCCESS FACTORS (CSFs)FACTORS (CSFs)

•• SMALL NUMBER, EASILY IDENTIFIABLE SMALL NUMBER, EASILY IDENTIFIABLE OPERATIONAL GOALSOPERATIONAL GOALS

•• SHAPED BY INDUSTRY, MANAGER, SHAPED BY INDUSTRY, MANAGER, ENVIRONMENTENVIRONMENT

•• BELIEVED TO ASSURE FIRM’S SUCCESSBELIEVED TO ASSURE FIRM’S SUCCESS•• USED TO DETERMINE ORGANIZATION’S USED TO DETERMINE ORGANIZATION’S

INFORMATION REQUIREMENTSINFORMATION REQUIREMENTS**



•• GOALS (AUTOMOBILE INDUSTRY):GOALS (AUTOMOBILE INDUSTRY):Earnings per share, return on Earnings per share, return on investment, market share, new investment, market share, new productproduct

•• CSF:CSF: Styling, quality dealer system, Styling, quality dealer system, cost control, energy standardscost control, energy standards

**

CRITICAL SUCCESS FACTORSCRITICAL SUCCESS FACTORSExample:Example: PROFIT CONCERNPROFIT CONCERN


•• GOALS (HOSPITAL):GOALS (HOSPITAL): Excellent health Excellent health care, meeting government care, meeting government regulations, future health needsregulations, future health needs

•• CSF:CSF: Regional integration with other Regional integration with other hospitals, efficient use of resources, hospitals, efficient use of resources, improved monitoring of regulations improved monitoring of regulations

**

CRITICAL SUCCESS FACTORSCRITICAL SUCCESS FACTORSExample:Example: NONPROFIT CONCERNNONPROFIT CONCERN


USING CSFs TO DEVELOP SYSTEMSUSING CSFs TO DEVELOP SYSTEMS

•• COLLECT MANAGERS’ CSFsCOLLECT MANAGERS’ CSFs•• AGGREGATE, ANALYZE INDIVIDUALS’ AGGREGATE, ANALYZE INDIVIDUALS’

CSFsCSFs•• DEVELOP AGREEMENT ON COMPANY DEVELOP AGREEMENT ON COMPANY

CSFsCSFs•• DEFINE COMPANY CSFsDEFINE COMPANY CSFs•• USE CSFs TO DEVELOP INFORMATION USE CSFs TO DEVELOP INFORMATION

SYSTEM PRIORITIESSYSTEM PRIORITIES•• DEFINE DSS & DATABASESDEFINE DSS & DATABASES

**



SPECTRUM OF ORGANIZATIONAL SPECTRUM OF ORGANIZATIONAL CHANGECHANGE

•• AUTOMATION:AUTOMATION: Using technology to Using technology to perform tasks efficiently / effectivelyperform tasks efficiently / effectively

•• RATIONALIZATION OF PROCEDURES:RATIONALIZATION OF PROCEDURES:Streamline SOPs; eliminate bottlenecksStreamline SOPs; eliminate bottlenecks

•• BUSINESS REENGINEERING:BUSINESS REENGINEERING: Radical Radical redesign of processes to improve cost, redesign of processes to improve cost, quality, service; maximize benefits of quality, service; maximize benefits of technologytechnology

•• PARADIGM SHIFTPARADIGM SHIFT**


PARADIGM SHIFTPARADIGM SHIFT

•• PARADIGM:PARADIGM: A complete mental A complete mental model of how a complex system model of how a complex system functionsfunctions

•• A PARADIGM SHIFT:A PARADIGM SHIFT: Involves Involves rethinking the nature of the business, rethinking the nature of the business, the organization; a complete the organization; a complete reconception of how the system reconception of how the system should functionshould function

**


BUSINESS PROCESS BUSINESS PROCESS REENGINEERING (BPR)REENGINEERING (BPR)

•• REENGINEERING:REENGINEERING: Redesigning Redesigning business processes to lower cost, business processes to lower cost, speed developmentspeed development

