10.1 © 2002 by prentice hall c h a p t e r 10 redesigning the organization with information systems

10.1© 2002 by Prentice Hall

c h a p t e r

1010 REDESIGNING REDESIGNING

THE THE ORGANIZATION ORGANIZATION

WITH WITH INFORMATION INFORMATION

SYSTEMSSYSTEMS


• DEMONSTRATE HOW BUILDING NEW DEMONSTRATE HOW BUILDING NEW SYSTEMS CAN PRODUCE SYSTEMS CAN PRODUCE ORGANIZATIONAL CHANGEORGANIZATIONAL CHANGE

• EXPLAIN INFORMATION SYSTEM EXPLAIN INFORMATION SYSTEM DEVELOPMENT TO FIT BUSINESS PLANDEVELOPMENT TO FIT BUSINESS PLAN

• IDENTIFY CORE ACTIVITIES IN SYSTEMS IDENTIFY CORE ACTIVITIES IN SYSTEMS DEVELOPMENT PROCESSDEVELOPMENT PROCESS

**

LEARNING OBJECTIVESLEARNING OBJECTIVES


LEARNING OBJECTIVESLEARNING OBJECTIVES

• APPRAISE ALTERNATIVES FOR APPRAISE ALTERNATIVES FOR BUILDING SYSTEMSBUILDING SYSTEMS

• EVALUATE OBJECT-ORIENTED EVALUATE OBJECT-ORIENTED DEVELOPMENT & RAPID APPLICATION DEVELOPMENT & RAPID APPLICATION DEVELOPMENTDEVELOPMENT

**


MANAGEMENT CHALLENGESMANAGEMENT CHALLENGES

• SYSTEMS AS PLANNED SYSTEMS AS PLANNED ORGANIZATIONAL CHANGESORGANIZATIONAL CHANGES

• PROCESS REENGINEERING & TOTAL PROCESS REENGINEERING & TOTAL QUALITY CONTROLQUALITY CONTROL

• OVERVIEW OF SYSTEMS OVERVIEW OF SYSTEMS DEVELOPMENTDEVELOPMENT

• ALTERNATIVE APPROACHESALTERNATIVE APPROACHES

**


INFORMATION SYSTEMS INFORMATION SYSTEMS PLANPLAN

1. PURPOSE OF THE PLAN: 1. PURPOSE OF THE PLAN: Overview of plan Overview of plan contents, changes in current situation, firm’s contents, changes in current situation, firm’s strategic plan, current organization, key business strategic plan, current organization, key business processes, management strategyprocesses, management strategy

2. STRATEGIC BUSINESS PLAN: 2. STRATEGIC BUSINESS PLAN: Current situation, Current situation, current organization, changing environments, current organization, changing environments, major goals of planmajor goals of plan

**


3. CURRENT SYSTEMS: 3. CURRENT SYSTEMS: Major systems supporting Major systems supporting business functions & processes, major current business functions & processes, major current capabilities (hardware, software, database, capabilities (hardware, software, database, telecommunications), difficulties meeting telecommunications), difficulties meeting requirements, anticipated future demandsrequirements, anticipated future demands

4. NEW DEVELOPMENTS: 4. NEW DEVELOPMENTS: New system projects New system projects (project descriptions, business rationale), new (project descriptions, business rationale), new capabilities required (hardware, software, capabilities required (hardware, software, database, telecommunications, internet)database, telecommunications, internet)

**



5. MANAGEMENT STRATEGY: 5. MANAGEMENT STRATEGY: Acquisition plans, Acquisition plans, milestones & timing, organizational realignment, milestones & timing, organizational realignment, internal reorganization, management controls, major internal reorganization, management controls, major training initiatives, personnel strategytraining initiatives, personnel strategy

6. IMPLEMENTATION PLAN: 6. IMPLEMENTATION PLAN: Anticipated difficulties, Anticipated difficulties, progress reportsprogress reports

7. BUDGET REQUIREMENTS: 7. BUDGET REQUIREMENTS: Requirements, potential Requirements, potential savings, financing, acquisitionsavings, financing, acquisition

