12.1 © 2003 by prentice hall 12 ism 6021 mis implementing is chapter

12.1 © 2003 by Prentice Hall

1212

ISM 6021 MISISM 6021 MIS

Implementing ISImplementing IS

Chapter


Information systems planInformation systems plan

• What form of planning is correct for IS?What form of planning is correct for IS?• Should ISP be formal or informal?Should ISP be formal or informal?• How does environment affect the planning How does environment affect the planning

methodology for ISP?methodology for ISP?• Who should be involved in ISP?Who should be involved in ISP?

SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE

Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems

Linking Information Systems to the Business Plan


Enterprise Analysis (Business SystemsEnterprise Analysis (Business SystemsPlanning)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




Process/Data Class Matrix

Figure 12-1


Strategic Analysis or Critical SuccessStrategic Analysis or Critical SuccessFactorsFactors

• 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

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



Establishing Organizational Information Requirements




Using CSFs to Develop Systems

Figure 12-2


• AutomationAutomation:: Speeding up performance Speeding 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 reconceptualization Radical reconceptualization



Systems Development and Organizational Change




Organizational Change Carries Risks and Rewards

Figure 12-3


BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM)


Redesigning Mortgage Processing in the United States

Figure 12-4a




Redesigning Mortgage Processing in the United States

Figure 12-4b


What steps should be taken in reengineering What steps should be taken in reengineering of business processes?of business processes?

• develop broad strategic vision develop broad strategic vision • measure performance of existing processes as baselinemeasure performance of existing processes as baseline• IT should be allowed to influence process design from startIT should be allowed to influence process design from start• IT infrastructure should be able to support business process IT infrastructure should be able to support business process changes changes



Steps in Effective Reengineering


What are -What are -

1.1. Systems developmentSystems development

2.2. Systems analysisSystems analysis

OVERVIEW OF SYSTEMS DEVELOPMENT


Overview




The Systems Development Process

Figure 12-5


Systems lifecycleSystems 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

ALTERNATIVE SYSTEM-BUILDING APPROACHES


Traditional Systems Lifecycle


Prototyping Prototyping

• Process of building experimental system Process of building experimental system quickly and inexpensively for demonstration quickly and inexpensively for demonstration and evaluation and evaluation

Prototype Prototype

• Preliminary working version of information Preliminary working version of information system for demonstration and evaluation system for demonstration and evaluation



Prototyping


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




The Effects of Customizing a Software Package on Total Implementation Costs

Figure 12-8


Request for Proposal (RFP)Request 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



Application Software Packages


What is End-User Development?What is End-User Development?

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

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



End-User Development




End-User Versus System Lifecycle Development

Figure 12-9


What is Outsourcing?What is Outsourcing?

Under what conditions should IT be Under what conditions should IT be outsourced?outsourced?

What are advantages and limitations of What are advantages and limitations of outsourcing?outsourcing?



Outsourcing


What is Object-Oriented Development?What is Object-Oriented Development?

What are the advantages / disadvantages of What are the advantages / disadvantages of OOD and OOP?OOD and OOP?

• Approach for software developmentApproach for software development

• De-emphasizes procedures De-emphasizes procedures

• Shifts focus from modeling business processes and data Shifts focus from modeling business processes and data to combining data and procedures to create objectsto combining data and procedures to create objects

APPLICATION DEVELOPMENT FOR THE DIGITAL FIRM


Object-Oriented Software Development


What is RAD?What is RAD?

What are some approaches to RAD?What are some approaches to RAD?

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

• Uses prototyping, fourth-generation tools, and close Uses prototyping, fourth-generation tools, and close teamwork teamwork

APPLICATION DEVELOPMENT FOR THE DIGITAL FIRM


Rapid Application Development (RAD)


1313

Measuring the Value of Measuring the Value of SystemsSystems

Chapter


Measuring SystemsMeasuring Systems

What factors must be considered when What factors must be considered when measuring the value of systems?measuring the value of systems?

