Building and Implementing Information Systems - June 2014

Case: Blue Cross Development Challenges
Chapter 11
Good Web-based Self-service:
Customer satisfaction soars
Call center costs plummet as customers
answer their own questions, enter their

own credit card numbers and change
their own passwords without extensive
live help

Chapter 11
Bad Web-Based Self-Service:
Frustrated customers click to a
competitors site
Frustrated customers dial up your call
center
Customer is unhappy
You have paid both for self service web
site and for a call center

Chapter 11
1.
A:
A:
A:
A:
Why do more than a third of all Web self-service

customers get frustrated and end up calling a
help center? Use the experiences of Blue CrossBlue Shield and AT&T Wireless to help you
answer.
A poorly designed web interface with a
confusing sequence of options or asking them
Questions they cannot answer
Cumbersome drop down boxes
Wording hard to understand
Requiring customers to indicate which network
they are using, which most did not know

Chapter 11
2.
A:
A:
A:
A:
What are some solutions to the problems

users may have with Web self-service? Use
the experiences of the companies in this case
to propose several solutions.
Using a focus group of end users to test the
prototype
Redesign the web site to automatically send
customers to the correct network site
Setting aside money and time for maintaining
the site
Designing flexibility into application interfaces
and business rules so the site can be changed
as needed
Chapter 11
Take
Away
Web self
service should be good
Bad web based self service will have frustrated

customers, who may switch to competitors
Some major customers dont do business with
you if you do not have a good web based self
service capabilities
Important to communicate with business units
& end users during the design phase
Testing the prototype by a focus group of end
users
Chapter 11
Take
Away
Do not
ask questions to customers of
which they do not know the answers

Setting aside money and time for
maintaining the site
Designing flexibility into application
interface and business rules so the site
can be changed as needed
Software helps speed up the
development process e.g. JRules
DEVELOPING SOFTWARE
Chapter 11
Software that is built correctly can transform,
as the organization and its business transforms
Software that effectively meets employee
needs will help an organization become more

productive and enhance decision making
Software that does not meet employee needs
may have a damaging effect on productivity

and can even cause a business to fail
11-6
DEVELOPING SOFTWARE
Chapter 11
As organizations reliance on software
grows, so do the business-related

consequences of software successes and
failures including:
Increase or decrease revenue
Repair or damage to brand reputation
Prevent or incur liabilities
Increase or decrease productivity
11-7
Overview of Systems
Development
Chapter 11
Systems development:
Activities that go into producing an information

system solution to an organizational problem or
opportunity
Systems analysis
Systems design
Programming
Testing
Conversion
Production and maintenance
11-7
Overview of Systems Development

Chapter 11
THE SYSTEMS
DEVELOPMEN
T PROCESS
Building a system can

be broken down into
six core activities.
FIGURE 13-4

Chapter 11
Systems analysis
Analysis of problem to be solved by new system
Defining the problem and identifying causes

Specifying solutions
Systems
proposal report identifies and
examines alternative solutions
Identifying information requirements
Includes feasibility study
Is solution feasible and good investment?

Is required technology, skill available?

Chapter 11
System analysis (cont.)

Establishing information requirements
Who needs what information, where, when, and

how
Define objectives of new/modified system
Detail the functions new system must perform
Faulty requirements analysis is leading cause of
systems failure and high systems development
cost

Chapter 11
Systems design
Describes system specifications that will
functions identified during systems analysis
deliver
Should address all managerial, organizational, and

technological components of system solution
Role of end users
User information requirements drive system building

Users must have sufficient control over design process
to ensure system reflects their business priorities and
information needs
Insufficient user involvement in design effort is major
cause of system failure

