Developing. Business Systems

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1 Module IV Processes Business/IT Solutions 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 an e- business system. 3.Explain how prototyping improves the process of systems development for end users and IS specialists. 4.Identify the activities involved in the implementation of new information systems. 5.Describe several evaluation factors that should be considered in evaluating the acquisition of hardware, software, and IS services. 6.Identify several change management solutions for end user resistance to the implementation of new information systems. Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc Business/IT Solutions Information s or Application Real World Case 1-1 Blue Cross, AT&T Wireless, and CitiStreet Click to go to Case 1 Recognize and Define Problem Using s Thinking Develop and Evaluate Alternatives Select a Solution Design the Solution Implement and Evaluate the Success of the Designed Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc. 10-4

2 Using s Thinking The Fifth Discipline Seeing Relationships Among s Seeing Processes of Among s s Context An Example of s Thinking An Example of s Thinking Inadequate Selling Effort? Feedback Control Poor Sales Management? Out-of-Date Sales Procedures? Incorrect Sales Information? Poor Sales Performance? Input Processing Output Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc IS Cycle Understand the Business Problem or Opportunity Develop an Information Solution Implement the Information Solution s Investigation Product Feasibility Study s Analysis Product Functional Requirements s Design Product Specifications s Implementation Product Operational s Maintenance Product Improved Copyright 2005, McGraw-Hill/Irwin, Inc s Cycle s Life Cycle The Process Cycle Maintenance Cycle Identify an End User s Business Requirements Develop Business Prototypes Use and Maintain the Accepted Business Investigation/Analysis Analysis/Design Revise the Prototypes to Better Design/ Meet Implementation Requirements Implementation/ Maintenance Copyright 2005, McGraw-Hill/Irwin, Inc. 10-8

3 s Cycle Agile s Typical -Based s Process Copyright 2005, McGraw-Hill/Irwin, Inc s Cycle Frito-Lay Inc.: Failure and Success in s National Sales Team Collaboration Difficult of Web-Based Enterprise Knowledge Management Portal Support for Collaboration Omitted Features Had to be Added Resulted in Better Collaboration and Improved Access to Knowledge Copyright 2005, McGraw-Hill/Irwin, Inc s Process Starting the Process Feasibility Studies Feasibility Economic Feasible Technical Feasibility Cost/Benefit Analysis Intangible Costs Intangible Benefits s Process Starting the Process IT Proposals for Addressing Strategic Business Priorities Key Objectives Feedback Business Case for Investing in e-business Projects Action Plan Feedback Planning for Application and Implementation Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc

4 s Process Starting the Process Feasibility Factors s Process Starting the Process How a Feasibility Study Might Measure a Proposal Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc s Process Starting the Process Possible Benefits of New Analysis Analysis of the Present Hardware Software Network People Resources Document Activities of Input, Processing, Output, Storage, and Control s Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc

5 Buyer Zone and OfficeMax: Evaluating Customer Website Experiences Buyer Zone and OfficeMax: Evaluating Customer Website Experiences Websites Failed to Support the Purchase-or-Lease Decision Process Should Support Decision Processes Before Pushing Product Provide the Right Tools at the Right Time Integrate Related Tasks Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc Functional Requirements for a Proposed e-commerce e What Should be Done Not How Describes What is to be Done Specifies How User Interface Design Screen, Form, Report, and Dialog Design Data Design Data Element Structure Design Process Design Program and Procedure Design Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc

6 User Interface Design User Interface Design Examples Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc Priceline.com: : Designing a User Interface Simplifying the Web Interface Simpler and More Compelling Site Brought 50% Increase in Visitors Less Decision Making by User is a Good Thing Much More Successful Design Examples of s Specifications for a New e-commerce e Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc

7 Focus on Processing Activity Components Input What data are available, in what form? Control What controls are needed to protect against accidental loss or damage? Is there a need to control access to data used by the application? Processing What operations on the inputs are needed to produce the desired output? What software can most effectively support those operations? Storage Does the application use previously stored data? Does it create data that must be stored for future use by this or other applications? Output What information is needed by end users and in what form should the output be presented? Focus on Processing Activity Components Inputs Outputs Processing Storage Control Doing Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc MS FrontPage Tool Encouraging Intranet Website Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc

8 Providence Health : Web Had Outdated and Incorrect Website Content IT Gave Up Control to Encourage Group Content to be Added to Internet and Intranet Sites Using Tools MS FrontPage Used to Empower Other Departments at Little Cost Design Implementation Maintenance Challenges and Strategies Real World Case 2-2 Intercontinental Hotels, Del Taco, and Cardinal Health Click to go to Case 2 Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc Overview of the Implementation Process Acquisition of Hardware, Software, and Services Software or Modification Implementation Activities Data Conversion Training Conversion Parallel Pilot Phased Plunge Zurich North America: IT Project Management Desire for Full Project Transparency Through Intranets 10-20% of Incomes Based Upon Company Success Wanted Project Management Agreements in Writing No Projects Without a Paying Customer Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc

9 Evaluating Hardware, Software, and Services Examples from IBM of Hardware, Software, and IS Services Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc Ten Major Hardware Evaluation Factors Select Software Evaluation Factors Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc

10 Evaluating IS Service Factors OshKosh B Gosh,, Inc.: Evaluating IT Vendors and Products Used to Connect Vendors Work to Design Requirements First Then Seek Solutions Check References on Vendor Applications Involve End-User in the Selection Process Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc Other Implementation Activities Testing Data Conversion Documentation Computer-Aided s Engineering (CASE) Training Clarke American Checks: Web-Based ERP Training Use of Website For Collaborative Training on New ERP Software Watching or Performing Simulated Transactions Self-Paced Training Well Liked and Costs Less 75% Savings Over Instructor-Led Training Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc

11 Example Implementation Plan Conversion Methods Parallel Conversion Phased Conversion Pilot Conversion Plunge or Direct Cutover Graphically Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc Conversion Methods Old Parallel New Old Old New New Pilot Phased IS Maintenance s Maintenance Post-Implementation Review Old New Plunge Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc

12 GM Locomotive Group: Failure in Implementation Builder of Diesel-Electric Locomotives Failure in Launch of ERP Application in 2001 Parts Business Virtually Stopped Undertook Emergency 6 Month Turnaround SAP Reconfigured, Flushed and Replaced Data Legacy Mainframe Couldn t Handle New Didn t Perform Some Outsourcing Occurring Resistance to End-User Resistance End-User Involvement Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc Resistance to Obstacles to Knowledge Management 3% 53% 9% 15% 20% User Resistance to Sharing Knowledge Immaturity of Technology Immaturity of Knowledge Management Industry Cost Lack of Need Management Crane Engineering: Overcoming User Resistance to CRM Difficulty in Changing Habits of Sales Persons Fear of Windows and CRM Sell Advantages to Sales Staff to Win Acceptance Move From Product to a Customer Centered Requires Structural s Throughout All Aspects of the Firm Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc

13 Management Focus is on People Action Plan Sponsors Teams Encouraging Open Communications Receiving Feedback Work Within the Company Culture Management Duke Energy: A Guerilla to Business e-team of Advocates Went Throughout Company Launching Internet Initiatives In 18 Months Team Had Saved $52 Million Search for Other Activities for the Internet New Team Launched Initiatives Used Mantra Invest Little-Save Big Launched Many Projects Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc Summary 1. Cycle End-User 4. IS 5. Evaluating Hardware, Software, and Services 6. Business Copyright 2005, McGraw-Hill/Irwin, Inc

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