What methods are available for capital What methods are available for capital budgeting and investment analysis?budgeting and investment analysis?


The Payback MethodThe Payback Method

• Measure of time required to pay back the initial Measure of time required to pay back the initial investment on a projectinvestment on a project

Accounting Rate of Return on Investment Accounting Rate of Return on Investment

(ROI)(ROI)

• Approximates the accounting income earned Approximates the accounting income earned by the investmentby the investment

UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS

Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeChapter 13 Understanding the Business Value of Systems and Managing Change

Case Example: Primrose, Mendelson, and Hansen


Present valuePresent value

• Value of a payment or stream of payments Value of a payment or stream of payments to be received in dollarsto be received in dollars

Net present valueNet present value

• Amount of money an investment is worth Amount of money an investment is worth





Cost-benefit ratioCost-benefit ratio

• Calculates returns from capital Calculates returns from capital expenditure expenditure

Profitability indexProfitability index

• Compares profitability of alternative Compares profitability of alternative investments by dividing the present value investments by dividing the present value of total cash inflow by initial costof total cash inflow by initial cost





Internal Rate of Return (IRR)Internal Rate of Return (IRR)

• Rate of return or profit an investment is Rate of return or profit an investment is expected to earnexpected to earn

Results of the Capital Budgeting Results of the Capital Budgeting

AnalysisAnalysis

• Cash flow positive over the time period Cash flow positive over the time period and returns more benefits than it costsand returns more benefits than it costs





Portfolio AnalysisPortfolio Analysis

• Analysis of portfolio of potential Analysis of portfolio of potential applications within a firm applications within a firm

• Determines risks and benefitsDetermines risks and benefits

• Selects among alternatives for information Selects among alternatives for information systemssystems



Strategic Considerations


Scoring ModelsScoring Models

• Method for deciding among alternative Method for deciding among alternative systems based on a system of ratings systems based on a system of ratings

Real Options Pricing ModelsReal Options Pricing Models

• Models for evaluating information Models for evaluating information technology investments with uncertain technology investments with uncertain returns returns







A System Portfolio

Figure 13-3


Knowledge Value–Added ApproachKnowledge Value–Added Approach

• Focuses on knowledge input into a Focuses on knowledge input into a business process business process

• Determines costs and benefits of changes Determines costs and benefits of changes in business processes from new in business processes from new information systemsinformation systems





Productivity Productivity

• Measure of firm’s efficiency in converting Measure of firm’s efficiency in converting inputs to outputsinputs to outputs

Information TechnologyInformation Technology

• Reduces costReduces cost

• Increases quality of products and servicesIncreases quality of products and services



Information Technology Investments and Productivity


System failureSystem failure

• Information system does not perform as Information system does not perform as expected, is not operational at a specified expected, is not operational at a specified timetime

• Poor design, inaccurate data, excessive Poor design, inaccurate data, excessive expenditure, breakdown in operationsexpenditure, breakdown in operations

IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE


Information System Problem Areas


What are the causes of IS project What are the causes of IS project failures?failures?

What steps can management take to What steps can management take to insure success of IS projects?insure success of IS projects?



Causes of Implementation Success and Failure




Factors in Information System Success or Failure

Figure 13-5


• Project size:Project size: Larger project has greater Larger project has greater riskrisk

• Project structure:Project structure: Clear and Clear and straightforward requirements help define straightforward requirements help define outputs and processes outputs and processes

• Experience with technology:Experience with technology: Project Project risk rises if project team and information risk rises if project team and information system staff lack required technical system staff lack required technical expertiseexpertise



Level of Complexity and Risk




Consequences of Poor Project Management

Figure 13-6


System Challenges of Mergers and System Challenges of Mergers and

AcquisitionsAcquisitions

• Integrating systemsIntegrating systems

• Organizational characteristics Organizational characteristics

• Information technology infrastructuresInformation technology infrastructures



Change Management Challenges for Enterprise Applications, Business Process Reengineering (BPR), and Mergers and Acquisitions


How are global IS problems different? How are global IS problems different?

