McGraw-Hill/Irwin ©2008,The McGraw-Hill Companies, All Rights Reserved

Chapter 10

Developing Business/IT Solutions

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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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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: Intuit Inc.: Innovation in Customer-Driven Development of Small Business and Consumer Software1

• Developing a good software product requires a lot of input from the users of the product.

• Communications with the users is very important in developing a good software application.

• Intuit’s exhaustive customer-driven application development process helped it develop its new successful QuickBooks software.

• Simple Start Edition of QuickBooks was a runaway success in small business accounting software.

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Case Study Questions

1. Should Intuit’s “far-out thinking” and acceptance of failure as part of the application software development process be duplicated at large software development companies like Microsoft and at the thousands of small independent software companies that exist? Why or why not?

2. Which do you prefer? Intuit’s customer-driven development process, in which hundreds of employees and managers are sent to consult with customers in their homes or places of business, or Microsoft’s process of using professional anthropologists do such research? Why?

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Case Study Questions

3. Intuit developed the wildly successful QuickBooks: Simple Start Edition, which eliminated all accounting jargon. Could this idea be the foundation of a new version of Intuit’s top-selling TurboTax software, which removed all tax accounting jargon from that product to reach a major segment of the 20 million Americans who do not use tax preparation software or a professional tax preparer? Would such a product be possible or successful? Why or why not?

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Real World Internet Activity

1. Use the Internet to analyze the current market leaders in personal finance products like Quicken and small business accounting software like QuickBooks. Is Intuit still the dominant market leader? Are there any old players losing market share to Intuit or to new entrants in the market? Conduct research to discover the reasons for any such developments.

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Real World Group Activity

2. Do you agree with Scott Cook’s belief that if at first you don’t fail, you’re not doing your job, and with his “savoring the surprise” credo? Why or why not?

– Discuss your positions on these issues and if they could be applied successfully to other jobs or businesses.

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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 thinking

2. Develop and evaluate alternative system solutions

3. Select the system solution that best meets your requirements

4. Design the selected system solution

5. 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 & D– Overall process by which IS are designed and

implemented within organizations

• Two most common approaches to SA & D– Object-oriented analysis and design– Systems 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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Feasibility Categories

• Operational Feasibility• Economic Feasibility• Technical Feasibility• Human Factors Feasibility• Legal/Political Feasibility

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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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Economic Feasibility

• Assess:– Cost savings– Increased revenue– Decreased investment requirements– Increased profits

• Cost/benefit analysis

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Cost/Benefit Analysis

• Costs versus Benefits• Tangible costs and benefits can be quantified

with a high degree of certainty– Example: decrease in operating costs

• Intangible costs and benefits are harder to estimate– Example: improved customer service

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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 time– Hardware– Software– Network

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Human Factors Feasibility

• Assess– Employee, customer, supplier acceptance– Management support– The right people for the various new or revised roles

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Legal/Political Feasibility

• Assess– Possible patent or copyright violations– Software licensing for developer side only– Governmental restrictions– Changes to existing reporting structure

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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 of– The 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 Structure– People– Business Activities– Environmental Systems– Current 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 model– A blueprint of what the current system does

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Functional Requirements Analysis and Determination

• Determine specific business information needs1. 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 do• Functional Requirement categories

– User Interface– Processing– Storage– Control

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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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Prototyping

• The rapid development and testing of working models

• Used in design phase• Especially 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 systems– But if system is large, usually prototype just parts

• Develop quickly• Refine 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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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 methods– Products– Database structures– Processing– Control procedures

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

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End User Development

• IS professional plays a consulting role• End user does his/her own application

development

• Contrast in traditional life cycle:– End user is customer– IS 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 sense• Spur creativity• Set some limits• Give managers responsibility• Make users comfortable

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Case 2: Infosys Technologies: The Implementation Challenges of Knowledge Management Initiatives

• Infosys has a long history of trying to leverage knowledge created by its employees for corporate advantage.

• The incentive system they created to encourage employees to contribute their knowledge created more problem than the management anticipated.

• Eventually Infosys had to change their incentive system.

• Knowledge management requires much more than technology.

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Case Study Questions

1. Why do you think the knowledge management system at Infosys faced such serious implementation challenges? Defend your answer with examples from the case.

2. What steps did the KM group at Infosys take to improve participation in the KM system? Why were some of these initiatives counterproductive? The KM group responded with corrective initiatives. Do you think these will succeed? Why or why not?

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Case Study Questions

3. What change management initiatives should the KM group have initiated at Infosys before attempting to develop and implement knowledge management at the company? Defend your proposals, paying particular attention to the final quote in the case by a long-time KM manager at Infosys.

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Real World Internet Activity

1. Research the Internet to find examples of successful implementations of knowledge management systems. What successes do these companies claim, and what reasons do they give for their successful KM initiatives?

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Real World Group Activity

2. If knowledge management would succeed anywhere, one would think it would be a smashing success at a progressive successful IT company like Infosys.

• Discuss what change management and other implementation strategies and tactics you would use to ensure a successful KM initiative at Infosys, one of the companies you found in your previous Internet research, or a company of your choice.

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Systems Implementation

• Hardware and software acquisition• Software development• Testing of programs and procedures• Conversion of data resources• Conversion alternatives• Education 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, and– financial budgets

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Sample Implementation Process Plan

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Project

• A project– Is a set of activities with a clear beginning and end

• Each project has– Goals– Objectives– Tasks– Limitations

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Managing a project

• To manage a project need:– Process– Tools– Techniques

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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, software• How do we evaluate and select it?• Companies may ask suppliers to present bids

and proposals• May score different products

– Determine evaluation factors– Assign each product points on each factor– May require benchmark tests

• Simulate processing of task and evaluates the performance

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Hardware Evaluation Factors

• Performance• Cost• Reliability• Compatibility• Technology• Ergonomics• Connectivity• Scalability• Software• Support

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Software Evaluation Factors

• Quality• Efficiency• Flexibility• Security• Connectivity• Maintenance• Documentation• Hardware

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Examples of IS Services

• Developing a company website• Installation or conversion of hardware or

software• Employee training• Hardware maintenance• System integration• System design• Contract programming• Consulting services

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IS Services Evaluation Factors

• Performance• Systems development• Maintenance• Conversion• Training• Backup• Accessibility• Business Position• Hardware• Software

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System Testing

• Testing and debugging software• Testing website performance• Testing new hardware• Review 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 data• Filtering out unwanted data• Consolidating data from several databases• Organizing 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 documentation– Sample data entry screens, forms, reports

• Systems documentation– Communication 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 system• Turn on new system

• Direct is least expensive method• Riskiest 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 risk• Highest 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 location• Once complete in pilot location,

– Evaluate and make any necessary changes

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Phased Conversion

• Incremental approach to conversion• Bring in new system as a series of functional

components

• Lower risk• Takes the most time

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Systems maintenance

• Corrective: fix bugs and logical errors• Adaptive: add new functionality to accommodate

changes in business or environment• Perfective: improve performance• Preventive: 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 processes– Organizational structures– Managerial roles– Work assignments – Stakeholder relationships

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User Resistance

• New way of doing things generates resistance• Key to solving is

– User involvement in organizational changes and development of new systems

• User involvement– End users on systems development teams– End 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: Indiana University: Financial Aid System Implementation: Success or Failure?

• Success or failure is in the eye of the beholder• At Indiana University, implementation of

PeopleSoft ERP– Left students without access to promised financial aid– Problem was not with software

– What was the problem?

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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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Real World Group Activity

1. The project described in the case was an example of a large-scale software deployment of vendor software.

– 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?