10.1 copyright © 2005 pearson education canada inc. management information systems, second canadian...

10.1 Copyright © 2005 Pearson Education Canada Inc.

Management Information Systems, Management Information Systems, Second Canadian EditionSecond Canadian Edition

Chapter 10: Systems DevelopmentChapter 10: Systems Development

SYSTEMS SYSTEMS DEVELOPMENTDEVELOPMENT




• How could developing a new system How could developing a new system change the way an organization works?change the way an organization works?

• How can a company make sure that the How can a company make sure that the new information systems it develops fit its new information systems it develops fit its business plan?business plan?

• What are the steps required to develop a What are the steps required to develop a new information system?new information system?

continued

OBJECTIVES




• What alternative methods for developing What alternative methods for developing information systems are available?information systems are available?

• Are there any techniques or system-Are there any techniques or system-building approaches to help us develop building approaches to help us develop e-commerce and e-business applications e-commerce and e-business applications more rapidly?more rapidly?

OBJECTIVES (continued)



Chapter 10: Systems DevelopmentChapter 10: Systems DevelopmentUSING TECHNOLOGY TO WIN THE INSURANCE GAME




1.1. Major risks and uncertainties in Major risks and uncertainties in systems developmentsystems development

2.2. Determining when new systems and Determining when new systems and business processes can have the business processes can have the greatest strategic impactgreatest strategic impact

MANAGEMENT CHALLENGES




Information Systems PlanInformation Systems Plan• Road map indicating direction of systems Road map indicating direction of systems

developmentdevelopment• The rationale, the current situation, the The rationale, the current situation, the

management strategy, the implementation management strategy, the implementation plan, and the budgetplan, and the budget

10.1 SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE

Linking Information Systems to the Business Plan




Enterprise Analysis (Business Systems Enterprise Analysis (Business Systems Planning)Planning)

• Analysis of organization-wide information Analysis of organization-wide information requirementsrequirements

• Identifies key entities and attributesIdentifies key entities and attributes

Establishing Organizational Information Requirements





Strategic Analysis or Critical Success Strategic Analysis or Critical Success FactorsFactors

• Small number of easily identifiable Small number of easily identifiable operational goalsoperational goals

• Shaped by industry, firm, manager, and Shaped by industry, firm, manager, and broader environmentbroader environment

• Believed to assure the success of an Believed to assure the success of an organizationorganization

• Used to determine information requirements Used to determine information requirements of organizationof organization






Systems Development and Organizational Change





The Spectrum of Organizational ChangeThe Spectrum of Organizational Change• AutomationAutomation::

– Speeding up performanceSpeeding up performance

• Rationalization of Procedures:Rationalization of Procedures:– Streamlining of operating proceduresStreamlining of operating procedures

• Business Process Reengineering:Business Process Reengineering:– Radical design of business processesRadical design of business processes

• Paradigm Shift:Paradigm Shift:– Radical reconceptualizationRadical reconceptualization






Business Process ReengineeringBusiness Process Reengineering

• Reorganizes work flows, combining Reorganizes work flows, combining steps to eliminate redundant paper-steps to eliminate redundant paper-intensive tasksintensive tasks

• Large payoff from IT investment if Large payoff from IT investment if processes are redesigned before processes are redesigned before applying technologyapplying technology

10.2 BUSINESS PROCESS REENGINEERING AND PROCESS IMPROVEMENT

Business Process Re-engineering




Workflow ManagementWorkflow Management

• Streamlining business procedures Streamlining business procedures so that documents can be moved so that documents can be moved easily from one location to anothereasily from one location to another





Chapter 10: Systems DevelopmentChapter 10: Systems Development10.2 BUSINESS PROCESS REENGINEERING AND PROCESS IMPROVEMENT


Figure 10.3 (A)



Chapter 10: Systems DevelopmentChapter 10: Systems Development10.2 BUSINESS PROCESS REENGINEERING AND PROCESS IMPROVEMENT


Figure 10.3 (B)




• Senior management needs to develop Senior management needs to develop broad strategic vision broad strategic vision

• Management must understand and Management must understand and measure performance of existing measure performance of existing processes as baselineprocesses as baseline

• Information technology should be allowed Information technology should be allowed to influence process design from startto influence process design from start

