McGraw-Hill/IrwinCopyright 2007 by The McGraw-Hill Companies, Inc. All rights reserved.

Developing Business/IT SolutionsSystems Development Life CyclePrototypingEnd User DevelopmentProject ManagementChange Management

Chapter10McGraw-Hill/IrwinCopyright 2007 by The McGraw-Hill Companies, Inc. All rights reserved.

Learning ObjectivesUse 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.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.

Learning ObjectivesExplain how prototyping can be used as an effective technique to improve the process of systems development for end users and IS specialists.Understand the basics of project management and their importance to a successful systems development effort.Identify the activities involved in the implementation of new information systems.

Learning ObjectivesCompare and contrast the four basic system conversion strategies.Describe several evaluation factors that should be considered in evaluating the acquisition of hardware, software, and IS services.Identify several change management solutions for end user resistance to the implementation of new information systems.

Case 1: In-House Development is Alive and WellProprietary software can give companies an competitive edgeBut in-house development isnt cheapH&R Block, Morgan Stanley and others still choose in-house developmentWhen and why?

Case Study QuestionsJeff Brandmaier, senior VP and CIO at H&R Block Inc., describes in-house developed applications as the stuff that gives you competitive advantage. Why do you think he feels this way?Can a modern organization be competitive without developing any applications in-house? Why or why not?The case points out that despite the use of vendor applications, there is still a lot of manually intensive work that goes on in the development process. Why do you think vendor applications still require in-house developers?

Real World Internet ActivityDespite all the media coverage concerning the loss of jobs in IS/IT, there is still a strong and growing need for in-house developers. Using the Internet,See if you can find examples, beyond those discussed in the case, of companies that are doing their development in-house. Are they using the SDLC or some other method?

Real World Group ActivityIn-house development is costly, to be sure. Yet many companies believe that their core applications require personal attention by their developers. In small groups,Discuss how an organization determines what applications to buy from a vendor and what applications to develop in-house. What are the criteria for making the decision?

The Systems ApproachA 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:Recognize and define a problem or opportunity using systems thinkingDevelop and evaluate alternative system solutionsSelect the system solution that best meets your requirementsDesign the selected system solutionImplement and evaluate the success of the designed system

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 occurSeeing 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

Systems Thinking Example

Systems Analysis and Design SA & DOverall process by which IS are designed and implemented within organizationsTwo most common approaches to SA & DObject-oriented analysis and designSystems Development Life Cycle

Systems Development Lifecycle (SDLC)

Systems Investigation StageDo we have business opportunities?What are our business priorities?How can information technologies provide information systems solutions that address our business priorities?

Feasibility StudyA preliminary study where the information needs of prospective users the resource requirements, costs, benefits, and feasibility of a proposed project are determined

Feasibility CategoriesOperational FeasibilityEconomic FeasibilityTechnical FeasibilityHuman Factors FeasibilityLegal/Political Feasibility

Operational FeasibilityHow 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

Economic FeasibilityAssess:Cost savingsIncreased revenueDecreased investment requirementsIncreased profitsCost/benefit analysis

Cost/Benefit AnalysisCosts versus BenefitsTangible costs and benefits can be quantified with a high degree of certaintyExample: decrease in operating costsIntangible costs and benefits are harder to estimateExample: improved customer service

Technical FeasibilityDetermine 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 timeHardwareSoftwareNetwork

Human Factors FeasibilityAssessEmployee, customer, supplier acceptanceManagement supportThe right people for the various new or revised roles

Legal/Political FeasibilityAssessPossible patent or copyright violationsSoftware licensing for developer side onlyGovernmental restrictionsChanges to existing reporting structure

Systems AnalysisAn 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

Systems AnalysisDetailed study ofThe 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 stakeholdersEnd users are important members of the development team

Organizational AnalysisStudy of the organization including:Management StructurePeopleBusiness ActivitiesEnvironmental SystemsCurrent Information SystemsDocument input, processing, output, storage and control

Logical AnalysisConstruction of a logical model of the current systemLogical modelA blueprint of what the current system does

Functional Requirements Analysis and DeterminationDetermine specific business information needsDetermine what type of information each business activity requires.Determine the information processing each system activity is needed to meet these needs.