OUTPUT
Medium
Content
Timing
INPUT
Origins
Flow
Data entry
USER INTERFACE
Simplicity
Efficiency
Logic
Feedback
Errors
DATABASE DESIGN
Logical data model
Volume and speed
requirements
File organization and
design
Record specifications
PROCESSING
Computations
Program modules
Required reports
Timing of outputs
MANUAL PROCEDURES
What activities
Who performs them
When
How
Where
CONTROLS
Input controls (characters, limit,
reasonableness)
Processing controls (consistency, record
counts)
Output controls (totals, samples of output)
Procedural controls (passwords, special
forms)
SECURITY
Access controls
Catastrophe plans
Audit trails
Chapter 11
DOCUMENTATION
Operations documentation
Systems documents
User documentation
CONVERSION
Transfer files
Initiate new procedures
Select testing method
Cut over to new system
TRAINING
Select training techniques
Develop training modules
Identify training facilities
ORGANIZATIONAL
CHANGES
Task redesign
Job redesign
Process design
Organization structure design
Reporting relationships

Chapter 11
Programming:
System specifications from design stage are translated
into software program code
Testing
Ensures system produces right results
Unit testing: Tests each program in system separately
System testing: Test functioning of system as a whole
Acceptance testing: Makes sure system is ready to be
used in production setting
Test plan: All preparations for series of tests

Chapter 11
A SAMPLE TEST PLAN TO TEST A RECORD CHANGE
FIGURE 13-5
When developing a test plan, it is imperative to include the various conditions to

be tested, the requirements for each condition tested, and the expected results.
Test plans require input from both end users and information systems specialists.

Chapter 11
Conversion
Process of changing from old system to new system
Four main strategies
Parallel strategy
Direct cutover
Pilot study
Phased approach
Requires end-user training
Finalization of detailed documentation showing how
system works from technical and end-user standpoint

Chapter 11
Production and maintenance

System reviewed to determine if revisions needed
May include post-implementation audit document
Maintenance
Changes in hardware, software, documentation, or

procedures to a production system to correct errors,
meet new requirements, or improve processing
efficiency
20% debugging, emergency work
20% changes to hardware, software, data, reporting
60% of work: User enhancements, improving
documentation, recoding for greater processing
efficiency

Chapter 11
SUMMARY OF SYSTEMS DEVELOPMENT ACTIVITIES
CORE ACTIVITY
DESCRIPTION
Systems analysis
Identify problem(s)
Specify solutions
Establish information
requirements
Systems design
Create design specifications
Programming
Translate design specifications

into code
Testing
Unit test
Systems test
Acceptance test
Conversion
Plan conversion
Prepare documentation
Train users and technical staff
Production and
maintenance
Operate the system

Evaluate the system
Modify the system

Chapter 11
Most prominent methodologies for modeling and

designing systems:
Structured methodologies
Object-oriented development
Structured methodologies
Structured:
progressive
Techniques
are
step-by-step,
Process-oriented:
Focusing
on
modeling
processes or actions that manipulate data
Separate data from processes

Chapter 11
Data flow diagram:

Primary tool for representing systems
processes and flow of data between them
component
Offers logical graphic model of information flow

High-level and lower-level diagrams can be used to break
processes down into successive layers of detail
Data dictionary: Defines contents of data flows and data

stores
Process specifications: Describe transformation occurring

within lowest level of data flow diagrams
Structure chart: Top-down chart, showing each level of

design, relationship to other levels, and place in overall
design structure

DATA FLOW DIAGRAM FOR MAIL-IN
UNIVERSITY REGISTRATION SYSTEM
Chapter 11
FIGURE 13-6
The system has three processes: Verify availability (1.0), Enroll student (2.0), and Confirm
registration (3.0). The name and content of each of the data flows appear adjacent to each
arrow. There is one external entity in this system: the student. There are two data stores: the
student master file and the course file.

Chapter 11
HIGH-LEVEL STRUCTURE CHART FOR A PAYROLL SYSTEM
This structure chart shows the highest or most abstract level of design for a payroll
system, providing an overview of the entire system.
FIGURE 13-7
THE SYSTEMS DEVELOPMENT

LIFE CYCLE
Chapter 11
Systems
development life
cycle (SDLC) the
overall process for
developing
information
systems from
planning and
analysis through
implementation and
maintenance
11-8