Identify some global problems Identify some global problems impacting the use of IS.impacting the use of IS.

• Transborder data flow:Transborder data flow: Movement of Movement of information across international information across international boundaries in any formboundaries in any form

• Technology Hurdles:Technology Hurdles: Lack of standards Lack of standards and connectivity in hardware, software, and connectivity in hardware, software, and telecommunications and telecommunications



The Challenge of Implementing Global Systems


• Local User Resistance to Global Local User Resistance to Global Systems:Systems: Difficult to convince local Difficult to convince local managers to change their business managers to change their business processes processes



The Challenge of Implementing Global Systems



Formal planning and control tools help to manage information systems projects successfully

Figure 13-7

MANAGING IMPLEMENTATION


Creating a Global Technology Creating a Global Technology InfrastructureInfrastructure

• Build international private networkBuild international private network

• Rely on value added network serviceRely on value added network service

• Use Internet technologyUse Internet technology

• Build global intranets Build global intranets

• Use Virtual Private Networks Use Virtual Private Networks


Managing Global Implementations

MANAGING IMPLEMENTATION


1414

IS Security & ControlIS Security & Control

Chapter


• Why are information systems so vulnerable to Why are information systems so vulnerable to destruction, error, abuse, and system quality destruction, error, abuse, and system quality problems?problems?

• What types of controls are available for What types of controls are available for information systems?information systems?

• What special measures must be taken to What special measures must be taken to ensure the reliability, availability and security ensure the reliability, availability and security of electronic commerce and digital business of electronic commerce and digital business processes?processes?

Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 14 Information Systems Security and ControlChapter 14 Information Systems Security and Control


• Advances in telecommunications and Advances in telecommunications and computer softwarecomputer software

• Unauthorized access, abuse, or fraud Unauthorized access, abuse, or fraud

• Hackers Hackers

• Denial of service attackDenial of service attack

• Computer virusComputer virus

SYSTEM VULNERABILITY AND ABUSE


Why Systems are Vulnerable




Telecommunication Network Vulnerabilities

Figure 14-1


DisasterDisaster

• Destroys computer hardware, programs, Destroys computer hardware, programs, data files, and other equipment data files, and other equipment

SecuritySecurity

• Prevents unauthorized access, alteration, Prevents unauthorized access, alteration, theft, or physical damagetheft, or physical damage



Concerns for System Builders and Users


BugsBugs

• Program code defects or errorsProgram code defects or errors

Maintenance NightmareMaintenance Nightmare

• Maintenance costs high due to Maintenance costs high due to organizational change, software organizational change, software complexity, and faulty system analysis complexity, and faulty system analysis and designand design



System Quality Problems: Software and Data




Points in the Processing Cycle where Errors can Occur

Figure 14-2


Data Quality ProblemsData Quality Problems

• Caused due to errors during data input or Caused due to errors during data input or faulty information system and database faulty information system and database designdesign



System Quality Problems: Software and Data




The Cost of Errors over the Systems Development Cycle

Figure 14-3


ControlsControls

• Methods, policies, and procedures Methods, policies, and procedures

• Ensures protection of organization’s Ensures protection of organization’s assetsassets

• Ensures accuracy and reliability of Ensures accuracy and reliability of records, and operational adherence to records, and operational adherence to management standardsmanagement standards

CREATING A CONTROL ENVIRONMENT


Overview


• On-line transaction processing:On-line transaction processing: Transactions entered online are Transactions entered online are immediately processed by computerimmediately processed by computer

• Fault-tolerant computer systems:Fault-tolerant computer systems: Contain extra hardware, software, and Contain extra hardware, software, and power supply componentspower supply components



Protecting the Digital Firm


• High-availability computing:High-availability computing: Tools and Tools and technologies enabling system to recover technologies enabling system to recover from a crashfrom a crash

• Disaster recovery plan:Disaster recovery plan: Runs business Runs business in event of computer outagein event of computer outage