* *



ENTERPRISE ANALYSISENTERPRISE ANALYSIS (BUSINESS SYSTEMS PLANNING)(BUSINESS SYSTEMS PLANNING)

ORGANIZATION-WIDE INFORMATION NEEDS IN ORGANIZATION-WIDE INFORMATION NEEDS IN TERMS OF:TERMS OF:

• ORGANIZATIONAL UNITSORGANIZATIONAL UNITS• FUNCTIONSFUNCTIONS• PROCESSESPROCESSES• DATA ELEMENTSDATA ELEMENTS

HELPS IDENTIFY KEY HELPS IDENTIFY KEY ENTITIES ENTITIES & ATTRIBUTES & ATTRIBUTES IN ORGANIZATION’S IN ORGANIZATION’S DATADATA

**


CRITICAL SUCCESS CRITICAL SUCCESS FACTORS (CSFs)FACTORS (CSFs)

• SMALL NUMBER, EASILY IDENTIFIABLE SMALL NUMBER, EASILY IDENTIFIABLE OPERATIONAL GOALSOPERATIONAL GOALS

• SHAPED BY INDUSTRY, MANAGER, SHAPED BY INDUSTRY, MANAGER, ENVIRONMENTENVIRONMENT

• BELIEVED TO ASSURE FIRM’S SUCCESSBELIEVED TO ASSURE FIRM’S SUCCESS• USED TO DETERMINE ORGANIZATION’S USED TO DETERMINE ORGANIZATION’S

INFORMATION REQUIREMENTSINFORMATION REQUIREMENTS

**


• GOALS (AUTOMOBILE INDUSTRY):GOALS (AUTOMOBILE INDUSTRY): Earnings per share, return on Earnings per share, return on investment, market share, new investment, market share, new productproduct

• CSF:CSF: Styling, quality dealer system, Styling, quality dealer system, cost control, energy standardscost control, energy standards

**

CRITICAL SUCCESS FACTORSCRITICAL SUCCESS FACTORS Example:Example: PROFIT CONCERNPROFIT CONCERN


• GOALS (HOSPITAL):GOALS (HOSPITAL): Excellent health Excellent health care, meeting government care, meeting government regulations, future health needsregulations, future health needs

• CSF:CSF: Regional integration with other Regional integration with other hospitals, efficient use of resources, hospitals, efficient use of resources, improved monitoring of regulations improved monitoring of regulations

**

CRITICAL SUCCESS FACTORSCRITICAL SUCCESS FACTORS Example:Example: NONPROFIT CONCERNNONPROFIT CONCERN


USING CSFs TO DEVELOP SYSTEMSUSING CSFs TO DEVELOP SYSTEMS

• COLLECT MANAGERS’ CSFsCOLLECT MANAGERS’ CSFs• AGGREGATE, ANALYZE INDIVIDUALS’ CSFsAGGREGATE, ANALYZE INDIVIDUALS’ CSFs• DEVELOP AGREEMENT ON COMPANY CSFsDEVELOP AGREEMENT ON COMPANY CSFs• DEFINE COMPANY CSFsDEFINE COMPANY CSFs• USE CSFs TO DEVELOP INFORMATION USE CSFs TO DEVELOP INFORMATION

SYSTEM PRIORITIESSYSTEM PRIORITIES• DEFINE DSS & DATABASESDEFINE DSS & DATABASES

**


SPECTRUM OF ORGANIZATIONAL SPECTRUM OF ORGANIZATIONAL CHANGECHANGE

• AUTOMATION:AUTOMATION: Using technology to perform Using technology to perform tasks efficiently / effectivelytasks efficiently / effectively

• RATIONALIZATION OF PROCEDURES:RATIONALIZATION OF PROCEDURES: Streamline SOPs; eliminate bottlenecksStreamline SOPs; eliminate bottlenecks

• BUSINESS REENGINEERING:BUSINESS REENGINEERING: Radical redesign Radical redesign of processes to improve cost, quality, service; of processes to improve cost, quality, service; maximize benefits of technologymaximize benefits of technology

• PARADIGM SHIFTPARADIGM SHIFT

**


PARADIGM SHIFTPARADIGM SHIFT

• PARADIGM:PARADIGM: A complete mental model A complete mental model of how a complex system functionsof how a complex system functions