LIFE CYCLE
Chapter 11
1. Planning phase involves establishing a
high-level plan of the intended project and

determining project goals
2. Analysis phase involves analyzing end-
user business requirements and refining

project goals into defined functions and
operations of the intended system
Business requirement detailed set of

business requests that the system must meet
in order to be successful
11-9

LIFE CYCLE
Chapter 11
3. Design phase involves describing the
desired features and operations of the

system including screen layouts,
business rules, process diagrams and
other documentation
4. Development phase involves taking
all of the detailed design documents

from the design phase and transforming
them into the actual system
11-10

LIFE CYCLE
Chapter 11
5. Testing phase involves bringing all the
project pieces together into a special

testing environment to test for errors,
bugs, and interoperability and verify that
the system meets all of the business
requirements defined in the analysis phase
6. Implementation phase involves
placing the system into production so

users can begin to perform actual business
operations with the system
11-11

LIFE CYCLE
Chapter 11
7. Maintenance phase involves
performing changes, corrections,

additions, and upgrades to ensure the
system continues to meet the business
goals
11-12
SOFTWARE DEVELOPMENT
METHODOLOGIES
Chapter 11
There are a number of different

software development methodologies
including:
Agile
Waterfall
Rapid application development (RAD)
Extreme programming
Rational unified process (RUP)
Scrum
11-13
WATERFALL METHODOLOGY
Chapter 11
Waterfall
methodology
an activity-based
process in which
each phase in the
SDLC is
performed
sequentially from
planning through
implementation
and maintenance
11-14
AGILE METHODOLOGY
Chapter 11
Agile methodology aims for customer

satisfaction through early and continuous
delivery of components developed by an
iterative process
An agile project sets a minimum number of

requirements and turns them into a
deliverable product
Iterative development consists of a
series of tiny projects
11-15
RAPID APPLICATION
DEVELOPMENT
METHODOLOGY (RAD)
Chapter 11
Rapid application development

methodology (RAD) emphasizes extensive
user involvement in the rapid and evolutionary
construction of working prototypes of a system
to accelerate the systems development
process
The prototype is an essential part of the

analysis phase when using a RAD methodology
Prototype a smaller-scale representation or

working model of the users requirements or a
proposed design for an information system
11-16
RAPID APPLICATION
DEVELOPMENT
METHODOLOGY (RAD)
Chapter 11
Fundamentals of RAD
Focus initially on creating a prototype that
looks and acts like the desired system

Actively involve system users in the
analysis, design, and development phases
Accelerate collecting the business
requirements through an interactive and
iterative construction approach
11-17
EXTREME PROGRAMMING
METHODOLOGY
Chapter 11
Extreme programming (XP) methodology

breaks a project into tiny phases, and developers
cannot continue on to the next phase until the first
phase is complete
11-18
IMPLEMENTING AGILE
METHODOLOGIES
Chapter 11
The Agile Alliance Manifesto

Early and continuous delivery of valuable
software will satisfy the customer

Changing requirements are welcome
Business people and developers work
together
Projects need motivated individuals
Use self-organizing teams
Reflect on how to become more effective
11-21
DEVELOPING SUCCESSFUL
SOFTWARE
Chapter 11
Primary principles for successful agile

software development include:
Slash the budget

If it doesnt work, kill it
Keep requirements to a minimum
Test and deliver frequently
Assign non-IT executives to software
projects
11-22
Chapter 11
Systems Development
Lifecycle (SDLC)
Chapter 11
Systems Development Life

Cycle - PHASE 1: PLANNING
Chapter 11
Planning phase involves

establishing a high-level plan of the
intended project and determining
project goals
Primary planning activities include

1. Identify and select the system for
development
2. Assess project feasibility
3. Develop the project plan
PLANNING 1: Identify and

Select the System for
Chapter 11
Development
Organizations use different forms to
determine which systems to develop
Critical success factor (CSF) a factor

that is critical to an organizations
success
PLANNING 2: Assess
Project Feasibility
Chapter 11
Feasibility study determines if the

proposed solution is feasible and
achievable from a financial, technical, and
organizational standpoint
Different types of feasibility studies
Operational feasibility
Economic feasibility
Technical feasibility
Human Factors feasibility
Legal and Political feasibility
Feasibilty Study
Chapter 11
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
Operational Feasibility
Chapter 11
How well the proposed system will

