13.1 © 2007 by Prentice Hall Week #09 Chapter 13: Building Information Systems Chapter 13: Building...

13.1 © 2007 by Prentice Hall

Week #09Week #09

Chapter 13:Chapter 13:Building Building

Information SystemsInformation Systems

Chapter 13:Chapter 13:Building Building

Information SystemsInformation Systems


LEARNING OBJECTIVES

Management Information SystemsManagement Information SystemsChapter 13 Building SystemsChapter 13 Building Systems

• 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.


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 IT’s role in updating traditional business processes.

• Illustrates digital technology as the focus of designing and building new information systems.



Systems as Planned Organizational Change

• Systems development and organizational change

• Business process reengineering

• Steps in effective reengineering

• Process improvement: Business process management, total quality management, and six sigma

• Business process management (BPM)

• Total quality management (TQM)

• Six sigma

• How information systems support quality improvements



Systems development and organizational change

• Four kinds of structural organizational change that are enabled by IT:

(i) Automation

(ii) Rationalization

(iii) Reengineering

(iv) Paradigm shifts




(i) Automation, for example:

• Calculating paychecks & payroll registers

• Giving bank tellers instant access to customer deposits records

• Developing a nationwide network of airline reservation terminals for airline reservation agents

• Automation involved assisting employees with performing their task more efficiently and effectively.




(ii) Rationalization of procedures, for example:

• Managers redesign business processes, work flows, and user interfaces to the fulfillment software (Web services s/w).

• Rationalization of procedures: is a streamlining of standard operating procedures (SOP).




(iii) Business process reengineering:

• which business processes are analyzed, simplified, and redesigned.

• Organization can rethink and streamline their business processes to improve speed, service and quality.

• BPR reorganize work flows, combining steps to cut waste and eliminating repetitive, paper-intensive tasks.




(iv) Paradigm shifts:

• More radical form of business change

• Involve rethinking the nature of business and the nature of the organization.

• New IS can ultimately affect the design of the entire organization by transforming how the organization carries out its business or even the nature of the business.



Organizational Change Carries Risks and RewardsOrganizational Change Carries Risks and Rewards

Figure 13-1The most common forms of organizational change are automation and rationalization. These relatively slow-moving and slow-changing strategies present modest returns but little risk. Faster and more comprehensive change—such as reengineering and paradigm shifts—carries high rewards but offers substantial chances of failure.




Figure 13-2 Redesigning Mortgage Processing in the U.S.


Process Improvement

(i) Business Process Management:

• Enable organizations to manage incremental process changes that are required simultaneously in many areas of the business.

• It provides a methodology and tools for dealing with the organization’s ongoing need to revise and ideally optimize- its numerous internal business processes and processes shared with other organizations.

• BPM include workflow management, business process modeling, quality management, change management, tools for recasting the firm’s business processes into a standardized form.

• BPM include process monitoring & analytics.



Process Improvement

(ii) Total Quality Management :

• To make quality the responsibility of all people and functions within an organization.

• TQM holds that the achievement of QC is an end in itself.

(iii) Six Sigma:

• Six Sigma : a specific measure of quality, representing 3.4 defects per million opportunities.

• Six Sigma uses statistical analysis tools to detect flaws in the execution of an existing process and make minor adjustments.

• Quality improvements not only raise the level of product and service quality, but they can also lower costs.




• How information systems support quality improvements

• Simplify products or processes

• Make improvements based on customer demands

• Reduce cycle time

• Improve the quality and precision of design and products

• Benchmarking : consists of setting strict standards for products, services, and other activities, and then measuring performance against those standards.

• Companies may use external industry standards, standards set by other companies, and internally developed high standards.



• Read the Interactive Session: Organizations, and then discuss the following questions:

• What was wrong with the existing computer system (ALCS) and why did SBA decide to replace it?

• What was the purpose of re-organizing the ODA and centralizing IT in a single office, and centralizing other functions like the call center in a single office?

• In what other ways could the agency use information systems to improve the process of loan application, approval, and maintenance?

Business Process Redesign at the Small Business Administration




Overview of Systems Development

• Systems analysis

• Establishing information requirements

• Systems design

• The role of end users

• Completing the systems development process

• Programming

• Testing

• Conversion

• Production and Maintenance



The Systems Development ProcessThe Systems Development Process

Figure 13-3

Building a system can be broken down into six core activities.




Systems Development: System Analysis

• Analysis of the problem that the organization will try solve with an IS:

• Define the problem

• Identify its causes

• Specify the solution

• Identify the information requirements that must be met by a system solution




• System analyst:

• Create a road map of existing organization & systems

• Identify the primary owners and users of data along with existing software and hardware.

• Details the problems of existing systems.

• Examine documents, work papers, and procedures

• Observing system operations.

• Interviewing key users of the systems




• Feasibility study:

• Determine whether that solution was feasible, or achievable, from a financial, technical and organization standpoint.

• A written systems proposal reports describes the costs and benefits, advantages and disadvantages of each alternative.



Systems Development: System Design

• System design:

• Describe what a system should do to meet information requirements,

• Show how the system will fulfill the objective.

• A design of an IS is :

• the overall plan or model for that system

• Consists of all the specifications that give the system its form and structure.