• A PARADIGM SHIFT:A PARADIGM SHIFT: Involves Involves rethinking the nature of the business, rethinking the nature of the business, the organization; a complete the organization; a complete reconception of how the system reconception of how the system should functionshould function

**


BUSINESS PROCESS BUSINESS PROCESS REENGINEERING (BPR)REENGINEERING (BPR)

• REENGINEERING:REENGINEERING: Redesigning Redesigning business processes to lower cost, business processes to lower cost, speed developmentspeed development

• WORK-FLOW MANAGEMENT:WORK-FLOW MANAGEMENT: Streamlining process to move Streamlining process to move documents easily, efficientlydocuments easily, efficiently

**


1. Develop business vision, process 1. Develop business vision, process objectivesobjectives

2. Identify process to be redesigned2. Identify process to be redesigned

3. Understand, measure performance of 3. Understand, measure performance of existing processesexisting processes

4. Identify opportunities for applying 4. Identify opportunities for applying information technologyinformation technology

5. Build prototype of new process5. Build prototype of new process

**

EFFECTIVEEFFECTIVEREENGINEERING STEPS:REENGINEERING STEPS:


ANALYSIS OF PROBLEM TO BE ANALYSIS OF PROBLEM TO BE SOLVED WITH AN INFORMATION SOLVED WITH AN INFORMATION

SYSTEMSYSTEM

FEASIBILITY STUDY:FEASIBILITY STUDY: Can problem Can problem be solved within be solved within constraints?constraints?

**

SYSTEMS ANALYSISSYSTEMS ANALYSIS


FEASIBILITYFEASIBILITY• TECHNICAL:TECHNICAL: Assess hardware, software, Assess hardware, software,

technical resourcestechnical resources

• ECONOMIC:ECONOMIC: Will benefits outweigh costs? Will benefits outweigh costs?

• OPERATIONAL:OPERATIONAL: Is solution desirable Is solution desirable within existing conditions?within existing conditions?

INFORMATION REQUIREMENTS:INFORMATION REQUIREMENTS: Detailed Detailed statement of newstatement of new system needs system needs

**


SYSTEM DESIGNSYSTEM DESIGN

DETAILS HOW SYSTEM WILL MEET NEEDS:DETAILS HOW SYSTEM WILL MEET NEEDS:

• LOGICAL DESIGN:LOGICAL DESIGN: Components, Components, data as needed by applicationsdata as needed by applications

• PHYSICAL DESIGN:PHYSICAL DESIGN: PhysicalPhysical location of components and datalocation of components and data

**


DESIGN SPECIFICATIONSDESIGN SPECIFICATIONS

• OUTPUTOUTPUT: Medium, content, timing: Medium, content, timing• INPUT:INPUT: Origins, flow, data entry Origins, flow, data entry• USER INTERFACEUSER INTERFACE: Simplicity, efficiency, logic, feedback, : Simplicity, efficiency, logic, feedback,

errorserrors• DATABASE DESIGNDATABASE DESIGN: Logical data relations, volume, : Logical data relations, volume,

speed requirements, file organization & design, record speed requirements, file organization & design, record specificationsspecifications

• PROCESSING: PROCESSING: Computations, program Computations, program modules, modules, required reports, timing of required reports, timing of outputsoutputs

• MANUAL PROCEDURES:MANUAL PROCEDURES: What activities, What activities, who who performs them, how, whereperforms them, how, where

**


• CONTROLS: CONTROLS: Input, processing, output, proceduralInput, processing, output, procedural• SECURITY: SECURITY: Access controls, catastrophe plans, audit Access controls, catastrophe plans, audit

trailstrails• DOCUMENTATION: DOCUMENTATION: Operations, systems, userOperations, systems, user• CONVERSION:CONVERSION: Transfer files, initiate new procedures, Transfer files, initiate new procedures,

select testing modules, cut select testing modules, cut over to new over to new systemsystem

• TRAINING:TRAINING: Select training techniques, Select training techniques, develop develop training modules, identify training modules, identify training training facilitiesfacilities