Support the business priorities of the
organization
Solve the identified problem
Fit with the existing organizational structure
Economic Feasibility
Chapter 11
An assessment of
Cost savings
Increased revenue
Decreased investment requirements
Increased profits
Cost/benefit analysis
Technical Feasibility
Chapter 11
Determine the following can meet the
needs of a proposed system and can be

acquired or developed in the required
time
Hardware
Software
Network
Technical competence of the Developers
Technical competence of the users
Human Factors Feasibility

Chapter 11
Assess the acceptance level of

Employees
Customers
Suppliers
Management support
Determine the right people for the
various
new or revised roles
Legal/Political Feasibility
Chapter 11
Assess
Possible patent or copyright violations
Software licensing for developer side only
Governmental restrictions
Changes to existing reporting structure
Feasibility
Chapter 11
Cost/Benefit Analysis
Chapter 11
Tangible costs or benefits that can be
quantified
Intangible costs or benefits that can not
be quantified
Examples of Benefits
Chapter 11
PLANNING 3: Develop the

Project Plan
Chapter 11
Developing the project plan is a

difficult and important activity
The project plan is the guiding force

behind on-time delivery of a complete
and successful system
Continuous updating of the project plan

must be performed during every
subsequent phase during the SDLC

Cycle PHASE 2: ANALYSIS
Chapter 11
Analysis phase involves analyzing

end-user business requirements and
refining project goals into defined
functions and operations of the
intended system
Primary analysis activities include
1. Gather business requirements
2. Create process diagrams
3. Perform a buy vs. build analysis
ANALYSIS 1: Gather
Business Requirements
Chapter 11
Business requirements the detailed set

of business requests that the system must
meet in order to be successful
Different ways to gather business
requirements
Joint application development (JAD)

session where employees meet to define or
review the business requirements for the system
Interviews
Questionnaires
Observations
Review business documents
ANALYSIS 1: Gather
Business Requirements
Chapter 11
The system users review the

requirements definition document and
determine if they will sign-off on the
business requirements
Requirements definition document

contains the final set of business
requirements, prioritized in order of
business importance
Sign-of the system users actual
signatures indicating they approve all of
the business requirements
ANALYSIS 2: Create Process

Diagrams
Chapter 11
Process modeling graphically representing
the processes that capture, manipulate, store,
and distribute information between a system
and its environment
Common process modeling diagrams include
Data flow diagram (DFD) illustrates the

movement of information between external entities
and the processes and data stores within the
system
Computer-aided software engineering (CASE)
tools automate systems analysis, design, and
development
ANALYSIS 2: Create Process

Diagrams
Chapter 11
Sample data flow diagram
ANALYSIS 3: Perform a Buy

vs. Build Analysis
Chapter 11
An organization faces two primary choices

when deciding to develop an information
system
1. Buy the information system from a vendor
Commercial of-the shelf (COTS)

software package or solution that is
purchased to support one or more
business functions and info. systems
SCM, CRM, and ERP solutions are
typically COTS
2. Build the information system itself

vs. Build Analysis
Chapter 11
Organizations must consider the following

when making a buy vs. build decision:
Are there any currently available products that

fit the organizations needs?
Are there features that are not available and
important enough to warrant the expense of
in-house development?
Can the organization customize or modify an
existing COTS to fit its needs?
Is there a justification to purchase or develop
based on the cost of acquisition?

vs. Build Analysis
Chapter 11
Three key factors an organization

should also consider when
contemplating the buy vs. build
decision:
1. Time to market
2. Availability of corporate resources
3. Corporate core competencies
Functional Requirements
Chapter 11
Definition:
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
Functional Requirement
Categories
Chapter 11
User Interface
Processing
Storage
Control
Example of Functional
Requirements
Chapter 11
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
12-62

Cycle PHASE 3: DESIGNChapter 11
Design phase involves describing

the desired features and operations of
the system including screen layouts,
business rules, process diagrams,
pseudo code, and other documentation
Systems Design
Chapter 11
Definition:
Design activities that produce system
specifications satisfying the functional
requirements that were developed in the
systems analysis process
System Design Categories