•• WORKWORK--FLOW MANAGEMENT:FLOW MANAGEMENT:Streamlining process to move Streamlining process to move documents easily, efficientlydocuments easily, efficiently

**



1. Develop business vision, process 1. Develop business vision, process objectivesobjectives

2. Identify process to be redesigned2. Identify process to be redesigned3. Understand, measure performance 3. Understand, measure performance

of existing processesof existing processes4. Identify opportunities for applying 4. Identify opportunities for applying

information technologyinformation technology5. Build prototype of new process5. Build prototype of new process

**

EFFECTIVEEFFECTIVEREENGINEERING STEPS:REENGINEERING STEPS:


ANALYSIS OF PROBLEM TO BE ANALYSIS OF PROBLEM TO BE SOLVED WITH AN INFORMATION SOLVED WITH AN INFORMATION

SYSTEMSYSTEM

FEASIBILITY STUDY:FEASIBILITY STUDY: Can problem Can problem be solved within be solved within constraints?constraints?

**

SYSTEMS ANALYSISSYSTEMS ANALYSIS


FEASIBILITYFEASIBILITY•• TECHNICAL:TECHNICAL: Assess hardware, Assess hardware,

software, technical resourcessoftware, technical resources•• ECONOMIC:ECONOMIC: Will benefits outweigh Will benefits outweigh

costs?costs?•• OPERATIONAL:OPERATIONAL: Is solution desirable Is solution desirable

within existing conditions?within existing conditions?INFORMATION REQUIREMENTS:INFORMATION REQUIREMENTS:

Detailed statement of newDetailed statement of newsystem needssystem needs

**



SYSTEM DESIGNSYSTEM DESIGNDETAILS HOW SYSTEM WILL MEET NEEDS:DETAILS HOW SYSTEM WILL MEET NEEDS:

•• LOGICAL DESIGN:LOGICAL DESIGN: Components, Components, data as needed by applicationsdata as needed by applications

•• PHYSICAL DESIGN:PHYSICAL DESIGN: PhysicalPhysicallocation of components and datalocation of components and data

**


DESIGN SPECIFICATIONSDESIGN SPECIFICATIONS

•• OUTPUTOUTPUT: Medium, content, timing: Medium, content, timing•• INPUT:INPUT: Origins, flow, data entryOrigins, flow, data entry•• USER INTERFACEUSER INTERFACE: Simplicity, efficiency, logic, : Simplicity, efficiency, logic,

feedback, errorsfeedback, errors•• DATABASE DESIGNDATABASE DESIGN: Logical data relations, : Logical data relations,

volume, speed requirements, file organization & volume, speed requirements, file organization & design, record specificationsdesign, record specifications

•• PROCESSING: PROCESSING: Computations, program Computations, program modules, required reports, timing of modules, required reports, timing of outputsoutputs

•• MANUAL PROCEDURES:MANUAL PROCEDURES: What activities,What activities,who performs them, how, wherewho performs them, how, where

**


•• CONTROLS: CONTROLS: Input, processing, output, Input, processing, output, proceduralprocedural

•• SECURITY: SECURITY: Access controls, catastrophe plans, Access controls, catastrophe plans, audit trailsaudit trails

•• DOCUMENTATION: DOCUMENTATION: Operations, systems, userOperations, systems, user•• CONVERSION:CONVERSION: Transfer files, initiate new Transfer files, initiate new

procedures, select testing modules, cut procedures, select testing modules, cut over to new systemover to new system

•• TRAINING:TRAINING: Select training techniques,Select training techniques,develop training modules, identify develop training modules, identify

training facilitiestraining facilities

**




•• ORGANIZATIONAL CHANGES: ORGANIZATIONAL CHANGES: Task redesign, Task redesign, job design, process design, organization job design, process design, organization structure design, reporting relationshipsstructure design, reporting relationships