**



• ORGANIZATIONAL CHANGES: ORGANIZATIONAL CHANGES: Task redesign, Task redesign, job design, process design, organization job design, process design, organization structure design, reporting relationshipsstructure design, reporting relationships

**



ROLE OF END USERSROLE OF END USERS

• USERS DRIVE SYSTEMS EFFORTUSERS DRIVE SYSTEMS EFFORT

• MUST HAVE SUFFICIENT CONTROL MUST HAVE SUFFICIENT CONTROL TO ENSURE SYSTEM REFLECTS TO ENSURE SYSTEM REFLECTS BUSINESS PRIORITIES, NEEDSBUSINESS PRIORITIES, NEEDS

• FUNCTIONAL USERS DRIVE FUNCTIONAL USERS DRIVE SYSTEM NEEDSSYSTEM NEEDS

**


COMPLETING SYSTEM COMPLETING SYSTEM DEVELOPMENT PROCESSDEVELOPMENT PROCESS

• PROGRAMMING:PROGRAMMING: Translating Translating needs to program codeneeds to program code

• TESTING:TESTING: Does system produce Does system produce desired results?desired results?

• CONVERSION:CONVERSION: Changing from Changing from the old to the newthe old to the new

**


• UNIT TESTING:UNIT TESTING: Tests each unit separatelyTests each unit separately• SYSTEM TESTING:SYSTEM TESTING: Do modules function Do modules function

as planned?as planned?• ACCEPTANCE TESTING:ACCEPTANCE TESTING: Final Final

certificationcertification

TEST PLAN:TEST PLAN: Preparations for Preparations for tests to tests to be performedbe performed

**

TESTINGTESTING


CONVERSIONCONVERSION• PARALLEL:PARALLEL: Old & new run same problems. Give same Old & new run same problems. Give same

results?results?• DIRECT CUTOVER:DIRECT CUTOVER: Risky conversion to new systemRisky conversion to new system• PILOT:PILOT: Introduce into one area. Does it work? Yes: Introduce into one area. Does it work? Yes:

introduce into other areaintroduce into other area• PHASED:PHASED: Introduce in stagesIntroduce in stages• CONVERSION PLAN:CONVERSION PLAN: Schedule for Schedule for

conversionconversion• DOCUMENTATION:DOCUMENTATION: Description of how Description of how

system workssystem works

**


PRODUCTION & MAINTENANCEPRODUCTION & MAINTENANCE

• PRODUCTION:PRODUCTION: Constant review by Constant review by users & operators. Does it meet users & operators. Does it meet goals?goals?

• MAINTENANCE:MAINTENANCE: Upkeep, update, Upkeep, update, corrections over timecorrections over time

**


SYSTEMS DEVELOPMENTSYSTEMS DEVELOPMENT

CORE ACTIVITYCORE ACTIVITY DESCRIPTIONDESCRIPTION

SYSTEMS ANALYSISSYSTEMS ANALYSIS IDENTIFY PROBLEM(S)SPECIFY SOLUTIONSESTABLISH INFORMATION REQUIREMENTS

SYSTEMS DESIGNSYSTEMS DESIGN CREATE LOGICAL DESIGN SPECSCREATE PHYSICAL DESIGN SPECSMANAGE TECHNICAL REALIZATION OF SYSTEM

PROGRAMMINGPROGRAMMING TRANSLATE DESIGN SPECS INTOPROGRAM CODE


SYSTEMS DEVELOPMENTSYSTEMS DEVELOPMENT

CORE ACTIVITYCORE ACTIVITY DESCRIPTIONDESCRIPTION

TESTINGTESTING UNIT TEST SYSTEMS TEST ACCEPTANCE TEST

CONVERSIONCONVERSION PLAN CONVERSION PREPARE DOCUMENTATION TRAIN USERS & TECHNICAL STAFF

PRODUCTION &PRODUCTION & OPERATE SYSTEMMAINTENANCEMAINTENANCE EVALUATE SYSTEM

MODIFY SYSTEM


SYSTEM LIFECYCLESYSTEM LIFECYCLE

• PROJECT DEFINITION:PROJECT DEFINITION: Is there a Is there a problem? Can it be solved with a project?problem? Can it be solved with a project?