Chapter 11
User Interface Design

Chapter 11
Definition:
Focuses on supporting the interactions
between end users and their computerbased applications
User Interface Design

Chapter 11
Focuses on supporting the interactions
between end users and their computerbased 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

12-67
Checklist for Corporate

Websites
Chapter 11
Remember the customer
Aesthetics
Broadband content
Easy to navigate
Searchability
Incompatibilities
Registration forms
Dead links
12-68
System Specifications
Chapter 11
Formalizing the design of

User interface methods and products
Database structures
Processing procedures
Control procedures
12-69

Websites
Chapter 11
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 Webs coolest stuff
cant be accessed by most Web surfers; dont

make it the focus of a site

Websites
Chapter 11
Easy to navigate make sure its easy to
get from one part of site to another

Searchability include a useful search
engine
Incompatibilities test site with target
web browsers

Websites
Chapter 11
Registration forms short registration
forms are a useful way to gather

customer data
Dead links be sure to keep links
updated

Cycle PHASE 4:
Chapter 11
DEVELOPMENT
Development phase involves taking

all of the detailed design documents
from the design phase and
transforming them into the actual
system
Primary development activities include:

1. Develop the IT infrastructure
2. Develop the database and programs
DEVELOPMENT 1: Develop
the IT Infrastructure
Chapter 11
The platform upon which the system

will operate must be built prior to
building the actual system
In the development phase, the

organization purchases and
implements the required equipment to
support the IT infrastructure
DEVELOPMENT 2: Develop
the Database and Programs
Chapter 11
Once the IT infrastructure is built, the

organization can begin to create the
database and write the programs
required for the system
IT specialists perform the majority of

the tasks associated with the
development phase

Cycle PHASE 5: TESTING
Chapter 11
Testing phase involves bringing all

the project pieces together into a
special testing environment to test for
errors, bugs, and interoperability, in
order to verify that the system meets
all the business requirements defined
in the analysis phase
Primary testing activities include:
1. Write the test conditions
2. Perform the system testing
System Testing
Chapter 11
Testing and debugging software

Testing website performance
Testing new hardware
Review of prototypes of displays, reports
and other output
TESTING 1: Write the Test

Conditions
Chapter 11
Test condition the detailed steps

the system must perform along with
the expected results of each step
TESTING 2: Perform the

System Testing
Chapter 11
Different types of testing:
Unit testing tests each unit of code upon completion

Application (or system) testing verifies that all
units of code work together
Integration testing exposes faults in the integration
of software components or units
Backup and recovery testing tests the ability of an
application to be restarted after failure
Documentation testing verifies instruction guides
are helpful and accurate
User acceptance testing (UAT) tests if a system
satisfies its acceptance criteria

Cycle PHASE 6:
Chapter 11
IMPLEMENTATION
Implementation phase involves

placing the system into production so
users can begin to perform actual
business operations with the system
Implementing New Systems

Chapter 11
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

12-81
Other Implementation
Activities
Chapter 11
The keys to successful implementation of
a new business system

Testing
Data conversion
Documentation
Training
12-82
Data Conversion
Chapter 11
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

12-83
Importance of
Documentation
Chapter 11
Documentation serves as a method of
communication among the people

responsible for developing, implementing,
and maintaining a computer-based system.
Documentation is extremely important in
diagnosing errors and making changes,

especially if the end users or systems
analysts who developed a system are no
longer with the organization.
Documentation
Chapter 11
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
12-85
Training
Chapter 11
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
12-86
Major System
Chapter 11
Conversion Strategies
12-87
Direct Conversion
Chapter 11
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
12-88
Parallel Conversion
Chapter 11
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
12-89
Pilot Conversion
Chapter 11
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
12-90
Phased Conversion
Chapter 11
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
12-91
Implementation Process
Chapter 11
Hardware Evaluation
Factors
Performance
Ergonomics
Cost
Connectivity
Reliability
Scalability
Compatibility
Software
Technology
Support
Chapter 11
Hardware Evaluation
Factors
Chapter 11
Performance
What is its speed, capacity and Throughput
Cost
What is the lease or purchase price? What will
be the cost of operation and maintenance?
Reliability
What are he risk of malfunction & its
maintenance requirements? What are its error

