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  • 1. Chapter 13 Building Systems13.1 2007 by Prentice Hall

2. Management Information SystemsChapter 13 Building SystemsLEARNING OBJECTIVES Demonstrate how building new systems produces organizational change. Identify and describe the core activities in the systems development process. Evaluate alternative methods for building information systems. Compare alternative methodologies for modeling systems. Identify and describe new approaches for system- building in the digital firm era.13.2 2007 by Prentice Hall 3. Management Information SystemsChapter 13 Building Systems A New Ordering System for Girl Scout Cookies Problem: Inefficient manual procedures, high error rate. Solutions: Eliminate manual procedures, design new ordering process, and implement database building software to batch and track orders automatically and schedule order pickups. QuickBase for Corporate Workgroups software service increased efficiency and reduced errors. Demonstrates ITs role in updating traditional business processes. Illustrates digital technology as the focus of designing and building new information systems.13.3 2007 by Prentice Hall 4. Management Information SystemsChapter 13 Building Systems SYSTEMS AS PLANNED ORGANIZATIONAL CHANGESystems Development and Organizational Change Four Kinds of Structural Change: Automation: Mechanizing procedures to speed up the performance of existing tasks Rationalization of procedures: The streamlining of standard operating procedures13.4 2007 by Prentice Hall 5. Management Information SystemsChapter 13 Building Systems SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Systems Development and Organizational Change ) Four Kinds of Structural Change: (Continued) Business process reengineering: Analysis andredesign of business processes to reorganizeworkflows and reduce waste and repetitive tasks Paradigm shift: Radical reconceptualization of thenature of the business and the nature of theorganization13.5 2007 by Prentice Hall 6. Management Information SystemsChapter 13 Building Systems SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Organizational Change Carries Risks and Rewards13.6Figure 13-1 2007 by Prentice Hall 7. Management Information Systems Chapter 13 Building Systems BUSINESS PROCESS REENGINEERING AND PROCESS IMPROVEMENTBusiness Process Reengineering Leading mortgage banks reduced time to obtain a mortgage from 6-8 weeks to one week, by radically changing the workflow and document management procedures13.7 2007 by Prentice Hall 8. Management Information SystemsChapter 13 Building SystemsBUSINESS PROCESS REENGINEERING AND PROCESS IMPROVEMENTSteps to effective reengineering: Understanding which processes need improvement Measuring performance of existing processes as a baseline Allowing IT to influence process design from the start13.8 2007 by Prentice Hall 9. Management Information Systems Chapter 13 Building Systems BUSINESS PROCESS REENGINEERING AND PROCESS IMPROVEMENT Redesigning Mortgage Processing in the United States13.9 Figure 13-2 2007 by Prentice Hall 10. Management Information Systems Chapter 13 Building Systems BUSINESS PROCESS REENGINEERING AND PROCESS IMPROVEMENT Total Quality Management and Six SigmaTotal Quality Management (TQM): Sees achievement of quality control as an end in itselfwith responsibility shared by all people in anorganization Focuses on a series of continuous improvementsrather than large change13.10 2007 by Prentice Hall 11. Management Information Systems Chapter 13 Building Systems BUSINESS PROCESS REENGINEERING AND PROCESS IMPROVEMENTTotal Quality Management and Six SigmaSix Sigma:A specific measure of quality, representing 3.4 defects per million opportunitiesDesignates a set of methodologies and techniques for improving quality and reducing costsUses statistical analysis to detect process flaws and make minor adjustments13.11 2007 by Prentice Hall 12. Management Information Systems Chapter 13 Building SystemsBUSINESS PROCESS REENGINEERING AND PROCESS IMPROVEMENTBenchmarking: Setting strict standards for products, services, or activities and measuring organizational performance against those standards13.12 2007 by Prentice Hall 13. Management Information Systems Chapter 13 Building SystemsOVERVIEW OF SYSTEMS DEVELOPMENT Systems development: The activities that go intoproducing an information system solution to anorganizational problem or opportunity Systems analysis: The analysis of a problem that theorganization will try to solve with an information system Feasibility study: As part of the systems analysisprocess, the way to determine whether the solution isachievable, given the organizations resources andconstraints13.13 2007 by Prentice Hall 14. Management Information SystemsChapter 13 Building Systems Overview of Systems DevelopmentThe Systems Development Process Building a system can be broken down into six core activities.Figure 13-313.14 2007 by Prentice Hall 15. Management