• Load balancing:Load balancing: Distributes large Distributes large number of requests for access among number of requests for access among multiple servers multiple servers





• Mirroring:Mirroring: Duplicating all processes and Duplicating all processes and transactions of server on backup server to transactions of server on backup server to prevent any interruptionprevent any interruption

• Clustering:Clustering: Linking two computers Linking two computers together so that a second computer can together so that a second computer can act as a backup to the primary computer act as a backup to the primary computer or speed up processingor speed up processing





FirewallsFirewalls

• Prevent unauthorized users from Prevent unauthorized users from accessing private networksaccessing private networks

• Two types: proxies and stateful inspectionTwo types: proxies and stateful inspection

Intrusion Detection SystemIntrusion Detection System

• Monitors vulnerable points in network to Monitors vulnerable points in network to detect and deter unauthorized intrudersdetect and deter unauthorized intruders



Internet Security Challenges



Figure 14-5


Internet Security Challenges


• Encryption:Encryption: Coding and scrambling of Coding and scrambling of messages to prevent their access without messages to prevent their access without authorizationauthorization

• Authentication:Authentication: Ability of each party in a Ability of each party in a transaction to ascertain identity of other transaction to ascertain identity of other partyparty

• Message integrity:Message integrity: Ability to ascertain Ability to ascertain that transmitted message has not been that transmitted message has not been copied or alteredcopied or altered



Security and Electronic Commerce


• Digital signature:Digital signature: Digital code attached Digital code attached to electronically transmitted message to to electronically transmitted message to uniquely identify contents and senderuniquely identify contents and sender

• Digital certificate:Digital certificate: Attachment to Attachment to electronic message to verify the sender electronic message to verify the sender and to provide receiver with means to and to provide receiver with means to encode replyencode reply





• Secure Electronic Transaction (SET):Secure Electronic Transaction (SET): Standard for securing credit card Standard for securing credit card transactions over Internet and other transactions over Internet and other networksnetworks






Public Key Encryption


Figure 14-6



Digital Certificates


Figure 14-7


Criteria for determining control Criteria for determining control

structurestructure

• Importance of dataImportance of data

• Efficiency, complexity, and expense of Efficiency, complexity, and expense of each control techniqueeach control technique

• Level of risk if a specific activity or Level of risk if a specific activity or process is not properly controlledprocess is not properly controlled



Developing a Control Structure: Costs and Benefits


MIS auditMIS audit

• Identifies all controls that govern Identifies all controls that govern individual information systems and individual information systems and assesses their effectivenessassesses their effectiveness



The Role of Auditing in the Control Process


ENSURING SYSTEM QUALITY


Sample Auditor’s List of Control Weaknesses

Figure 14-8




System Flow-Chart for a Payroll System

Figure 14-12


• Walkthrough:Walkthrough: Review of specification or Review of specification or design document by small group of people design document by small group of people

• Debugging:Debugging: Process of discovering and Process of discovering and eliminating errors and defects in program eliminating errors and defects in program codecode

• Local, System, and Acceptance TestingLocal, System, and Acceptance Testing



Testing


Data quality auditData quality audit

• Survey and/or sample of files Survey and/or sample of files

• Determines accuracy and completeness of Determines accuracy and completeness of data data

Data cleansingData cleansing

• Correcting errors and inconsistencies in Correcting errors and inconsistencies in data to increase accuracy data to increase accuracy



Data Quality Audit and Data Cleansing


What are the organizational challenges What are the organizational challenges to IT-enabled change?to IT-enabled change?


What are the major barriers to B2B?What are the major barriers to B2B?

What are the major barriers to B2C?What are the major barriers to B2C?

Will e-commerce continue to grow? Will e-commerce continue to grow? What areas will benefit?What areas will benefit?


1414

End Chapters 12-14End Chapters 12-14

Is it ten o’clock yet?Is it ten o’clock yet?

Chapter

12.1 © 2003 by prentice hall 12 ism 6021 mis implementing is chapter

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