B ildi I f tiBuilding Information Systemsis.cba.edu.kw/240/Handouts/ch11.pdf · Total Cost of...

11Chapter

B ildi I f tiB ildi I f tiB ildi I f tiB ildi I f tiBuilding Information Building Information SystemsSystems

Building Information Building Information SystemsSystemsSystemsSystemsSystemsSystems

11.1 © 2007 by Prentice Hall

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 11 Building Information SystemsChapter 11 Building Information Systems

STUDENT OBJECTIVES

Wh t th bl l i t f• What are the core problem-solving steps for developing new information systems?

What are the alternative methods for building• What are the alternative methods for building information systems?

• What are the principal methodologies for• What are the principal methodologies for modeling and designing systems?

• How should information systems projects be o s ou d o at o syste s p ojects beselected and evaluated?

• How should information systems projects be


managed?


A New Ordering System for Girl Scout Cookies

• Problem: InefficientProblem: Inefficient manual procedures, high error rate.S l i Eli i• Solutions: Eliminate manual procedures, design new ordering process, and implement database building software to batch and track orders automatically and schedule order


pickups.



• Problem: Inefficient manual procedures, high errorProblem: Inefficient manual procedures, high error rate.

• Solutions: Eliminate manual procedures, design new d i d i l d b b ildiordering 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


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


Problem Solving and Systems Development

New information systems are built as solutions to• New information systems are built as solutions to problems

• Four steps to building an information system• Four steps to building an information system• Define and understand the problem

• Develop alternative solutions• Develop alternative solutions

• Evaluate and choose a solution

Implement the sol tion• Implement the solution

• The first three steps are called systems analysis




Developing an Information System SolutionDeveloping an Information System Solutione e op g a o at o Syste So ut oe e op g a o at o Syste So ut o


Figure 11-1Developing an information system solution is based on the problem-solving process.


Defining and Understanding the ProblemDefining and Understanding the Problem


e g a d U de sta d g t e ob ee g a d U de sta d g t e ob e

• What caused the problem?

• Why does it persist?

• Why hasn’t it been solved?

• What are the objectives of a solution?

• Information requirementsInformation requirements




Developing Alternative SolutionsDeveloping Alternative Solutionse e op g te at e So ut o se e op g te at e So ut o s

• Paths to a solution determined by systems analysisanalysis

• Some solutions do not require an information systemsystem

• Some solutions require modification of existing systemssystems

• Some solutions require new systems



Evaluating and Choosing SolutionsEvaluating and Choosing Solutions


a uat g a d C oos g So ut o sa uat g a d C oos g So ut o s

• Feasibility issues

• Costs and benefits

• Advantages and disadvantages

• Business value of systems

• Change managementChange management



Implementing the SolutionImplementing the Solution


p e e t g t e So ut op e e t g t e So ut o

• Systems design

• Completing implementation• Hardware selection and acquisition• Software development and programming• Software development and programming• Testing• Training and documentation• Conversion• Production and maintenance


• Managing the change


A Sample Test Plan for the Girl Scout Cookie SystemA Sample Test Plan for the Girl Scout Cookie System

Alternative Systems-Building Approaches

Sa p e est a o t e G Scout Coo e SysteSa p e est a o t e G Scout Coo e Syste

Figure 11-2gWhen developing a test plan, it is imperative to include the various conditions to be tested, the requirements for each condition tested, and the


expected results. Test plans require input from both end users and information systems specialists.


Traditional Systems Development LifecycleTraditional Systems Development Lifecycle


ad t o a Syste s e e op e t ecyc ead t o a Syste s e e op e t ecyc e

• Oldest method for building information systems

• Phased approach with formal stages

• Waterfall approach

• Formal division of labor

• Used for building large, complex systemsUsed for building large, complex systems

• Time consuming and expensive to use



The Traditional Systems Development LifecycleThe Traditional Systems Development Lifecycle


e ad t o a Syste s e e op e t ecyc ee ad t o a Syste s e e op e t ecyc e

The systems development lifecycle partitions


Figure 11-3systems development into formal stages, with each stage requiring completion before the next stage can begin.


PrototypingPrototyping


ototyp gototyp g

• Preliminary model built rapidly and inexpensively

• Four-step process• Identify the user’s basic requirementsIdentify the user s basic requirements

• Develop an initial prototype

• Use the prototype

• Revise and enhance the prototype

• Especially useful in designing a user interface


p y g g


The Prototyping ProcessThe Prototyping Process


e ototyp g ocesse ototyp g ocess

Figure 11-4The process of developing a prototype consists of four steps. Because a prototype can be developed quickly and inexpensively, systems


builders can go through several iterations, repeating steps 3 and 4, to refine and enhance the prototype before arriving at the final operational one.


EndEnd--User DevelopmentUser Development


dd Use e e op e tUse e e op e t

• End users create simple information systems with little or no assistance from technical specialistslittle or no assistance from technical specialists

• Use fourth-generation languages, graphics languages and PC software tools to access datalanguages, and PC software tools to access data, create reports, and develop information systems

• Completed more rapidly than systems developedCompleted more rapidly than systems developed with conventional tools

• Organizational risks


g


Purchasing Solutions: Application Software Packages Purchasing Solutions: Application Software Packages


u c as g So ut o s pp cat o So t a e ac agesu c as g So ut o s pp cat o So t a e ac agesand Outsourcingand Outsourcing

• Request for Proposal (RFP)

• Application software packages• Generalized systems for universal functions with standard y

processes

• Customization

• Outsourcing• Application service providers (ASPs)


• Offshore outsourcing


Total Cost of Offshore OutsourcingTotal Cost of Offshore Outsourcing


ota Cost o O s o e Outsou c gota Cost o O s o e Outsou c g

If a firm spends $10 million on offshore outsourcing contracts, that company will actually spend 15.2 percent in extra costs even under the best case scenario In the worst case scenario where there is a dramatic drop in productivity along with exceptionally high transition and


Figure 11-5

best-case scenario. In the worst-case scenario, where there is a dramatic drop in productivity along with exceptionally high transition and layoff costs, a firm can expect to pay up to 57 percent in extra costs on top of the $10 million outlay for an offshore contract.


