Building and Implementing Information Systems - Dec. 2012

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Case: Blue Cross - Development Challenges

• Good Web-based Self-service:• Customer satisfaction soars

• Call center costs plummet as customers answer their own questions, enter their own credit card numbers and change their own passwords without extensive live help

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Bad Web-Based Self-Service:• Frustrated customers click to a competitor’s site

• Frustrated customers dial up your call center

• Customer is unhappy• You have paid both for self service web site and for a call center

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1. Why do more than a third of all Web self-service customers get frustrated and end up calling a help center? Use the experiences of Blue Cross-Blue Shield and AT&T Wireless to help you answer.

A: A poorly designed web interface with a confusing sequence of options or asking them Questions they cannot answer

A: Cumbersome drop down boxesA: Wording hard to understandA: Requiring customers to indicate which network

they are using, which most did not know

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2. What are some solutions to the problems users may have with Web self-service? Use the experiences of the companies in this case to propose several solutions.

A: Using a focus group of end users to test the prototype

A: Redesign the web site to automatically send customers to the correct network site

A: Setting aside money and time for maintaining the site

A: Designing flexibility into application interfaces and business rules so the site can be changed as needed

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Case: Blue Cross - Development Challenges – Take Away• Web self service should be good• Bad web based self service will have

frustrated customers, who may switch to competitors

• Some major customers don’t do business with you if you do not have a good web based self service capabilities

• Important to communicate with business units & end users during the design phase

• Testing the prototype by a focus group of end users

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Case: Blue Cross - Development Challenges – Take Away• Do not ask questions to customers of

which they do not know the answers• Setting aside money and time for

maintaining the site• Designing flexibility into application

interface and business rules so the site can be changed as needed

• Software helps speed up the development process e.g. JRules

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DEVELOPING SOFTWARE

• Software that is built correctly can transform as the organization and its business transforms

• Software that effectively meets employee needs will help an organization become more productive and enhance decision making

• Software that does not meet employee needs may have a damaging effect on productivity and can even cause a business to fail

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DEVELOPING SOFTWARE

• As organizations’ reliance on software grows, so do the business-related consequences of software successes and failures including: Increase or decrease revenue Repair or damage to brand reputation Prevent or incur liabilities Increase or decrease productivity

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Overview of Systems Development

• Systems development:

Activities that go into producing an information system solution to an organizational problem or opportunity

Systems analysis Systems design Programming Testing Conversion Production and maintenance

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THE SYSTEMS DEVELOPMENT PROCESS

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

FIGURE 13-4

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• Systems analysis

Analysis of problem to be solved by new system Defining the problem and identifying causes Specifying solutions

Systems proposal report identifies and examines alternative solutions

Identifying information requirements

Includes feasibility study Is solution feasible and good investment? Is required technology, skill available?


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• System analysis (cont.)

Establishing information requirements Who needs what information, where, when,

and how Define objectives of new/modified system Detail the functions new system must perform

Faulty requirements analysis is leading cause of systems failure and high systems development cost


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• Systems design

Describes system specifications that will deliver functions identified during systems analysis

Should address all managerial, organizational, and technological components of system solution

Role of end users User information requirements drive system building Users must have sufficient control over design process

to ensure system reflects their business priorities and information needs

Insufficient user involvement in design effort is major cause of system failure


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OUTPUTMediumContentTiming

INPUTOriginsFlowData entry

USER INTERFACESimplicityEfficiencyLogicFeedbackErrors

DATABASE DESIGNLogical data modelVolume and speed requirementsFile organization and designRecord specifications

PROCESSINGComputationsProgram modulesRequired reportsTiming of outputs

MANUAL PROCEDURESWhat activitiesWho performs themWhenHowWhere

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

SECURITYAccess controlsCatastrophe plansAudit trails

DOCUMENTATIONOperations documentationSystems documentsUser documentation

CONVERSIONTransfer filesInitiate new proceduresSelect testing methodCut over to new system

TRAININGSelect training techniquesDevelop training modulesIdentify training facilities

ORGANIZATIONAL CHANGESTask redesignJob redesignProcess designOrganization structure designReporting relationships

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• Programming:

System specifications from design stage are translated into software program code

• Testing

Ensures system produces right results

Unit testing: Tests each program in system separately

System testing: Test functioning of system as a whole

Acceptance testing: Makes sure system is ready to be used in production setting

Test plan: All preparations for series of tests


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A SAMPLE TEST PLAN TO TEST A RECORD CHANGE

When 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.