control and diagnostic features?
12-94
Hardware Evaluation
Factors
Chapter 11
Compatibility
Is it compatible with existing hardware and
software? Is it compatible with hardware and

software provided by competing suppliers?
Technology
In what year of product life cycle it is? Does it use a
new untested technology or does it run the risk of

obsolescence?
Ergonomics
Has it been human factors engineered with the
user in mind? Is it user friendly, designed to be

safe, comfortable and easy to use?
12-95
Hardware Evaluation
Factors
Chapter 11
Connectivity
Can it be easily connected to WAN and LAN
that use different type of network technologies

and bandwidth alternatives?
Scalability
Can it handle the processing demands of a
wide range of end users, transactions, queries

and other processing requirements?
Software
Are system and application software available
that can best use this software?
12-96
Hardware Evaluation
Factors
Chapter 11
Support
Are the services required to support and
maintain available?
12-97
Software Evaluation
Factors
Chapter 11
Quality
Connectivity
Efficiency
Maintenance
Flexibility
Documentation
Security
Hardware
Software Evaluation factors

Chapter 11
Quality
Is it bug free or does it have many errors in its
program code?
Efficiency
Is the software using much of CPU time, memory
capacity or disk space?
Flexibility
Can it handle our business processes easily
without much of modifications?
Security
Does it provide control procedures for errors?
12-99

Chapter 11
Connectivity
Is it web enabled so it can be easily access the
Internet, Intranet and extranets on its own or

with web browsers?
Maintenance
Will new features and bug fixes be easily
implemented by our own software

developers?
Documentation
Is the software well documented? Does it
include help screens?
12-100

Chapter 11
Hardware
Does the existing hardware have the
features required to best use this software?
Other Factors
What are its performance, cost, reliability,
availability, compatibility, modularity,

technology, ergonomics, scalability and
support characteristics?
12-101
IS Services
Chapter 11
Developing a
company website
Installation
Conversion
System design
Contract
programming
Consulting services
Employee training
Hardware
maintenance
System integration
IS Services Evaluation
Factors
Performance
Backup
Systems
Accessibility
development
Maintenance
Conversion
Training
Chapter 11
Business Position
Hardware
Software
factors
Chapter 11
Performance
What has been their past performance in view of
their promises?
System Development
Are web site and other e business developers
available? What are their quality and cost?
Maintenance
Is equipment maintenance provide? What are their
quality and cost?
12-104
factors
Chapter 11
Conversion
What system development and installation services
will they provide during the conversion period?
Training
Is necessary training of personnel provided? What
are its quality and cost?
Backup
Are similar computer facilities available nearby for
emergency backup purpose?
12-105
factors
Chapter 11
Accessibility
Does the vendor provide local or regional sites that offer
sales, systems development and hardware maintenance

services? Is a customer support center at vendors web
site available? Is a customer hotline provided?
Business Position
Is the vendor financially strong, with good industry
market prospects
Hardware
Do they provide wide selection of compatible hardware
devices & accessories?
12-106
factors
Chapter 11
Software
Do they offer a variety of useful e business
software and application packages?
12-107

Cycle PHASE 7:
Chapter 11
MAINTENANCE
Maintenance phase involves

performing changes, corrections,
additions, and upgrades to ensure the
system continues to meet the business
goal
Post-Implementation
Activities
Chapter 11
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
12-109
Systems Maintenance
Chapter 11
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
12-110
Post-Implementation
Review
Chapter 11
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
12-111
Software Problems Are

Business Problems
Chapter 11
Primary reasons for project failure include
Unclear or missing business requirements

Skipping SDLC phases
Failure to manage project scope
o
o
Scope creep occurs when the scope

increases
Feature creep occurs when extra features
are added
Failure to manage project plan