Functional RequirementsEnd 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 systemWhat the system must doFunctional Requirement categoriesUser InterfaceProcessingStorageControl

Systems DesignModify the logical model until it represents a blueprint for what the new system will doPhysical design:How the system will accomplish its objectives

PrototypingThe rapid development and testing of working modelsUsed in design phaseEspecially useful when end user requirements are hard to define

Prototyping Life Cycle

PrototypingCan be used for small and large systemsBut if system is large, usually prototype just partsDevelop quicklyRefine until acceptable

User Interface DesignFocuses on supporting the interactions between end users and their computer-based applicationsFrequently prototype the user interface

Checklist for Corporate WebsitesRemember the customer successful websites are built solely for the customer, not to make company vice presidents happyAesthetics successful designs combine fast-loading graphics and simple color palettes for pages that are easy to readBroadband Content the Webs coolest stuff cant be accessed by most Web surfers; dont make it the focus of a site

Checklist for Corporate WebsitesEasy to navigate make sure its easy to get from one part of site to anotherSearchability make sure to have a useful search engineIncompatibilities test site with target web browsersRegistration forms short registration forms are a useful way to gather customer dataDead links be sure to keep links updated

System SpecificationsFormalize design of User interface methodsProductsDatabase structuresProcessingControl proceduresSpecifications for hardware, software, network, data, and personnel

End User DevelopmentIS professional plays a consulting roleEnd user does his/her own application development

Contrast in traditional life cycle:End user is customerIS profession does development

End User DevelopmentSource: Adapted from James N. Morgan, Application Cases in MIS, 4th ed. (New York: Irwin/McGraw-Hill, 2002), p. 31.

Encouraging End User Web DevelopmentLook for tools that make senseSpur creativitySet some limitsGive managers responsibilityMake users comfortable

Case 2: Implementation Success or FailureSuccess or failure is in the eye of beholderAt Indiana University, implementation of PeopleSoft ERPLeft students without access to promised financial aidProblem was not with software

What was the problem?

Case Study QuestionsAs 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?Is it possible that some implementation problems cannot be easily foreseen or prevented? Give some examples.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?

Real World Internet ActivityIn 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?

Real World Group ActivityThe project described in the case was an example of a large-scale software deployment of vendor software. In small groups,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?

Systems ImplementationHardware and software acquisitionSoftware developmentTesting of programs and proceduresConversion of data resourcesConversion alternativesEducation and training of end users and specialists who will operate a new system

Implementation Process

Project ManagementIT and business unit managers enforce a project plan which includes job responsibilities, time lines for major stages of development, andfinancial budgets

Sample Implementation Process Plan

ProjectA projectIs a set of activities with a clear beginning and endEach project hasGoalsObjectivesTasksLimitations

Managing a projectTo manage a project need:ProcessToolsTechniques

Five phases of project managementInitiating/definingState the problems/goalsIdentify the objectivesSecure resourcesExplore costs/benefits in feasibility study

Five phases of project managementPlanningIdentify and sequence activitiesIdentify the critical pathEstimate time and resources needed for completionWrite a detailed project planExecutingCommit resources to specific tasksAdd additional resources/personnel if necessaryInitiate project work

Five phases of project managementControllingEstablish reporting obligationsCreate reporting toolsCompare actual progress with baselineInitiate control interventions if necessary

Five phases of project managementClosingInstall all deliverablesFinalize all obligations/commitmentsMeet with stakeholdersRelease project resourcesDocument the projectIssue final report

Evaluating Hardware, software and servicesMust acquire hardware, softwareHow do we evaluate and select it?Companies may ask suppliers to present bids and proposalsMay score different productsDetermine evaluation factorsAssign each product points on each factorMay require benchmark testsSimulate processing of task and evaluates the performance

Hardware Evaluation FactorsPerformanceCostReliabilityCompatibilityTechnologyErgonomicsConnectivityScalabilitySoftwareSupport

Software Evaluation FactorsQualityEfficiencyFlexibilitySecurityConnectivityMaintenanceDocumentationHardware

Examples of IS ServicesDeveloping a company websiteInstallation or conversion of hardware or softwareEmployee trainingHardware maintenanceSystem integrationSystem designContract programmingConsulting services

IS Services Evaluation FactorsPerformanceSystems developmentMaintenanceConversionTrainingBackupAccessibilityBusiness PositionHardwareSoftware

System TestingTesting and debugging softwareTesting website performanceTesting new hardwareReview of prototypes of displays, reports and other output

Data ConversionConverting data elements from old database to new databaseCorrecting incorrect dataFiltering out unwanted dataConsolidating data from several databasesOrganizing data into new data subsets

Importance of Data ConversionImproperly organized and formatted data is major causes of failures in implementing new systems.

