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Management Information Systems - Class Note # 3 (Chap-12)
Prof. Yuan-Shyi Peter Chiu Feb. 2011
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12.1 Systems as planned organizational change
12.2 Business process reengineering andTotal Quality Management (TQM)
12.3 Overview of Systems Development
12.4 Alternative System-Building Approaches
Chap 12Redesigning the organization with information systemsRedesigning the organization with information systems
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How to develop an Information Systems Plan~ Road Map indicating direction of System development :
1. PURPOSE OF THE PLAN
2. STRATEGIC BUSINESS PLAN
3. CURRENT SYSTEMS
4. NEW DEVELOPMENTS
5. MANAGEMENT STRATEGY
6. IMPLEMENTATION PLAN
7. BUDGET REQUIREMENTS
( see p.383 )
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Enterprise analysis ( Business Systems Planning )
Organization-wide Information Needs in terms of : Organizational Units Functions Processes Data Elements
Helps Identify Key Entities & Attributes in Organization’s Data
12.1 ◇◇
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Critical Success Factors (CSFs)
■ small number, easily identifiableoperational goals
■ shaped by the industry, the firm, the manager, the broader environment
■ believed to assure firm’s success
■ used to determine organization’s information requirements
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Critical Success FactorsCritical Success Factors & & GoalsGoals example: profit concern example: profit concern
Goals (Automobile industry) :
Earnings per share, Return on investment, Market share, New product
CSF :
Styling, Quality dealer system,Cost control, Energy standards
(Also see Table 12-1)
12.1 ◇◇
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Using CSFs to develop systems
Collect managers’ CSFs
Aggregate + analyze individuals’ CSFs
Develop agreement on company CSFs
Define company CSFs
Use CSFs to develop information system priorities
Define DSS & databases
(Also see Fig. 12-2)
12.1 ◇◇
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88Fig 12-2: Using CSFs to develop systems.
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Spectrum of Organizational Change
AUTOMATION
Using technology to perform tasks efficiently / effectively
RATIONALIZATION OF PROCEDURES
Streamline SOPs ; Eliminate bottlenecks
BUSINESS REENGINEERING
Radical redesign of processes to improve cost, quality, service; maximize benefits of technology
PARADIGM SHIFT
12.1 ◇◇
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1010Fig 12-3: Organizational change carries risks and rewards.
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Paradigm Shift
PARADIGM is a complete mental model of how a complex system functions
A PARADIGM SHIFT involves “rethinking” the nature of the business, the organization; a complete reconception of how the system should function
12.1 ◇◇
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Business Process Reengineering (BPR)& TQM
WORK-FLOW MANAGEMENT: Streamlining process to move
documents easily, efficiently
REENGINEERING:
Redesigning business processes to lower cost, speed development
12.2 ◇◇
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Process Improvement and Total Quality Management
Simplifying the Product or the Production Process.
Benchmarking
Use customer demands as a guide to improving products and services
Reduce cycle time
Improve the quality and precision of the design
Increase the precision of production
12.2
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Three basic solution alternativesexist for every systems problem
To DoNothing
To modifyor enhanceExisting systems
To Developa New system
12.3 ◇◇
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1515Fig 12-5: Overview of System Development.
12.3
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Systems Development
The activities that go into producingAn information systems solution to
an organizational problem or opportunity
12.3
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Systems 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
12.3
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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
12.3
Systems Development
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Analysis of Problem to be solved with an Information System
Feasibility Study: Can problem be solved within constraints ?
12.3
Systems Analysis
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Feasibility Study
as part of the systems analysis process ,to determine whether the solution is achievable ,
given the organization’s resources and constraints
Technicalfeasibility
Economicfeasibility
Operationalfeasibility
12.3
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Feasibility TECHNICAL : Available hardware, software, technical
resources ECONOMIC : Will benefits outweigh costs OPERATIONAL : Is solution desirable within existing
conditions?
INFORMATION REQUIREMENTS: Detailed statement of new system needs
12.3
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System Design
Considering alternative technology configurations
Details how system will meet the information requirements
as determined by the systems analysis.
Management & control of the technical realization of systems
Details the system spec that will deliver the functions Identified during systems analysis
12.3 ◇◇
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Logical and Physical Design
Logical designLays out the components of the system and their relationship to each other as they would appear to Users .
Physical designProduces the actual spec for Hardware, software, physical database, I/O media,Manual procedures , and Specific controls.
12.3
See Table 12-4 for Design Specifications p.395See Table 12-4 for Design Specifications p.395
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Role of end users
Users drive systems effort
Must have sufficient control to ensure system reflects business priorities, needs
Functional users drive system needs
12.3 ◇◇
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Completing system development process
Programming:
Translating needs to program code
Testing:
Does system produce desired results?
Conversion:
Changing from the old to the new
12.3
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TestingTesting
Unit
Testing
( program
testing )
Acceptance
Testing
( final
certification)
System
Testing
( functions)
12.3
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TestingTesting Unit testing :
Tests each unit separately System testing :
Do modules function as planned? Acceptance testing :
Final certification
Test plan : Preparations for tests to be performed
12.3
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Conversion
Parallel
strategy
Pilot
study
Direct
cutover
Phasedapproach
12.3
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Conversion Parallel : Old & new run same problems.