**



ROLE OF END USERSROLE OF END USERS

•• USERS DRIVE SYSTEMS EFFORTUSERS DRIVE SYSTEMS EFFORT•• MUST HAVE SUFFICIENT CONTROL MUST HAVE SUFFICIENT CONTROL

TO ENSURE SYSTEM REFLECTS TO ENSURE SYSTEM REFLECTS BUSINESS PRIORITIES, NEEDSBUSINESS PRIORITIES, NEEDS

•• FUNCTIONAL USERS DRIVE FUNCTIONAL USERS DRIVE SYSTEM NEEDSSYSTEM NEEDS

**


COMPLETING SYSTEM COMPLETING SYSTEM DEVELOPMENT PROCESSDEVELOPMENT PROCESS

•• PROGRAMMING:PROGRAMMING: Translating Translating needs to program codeneeds to program code

•• TESTING:TESTING: Does system produce Does system produce desired results?desired results?

•• CONVERSION:CONVERSION: Changing from Changing from the old to the newthe old to the new

**



•• UNIT TESTING:UNIT TESTING: Tests each unit Tests each unit separatelyseparately

•• SYSTEM TESTING:SYSTEM TESTING: Do modules Do modules function as planned?function as planned?

•• ACCEPTANCE TESTING:ACCEPTANCE TESTING: Final Final certificationcertification

TEST PLAN:TEST PLAN: Preparations for Preparations for tests to be performedtests to be performed

**

TESTINGTESTING


CONVERSIONCONVERSION•• PARALLEL:PARALLEL: Old & new run same problems. Give Old & new run same problems. Give

same results?same results?•• DIRECT CUTOVER:DIRECT CUTOVER: Risky conversion to new Risky conversion to new

systemsystem•• PILOT:PILOT: Introduce into one area. Does it work? Introduce into one area. Does it work?

Yes: introduce into other areaYes: introduce into other area•• PHASED:PHASED: Introduce in stagesIntroduce in stages•• CONVERSION PLAN:CONVERSION PLAN: Schedule for Schedule for

conversionconversion•• DOCUMENTATION:DOCUMENTATION: Description of how Description of how

system workssystem works**


PRODUCTION & MAINTENANCEPRODUCTION & MAINTENANCE

•• PRODUCTION:PRODUCTION: Constant review by Constant review by users & operators. Does it meet users & operators. Does it meet goals?goals?

•• MAINTENANCE:MAINTENANCE: Upkeep, update, Upkeep, update, corrections over timecorrections over time

**



SYSTEMS DEVELOPMENTSYSTEMS DEVELOPMENTCORE 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


SYSTEMS DEVELOPMENTSYSTEMS DEVELOPMENTCORE ACTIVITYCORE ACTIVITY DESCRIPTIONDESCRIPTION

TESTINGTESTING UNIT TESTSYSTEMS TESTACCEPTANCE TEST

CONVERSIONCONVERSION PLAN CONVERSIONPREPARE DOCUMENTATIONTRAIN USERS & TECHNICAL STAFF

PRODUCTION &PRODUCTION & OPERATE SYSTEMMAINTENANCEMAINTENANCE EVALUATE SYSTEM

MODIFY SYSTEM


SYSTEM LIFECYCLESYSTEM LIFECYCLE

•• PROJECT DEFINITION:PROJECT DEFINITION: Is there a Is there a problem? Can it be solved with a project?problem? Can it be solved with a project?