• IT infrastructure should be able to support IT infrastructure should be able to support business process changes business process changes

Steps in Effective Re-engineering





Process Improvement: Total Quality Management (TQM) and Six Sigma


Total Quality Management (TQM)Total Quality Management (TQM)• A concept that makes quality control a A concept that makes quality control a

responsibility to be shared by all people in responsibility to be shared by all people in an organizationan organization

Six SigmaSix Sigma• A specific measure of quality representing A specific measure of quality representing

3.4 defects per million opportunities3.4 defects per million opportunities• Used to designate a set of methodologies Used to designate a set of methodologies

and techniques for improving quality and and techniques for improving quality and reducing costsreducing costs




How Information Systems Support How Information Systems Support Quality ImprovementsQuality Improvements• Simplify product or production processSimplify product or production process• Enable benchmarkingEnable benchmarking• Use customer demands as guide to Use customer demands as guide to

improving products and servicesimproving products and services• Reduce cycle timeReduce cycle time• Improve quality and precision of designImprove quality and precision of design• Increase precision of productionIncrease precision of production

Process Improvement: Total Quality Management (TQM) and Six Sigma





Systems DevelopmentSystems Development• Activities that go into producing an Activities that go into producing an

information systems solution information systems solution

10.3 OVERVIEW OF SYSTEMS DEVELOPMENT



Chapter 10: Systems DevelopmentChapter 10: Systems Development10.3 OVERVIEW OF SYSTEMS DEVELOPMENT




Systems AnalysisSystems Analysis• Analysis of a problem that the Analysis of a problem that the

organization will try to solve with an organization will try to solve with an information systeminformation system

Feasibility StudyFeasibility Study• Part of systems analysis processPart of systems analysis process• Way to determine whether the solution is Way to determine whether the solution is

achievable, given the organization’s achievable, given the organization’s resources and constraintsresources and constraints


Systems Analysis




Establishing Information RequirementsEstablishing Information Requirements• Detailed statement of the information Detailed statement of the information

needs that the new system must satisfyneeds that the new system must satisfy

• Identifying who needs what information, Identifying who needs what information, and when, where, and how the and when, where, and how the information is neededinformation is needed


Systems Analysis




• Details how a system will meet the Details how a system will meet the information requirements as determined by information requirements as determined by systems analysissystems analysis

• Specifications for the system solutionSpecifications for the system solution

• Should reflect user business priorities and Should reflect user business priorities and information needsinformation needs

Systems Design





Systems Design





ProgrammingProgramming• Process of translating system specifications Process of translating system specifications

into program codeinto program codeTestingTesting• Checks whether the system produces Checks whether the system produces

desired results under known conditionsdesired results under known conditions– Test plan created– Testing includes:

• Unit testingUnit testing• System testingSystem testing• Acceptance testingAcceptance testing

Completing the Systems Development Process





Conversion: Conversion: Process of changing from old Process of changing from old system to new systemsystem to new system

• Conversion Strategies include:Conversion Strategies include:– Parallel– Direct cutover– Pilot study– Phased approach

• DocumentationDocumentation






Production and MaintenanceProduction and Maintenance

Production: Production: • The stage after new system is installed

and the conversion is complete

Maintenance Maintenance • Changes in hardware, software,

documentation, or procedures of production system to correct errors, meet new requirements or improve processing






Systems Development LifecycleSystems Development Lifecycle• Traditional methodology for developing Traditional methodology for developing

information systeminformation system• Partitions systems development process Partitions systems development process

into formal stages that must be completed into formal stages that must be completed sequentiallysequentially

• Formal division of labour between end Formal division of labour between end users and information system specialistsusers and information system specialists

10.4 ALTERNATIVE SYSTEM-BUILDING APPROACHES

Traditional Systems Development Lifecycle




Prototyping Prototyping • Process of building experimental system Process of building experimental system

quickly and inexpensively for demonstration quickly and inexpensively for demonstration and evaluationand evaluation

• Allows users to better determine information Allows users to better determine information requirementsrequirements

Prototype Prototype • Preliminary working version of information Preliminary working version of information

system for demonstration and evaluation system for demonstration and evaluation

Prototyping – Beta Testing





Prototyping10.4 ALTERNATIVE SYSTEM-BUILDING APPROACHES




Steps in PrototypingSteps in Prototyping• Identify user’s basic requirementsIdentify user’s basic requirements