FIGURE 13-5

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• Conversion

Process of changing from old system to new system

Four main strategies Parallel strategy Direct cutover Pilot study Phased approach

Requires end-user training

Finalization of detailed documentation showing how system works from technical and end-user standpoint


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• Production and maintenance

System reviewed to determine if revisions needed

May include post-implementation audit document

Maintenance Changes in hardware, software, documentation, or

procedures to a production system to correct errors, meet new requirements, or improve processing efficiency

20% debugging, emergency work 20% changes to hardware, software, data,

reporting 60% of work: User enhancements, improving

documentation, recoding for greater processing efficiency


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SUMMARY OF SYSTEMS DEVELOPMENT ACTIVITIES

CORE ACTIVITY DESCRIPTION

Systems analysis Identify problem(s)Specify solutionsEstablish information requirements

Systems design Create design specifications

Programming Translate design specifications into code

Testing Unit testSystems testAcceptance test

Conversion Plan conversionPrepare documentationTrain users and technical staff

Production and maintenance

Operate the systemEvaluate the systemModify the system

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• Most prominent methodologies for modeling and designing systems:

Structured methodologies

Object-oriented development

• Structured methodologies

Structured: Techniques are step-by-step, progressive

Process-oriented: Focusing on modeling processes or actions that manipulate data

Separate data from processes


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• Data flow diagram:

Primary tool for representing system’s component processes and flow of data between them

Offers logical graphic model of information flow

High-level and lower-level diagrams can be used to break processes down into successive layers of detail

• Data dictionary: Defines contents of data flows and data stores

• Process specifications: Describe transformation occurring within lowest level of data flow diagrams

• Structure chart: Top-down chart, showing each level of design, relationship to other levels, and place in overall design structure


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DATA FLOW DIAGRAM FOR MAIL-IN UNIVERSITY REGISTRATION SYSTEM

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

FIGURE 13-6

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HIGH-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 13-7

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THE SYSTEMS DEVELOPMENT LIFE CYCLE

• Systems development life cycle (SDLC) – the overall process for developing information systems from planning and analysis through implementation and maintenance

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1. Planning phase – involves establishing a high-level plan of the intended project and determining project goals

2. Analysis phase – involves analyzing end-user business requirements and refining project goals into defined functions and operations of the intended system

• Business requirement – detailed set of business requests that the system must meet in order to be successful

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3. Design phase – involves describing the desired features and operations of the system including screen layouts, business rules, process diagrams and other documentation

4. Development phase – involves taking all of the detailed design documents from the design phase and transforming them into the actual system

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5. Testing phase – involves bringing all the project pieces together into a special testing environment to test for errors, bugs, and interoperability and verify that the system meets all of the business requirements defined in the analysis phase

6. Implementation phase – involves placing the system into production so users can begin to perform actual business operations with the system

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7. Maintenance phase – involves performing changes, corrections, additions, and upgrades to ensure the system continues to meet the business goals

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SOFTWARE DEVELOPMENT METHODOLOGIES

• There are a number of different software development methodologies including:

Agile Waterfall Rapid application development (RAD) Extreme programming Rational unified process (RUP) Scrum

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WATERFALL METHODOLOGY

• Waterfall methodology – an activity-based process in which each phase in the SDLC is performed sequentially from planning through implementation and maintenance

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AGILE METHODOLOGY

• Agile methodology – aims for customer satisfaction through early and continuous delivery of components developed by an iterative process

An agile project sets a minimum number of requirements and turns them into a deliverable product

Iterative development – consists of a series of tiny projects

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RAPID APPLICATION DEVELOPMENT METHODOLOGY (RAD)

• Rapid application development methodology (RAD) – emphasizes extensive user involvement in the rapid and evolutionary construction of working prototypes of a system to accelerate the systems development process

• The prototype is an essential part of the analysis phase when using a RAD methodology

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RAPID APPLICATION DEVELOPMENT METHODOLOGY (RAD)

• Fundamentals of RAD Focus initially on creating a prototype that

looks and acts like the desired system Actively involve system users in the

analysis, design, and development phases Accelerate collecting the business

requirements through an interactive and iterative construction approach

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EXTREME PROGRAMMING METHODOLOGY