Rapid Application Development for ERapid Application Development for E--BusinessBusiness


ap d pp cat o e e op e t oap d pp cat o e e op e t o us essus ess

• Agility and scalability

• Rapid application development (RAD)• Creating workable systems in a very short period of

timetime

• Joint application design (JAD)E d d i f ti t i li t• End users and information systems specialists working together on design



Modeling and Designing Systems

• Structured methodologies• Data flow diagram• Process specifications• Structure chart

Object oriented de elopment• Object-oriented development• Based on concepts of class and inheritance• Component-based development and Web servicesComponent based development and Web services

• Computer-aided software engineering (CASE)



Data Flow Diagram for MailData Flow Diagram for Mail--in University in University


ata o ag a o aata o ag a o a U e s tyU e s tyRegistration SystemRegistration System

Figure 11-6The system has three processes: Verify availability (1.0), Enroll student (2.0), and Confirm registration (3.0). The name and content of each of the data flows appear adjacent to each arrow. There is one external entity in this system: the t d t Th t


student. There are two data stores: the student master file and the course file.


HighHigh--Level Structure Chart for a Payroll SystemLevel Structure Chart for a Payroll System


gg e e St uctu e C a t o a ay o Systee e St uctu e C a t o a ay o Syste

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


Figure 11-7

g g p y y , p g y


Class and InheritanceClass and Inheritance


C ass a d e ta ceC ass a d e ta ce


Figure 11-8This figure illustrates how classes inherit the common features of their superclass.


Project Management ObjectivesProject Management Objectives

Project Management

oject a age e t Object esoject a age e t Object es• Project

• Planned series of related activities for achieving a specific business objectivebusiness objective

• Project Management• Application of knowledge, skills, tools, and techniques to

hi t t ithi ifi d b d t d ti t i tachieve targets within specified budget and time constraints• Scope• TimeTime• Cost• Quality


• Risk


Selecting Projects:Selecting Projects:

Project Management

Se ect g ojectsSe ect g ojectsMaking the Business Case for a New SystemMaking the Business Case for a New System

• Determining project costs and benefitsT ibl b fit• Tangible benefits

• Intangible benefits• Capital budgeting methodsp g g

• Information systems plan

• Portfolio analysis• Portfolio analysis• Scoring model



A System PortfolioA System Portfolio

Project Management

Syste o t o oSyste o t o o

Companies should examine their portfolio of projects in terms of potential benefits and likely risks. Certain kinds of projects should be avoided altogether and others developed


Figure 11-9

avoided altogether and others developed rapidly. There is no ideal mix. Companies in different industries have different information systems needs.


Managing Project Risk and SystemManaging Project Risk and System--related Changerelated Change

Understanding the Business Value of Systems and Managing Change

a ag g oject s a d Systea ag g oject s a d Syste e ated C a gee ated C a ge

• Implementation and change management• Implementation• Implementation• User-designer communications gap

• Controlling risk factorsg• Formal planning and tools• Gantt Chart• PERT chart

• Overcoming user resistance• Ergonomics• Organizational impact analysis


• Organizational impact analysis


A Gantt ChartA Gantt Chart

Project Management

Ga tt C a tGa tt C a t

The Gantt chart in this figure shows the task, person-days, and initials of each responsible person, as well as the start and finish dates for each task. The resource summary provides a good manager with the total person-days for each month and for each


Figure 11-10A

y p g g p yperson working on the project to manage the project successfully. The project described here is a data administration project.



Project Management



Figure 11-10B



Project Management



Figure 11-10C



Project Management


Thi i i lifi d PERT h t f ti ll W b it It h th d i f j t t k d th


Figure 11-11

This is a simplified PERT chart for creating a small Web site. It shows the ordering of project tasks and the relationship of a task with preceding and succeeding tasks.


Interactive Session: PeopleInteractive Session: People


te act e Sess o eop ete act e Sess o eop eDorfman Pacific Rolls Out a New Wireless WarehouseDorfman Pacific Rolls Out a New Wireless Warehouse

• Read the Interactive Session and then discuss the following questions:following questions:• Compare Dorfman Pacific’s old and new order-picking processes.

Diagram the processes.

• What role did end users play in developing Dorfman’s wireless warehouse system? What would have happened to the project if users hadn’t been so involved? Explain your answer.

• What types of system-building methods and tools did Dorfman use for building its wireless warehouse system?

• How did the new system change the way Dorfman ran its business?


y g y

• What problems did the new system solve? Was it successful?


Interactive Session: OrganizationsInteractive Session: Organizations


te act e Sess o O ga at o ste act e Sess o O ga at o sWhat Went Wrong with Maine’s New Medicaid System?What Went Wrong with Maine’s New Medicaid System?• Read the Interactive Session and then discuss the

following questions:following questions:• How important are information systems for Maine’s Department

of Human Services? Analyze the impact of its faulty Medicaid claims processing system.

• Evaluate the risks of the Medicaid claims processing system project and key risk factors.

• Classify and describe the problems the Maine Department of Human Services faced in implementing its new Medicaid claims processing system. What people, organization, and technology factors caused these problems?

• Describe the steps you would have taken to control the risk in the Maine Medicaid project. If you were in charge of managing thi j t h t l ld h d diff tl t


this project, what else would you have done differently to increase chances for success?

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