•• SYSTEM STUDY:SYSTEM STUDY: Analyze problems in Analyze problems in existing systems; define objectives existing systems; define objectives evaluate alternativesevaluate alternatives

•• DESIGN:DESIGN: Logical & physical specifications Logical & physical specifications for systems solutionfor systems solution

•• PROGRAMMING:PROGRAMMING: Develop software codeDevelop software code**



SYSTEM LIFECYCLESYSTEM LIFECYCLE

•• INSTALLATION:INSTALLATION: Construct, test, train, Construct, test, train, convert to new systemconvert to new system

•• POSTINSTALLATION:POSTINSTALLATION: OnOn--going going evaluation, modifications for improvement evaluation, modifications for improvement to meet new requirementsto meet new requirements

NECESSARY FOR LARGE, COMPLEX NECESSARY FOR LARGE, COMPLEX SYSTEMS & PROJECTSSYSTEMS & PROJECTS

**


ALTERNATIVE SYSTEMALTERNATIVE SYSTEM--BUILDING APPROACHESBUILDING APPROACHES

•• PROTOTYPINGPROTOTYPING•• APPLICATION SOFTWARE APPLICATION SOFTWARE

PACKAGESPACKAGES•• ENDEND--USER DEVELOPMENTUSER DEVELOPMENT•• OUTSOURCINGOUTSOURCING

**


PROTOTYPINGPROTOTYPINGPROCESS OF BUILDING PROCESS OF BUILDING

EXPERIMENTAL SYSTEM TO EXPERIMENTAL SYSTEM TO DEMONSTRATE, EVALUATE DEMONSTRATE, EVALUATE

APPROACH; USERS REFINE NEEDSAPPROACH; USERS REFINE NEEDS•• PROTOTYPE:PROTOTYPE: Preliminary working Preliminary working

version of information system for version of information system for demonstration, evaluation purposesdemonstration, evaluation purposes

•• ITERATIVE PROCESSITERATIVE PROCESS**



STEPS IN PROTOTYPINGSTEPS IN PROTOTYPING

1. IDENTIFY USER’S REQUIREMENTS1. IDENTIFY USER’S REQUIREMENTS2. DEVELOP PROTOTYPE2. DEVELOP PROTOTYPE3. USE PROTOTYPE3. USE PROTOTYPE4. REVISE & ENHANCE PROTOTYPE4. REVISE & ENHANCE PROTOTYPE

BEST FOR DESIGN OF ENDBEST FOR DESIGN OF END--USER USER INTERFACE:INTERFACE: How endHow end--user interacts user interacts with systemwith system

**


APPLICATION SOFTWARE APPLICATION SOFTWARE PACKAGESPACKAGES

PREWRITTEN, PRECODED APPLICATION PREWRITTEN, PRECODED APPLICATION SOFTWARE, COMMERCIALLY SOFTWARE, COMMERCIALLY AVAILABLE FOR SALE OR LEASEAVAILABLE FOR SALE OR LEASE

•• GEARED TO COMMON REQUIREMENTSGEARED TO COMMON REQUIREMENTS•• CUSTOMIZATION:CUSTOMIZATION: Modification of Modification of

software to meet organization’s needssoftware to meet organization’s needs•• MUST WEIGH MUST WEIGH COSTS / BENEFITSCOSTS / BENEFITS•• REQUEST FOR PROPOSAL (RFP):REQUEST FOR PROPOSAL (RFP):

Detailed questions sent to vendorsDetailed questions sent to vendors**


CUSTOMIZATIONCUSTOMIZATION

MODIFYING SOFTWARE PACKAGE TO MODIFYING SOFTWARE PACKAGE TO MEET ORGANIZATION’S UNIQUE MEET ORGANIZATION’S UNIQUE

REQUIREMENTS WITHOUT REQUIREMENTS WITHOUT DESTROYING INTEGRITY OF DESTROYING INTEGRITY OF

PACKAGE RAISES DEVELOPMENT PACKAGE RAISES DEVELOPMENT COSTSCOSTS

**



ENDEND--USER DEVELOPMENTUSER DEVELOPMENT

ENDEND--USERS DEVELOP USERS DEVELOP INFORMATION SYSTEM WITH INFORMATION SYSTEM WITH LITTLE HELP FROM TECHNICAL LITTLE HELP FROM TECHNICAL SPECIALISTS USING 4th SPECIALISTS USING 4th GENERATION TOOLSGENERATION TOOLS