• Extreme programming (XP) methodology – breaks a project into tiny phases, and developers cannot continue on to the next phase until the first phase is complete

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IMPLEMENTING AGILE METHODOLOGIES

• The Agile Alliance Manifesto Early and continuous delivery of valuable

software will satisfy the customer Changing requirements are welcome Business people and developers work

together Projects need motivated individuals Use self-organizing teams Reflect on how to become more effective

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DEVELOPING SUCCESSFUL SOFTWARE

• Primary principles for successful agile software development include:

Slash the budget If it doesn’t work, kill it Keep requirements to a minimum Test and deliver frequently Assign non-IT executives to software

projects

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Systems Development Lifecycle (SDLC)

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Systems Development Life Cycle - PHASE 1: PLANNING

• Planning phase – involves establishing a high-level plan of the intended project and determining project goals

• Primary planning activities include1. Identify and select the system for

development2. Assess project feasibility3. Develop the project plan

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PLANNING 1: Identify and Select the System for Development• Organizations use different forms to

determine which systems to develop Critical success factor (CSF) – a factor

that is critical to an organization’s success

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PLANNING 2: Assess Project Feasibility

• Feasibility study – determines if the proposed solution is feasible and achievable from a financial, technical, and organizational standpoint

• Different types of feasibility studies Operational feasibility Economic feasibility Technical feasibility Human Factors feasibility Legal and Political feasibility

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Feasibilty Study

• Feasibility Studies: a preliminary study to determine the Information needs of prospective users Resource requirements Costs Benefits Feasibility

• In some cases, a feasibility study is unnecessary

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Operational Feasibility

• How well the proposed system will Support the business priorities of the

organization

Solve the identified problem

Fit with the existing organizational structure

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Economic Feasibility

• An assessment of Cost savings

Increased revenue

Decreased investment requirements

Increased profits

Cost/benefit analysis

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Technical Feasibility

• Determine the following can meet the needs of a proposed system and can be acquired or developed in the required time Hardware

Software

Network Technical competence of the Developers Technical competence of the users

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Human Factors Feasibility

• Assess the acceptance level of Employees Customers Suppliers Management support

• Determine 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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Feasibility

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Cost/Benefit Analysis

• Tangible – costs or benefits that can be quantified

• Intangible – costs or benefits that can not be quantified

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Examples of Benefits

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PLANNING 3: Develop the Project Plan

• Developing the project plan is a difficult and important activity

• The project plan is the guiding force behind on-time delivery of a complete and successful system

• Continuous updating of the project plan must be performed during every subsequent phase during the SDLC

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Systems Development Life Cycle – PHASE 2: ANALYSIS

• Analysis phase – involves analyzing end-user business requirements and refining project goals into defined functions and operations of the intended system

• Primary analysis activities include1. Gather business requirements2. Create process diagrams3. Perform a buy vs. build analysis

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ANALYSIS 1: Gather Business Requirements

• Business requirements – the detailed set of business requests that the system must meet in order to be successful

• Different ways to gather business requirements

Joint application development (JAD) session – where employees meet to define or review the business requirements for the system

Interviews Questionnaires Observations Review business documents

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ANALYSIS 1: Gather Business Requirements

• The system users review the requirements definition document and determine if they will sign-off on the business requirements

Requirements definition document – contains the final set of business requirements, prioritized in order of business importance

Sign-off – the system users’ actual signatures indicating they approve all of the business requirements

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ANALYSIS 2: Create Process Diagrams

• Process modeling – graphically representing the processes that capture, manipulate, store, and distribute information between a system and its environment

• Common process modeling diagrams include Data flow diagram (DFD) – illustrates the

movement of information between external entities and the processes and data stores within the system

Computer-aided software engineering (CASE) tools –automate systems analysis, design, and development

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ANALYSIS 2: Create Process Diagrams

• Sample data flow diagram

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ANALYSIS 3: Perform a Buy vs. Build Analysis

• An organization faces two primary choices when deciding to develop an information system1. Buy the information system from a vendor

– Commercial off-the shelf (COTS) – software package or solution that is purchased to support one or more business functions and info. systems

– SCM, CRM, and ERP solutions are typically COTS

2. Build the information system itself

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• Organizations must consider the following when making a buy vs. build decision:

Are there any currently available products that fit the organization’s needs?

Are there features that are not available and important enough to warrant the expense of in-house development?