• Details of system specifications that will deliver the functions identified during system analysis



Table 13-1 Design Specifications


OUTPUT PROCESSING

Medium, Content, Timing Computations, Program modules, Required reports, Timing of outputs

INPUT USER INTERFACE

Origin, Flow, Data Entry Simplicity, Efficiency, Logic, Feedback, Errors

DATABASE DESIGN MANUAL PROCEDURES

Logical data modelVolume & speed requirementsFile organization and designRecord specifications

What activitiesWho performs themWhenHowThere


Table 13-1 Design Specifications (cont.)


CONTROLS SECURITY

Input controls (characters, limit, reasonableness)Processing controls (consistency, record counts)Output controls (totals, samples of output)Procedural controls (passwords, special forms)

Access controlsCatastrophe plansAudit trails

DOCUMENTATION CONVERSION

Operations documentationSystem documentsUser documentation

Transfer filesInitiate new proceduresSelect testing methodCut over to new system


Table 13-1 Design Specifications (cont.)


TRAINING ORGANIZATIONAL CHANGES

Select training techniquesDevelop training modulesIdentify training facilities

Task redesignJob designProcess designOrganization structure designReporting relationships


Systems Development: Programming, Testing

• Programming :

• System specifications that were prepared during the design stage are translated into software program code.

• Testing :

• Unit testing (program testing)

• System testing

• Acceptance testing



Systems Development: Testing

• Testing type :

• Unit testing (program testing)

• Consists of testing each program separately in system

• The purpose is to guarantee that programs are error ree,

• A means of locating errors in programs

• System testing

• Test the functioning of the information system as a whole

• Examine the performance time, capacity for file storage, and handling peak loads, recovery and restart capabilities, and manual procedures.



Systems Development: Testing

• Testing type :

• Acceptance testing

• Provides the final certification that the system is ready to be used in a production setting.

• System tests are evaluated by users and reviewed by management.

• When all parties are satisfied that new system meet their standards, the system is formally accepted for installation.



Figure 13-4 A Sample Test Plan to test a record change



Systems Development: Conversion

• Conversion: process of changing from the old system to the new system.

• Four main conversion strategies:

• Parallel strategy

• Direct cutover

• Pilot study

• Phased approach



Systems Development: Conversion Strategies

• Parallel strategy

• Both old system and its potential replacement are run together for a time until everyone is assured that the new one functions correctly.

• Direct cutover strategy

• Replaces the old system entirely with the new system on an appointed day.

• Pilot study strategy

• Introduces the new system to only a limited area of the organization, such as a single department or operating unit.

• Phased approach strategy

• Introduces the new system in stages, either by functions or by organizational units.



Systems Development: Production & Maintenance

• Production

• The system will be reviewed by both users and technical specialists to determine how well it has met its original objectives and to decide whether any revisions or modifications are in order.

• Maintenance

• Includes changes in hardware, software, documentation, or procedures to a production system to correct errors, meet new requirements, or improve processing efficiency.

• 20% time for debugging or correcting emergency problems.

• 20% time for changing in data, files, reports, hardware, or system software.

• 60% time for making user enhancements, improving documentation, and recoding system components for greater processing efficiency.



Table 13-2 Systems Development


Core Activity Description

System analysis Identify problemsSpecify solutionsEstablish information requirements

System design Create design specifications

Programming Translate design specifications into program code

Testing Unit testSystem testAcceptance test

Conversion Plan conversionPrepare documentationTrain users and technical staff

Production and maintenance Operate the systemEvaluate the systemModify the system



• Modeling and designing systems: Structured and object-oriented methodologies

• Structured methodologies

• Object-oriented development

• Computer-aided software engineering



Figure 13-5 DFD for Mall-In University Registration System



High-Level Structure Chart for a Payroll SystemHigh-Level Structure Chart for a Payroll System

This structure chart shows the highest or most abstract level of design for a payroll system, providing an overview of the entire system.

Figure 13-6



Class and InheritanceClass and Inheritance

Figure 13-7

This figure illustrates how classes inherit the common features of their superclass.




Alternative Systems-Building Approaches

• Traditional systems life cycle

• Prototyping

• Steps in prototyping

• Advantages and disadvantages of prototyping

• End-user development

• Application software packages and outsourcing



Alternative Systems-Building Approaches

• Prototyping

• Is a working version of an I.S. or part of the system, but it is

meant to be only a preliminary model.

• Steps in prototyping

1. Identify the user’s basic requirements

2. Develop an initial prototype

3. Use the prototype

4. Revise and enhance the prototype



Figure 13-8 The Prototyping Process



• Rapid application development (RAD)• Describe process of creating workable systems in a very short

period of time.• Include the use of visual programming and other tools for building

graphical user interfaces.

Application Development for the Digital Firm



• Read the Interactive Session: Management, and then discuss the following questions:

• What is the basis for vendor firms claiming they can provide IT services more economically than a firm’s own IT staff?

• Why is it difficult to write iron-clad legal contracts specifying in detail strategic alliance outsourcing relationships?

• Why do joint ventures and co-sourcing outsourcing relationships have a better chance of success?

How to Get Outsourcing Right: Avoid Getting It Wrong

Application Development for the Digital Firm


13.1 © 2007 by Prentice Hall Week #09 Chapter 13: Building Information Systems Chapter 13: Building...

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