INFORMATION SYSTEMS IN INFORMATION SYSTEMS DEVELOPMENT ORGANIZATIONMETHODOLOGY

BONOMALI,James 1/23/2013

LECTURE SERIES

System development
Activities involved in producing info sys = sys development A structured problem solving approach with distinct activities Information systems development projects may be initiated for a number of reasons, which may be either problems or opportunities Problems: - user complaints( dissatisfactions among users or a crisis situation in the system) - Problem with the system itself, failure of the system to achieve the objective Opportunities: - A need to integrate business areas(coordinating separate areas of the business)
BONOMALI,James 1/23/2013

- Strategic advantage application of new or revised

information system may be advantageous to the organization over its competitors - New regulation? Abiding to new laws and new accounting practice - New technology? For, greater processing speed, faster information retrieval, reduced cost per item of data and improved security.

BONOMALI,James

1/23/2013

Systems development activities

Activities are divided into phases: - Systems analysis - Systems specification and design - Programming - Testing - Conversion - Production and maintenance

BONOMALI,James

1/23/2013

Phases contd
Phases overlap and are interrelated and interdependent

BONOMALI,James

1/23/2013

Systems analysis
- Analysis of the problem to be solved with information system - Aim at gathering information about the problem(s) or opportunity(s) - and to decide if the current situation warrants a solution that would require the development of an information system Objectives - To define a problem/an opportunity To conduct preliminary analysis Propose alternative solutions
BONOMALI,James 1/23/2013

Sys analysis contd

Determine the org. objectives and explore the nature and scope of the problems under study

- To define the objectives of the org, one need to read orgs documents(internal and external), conduct interviews (include executives and other key stakeholders users)

BONOMALI,James

1/23/2013

Sys analysis contd

Nature and scope of the problem - analyst need to determine the nature of the problem and its characteristics. - Too much time wasted in processing information? - Who are affected mostly? - Source of the problem, - internal or external?

BONOMALI,James

1/23/2013

Propose alternative solutions

Possible choices: i) Leave the system as it is ii) Improve the current system iii) Develop a new system

BONOMALI,James

1/23/2013

Leave the system as it is

No enough justification as to why the project should be carried out.
Justification to use resources and other

expenditure for developing or change the system may be lacking

BONOMALI,James

1/23/2013

10

Improving the system

It may involve upgrading the old system
Both hardware and software may be

upgraded to solve the problem Users may be trained

BONOMALI,James

1/23/2013

11

New system development

The current systems problem may need to embark on new system
Calling for a radical change

Overhauling

-Note that the choices (improving, and new sys development may have set of alternatives in their accomplishment, which needs to be evaluated)
BONOMALI,James 1/23/2013

12

Feasibility Analysis
A measure of how beneficial or practical the development of a system will be to an organization. This analysis recurs throughout the life cycle.

BONOMALI,James

1/23/2013

13

Existing System

Planning

Planned Project

Support

Production System

Feasibility Analysis
Analysis Business Requirements Design

Implementation

Technical Design

Technical
can system be developed?

Operational
can organization absorb the change?

Economic
what is business justification?

Schedule
can system be implemented in time available?
14

BONOMALI,James

1/23/2013

People Technology

Technical Feasibility

Is the technology or solution practical? Do we currently possess the necessary

technology? Do we possess the necessary technical expertise?

BONOMALI,James

1/23/2013

15

People

Operational Feasibility

Is the problem worth solving? Will the solution to the problem work? How do the end-users and managers feel

about the problem (or solution)?

BONOMALI,James

1/23/2013

16

People

Schedule Feasibility
Can the project deadlines be met? What will it cost to accelerate development? Consider the rapid cahnges in IT industry

BONOMALI,James

1/23/2013

17

Economic Analysis
Cost estimates
acquisition or development costs operation and maintenance costs

Benefit estimates
tangible benefits intangible benefits

BONOMALI,James

1/23/2013

18

Economic Analysis (continued)

traditional capital planning techniques apply
payback analysis return on investment net present value

BONOMALI,James

1/23/2013

19

January 1996

Payback Analysis
determines how long it will take for accrued

benefits to overtake accrued and continuing costs

most companies want quick payback 3-5 years is typical

BONOMALI,James

1/23/2013

20

Return on Investment % (ROI)

determines the lifetime profitability of

different investments
ROI = (benefits - costs) / costs) Annual ROI is common measure

BONOMALI,James

1/23/2013

21

Net Present Value (NPV)

determines the lifetime profitability of

different investments
NPV = discounted benefits - discounted costs Preferred technique in many organizations

BONOMALI,James

1/23/2013

22

System design

specification and

Sys analysis describes what IS should do to solve org problem(s) Sys design shows how the sys will fulfill the obj.(how IS will operate) - design is an overall model for the IS - Consists of all specifications for systems form and structure

BONOMALI,James

1/23/2013

23

System specification and design contd

Has two steps; preliminary and detail design
- Preliminary design; describes general functional capabilities of proposed IS.