Give same results? Direct cutover : Risky conversion to new system Pilot : Introduce into one area. Does it work?
Yes: introduce into other area
Phased : Introduce in stages
Conversion plan : schedule for conversion
12.3
Documentation Description of how system works
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Production & Maintenance
Production: Constant review by users & operators.
Does it meet goals?
Maintenance: Upkeep; Update; Corrections over time
12.3
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12.4Alternative System-Building
Approaches
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
See Table 12-6 for The Systems Lifecycle p.399See Table 12-6 for The Systems Lifecycle p.399
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The Traditional System Lifecycle
Project Definition : Is there a problem? Can it be solved with a project ?
System Study : Analyze problems in existing systems;
define objectives, evaluate alternatives
Design : Logical & physical specifications for
systems solution Programming : Develop software code
12.4
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Installation : Construct, test, train, convert to new system
Post-Implementation : On-going evaluation, modifications for improvement
to meet new requirements
Necessary for Large , Complex Systems & Projects
12.4
The Traditional System Lifecycle
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Limitations of the LIFE CYCLE Approach
Building large TPS and MIS where requirements are highly structured and well-defined
Very resource intensive : costly and time-consuming
Inflexible and inhibits change
Ill-suited to decision-oriented applications
12.4
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Alternative System-building Approaches
Prototyping
Application Software Packages
End-user Development
Outsourcing
12.4
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3636Fig 12-7: The prototyping process.
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Advantages & Disadvantages of Prototyping
Most useful when there is some uncertainty about requirements or design solutions
Especially valuable for the design of the end-user interfaceof an information system, decision-support applications
May not be appropriate for all applications,Better suited for smaller applications
Often not being fully documented and tested, not being carried out as a polished production system
12.4
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Developing systems with Application Software Packages
under the following circumstances
Where functions are common to many companies
Where information systems resources for in-house development are in short supply
When desktop microcomputer applications are being developed for end users
12.4
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Advantages of Packages
Design activities may easily consume up to 50 percent or more of the development effort
Testing the installed package can be accomplishedin a relatively shorter period
Vendor is responsible for making changes to keep the system in compliance with change; and enhancements
Cut the costs and free up internal staff for otherapplications; System and user documentation are
prewritten and kept up to date by the vendor.
12.4 ◇◇
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Disadvantages of Packages
Hamper the development effort byraising conversion costs
May not meet all of an organization’s requirements
Vendor refuses to support their products if changes havebeen made that altered the package’s source code
Customization may be so expensive and time-consuming
12.4 ◇◇
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A Substantially Customized Package
Front-end programs
Package
Back-end programs
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Package Evaluation CriteriaRequest For Proposal ( RFP)
Flexibility
FunctionsIncluded
Documentation
Cost
User-Friendliness
MaintenanceInstallation
Effort
Vendor Quality
Hardware& SoftwareResources
Database/ File
Characteristics
12.4 ◇◇
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4343Fig.12-8: The effects of customizing a software package on
total implementation costs.
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Staff
Staff
programmerSystemsanalyst
InformationSystem
management
Weeks or months
Design Program Test
Traditional systems (Life Cycle) Development
Middle or senior management
End-User development
End-user computing toolsQuery languages
Graphics languagesReport generators
Application generatorsVery-high-level languages
Microcomputer tools
Minutes or days
Middle or senior management
Fig.12-9: End-user versus system lifecycle development
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Advantages of End-user-developed I.S.
Improved requirement determination
User involvement and satisfaction
Control of the systems development process by users
Reduced application backlog
12.4 ◇◇
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Disadvantages of End-user-developed I.S.
Insufficient review and analysis
Lack of proper quality assurance standards and controls
Uncontrolled data
Proliferation of “private” information systems
12.4 ◇◇
■
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When to use outsourcing
Low reward
for
excellence
Not
critical
Will notaffect futureinformation
systemsinnovation
The firm’sexisting
informationsystems
capabilitiesare limited
12.4
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Advantages of Outsourcing I.S.
Economy PredictabilityFlexibilityServiceQuality
Making fixedcosts variable
Freeing upHuman
resources
Freeing upFinancial capital
12.4 ◇◇
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Disadvantages of Outsourcing I.S.
Lossof
controlDependency
Vulnerabilityof strategicinformation
12.4 ◇◇
■
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Management Challenges onalternative systems building methods
Determining the right systems development strategy to use
Controlling information systems developmentoutside the I.S.Dept.
Selecting a system development strategy that fits intothe firm’s information architecture and strategic plan
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Summary Alternative systems building methods
Distinguishbetween
the variousalternatives
Solutions tomanagement
problemscreated by
theseapproaches
Understandtypes of
problemsfor which
each is bestsuited
Understandstrengths
and limitations
of eachapproach
12.4
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Homework for Chapter 12
#1 Describe the critical success factors? And how to use CSFs to develop systems?
#2 Describe how information systems contribute to TQM?
#3 What are the major stages of systems development?#4 In systems analysis, what main considerations are
when determining its feasibility?#5 What is the difference between logical design and
physical design?
#6 Name and describe the three stages of testing for aninformation system?
#7 Name and describe briefly five alternative system-building approaches.
◇◇
THE END THE END