DocumentationUser documentationSample data entry screens, forms, reportsSystems documentationCommunication among people responsible for developing, implementing and maintaining systemImportant in diagnosing errors and making changes

TrainingEnd users must be trained to operate new systemEducate managers and end users in how the new technology impacts the companys business operations and management

ConversionConversion from use of present system to operation of new system

Four major forms of conversion

Direct ConversionTurn off old systemTurn on new system

Direct is least expensive methodRiskiest method

Parallel ConversionNew and old systems run simultaneously until end users and project coordinators are satisfied that the new system is functioning correctly

Low riskHighest cost method: perform all functions with both systems

Pilot ConversionWhen new system is installed in multiple locationsConvert to new system in single locationOnce complete in pilot location,Evaluate and make any necessary changes

Phased ConversionIncremental approach to conversionBring in new system as a series of functional components

Lower riskTakes the most time

Systems maintenanceCorrective: fix bugs and logical errorsAdaptive: add new functionality to accommodate changes in business or environmentPerfective: improve performancePreventive: reduce chances of failure

Post-implementation reviewEnsure new system meets the business objectivesPeriodic review or audit

Implementation ChallengesNew system involves major organizational changeManage changes to Business processesOrganizational structuresManagerial rolesWork assignments Stakeholder relationships

User Resistance New way of doing things generates resistanceKey to solving isUser involvement in organizational changes and development of new systemsUser involvementEnd users on systems development teamsEnd user ownership of new system

Reasons for User Resistance to Knowledge Management Systems

Change Management DimensionsSource: 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.

Change ManagementInvolve as many people as possible in planning and application developmentMake constant change an expected part of the cultureTell everyone as much as possible about everything as often as possibleMake liberal use of financial incentives and recognitionWork within the company culture, not around it

Process of Change ManagementSource: Adapted from Martin Diese, Conrad Nowikow, Patric King, and Amy Wright, Executives Guide to E-Business: From Tactics to Strategy, p. 190. Copyright @ 2000 by John Wiley & Sons Inc. Reprinted by permission.

Case 3: Theres Nothing Like a Good ProcessNothing derails an IT development project faster than sloppy project managementProcess management is the art and science of creating and continuously improving the process of developing and delivering systemsBest practices in process management:Industry best practicesWithin-the-company best practices

Case Study QuestionsWhat is process management? How does it differ from project management or traditional development methodologies like the SDLC?Is the SDLC an example of good process management?What is meant in the case by the phrase:implementing a standard approach to systems development helps experienced staff and new hires to be more productive, because they spend less time wondering how to do something and more time doing it?

Real World Internet ActivityWe know that good project and process management are keys to successful systems development and implementation projects. Using the Internet,See if you can find examples of companies that subscribe to the tenets set forth in the case.Is there evidence to suggest that such companies are realizing competitive benefits as a result?

Real World Group ActivityWe discussed issues related to user resistance, involvement, and change management in this chapter. In small groups,Discuss how these issues relate to good process management.What specific change management approaches are involved in ensuring high quality process management?

Going back to the components we learned in chapter 1. You can better understand a sales problem or opportunity by identifying the components of a sales systemFive stages. Will discuss each of them in turnNo matter how elegant the technology, the system will not work if the end users and managers do not support it.When prototyping is used, life cycle is changed. Design phase is split between analysis and implementation.Foundation for the entire projectNeed to define the problem that the project is supposed to solve or achieve or dooms the project

Needed for any project: but this is exactly what is done in systems investigation phase of SDLCAnalysis and Design are associated with project execution in the SDLCNote that dont just choose hardware on whats fastest and cheapestIn the pilot site, you can either use direct or parallel method