McGraw-Hill/Irwin

McGraw-Hill/Irwin

Copyright2008
2008,
reserved.
Copyright
by The
TheMcGraw-Hill
McGraw-HillCompanies,
Companies,Inc.
Inc.All
Allrights
rights
reserved.

Chapter

12
Developing Business/IT Solutions

McGraw-Hill/Irwin

Copyright 2008, The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives
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
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
12-3

Learning Objectives
Explain 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 system
development effort
Identify the activities involved in the
implementation of new information systems
12-4

Learning Objectives
Compare and contrast the four basic system
conversation strategies
Describe several evaluation factors that should
be considered in evaluating the acquisition of
hardware, software, and IS services

12-5

IS Development
When the systems approach is applied to
the development of an information systems
solution to business problems, it is called
information systems development or
application development

12-6

Case 1: Customer-Driven Development

At Intuit, development of new product ideas
are driven by a psychologist
Playing nice
Free-association sessions

Focus is always on the customer

Making pain points less painful

Capturing pencil-and-paper users
Follow-me-homes
Simplifying language

12-7

Case Study Questions

Should Intuits far-out thinking and acceptance
of failure as part of the application software
development process be duplicated at large
software development companies like
Microsoft?
Should it be duplicated at the thousands of
small independent software companies that
exist?

12-8

Case Study Questions

Which do you prefer?
Intuits customer-driven development process
where hundreds of employees and managers
are sent to consult with customer in their homes
or places of business, or
Microsofts process of using professional
anthropologists to do such research

12-9

Case Study Questions

Intuit developed the wildly successful
QuickBooks: Simple Start Edition, which
eliminated all accounting jargon
Could this idea be the foundation of a new
version of Intuits top-selling TurboTax software,
which removed all tax accounting jargon from
that product to reach the 20 million Americans
who do not use tax preparation software or a
professional tax preparer?
Would such a product be possible or successful?
12-10

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 these interrelated activities:
Recognize and define a problem or opportunity
using systems thinking
Develop and evaluate alternative system solutions
Select the solution that best meets your requirements
Design the selected system solution
Implement and evaluate the success of the system
12-11

What is Systems Thinking?

Seeing the forest and the trees in any situation
Seeing interrelationships among systems
rather than linear cause-and-effect chains
Seeing processes of change among systems
rather than discrete snapshots of change

See the system in any situation

Find the input, processing, output, feedback
and control components

12-12

Systems Thinking Example

12-13

Systems Analysis and Design

SA&D is the overall process by which
information systems are designed and
implemented
Includes identification of business problems

Two most common approaches

Object-oriented analysis and design
Life cycle

12-14

Systems Development Lifecycle (SDLC)

12-15

Systems Development Process

Systems Investigation
The first step in the systems development
process
May involve consideration of proposals
generated by a business/IT planning process
Also includes the preliminary feasibility study
of proposed information system solutions

12-16

Systems Development Process

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

12-17

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

12-18

Economic Feasibility
An assessment of

Cost savings
Increased revenue
Decreased investment requirements
Increased profits
Cost/benefit analysis

12-19

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

12-20

Human Factors Feasibility

Assess the acceptance level of

Employees
Customers
Suppliers
Management support

Determine the right people for the various

new or revised roles

12-21

Legal/Political Feasibility
Assess

Possible patent or copyright violations

Software licensing for developer side only
Governmental restrictions
Changes to existing reporting structure

12-22

Systems Analysis
An in-depth study of end user information needs
It produces the functional requirements used as
the basis for the design of an information system

It typically involves a detailed study of the

Information needs of a company and end users
Activities, resources, and products of one or more
of the information systems currently being used
Information system capabilities required to meet
the information needs of business stakeholders

12-23

Organizational Analysis
Study of the organization, including

Management structure
People
Business activities
Environmental systems
Current information systems
Input, processing, output, storage, and control

12-24

Analysis of the Present System

Before designing a new system, it is important
to study the system to be improved or replaced
Hardware and software
Network
People resources used to convert data
resources into information products
System activities of input, processing,
output, storage, and control

12-25

Logical Analysis
A logical model is a blueprint of the current
system
It displays what the current system does,
without regard to how it does it
It allows an analyst to understand the processes,
functions, and data associated with a system
without getting bogged down with hardware
and software

12-26

Functional Requirements
This step of systems analysis is one of the most
difficult
Determine what type of information each
business activity requires
Try to determine the information processing
capabilities required for each system activity
The goal is to identify what should be done,
not how to do it

12-27

Examples 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
12-28

Systems Design
Systems design focuses on three areas

12-29

Prototyping
Prototyping is the rapid development and
testing of working models
An interactive, iterative process used during
the design phase
Makes development faster and easier, especially
when end user requirements are hard to define
Has enlarged the role of business stakeholders

12-30

Prototyping Life Cycle

12-31

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

12-32

Checklist for Corporate Websites

Remember the customer

Aesthetics
Broadband content
Easy to navigate
Searchability
Incompatibilities
Registration forms
Dead links

12-33

System Specifications
Formalizing the design of

User interface methods and products

Database structures
Processing procedures
Control procedures

12-34

Examples of System Specifications

User interface
specifications

Use personalized screens that welcome repeat Web

customers and that make product recommendations

Database
specifications

Develop databases that use object/relational database

management software to organize access to all customer
and inventory data and to multimedia product information

Software
specifications

Acquire an e-commerce software engine to process all

e-commerce transactions with fast responses, i.e., retrieve
necessary product data and compute all sales amounts in
less than one second

Hardware
and network
specifications

Install redundant networked Web servers and sufficient

high-bandwidth telecommunications lines to host the
company e-commerce website

Personnel
specifications

Hire an e-commerce manager and specialists and a

webmaster and Web designer to plan, develop, and
manage e-commerce operations
12-35