Can the organization customize or modify an existing COTS to fit its needs?

Is there a justification to purchase or develop based on the cost of acquisition?

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• Three key factors an organization should also consider when contemplating the buy vs. build decision:

1. Time to market2. Availability of corporate resources3. Corporate core competencies

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Functional Requirements

Definition:• 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

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Functional Requirement Categories

• User Interface

• Processing

• Storage

• Control

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Example of Functional Requirements

• User Interface: automatic entry of product data and easy-to-use data entry screens for Web customers

• Processing: fast, automatic calculation of sales totals and shipping costs

• Storage: fast retrieval and update of data from product, pricing, and customer databases

• Control: signals for data entry errors and quick e-mail confirmation for customers

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Systems Development Life Cycle – PHASE 3: DESIGN

• Design phase – involves describing the desired features and operations of the system including screen layouts, business rules, process diagrams, pseudo code, and other documentation

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Systems Design

Definition:• Design activities that produce system specifications satisfying the functional requirements that were developed in the systems analysis process

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System Design Categories

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User Interface Design

Definition:• Focuses on supporting the interactions between end users and their computer-based applications

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User Interface Design

• Focuses on supporting the interactions between end users and their computer-based applications

Designers concentrate on the design of attractive and efficient forms of user input and output

Frequently a prototyping process

Produces detailed design specifications for information products, such as display screens

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Checklist for Corporate Websites

• Remember the customer• Aesthetics• Broadband content• Easy to navigate• Searchability• Incompatibilities• Registration forms• Dead links

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System Specifications

• Formalizing the design of

User interface methods and products

Database structures

Processing procedures

Control procedures

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• 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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• Easy to navigate – make sure it’s easy to get from one part of site to another

• Searchability – include a useful search engine

• Incompatibilities – test site with target web browsers

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• 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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Systems Development Life Cycle – PHASE 4: DEVELOPMENT

• Development phase – involves taking all of the detailed design documents from the design phase and transforming them into the actual system

• Primary development activities include:1. Develop the IT infrastructure2. Develop the database and programs

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DEVELOPMENT 1: Develop the IT Infrastructure

• The platform upon which the system will operate must be built prior to building the actual system

• In the development phase, the organization purchases and implements the required equipment to support the IT infrastructure

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DEVELOPMENT 2: Develop the Database and Programs

• Once the IT infrastructure is built, the organization can begin to create the database and write the programs required for the system

• IT specialists perform the majority of the tasks associated with the development phase

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Systems Development Life Cycle – PHASE 5: TESTING

• Testing phase – involves bringing all the project pieces together into a special testing environment to test for errors, bugs, and interoperability, in order to verify that the system meets all the business requirements defined in the analysis phase

• Primary testing activities include:1. Write the test conditions2. Perform the system testing

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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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TESTING 1: Write the Test Conditions

• Test condition – the detailed steps the system must perform along with the expected results of each step

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TESTING 2: Perform the System Testing

• Different types of testing: Unit testing – tests each unit of code upon

completion Application (or system) testing – verifies that all

units of code work together Integration testing – exposes faults in the

integration of software components or units Backup and recovery testing – tests the ability of

an application to be restarted after failure Documentation testing – verifies instruction

guides are helpful and accurate User acceptance testing (UAT) – tests if a system

satisfies its acceptance criteria

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Systems Development Life Cycle – PHASE 6: IMPLEMENTATION

• Implementation phase – involves placing the system into production so users can begin to perform actual business operations with the system

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Implementing New Systems

• The systems implementation stage involves

Hardware and software acquisition

Software development

Testing of programs and procedures

Conversion of data resources

Conversion alternatives

Education/training of end users and specialists who will operate the new system

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Other Implementation Activities

• The keys to successful implementation of

a new business system

Testing

Data conversion

Documentation

Training

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Data Conversion

• Data conversion includes Converting data elements from the old

database to the new database Correcting data errors Filtering out unwanted data Consolidating data from several databases Organizing data into new data subsets

• Improperly organized and formatted data is a major cause of implementation failures

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Importance of Documentation

• Documentation serves as a method of communication among the people responsible for developing, implementing, and maintaining a computer-based system.

• Documentation is extremely important in diagnosing errors and making changes, especially if the end users or systems analysts who developed a system are no longer with the organization.