• SYSTEM STUDY:SYSTEM STUDY: Analyze problems in Analyze problems in existing systems; define objectives existing systems; define objectives evaluate alternativesevaluate alternatives

• DESIGN:DESIGN: Logical & physical specifications Logical & physical specifications for systems solutionfor systems solution

• PROGRAMMING:PROGRAMMING: Develop software codeDevelop software code

**


SYSTEM LIFECYCLESYSTEM LIFECYCLE

• INSTALLATION:INSTALLATION: Construct, test, train, Construct, test, train, convert to new systemconvert to new system

• POSTINSTALLATION:POSTINSTALLATION: On-going On-going evaluation, modifications for improvement evaluation, modifications for improvement to meet new requirementsto meet new requirements

NECESSARY FOR LARGE, COMPLEX NECESSARY FOR LARGE, COMPLEX SYSTEMS & PROJECTSSYSTEMS & PROJECTS

**


ALTERNATIVE SYSTEM-ALTERNATIVE SYSTEM-BUILDING APPROACHESBUILDING APPROACHES

• PROTOTYPINGPROTOTYPING

• APPLICATION SOFTWARE APPLICATION SOFTWARE PACKAGESPACKAGES

• END-USER DEVELOPMENTEND-USER DEVELOPMENT

• OUTSOURCINGOUTSOURCING

**


PROTOTYPINGPROTOTYPING PROCESS OF BUILDING EXPERIMENTAL PROCESS OF BUILDING EXPERIMENTAL

SYSTEM TO DEMONSTRATE, EVALUATE SYSTEM TO DEMONSTRATE, EVALUATE APPROACH; USERS REFINE NEEDSAPPROACH; USERS REFINE NEEDS

• PROTOTYPE:PROTOTYPE: Preliminary working Preliminary working version of information system for version of information system for demonstration, evaluation purposesdemonstration, evaluation purposes

• ITERATIVE PROCESSITERATIVE PROCESS

**


STEPS IN PROTOTYPINGSTEPS IN PROTOTYPING

1. IDENTIFY USER’S REQUIREMENTS1. IDENTIFY USER’S REQUIREMENTS

2. DEVELOP PROTOTYPE2. DEVELOP PROTOTYPE

3. USE PROTOTYPE3. USE PROTOTYPE

4. REVISE & ENHANCE PROTOTYPE4. REVISE & ENHANCE PROTOTYPE

BEST FOR DESIGN OF END-USER BEST FOR DESIGN OF END-USER INTERFACE:INTERFACE: How end-user interacts How end-user interacts with systemwith system

**


APPLICATION SOFTWARE APPLICATION SOFTWARE PACKAGESPACKAGES

PREWRITTEN, PRECODED APPLICATION PREWRITTEN, PRECODED APPLICATION SOFTWARE, COMMERCIALLY AVAILABLE FOR SOFTWARE, COMMERCIALLY AVAILABLE FOR SALE OR LEASESALE OR LEASE

• GEARED TO COMMON REQUIREMENTSGEARED TO COMMON REQUIREMENTS• CUSTOMIZATION:CUSTOMIZATION: Modification of software to Modification of software to

meet organization’s needsmeet organization’s needs• MUST WEIGH MUST WEIGH COSTS / BENEFITSCOSTS / BENEFITS• REQUEST FOR PROPOSAL (RFP):REQUEST FOR PROPOSAL (RFP): Detailed Detailed

questions sent to vendorsquestions sent to vendors

**


CUSTOMIZATIONCUSTOMIZATION

MODIFYING SOFTWARE PACKAGE TO MODIFYING SOFTWARE PACKAGE TO MEET ORGANIZATION’S UNIQUE MEET ORGANIZATION’S UNIQUE

REQUIREMENTS WITHOUT REQUIREMENTS WITHOUT DESTROYING INTEGRITY OF DESTROYING INTEGRITY OF

PACKAGE RAISES DEVELOPMENT PACKAGE RAISES DEVELOPMENT COSTSCOSTS

**


END-USER DEVELOPMENTEND-USER DEVELOPMENT

END-USERS DEVELOP END-USERS DEVELOP INFORMATION SYSTEM WITH INFORMATION SYSTEM WITH LITTLE HELP FROM TECHNICAL LITTLE HELP FROM TECHNICAL SPECIALISTS USING 4th SPECIALISTS USING 4th GENERATION TOOLSGENERATION TOOLS

