10-1 McGraw-Hill/Irwin. Copyright 2007 by The McGraw-Hill Companies, Inc. All rights reserved.

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1 10-1 McGraw-Hill/Irwin Copyright 2007 by The McGraw-Hill Companies, Inc. All rights reserved.

2 10 hapter Developing Business/IT Solutions Systems Development Life Cycle Prototyping End User Development Project Management Change Management McGraw-Hill/Irwin Copyright 2007 by The McGraw-Hill Companies, Inc. All rights reserved.

3 10-3 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.

4 10-4 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.

5 10-5 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.

6 10-6 Case 1: In-House Development is Alive and Well Proprietary software can give companies an competitive edge But in-house development isn t cheap H&R Block, Morgan Stanley and others still choose in-house development When and why?

7 10-7 Case Study Questions 1. Jeff 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? 2. Can a modern organization be competitive without developing any applications in-house? Why or why not? 3. 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?

8 10-8 Real World Internet Activity 1. Despite 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?

9 10-9 Real World Group Activity In-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?

10 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 10-10

11 10-11 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

12 10-12 Systems Thinking Example

13 10-13 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

14 10-14 Systems Development Lifecycle (SDLC)

15 10-15 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?

16 10-16 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

17 10-17 Feasibility Categories Operational Feasibility Economic Feasibility Technical Feasibility Human Factors Feasibility Legal/Political Feasibility

18 10-18 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

19 10-19 Economic Feasibility Assess: Cost savings Increased revenue Decreased investment requirements Increased profits Cost/benefit analysis

20 10-20 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

21 10-21 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

22 10-22 Human Factors Feasibility Assess Employee, customer, supplier acceptance Management support The right people for the various new or revised roles

23 10-23 Legal/Political Feasibility Assess Possible patent or copyright violations Software licensing for developer side only Governmental restrictions Changes to existing reporting structure

24 10-24 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

25 10-25 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

26 10-26 Organizational Analysis Study of the organization including: Management Structure People Business Activities Environmental Systems Current Information Systems Document input, processing, output, storage and control

27 10-27 Logical Analysis Construction of a logical model of the current system Logical model A blueprint of what the current system does

28 10-28 Functional Requirements Analysis and Determination Determine specific business information needs 1. Determine what type of information each business activity requires. 2. Determine the information processing each system activity is needed to meet these needs.

29 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 10-29

30 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 10-30

31 10-31 Prototyping The rapid development and testing of working models Used in design phase Especially useful when end user requirements are hard to define

32 10-32 Prototyping Life Cycle

33 10-33 Prototyping Can be used for small and large systems But if system is large, usually prototype just parts Develop quickly Refine until acceptable

34 10-34 User Interface Design Focuses on supporting the interactions between end users and their computer-based applications Frequently prototype the user interface

35 10-35 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

36 10-36 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

37 10-37 System Specifications Formalize design of User interface methods Products Database structures Processing Control procedures Specifications for hardware, software, network, data, and personnel

38 10-38 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

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

40 10-40 Encouraging End User Web Development Look for tools that make sense Spur creativity Set some limits Give managers responsibility Make users comfortable

41 10-41 Case 2: Implementation Success or Failure Success or failure is in the eye of 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?

42 10-42 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?

43 10-43 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?

44 10-44 Real World Group Activity The 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 vendorsupplied software and in-house developed software. Should an in-house project be implemented differently than a vendor supplied application? Why or why not?

45 10-45 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

46 10-46 Implementation Process

47 10-47 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

48 10-48 Sample Implementation Process Plan

49 10-49 Project A project Is a set of activities with a clear beginning and end Each project has Goals Objectives Tasks Limitations

50 10-50 Managing a project To manage a project need: Process Tools Techniques

51 10-51 Five phases of project management 1. Initiating/defining State the problems/goals Identify the objectives Secure resources Explore costs/benefits in feasibility study

52 10-52 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

53 10-53 Five phases of project management 4. Controlling Establish reporting obligations Create reporting tools Compare actual progress with baseline Initiate control interventions if necessary

54 10-54 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

55 10-55 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

56 10-56 Hardware Evaluation Factors Performance Cost Reliability Compatibility Technology Ergonomics Connectivity Scalability Software Support

57 10-57 Software Evaluation Factors Quality Efficiency Flexibility Security Connectivity Maintenance Documentation Hardware

58 10-58 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

59 10-59 IS Services Evaluation Factors Performance Systems development Maintenance Conversion Training Backup Accessibility Business Position Hardware Software

60 10-60 System Testing Testing and debugging software Testing website performance Testing new hardware Review of prototypes of displays, reports and other output

61 10-61 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

62 10-62 Importance of Data Conversion Improperly organized and formatted data is major causes of failures in implementing new systems.

63 10-63 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

64 10-64 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

65 10-65 Conversion Conversion from use of present system to operation of new system

66 10-66 Four major forms of conversion

67 10-67 Direct Conversion Turn off old system Turn on new system Direct is least expensive method Riskiest method

68 10-68 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

69 10-69 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

70 10-70 Phased Conversion Incremental approach to conversion Bring in new system as a series of functional components Lower risk Takes the most time

71 10-71 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

72 10-72 Post-implementation review Ensure new system meets the business objectives Periodic review or audit

73 10-73 Implementation Challenges New system involves major organizational change Manage changes to Business processes Organizational structures Managerial roles Work assignments Stakeholder relationships

74 10-74 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

75 10-75 Reasons for User Resistance to Knowledge Management Systems

76 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 by John Wiley & Sons Inc. Reprinted by permission.

77 10-77 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

78 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 by John Wiley & Sons Inc. Reprinted by permission.

79 10-79 Case 3: There s Nothing Like a Good Process Nothing derails an IT development project faster than sloppy project management Process management is the art and science of creating and continuously improving the process of developing and delivering systems Best practices in process management: Industry best practices Within-the-company best practices

80 10-80 Case Study Questions 1. What is process management? How does it differ from project management or traditional development methodologies like the SDLC? 2. Is the SDLC an example of good process management? 3. 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?

81 10-81 Real World Internet Activity 1. We 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?

82 10-82 Real World Group Activity We 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?