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Documentation

• User Documentation Sample data entry screens, forms, reports System operating instructions

• Systems Documentation Method of communication among those

developing, implementing, and maintaining a computer-based system

Detailed record of the system design Extremely important when diagnosing

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Training

• End users must be trained to operate a new business system or its implementation will fail May involve only activities, such as data entry,

or all aspects of system use Managers and end users must understand how

the new technology impacts business operations

• System training should be supplemented with training related to Hardware devices Software packages

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Major System Conversion Strategies

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Direct Conversion

• Direct conversion The simplest conversion strategy The most disruptive to the organization Sometimes referred to as the slam dunk or

cold-turkey strategy May be the only viable solution in cases of

emergency implementation or if the old and new system cannot coexist

Has the highest risk of failure Involves turning off the old system and turning

on the new one

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Parallel Conversion

• Old and new systems are run simultaneously until everyone is satisfied that The new system functions correctly The old system is no longer needed

• Conversion to new system can be single cutover or phased cutover

• Has the lowest risk, but the highest cost Can cost 4 times more than using the old system

• Best choice where an automated system is replacing a manual one

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Pilot Conversion

• Scenarios best suited to a pilot conversion Multiple business locations Geographically diverse locations

• Advantages of single location conversion Can select a location that best represents

the conditions across the organization Less risky in terms of loss of time or delays

in processing Can be evaluated and changed before further

installations

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Phased Conversion

• A phased or gradual conversion Takes advantage of both the direct and parallel

approaches Minimizes the risks involved Allows the new system to be brought online

as logically ordered functional components

• Disadvantages Takes the most time Created the most disruption to the organization

over time

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Implementation Process

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Systems Development Life Cycle – PHASE 7: MAINTENANCE

• Maintenance phase – involves performing changes, corrections, additions, and upgrades to ensure the system continues to meet the business goal

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Post-Implementation Activities

• The single most costly activity Correcting errors or faults in the system

Improving system performance

Adapting the system to changes in the operating or business environment

Requires more programmers than does application development

May exist for years

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Systems Maintenance

• There are four basic categories of system maintenance Corrective: fix bugs and logical errors

Adaptive: add new functionality

Perfective: improve performance

Preventive: reduce chances of failure

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Post-Implementation Review

• Ensures that the newly implemented system meets the established business objectives Errors must be corrected by the

maintenance process

Includes a periodic review/audit of the system as well as continuous monitoring

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Software Problems Are Business Problems

• Primary reasons for project failure include

Unclear or missing business requirements Skipping SDLC phases Failure to manage project scope

o Scope creep – occurs when the scope increases

o Feature creep – occurs when extra features are added

Failure to manage project plan Changing technology

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Case Study: Hewlett-Packard: Managing Radical Change

• Some facts about Randy Mott & his earlier achievements In Wal-Mart, he had only 30 tech staff

Yet they developed a network of computerized distribution centers that made it simple to open and run new store with cookie cutter efficiency

In 1990, as a CIO, he persuaded higher ups to invest in Data Warehouse

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• Some facts about Randy Mott & his earlier achievements With that the company was able to analyze

buying trends of customers as no other company had done.

In 2005, he took up the job of CIO in HP He understood not only technology and how to

use it to improve business, but how to deliver those benefits

In Dell, he meld 100 separate systems into a single data warehouse.

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• Some facts about Randy Mott & his earlier achievements Mott’s team enabled Dell to quickly spot

its inventory for a particular chip, so the company could offer online promotions for devices containing that part before the prices fell too steeply.

Most challenging project - 3 year, $1 billion plus makeover of HP internal tech systems

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• HP is embarking on a makeover of its internal tech systems Replacing 85 loosely connected data centers

around the world with 6 cutting-edge facilities Cutting thousands of smaller projects to focus

on a few corporate-wide initiatives Scrapping 784 databases for one data

warehouse Laying off thousands of IT workers Building its own fiber-optic network to connect

the six data centers

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• HP is embarking on a makeover of its internal tech systems If Mott is successful, HP’s annual

spending on tech should be cut in half in the years ahead, from $3.5 billion in 2005.