Changing technology
Case Study: HewlettPackard: Managing Chapter 11

Radical
Change
Some
facts about
Randy Mott & his
earlier achievements
In Wal-Mart, he had only 30 tech staff
Yet they developed a network of
computerized distribution centers that made

it simple to open and run new store with
cookie cutter efficiency
In 1990, as a CIO, he persuaded higher ups to
invest in Data Warehouse

12-113

Radical
Some
facts about Change
Randy Mott & his earlier
achievements
With that the company was able to analyze
buying trends of customers as no other company

had done.
In 2005, he took up the job of CIO in HP

He understood not only technology and how to
use it to improve business, but how to deliver

those benefits
In Dell, he meld 100 separate systems into a
single data warehouse.
12-114

Radical
Some
facts aboutChange
Randy Mott & his
earlier achievements
Motts team enabled Dell to quickly spot
its inventory for a particular chip, so the

company could offer online promotions
for devices containing that part before
the prices fell too steeply.
Most challenging project - 3 year, $1
billion plus makeover of HP internal tech

systems
12-115

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
12-116

Radical Change

If Mott is successful, HPs annual spending
on tech should be cut in half in the years

ahead, from $3.5 billion in 2005.
Data warehouse could help HP make
headway on how to capitalize on its vast

breadth
12-117

Change
HP is Radical
embarking on
a makeover of its
If all information about HPs shipment of
printers, PCs and servers can be

integrated, it will enable HP to know
exactly, what each location is doing on a
given day
Mott had the advantage at Wal-Mart & Dell
of building infrastructure from scratch
12-118

Radical
Change
He will need support of the remaining
staffers who have resisted centralized

control
Mott is testing the limits of the HP culture,
taking away the rights of thousands of IT

workers to purchase their own tech
equipments
12-119

Radical
Change
Tearing up the IT infrastructure & putting
many IT initiatives on hold
CEO Hurd is demanding revamp of
everything from sales to product lines
Everyone is averaging 60 hours a week

At some point you hit a breaking point
12-120

Radical
Change
Motts greatest strength is while a
technologist, he has management skills to

make IT actually take root in a companys
culture
Moot championed the deployment of IT by
showing how it achieved Wal-Marts

business goals
12-121

Change
HP isRadical
embarking on
a makeover of its
The idea of data warehousing is to make sure
that all of HPs businesses are working of the

same set of data, and to give them tools to
quickly make the best decisions for the entire
company say a single customer
management system, so executives can
know the full breadth of what any account
buys from HP
12-122

Radical Change

Hurd & Mott believed in speed over
endless analysis
Benefits achieved
Trimmed 1200 individual projects such
as e learning application for new hires to

only 500
12-123

Radical Change
Benefits achieved
He also imposed real deadlines to make
that the Projects were completed in time.

HP had 5 or more IT workers in 100
different locations, he decided to reduce

them to 25
12-124

Radical
Change
Strategy adopted by Mott to break the
news of impending layoffs
He held close to 20 Coffee talks with
HP employees in various countries.
This could lead to some trying times
next year, but the benefits may be

surprising
Cut monthly networking bill to phone
companies by 40%
12-125
Case Study: Hewlett

Packard Questions
Chapter 11
1. 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
Initiatives
Consolidate data centers
May cut HPs IT costs in half

12-126
Case Study: Hewlett

Packard Questions
Chapter 11
Consolidation will reduce significant

amount of facility maintenance expenses
This cost reduction will help HP improve

its bottom line
Databases consolidation
Will allow data analysis
Benefits can range from improved

supplier & inventory management to
better customer relations
12-127
Case Study: Hewlett

Packard Questions
Chapter 11
2. 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?
HP employees both on IT side & on the

business side need to learn Motts
strategy, buy into business objectives
and understand their role in HPs future
12-128
Case Study: Hewlett

Packard Questions
Chapter 11
This will reduce employees doubts and

uncertainties and help each one make a
more informed decision
Employee may choose to stay or leave

for right reasons
These meetings give Mott the

opportunity to learn about HP, its
employees & its culture
He will find this useful as develops its

plans
12-129
Case Study: Hewlett

Packard Questions
Chapter 11
These meetings will open new

channel of communications, which
can supply Mott with information
during the course of restructuring
12-130
Case Study: Hewlett