**


ENDEND--USER DEVELOPMENTUSER DEVELOPMENTSTRENGTHS:STRENGTHS: Improved requirements Improved requirements

determination, increased user involvement determination, increased user involvement & satisfaction, reduced application & satisfaction, reduced application backlogbacklog

WEAKNESSES:WEAKNESSES: Relatively inefficient, slow Relatively inefficient, slow transaction processing, may carry high transaction processing, may carry high cost, large files can degrade performance, cost, large files can degrade performance, nonprocedural approachnonprocedural approach may may

hamper logic & updating hamper logic & updating requirementsrequirements

**


OUTSOURCINGOUTSOURCING

CONTRACTING:CONTRACTING:•• COMPUTER CENTER OPERATIONSCOMPUTER CENTER OPERATIONS•• TELECOMMUNICATIONS NETWORKSTELECOMMUNICATIONS NETWORKS•• APPLICATION DEVELOPMENTAPPLICATION DEVELOPMENT

TO EXTERNAL VENDORSTO EXTERNAL VENDORS

**



OUTSOURCINGOUTSOURCING

WHEN TO OUTSOURCE:WHEN TO OUTSOURCE:•• IF FIRM WON’T DISTINGUISH ITSELF BY IF FIRM WON’T DISTINGUISH ITSELF BY

DEVELOPING APPLICATIONDEVELOPING APPLICATION•• IF PREDICTABILITY OF IF PREDICTABILITY OF

UNINTERRUPTED SERVICE NOT UNINTERRUPTED SERVICE NOT IMPORTANTIMPORTANT

•• IF EXISTING SYSTEM IS IF EXISTING SYSTEM IS LIMITED, INEFFECTIVE, LIMITED, INEFFECTIVE, INFERIORINFERIOR

**


SYSTEMS LIFECYCLESYSTEMS LIFECYCLEPHASES:PHASES:

•• PROJECT DEFINITIONPROJECT DEFINITION•• SYSTEM STUDYSYSTEM STUDY•• DESIGNDESIGN•• PROGRAMMINGPROGRAMMING•• INSTALLATIONINSTALLATION•• POSTPOST--IMPLEMENTATIONIMPLEMENTATION

**


OBJECT OBJECT -- ORIENTED SOFTWARE ORIENTED SOFTWARE DEVELOPMENTDEVELOPMENT

•• DEDE--EMPHASIZES PROCEDURESEMPHASIZES PROCEDURES•• SHIFTS FOCUS FROM MODELS & DATASHIFTS FOCUS FROM MODELS & DATA•• TOTO OBJECTS, WHICH COMBINE DATA & OBJECTS, WHICH COMBINE DATA &

PROCEDURESPROCEDURES•• OBJECTS REUSABLEOBJECTS REUSABLE•• SYSTEM:SYSTEM: Classes, objects, relationshipsClasses, objects, relationships

REDUCES DEVELOPMENT TIME & COSTREDUCES DEVELOPMENT TIME & COST**



RAPID APPLICATION DEVELOPMENT RAPID APPLICATION DEVELOPMENT (RAD)(RAD)

DEVELOP SYSTEM RAPIDLY:DEVELOP SYSTEM RAPIDLY:•• PROTOTYPINGPROTOTYPING•• 4th GENERATION TOOLS4th GENERATION TOOLS•• CLOSE TEAMWORK AMONG USERS CLOSE TEAMWORK AMONG USERS

& SPECIALISTS& SPECIALISTS**


c h a p t e r

1010REDESIGNING THE REDESIGNING THE

ORGANIZATION ORGANIZATION WITH WITH

INFORMATION INFORMATION SYSTEMSSYSTEMS

Documents

REDESIGNING THE ORGANIZATION WITH INFORMATION SYSTEMSbryongaskin.net/education/MBA TRACK/CURRENT/MBA621... · Laudon & Laudon MIS, 7th Edition. Pg. 10.1 © 2002 by Prentice Hall 10.1