Several alternative systems(candidate) systems are considered, while evaluating cost and benefit of each - Detail design; describe how proposed IS will deliver the capabilities described in the preliminary design
BONOMALI,James 1/23/2013

24

Detail design contd

Has to consider, output, input storage, processing and networking requirements including backup and controls

Finally a report must be produced

BONOMALI,James

1/23/2013

25

System development/ Acquisition

- completion of the IS development process involves translating the solution specification of the analysis and design into fully operational - Involves programming, testing, conversion, production and maintenance

- A system is acquired (hardware, software) and tested During design phase need to specify make- orbuy the system
BONOMALI,James 1/23/2013

26

Programming
-Is specification(design) are translated into software program code - consists of documents for transactions , files report layouts - Org may write a program or acquire application software

BONOMALI,James

1/23/2013

27

Testing
For desired results It may be - a unit test, each program separately; good for error

free programs but realistically impossible - System testing, the IS as whole is tested - Acceptance testing, Is evaluation by users and reviewed by management, for IS use in production settings
BONOMALI,James 1/23/2013

28

Conversion
-Changing from old to new system - methods vary, direct, parallel, phases and pilot

BONOMALI,James

1/23/2013

29

Production and maintenance

- After a system is installed and conversion is

complete the IS is in production stage - Users and technical staff review the system - Obj met? Suggests revisions and modifications if any Maintenance is done to correct errors, or improve process efficiency - includes, hardware, software or procedures changes to correct errors
BONOMALI,James 1/23/2013

30

System Building approaches

There are various methods of developing information system which includes in brief the following: Systems Development Life Cycle (SDLC) - Overall process of developing information systems from investigation of initial requirements through analysis, design, implementation and maintenance. -Specify a set of well defined steps or phases, with a set of clear, measurable exit criteria, Predominantly a waterfall approach
BONOMALI,James 1/23/2013

31

Strengths -Well defined phases acts as a memory aid by imposing discipline, -Difficult overlooking key steps -Documentation is a key product at each phase. Planning, budgeting and control of IS development project are easier. The weakness - Applicable and suitable for large IS development projects. - Costly, time consuming and inflexible -limited end user involvement
BONOMALI,James 1/23/2013

32

Prototyping
-Quick method of developing IS -Quick, complete, high quality IS Process -Developer/analyst study Info needs of an organization -Develop an early experimental systems (trial version); prototype for demonstration and evaluation purposes -Comments from the users used to improve the prototype
BONOMALI,James 1/23/2013

33

Prototyping contd
- The process is repeated until IS objectives are achieved

Suitability - User involvement,may results into end user satisfaction - May save cost by skipping steps faster development fewer changes needed after implementation
BONOMALI,James 1/23/2013

34

Prototyping contd
users know what to expect at implementation user requirements easier to determine potential changes in early stages; stopping development on an unworkable IS Disadvantages - Inability to plan, budget and control; difficult to manage the project. - Incomplete prototypes may be regarded as complete systems.

BONOMALI,James

1/23/2013

35

Application software
Building IS form Application software package
Common/ generic apln software; Accounting

packages MYOB, Payroll They fulfill requirements of many org Capable of customizing to meet org unique requirements Advantages and disadvantages?!!!
BONOMALI,James 1/23/2013

36

End used development

Info sys dev by end users with little or no assistance from

technical specialists Advantages: User involvement & satisfaction Easy business requirements gathering Disadvantages Limited application for large/ enterprise wide info systems Difficult to control Testing documentation inadequacy

BONOMALI,James

1/23/2013

37

Outsourcing
Contracting computer center operations, telecommunications, networks or application development to external vendors Why? concentrate in core business goal
Keep pace with tech changes Cost effective?

Disadvantages- loss of control vs info sys

Life depend on vendors existence Security?
BONOMALI,James 1/23/2013

38

Spectrum of the org changes

IT different degree of org changes:

Automation - applying IT to perform tasks efficiently and effectively - computers are used to speed up tasks Rationalization - streamlining std operating procedures, - Designing organization to use not only computers but so more efficiently - Setting std rules for meaningful use of computers
BONOMALI,James 1/23/2013

39

Spectrum of the org changes

Business process Reengineering -involve analyzing BUZ processes, simplifying, and redesign -IT use to improve speed services and quality -BPR reorganizes work flows combining steps to reduce waste and eliminate repetitive tasks -Requires a new vision of how process is to be organized

BONOMALI,James

1/23/2013

40

Paradigm shift
-Rethinking nature of BUZ and nature of org -IS may change the org and BUZ nature - New BUZ models may be developed - Not confined in to specific parts of BUZ - BRT and PS involves extensive org changes; fail(risk) difficult to orchestrate but reward highly

BONOMALI,James

1/23/2013

41

BONOMALI,James

1/23/2013

42