End User Development

IS professionals play a consulting role, while
uses do their own application development
A staff of user consultants may be available
to help with analysis, design, and installation

Other support
Application package training
Hardware and software advice
Help gaining access to organization databases

12-36

Focus on IS Activities
End user development should focus on the
fundamental activities of an information system

Input
Processing
Output
Storage
Control

12-37

Focus of End User Development

12-38

Doing End User Development

Application development capabilities built into

software packages make it easier for end users
to develop their own solutions

12-39

Encouraging End User Web Development

Look for tools that make sense
Some are more powerful or costly than needed

Spur creativity
Consider a competition among departments

Set some limits

Limit what parts of a web page or site can
be changed and who can do it

Give managers responsibility

Make them personally responsible for content

12-40

Encouraging End User Web Development

Make users comfortable
Training will make users more confident
It can save the IT department the trouble
of fixing problems later on
It can limit the need for continuous support

12-41

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

12-42

Implementation Process

12-43

Case 2: Managing Radical Change

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
12-44

Case Study Questions

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 HPs business success?
Defend your position on each of the major
initiatives he is implementing

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?
12-45

Case Study Questions

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?

12-46

Project Management
The skills and knowledge necessary to be
a good project manager will translate into
virtually any project environment
The people who have acquired them
are sought after by most organizations

12-47

What is a Project?
Every project has

A set of activities with a clear beginning and end

Goals
Objectives
Tasks
Limitations or constraints
A series of steps or phases

Managing a project effectively requires

Process
Tools
Techniques
12-48

Sample Implementation Process

12-49

Phases of Project Management

There are five phases in most projects

Initiating/Defining
Planning
Executing
Controlling
Closing

12-50

Initiating/Defining Phase
Example activities

State the problem(s) and/or goal(s)

Identify the objectives
Secure resources
Explore the costs/benefits in the feasibility study

12-51

Planning Phase
Example activities
Identify and sequence activities
Identify the critical path
Estimate the time and resources needed for
project completion
Write a detailed project plan

12-52

Execution Phase
Example activities
Commit resources to specific tasks
Add additional resources and/or personnel
if necessary
Initiate work on the project

12-53

Controlling Phase
Example activities

Establish reporting obligations

Create reporting tools
Compare actual progress with baseline
Initiate control interventions, if necessary

12-54

Closing Phase
Example activities

Install all deliverables

Finalize all obligations and commitments
Meet with stakeholders
Release project resources
Document the project
Issue a final report

12-55

Evaluating Hardware, Software, Services

Establish minimum physical and performance
characteristics for all hardware and software
Formalize these requirements in an RFP/RFP

Send RFQ to appropriate vendors

Evaluate bids when received

All claims must be demonstrated

Obtain recommendations from other users
Search independent sources for evaluations
Benchmark test programs and test data
12-56

Hardware Evaluation Factors

Major evaluation factors

Performance
Cost
Reliability
Compatibility
Technology
Ergonomics
Connectivity
Scalability
Software
Support
12-57

Software Evaluation Factors

Hardware evaluation factors apply to software,
as do these

Quality
Efficiency
Flexibility
Security
Connectivity
Maintenance
Documentation
Hardware

Software that is slow,

hard to use, bug-filled,
or poorly documented
is not a good choice
at any price

12-58

Evaluating IS Services
Examples of IS services

Developing a company website

Installation or conversion of hardware/software
Employee training
Hardware maintenance
System design and/or integration
Contract programming
Consulting services

12-59

IS Service Evaluation Factors

IS evaluation factors include

Performance
Systems development
Maintenance
Conversion
Training
Backup facilities and services
Accessibility to sales and support
Business position and financial strength
Hardware selection and compatibility
Software packages offered
12-60

Other Implementation Activities

The keys to successful implementation of
a new business system

Testing
Data conversion
Documentation
Training

12-61

System Testing
System testing may involve

Testing and debugging software

Testing website performance
Testing new hardware
Review of prototypes

12-62

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

12-63

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
problems and making system changes
12-64

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
12-65

Major System Conversion Strategies

12-66

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
12-67

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
12-68

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
12-69

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
12-70

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

12-71

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

12-72

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

12-73

Case 3: Indiana University Financial Aid

Success or failure is in the eye of the beholder
A PeopleSoft implementation at Indiana
University resulted in denials of financial aid

Contributors to the problem

Software did not align with business processes
Limited time for testing and training
Interface issues between the loan systems at
lending institutions and the university
Transactions blocked for minor exceptions
Poor project management and tracking
12-74

Case 3: Indiana University Financial Aid

Project management violations

Poor or no due diligence

No user training
Absence of system alerts
System interface problems were ignored
The complex project wasnt broken down
into smaller, progressively delivered chunks

12-75

Case Study Questions

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?

Is it possible that some implementation problems

cannot be easily foreseen or prevented?

12-76

Case Study Questions

What could Indiana University have done
differently to prevent this unfortunate even
from occurring?
Is there evidence to suggest that it learned
from this experience?

12-77

Case 4: In-House Development

Custom code continues to be the secret sauce
that gives many businesses an edge
Making business processes faster and more
efficient
Delivering new services
Improving customer support
Innovation in other ways, usually something
unique

12-78

Case 4: In-House Development

The do-it-yourself approach isnt cheap
High salaries for developers and IT managers
Dozens or hundreds of personnel needed

Before, computer hardware dictated the choice

of operating systems and development software
Developing in C++ costs half as much as
developing in Cobol
Newer packages unhitch programmers from
mainframes and proprietary platforms

12-79

Case Study Questions

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?

Can a modern organization be competitive

without developing any applications in-house?

12-80

Case Study Questions

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?

12-81