• Develop initial prototype – Alpha TestingDevelop initial prototype – Alpha Testing

• Use prototype – Beta Testing 1Use prototype – Beta Testing 1

• Revise and enhance prototype Revise and enhance prototype – Beta Testing 2– Beta Testing 2





AdvantageAdvantage• Useful in designing information system’s Useful in designing information system’s

end-user interfaceend-user interface

DisadvantageDisadvantage• Rapid prototyping can gloss over Rapid prototyping can gloss over

essential steps in systems developmentessential steps in systems development





Application Software PackagesApplication Software Packages

• Set of prewritten, precoded application Set of prewritten, precoded application software programs commercially available software programs commercially available for sale or leasefor sale or lease

CustomizationCustomization

• Modification of software package to meet Modification of software package to meet organization’s unique requirements without organization’s unique requirements without destroying the software’s integritydestroying the software’s integrity

Application Software Packages





Selecting Software Packages: Request Selecting Software Packages: Request for Proposal (RFP)for Proposal (RFP)

• Detailed list of questions submitted to Detailed list of questions submitted to vendors of software or other servicesvendors of software or other services

• Determines how well vendor’s product Determines how well vendor’s product can meet organization’s specific can meet organization’s specific requirementsrequirements






• Development of information systems by Development of information systems by end users with little or no formal end users with little or no formal assistance from technical specialistsassistance from technical specialists

• Allows users to specify their own Allows users to specify their own business needs business needs

End-User Development10.4 ALTERNATIVE SYSTEM-BUILDING APPROACHES




AdvantageAdvantage• Improves requirements gathering leading Improves requirements gathering leading

to higher level of user involvement and to higher level of user involvement and satisfaction satisfaction

LimitationLimitation• Cannot easily handle processing of large Cannot easily handle processing of large

numbers of transactions or applications numbers of transactions or applications





Managing End-User DevelopmentManaging End-User Development

Information CentreInformation Centre• A special facility that provides training and

support for end-user computing





• Practice of contracting computer centre Practice of contracting computer centre operations, telecommunications operations, telecommunications networks, or applications development to networks, or applications development to external vendorsexternal vendors

Outsourcing10.4 ALTERNATIVE SYSTEM-BUILDING APPROACHES



Chapter 10: Systems DevelopmentChapter 10: Systems Development10.4 ALTERNATIVE SYSTEM-BUILDING APPROACHES

(A)



Chapter 10: Systems DevelopmentChapter 10: Systems Development10.4 ALTERNATIVE SYSTEM-BUILDING APPROACHES

(B)




• System modelled as a collection of System modelled as a collection of objects and relationships between themobjects and relationships between them

• Iterative and incrementalIterative and incremental

• Shifts focus from modelling business Shifts focus from modelling business processes and data to combining data processes and data to combining data and procedures to create objectsand procedures to create objects

10.5 APPLICATION DEVELOPMENT FOR THE DIGITAL FIRM

Object-Oriented Software Development




RADRAD• Process for developing systems in short time Process for developing systems in short time

period period • Uses prototyping, fourth-generation tools, and Uses prototyping, fourth-generation tools, and

close teamwork close teamwork

JAD: Joint Application DesignJAD: Joint Application Design• Process to accelerate the generation of Process to accelerate the generation of

information requirements by having end users information requirements by having end users and IS specialists work together in intensive and IS specialists work together in intensive iterative sessionsiterative sessions


Rapid Application Development (RAD)




• Software components deliverable over Software components deliverable over Internet Internet

• Enable one application to communicate Enable one application to communicate with another with no translation requiredwith another with no translation required

• Standards and protocols: XML, SOAP, Standards and protocols: XML, SOAP, WSDL, UDDIWSDL, UDDI

Web Services





• E-commerce and e-business require E-commerce and e-business require systems planning and systems analysis systems planning and systems analysis based on a broader view of organizationbased on a broader view of organization

Looking Beyond the Organization





SYSTEMS SYSTEMS DEVELOPMENTDEVELOPMENT

10.1 copyright © 2005 pearson education canada inc. management information systems, second canadian...

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