Data warehouse could help HP make headway on how to capitalize on its vast breadth

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• HP is embarking on a makeover of its internal tech systems If all information about HP’s shipment of

printers, PCs and servers can be integrated, it will enable HP to know exactly, what each location is doing on a given day

Mott had the advantage at Wal-Mart & Dell of building infrastructure from scratch

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• HP is embarking on a makeover of its internal tech systems He will need support of the remaining

staffers who have resisted centralized control

Mott is testing the limits of the HP culture, taking away the rights of thousands of IT workers to purchase their own tech equipments

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• HP is embarking on a makeover of its internal tech systems Tearing up the IT infrastructure & putting

many IT initiatives on hold CEO Hurd is demanding revamp of

everything from sales to product lines Everyone is averaging 60 hours a week At some point you hit a breaking point

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• HP is embarking on a makeover of its internal tech systems Mott’s greatest strength is while a

technologist, he has management skills to make IT actually take root in a company’s culture

Moot championed the deployment of IT by showing how it achieved Wal-Mart’s business goals

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• HP is embarking on a makeover of its internal tech systems The idea of data warehousing is to make sure

that all of HP’s businesses are working of the same set of data, and to give them tools to quickly make the best decisions for the entire company – say a single customer management system, so executives can know the full breadth of what any account buys from HP

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• HP is embarking on a makeover of its internal tech systems Hurd & Mott believed in speed over

endless analysis

• Benefits achieved Trimmed 1200 individual projects – such

as e learning application for new hires to only 500

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• Benefits achieved He also imposed real deadlines to make

that the Projects were completed in time.

HP had 5 or more IT workers in 100 different locations, he decided to reduce them to 25

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• Strategy adopted by Mott to break the news of impending layoffs He held close to 20 “Coffee talks” with

HP employees in various countries. This could lead to some trying times

next year, but the benefits may be surprising

Cut monthly networking bill to phone companies by 40%

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Case Study: Hewlett Packard Questions

1. Will the initiatives being undertaken by CIO Randy Mott to implement major changes to the IT function at HP make IT a more efficient and vital contributor to HP’s business success? Defend your position on each of the major

initiatives he is implementing

• Initiatives Consolidate data centers

o May cut HP’s IT costs in half

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Consolidation will reduce significant amount of facility maintenance expenses

This cost reduction will help HP improve its bottom line

• Databases consolidation Will allow data analysis

Benefits can range from improved supplier & inventory management to better customer relations

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2. Do you approve of the change management job Mott is doing, including his meetings with HP employees throughout the world, and having “coffee talks” with them? HP employees both on IT side & on the

business side need to learn Mott’s strategy, buy into business objectives and understand their role in HP’s future

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This will reduce employee’s doubts and uncertainties and help each one make a more informed decision

Employee may choose to stay or leave for right reasons

These meetings give Mott the opportunity to learn about HP, its employees & its culture

He will find this useful as develops its plans

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These meetings will open new channel of communications, which can supply Mott with information during the course of restructuring

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3. Assume you have been hired as a management consultant or coach to CIO Mott What are several suggestions you

might give him to help him successfully implement his ambitious plans for IT changes at HP?

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Mott has to succeed in each of the three major disciplines in order to make this project a success, business, technology & HRM.

Mott has experience of achieving business success in his previous companies

He also has the technical experience to understand and manage the technical challenges created by these projects

The key difference between his prior experience & HP falls on the Human Resource side

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Both Dell & Wal-Mart were relatively new & heavily centralized organizations

Centralizing their data services did not pose much challenge to their fundamental business model

While with HP, it will. In order to succeed Mott will full

support & dedication of CEO & its board of directors

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He will need this support because these changes will prompt considerable internal backlash & this backlash must be met with resolute determination

Resistance to change must be met with an “adapt or leave” message that only top leadership can make stick.

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Mott must ensure that only right people stay & the right people leave both on the business side and IT side in HP

To do this, he must first clearly communicate what these changes will mean both to business units and to the IT staff.

People should stay or leave for the right reasons

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He should also explain the benefits to the individuals who fully participate in this changeover

Employees fully participating in the changeover will have a meaningful future with HP

HP needs to offer early retirement packages to senior & mid level managers both within business units and his own IT staff

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HP also needs to assure managers that those facing layoffs will receive generous separation packages

This will encourage employees who wish to participate in the change to take a chance & stay

This is important because Mott need experienced and willing HP hands on board with his program

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Lastly Mott needs to identify failing managers and terminate their employment

This will help managers learn about centralization plans and its benefits

This will also give chance to some managers to accept early retirement

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Building and Implementing Information Systems - Dec. 2012

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Transcript of Building and Implementing Information Systems - Dec. 2012