Packard Questions
Chapter 11
3. 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?
12-131
Case Study: Hewlett

Packard Questions
Chapter 11
Mott has to succeed in each of the three

major disciplines in order to make this project
a success, business, technology & HRM.
Mott has experience of achieving business

success in his previous companies
He also has the technical experience to

understand and manage the technical
challenges created by these projects
The key difference between his prior

experience & HP falls on the Human Resource
side
12-132
Case Study: Hewlett

Packard Questions
Chapter 11
Both Dell & Wal-Mart were relatively

new & heavily centralized organizations
Centralizing their data services did not

pose much challenge to their
fundamental business model
While with HP, it will.
In order to succeed Mott will full support

& dedication of CEO & its board of
directors
12-133
Case Study: Hewlett

Packard Questions
Chapter 11
He will need this support because

these changes will prompt
considerable internal backlash & this
backlash must be met with resolute
determination
Resistance to change must be met

with an adapt or leave message that
only top leadership can make stick.
12-134
Case Study: Hewlett

Packard Questions
Chapter 11
Mott must ensure that only right people

stay & the right people leave both on
the business side and IT side in HP
To do this, he must first clearly

communicate what these changes will
mean both to business units and to the
IT staff.
People should stay or leave for the right

reasons
12-135
Case Study: Hewlett

Packard Questions
Chapter 11
He should also explain the benefits to

the individuals who fully participate in
this changeover
Employees fully participating in the

changeover will have a meaningful
future with HP
HP needs to offer early retirement

packages to senior & mid level
managers both within business units and
his own IT staff
12-136
Case Study: Hewlett

Packard Questions
Chapter 11
HP also needs to assure managers

that those facing layoffs will receive
generous separation packages
This will encourage employees who

wish to participate in the change to
take a chance & stay
This is important because Mott need

experienced and willing HP hands on
board with his program
12-137
Case Study: Hewlett

Packard Questions
Chapter 11
Lastly Mott needs to identify failing

managers and terminate their
employment
This will help managers learn about

centralization plans and its benefits
This will also give chance to some

managers to accept early retirement
12-138

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Case: Blue Cross Development Challenges

answer their own questions, enter their

Case: Blue Cross Development Challenges

Case: Blue Cross Development Challenges

Why do more than a third of all Web self-service

Case: Blue Cross Development Challenges

What are some solutions to the problems

Case: Blue Cross Development Challenges

Bad web based self service will have frustrated

Case: Blue Cross Development Challenges

which they do not know the answers

Software that is built correctly can transform,

as the organization and its business transforms

Software that effectively meets employee

needs will help an organization become more

Software that does not meet employee needs

may have a damaging effect on productivity

As organizations reliance on software

grows, so do the business-related

Activities that go into producing an information

Overview of Systems Development

Building a system can

Overview of Systems Development

Defining the problem and identifying causes

Is solution feasible and good investment?

Overview of Systems Development

System analysis (cont.)

Who needs what information, where, when, and

Overview of Systems Development

Should address all managerial, organizational, and

User information requirements drive system building

Overview of Systems Development

Overview of Systems Development

Overview of Systems Development

When developing a test plan, it is imperative to include the various conditions to

Overview of Systems Development

Overview of Systems Development

Production and maintenance

Changes in hardware, software, documentation, or

Overview of Systems Development

Create design specifications

Translate design specifications

Operate the system

Overview of Systems Development

Most prominent methodologies for modeling and

Overview of Systems Development

Data flow diagram:

Offers logical graphic model of information flow

Data dictionary: Defines contents of data flows and data

Process specifications: Describe transformation occurring

Structure chart: Top-down chart, showing each level of

Overview of Systems Development

Overview of Systems Development

THE SYSTEMS DEVELOPMENT

THE SYSTEMS DEVELOPMENT

1. Planning phase involves establishing a

high-level plan of the intended project and

user business requirements and refining

Business requirement detailed set of

THE SYSTEMS DEVELOPMENT

3. Design phase involves describing the

desired features and operations of the

4. Development phase involves taking

all of the detailed design documents