Information Systems Chapter 13 Building SystemsOVERVIEW OF SYSTEMS DEVELOPMENT Establishing Information Requirements Information requirements: A detailed statement of the information needs that a newsystem must satisfy Identifies who needs what information, and when, where,and how the information is needed13.15 2007 by Prentice Hall 16. Management Information SystemsChapter 13 Building Systems OVERVIEW OF SYSTEMS DEVELOPMENTSystems design: Details how a system will meet the informationrequirements as determined by the systems analysis Includes creating design specifications13.16 2007 by Prentice Hall 17. Management Information Systems Chapter 13 Building Systems OVERVIEW OF SYSTEMS DEVELOPMENTThe role of end users: Users must have sufficient control over the designprocess to ensure that the system reflects theirbusiness priorities and information needs. Working on design increases users understanding andacceptance of the system13.17 2007 by Prentice Hall 18. Management Information Systems Chapter 13 Building Systems OVERVIEW OF SYSTEMS DEVELOPMENTCompleting the Systems Development Process Programming: Translating the system specifications preparedduring the design stage into program code Testing: The exhaustive testing to determine whether thesystem produces the desired results under knownconditions13.18 2007 by Prentice Hall 19. Management Information Systems Chapter 13 Building Systems OVERVIEW OF SYSTEMS DEVELOPMENTConversion: Process of changing from the old system to the newsystem Four main conversion strategies 1. Parallel strategy 2. Direct cutover strategy 3. Pilot study strategy 4. Phased approach strategy13.19 2007 by Prentice Hall 20. Management Information Systems Chapter 13 Building Systems OVERVIEW OF SYSTEMS DEVELOPMENTProduction and Maintenance Production: The stage after the new system is installed and theconversion is complete; during this time the system isreviewed by users and technical specialists to determinehow well it has met its original goals May implement a post-implementation audit: Formalreview process conducted after a system has beenplaced in production to determine how well the systemhas met its original objectives13.20 2007 by Prentice Hall 21. Management Information Systems Chapter 13 Building SystemsOVERVIEW OF SYSTEMS DEVELOPMENT Production and Maintenance (Continued)Maintenance: Changes in hardware, software, documentation, orprocedures to a production system to correct errors,meet new requirements, or improve processingefficiency13.21 2007 by Prentice Hall 22. Management Information SystemsChapter 13 Building SystemsALTERNATIVE SYSTEMS-BUILDING APPROACHESSystems life cycle: Traditional methodology with sequential, formal stagesand a formal division of labor between end users andinformation systems specialists Prototyping / Iterative processes: Building an experimental system quickly andinexpensively for demonstration and evaluation and usedas a template for the final system13.22 2007 by Prentice Hall 23. Management Information Systems Chapter 13 Building SystemsALTERNATIVE SYSTEMS-BUILDING APPROACHES Prototyping / Iterative Processes: (Continued) Prototyping is most useful when there is someuncertainty about requirements or design solutions. Encourages end-user involvement and is more likely tofulfill end-user requirements Hastily constructed systems, however, may notaccommodate large quantities of data or numbers ofusers.13.23 2007 by Prentice Hall 24. Management Information Systems Chapter 13 Building SystemsALTERNATIVE SYSTEMS-BUILDING APPROACHES The Prototyping Process13.24Figure 13-8 2007 by Prentice Hall 25. Management Information Systems Chapter 13 Building SystemsALTERNATIVE SYSTEMS-BUILDING APPROACHESEnd-User DevelopmentEnd-User Development: The development of information systems by endusers with little or no formal assistance fromtechnical specialists13.25 2007 by Prentice Hall 26. Management Information Systems Chapter 13 Building SystemsALTERNATIVE SYSTEMS-BUILDING APPROACHES Application Software Packages and OutsourcingApplication Software Package: Prewritten, precoded application software programsthat are commercially available for sale or lease May include customization features allowing thesoftware to be modified for an organizations uniquerequirements13.26 2007 by Prentice Hall 27. Management Information Systems Chapter 13 Building SystemsALTERNATIVE SYSTEMS-BUILDING APPROACHES Application Software Package: (Continued) Package evaluation criteria: Functions, flexibility, userfriendliness, hardware and software resources, databaserequirements, installation and maintenance efforts,documentation, vendor quality, cost Request For Proposal (RFP): A detailed list of questionssubmitted to vendors of software or other services todetermine how well the vendors product will meet theorganizations specific requirements13.27 2007 by Prentice Hall 28. Management Information SystemsChapter 13 Building Systems ALTERNATIVE SYSTEMS-BUILDING APPROACHESOutso