**


END-USER DEVELOPMENTEND-USER DEVELOPMENT

STRENGTHS:STRENGTHS: Improved requirements Improved requirements determination, increased user involvement determination, increased user involvement & satisfaction, reduced application backlog& satisfaction, reduced application backlog

WEAKNESSES:WEAKNESSES: Relatively inefficient, slow Relatively inefficient, slow transaction processing, may carry high transaction processing, may carry high cost, large files can degrade performance, cost, large files can degrade performance, nonprocedural approachnonprocedural approach may may hamper logic & updating hamper logic & updating requirementsrequirements

**


OUTSOURCINGOUTSOURCING

CONTRACTING:CONTRACTING:• COMPUTER CENTER OPERATIONSCOMPUTER CENTER OPERATIONS• TELECOMMUNICATIONS NETWORKSTELECOMMUNICATIONS NETWORKS• APPLICATION DEVELOPMENTAPPLICATION DEVELOPMENT

TO EXTERNAL VENDORSTO EXTERNAL VENDORS

**


OUTSOURCINGOUTSOURCING

WHEN TO OUTSOURCE:WHEN TO OUTSOURCE:• IF FIRM WON’T DISTINGUISH ITSELF BY IF FIRM WON’T DISTINGUISH ITSELF BY

DEVELOPING APPLICATIONDEVELOPING APPLICATION• IF PREDICTABILITY OF IF PREDICTABILITY OF UNINTERRUPTED UNINTERRUPTED

SERVICE NOT IMPORTANTSERVICE NOT IMPORTANT• IF EXISTING SYSTEM IS IF EXISTING SYSTEM IS LIMITED, LIMITED,

INEFFECTIVE, INEFFECTIVE, INFERIORINFERIOR

**


SYSTEMS LIFECYCLESYSTEMS LIFECYCLEPHASES:PHASES:

• PROJECT DEFINITIONPROJECT DEFINITION

• SYSTEM STUDYSYSTEM STUDY

• DESIGNDESIGN

• PROGRAMMINGPROGRAMMING

• INSTALLATIONINSTALLATION

• POST-IMPLEMENTATIONPOST-IMPLEMENTATION

**


OBJECT - ORIENTED SOFTWARE OBJECT - ORIENTED SOFTWARE DEVELOPMENTDEVELOPMENT

• DE-EMPHASIZES PROCEDURESDE-EMPHASIZES PROCEDURES• SHIFTS FOCUS FROM MODELS & DATASHIFTS FOCUS FROM MODELS & DATA• TOTO OBJECTS, WHICH COMBINE DATA & OBJECTS, WHICH COMBINE DATA &

PROCEDURESPROCEDURES• OBJECTS REUSABLEOBJECTS REUSABLE• SYSTEM:SYSTEM: Classes, objects, relationships Classes, objects, relationships

REDUCES DEVELOPMENT TIME & COSTREDUCES DEVELOPMENT TIME & COST

**


RAPID APPLICATION DEVELOPMENT RAPID APPLICATION DEVELOPMENT (RAD)(RAD)

DEVELOP SYSTEM RAPIDLY:DEVELOP SYSTEM RAPIDLY:

• PROTOTYPINGPROTOTYPING

• 4th GENERATION TOOLS4th GENERATION TOOLS

• CLOSE TEAMWORK AMONG USERS CLOSE TEAMWORK AMONG USERS & SPECIALISTS& SPECIALISTS

**


c h a p t e r

1010 REDESIGNING REDESIGNING

THE THE ORGANIZATION ORGANIZATION

WITH WITH INFORMATION INFORMATION

SYSTEMSSYSTEMS

10.1 © 2002 by prentice hall c h a p t e r 10 redesigning the organization with information systems

Documents