mis - systems planning - complete
TRANSCRIPT
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Management Information
Systems
The MIS Function and Information
Systems PlanningProf. Rushen Chahal
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The MIS Function and
Information Systems Planning Organization of the MIS Function MIS Specialists
Establishing Organizational MISRequirements
Evaluating the Relative Worth of MIS
Applications Linking Business and systems planning
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The MIS Function and
Information Systems Planning Cost-Benefit Analysis Methods of Acquiring IS
The MIS Development Process Agents Involved in an MIS Project
Who Initiates A Project?
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Organization of
the MIS Function MIS is responsible for providing andcoordinating computer-base information
services: developing
operating
maintaining
facilitating the acquisition
adaptation of software & hardware
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Organization of the MIS
Function A distributed MIS organization FIGURE17.1
Corporate MIS: Responsible for:
infrastructure- telecommunications networks,
corporate data center
corporate STANDARDS
interacting with vendors to gain discounts &for scanning
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Establishing Organizational MIS
Requirements To be effective competitor: a vision
a model a framework
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Establishing Organizational MIS
Requirements A. Contents of an MIS Master Plan First MIS is a major corporate asset
provides benefits
uses resources- Money
The planning process provides support forbusiness objects
the planning process allocates resourcesbased upon priorities
in THEORY the MIS plan should be alignedwith the Corporate business strategy
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Establishing Organizational MIS
Requirements A linkage between MIS & Business Plans has: the corporate business plan states the
informational needs
the MIS plan refers to the requirements of thebusiness plan
the MIS plan is checked against the business plan
non-MIS managers participate in the MIS planning
process MIS managers participate in the business planning
process
Corporate and MIS calendars are in sink with each
other
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Establishing Organizational MIS
Requirements The MIS plan is reviewed periodically The conceptual contents o the plan
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Establishing Organizational MIS
Requirements B. Derivation of the MIS Requirements Derived directly from the business plan
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Establishing Organizational MIS
Requirements C. The Strategic Cube the cube provides aframework
basic questions: Will it face increasing customer power?
Are there fewer customer who are larger?
Is the firm to pursue a differentiating strategy?
Does the firm have a track record forinnovation?
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The Strategic Cube
CustomerPower
SupplierPower
PresentCompetitors
PotentialCompetitors
SubstituteProducts
COMPETITIVECOMPETITIVE
FORCES TOFORCES TO
CONTEND WITHCONTEND WITH
STRATEGIESSTRATEGIES
TACTICSTACTICS
StrategicAlliance
Merger orAcquisition
Internal Growth
InternalInnovation
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Establishing Organizational MIS
Requirements D. Strategy Set Transformations 1. Identify the organizational stakeholder
customers
employees
suppliers
2. Develop goals, strategies, objectives to fit
each group of stakeholder
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Establishing Organizational MIS
Requirements D. Strategy Set Transformations (cont) 3. Determine the needed informational
requirements for the strategies
Example from text:
Stakeholder: Customer
Strategy: improve service
Innovation: Confirm orders within one hour
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Establishing Organizational MIS
Requirements E. Approaches to Planning (cont) 2. The basic set of approaches:
Business Systems Planning (BSP)
Critical Success Factors (CSF)
Investment strategy analysis
Scenario approach
Linkage analysis planning Creative problem solving
Enterprise Analysis
The Architecture approach
The crystal Ball Approach
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17.3 Establishing
Organizational MISRequirements BSP developed by IBM
Philosophy: Data is a corporate resource(Enterprise data)
Goal: discover a stable informationarchitecture that supports all processes of thebusiness.
Objective: to assure the data necessary tosupport the business plan are available andthat a stable information system architectureis developed.
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Key Components of IS Planning with BSP
Defining
Business
Processes
Reviewing
Info. Res.
Management
Analyzing
Current Systems
Support
Defining
Business
Data
Developing
Recom-
mendations
Defining
Info. Sys.
Architecture
Reporting
Results
Interviewing
Executives
Defining
Findings and
Conclusions
Determining
Architecture
Priorities
Crucial Steps
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Establishing Organizational MIS
Requirements BSP (cont) 1. Defining the business process
identify the activities
identify the decisions
identify the systems, processes, flows
2. Defining Business data
classes of data (customers, employees, places,objects)
determine data usage
Example: Inventory record- SKU, Name, quantity
on hand, lead time
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Establishing Organizational MIS
Requirements BSP (cont) 3. Define information architecture
Creating processes
Using processes
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17.3 Establishing
Organizational MISRequirements Critical Success Factors (Rockart, 1979)
A method for defining executive informationneeds.
They are key areas or activities that mustwork right in order for the organization to besuccessful.
They are time dependent and therefore mustbe measured .
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CSF Methodology for Establishing
Organizational IS Requirements
Obtain
CSFs
of Manager A
Obtain
CSFs
of Manager C
Obtain
CSFs
of Manager B
Combine Individual
CSFs intoOrganizational CSFs
Derive Informational
Requirements to
Support CSFs
Use CSFs to Redesign
the Organization and
Use Informational
Requirements to
Plan IS
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Establishing Organizational MIS
Requirements 1. Sources for the CSF's industry:
the company
the environment social
legal
technological
economic political
Temporal: areas of the organization which do notnormally need concern, but are currentlyunacceptable (The open can of worms).
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Planning, Dev., & Operation of Info. Sys.
Determination of Long-Term Information
Requirements of the Organization
Identification of Projects and
Setting of Priorities
TasksTasks Responsibility of Responsibility of
StrategicPlanning
Tactical andOperationalPlanning
Chief Info. Off. (CIO)
Corp. and IS Planners IS Steering Comm. IS Steering Comm.
IS Mgr. and Planners in Collaboration with User Mgmt.
System Analysis System Analysis
System Design System Design
Programming Programming
Installation Installation
System Operation
and Maintenance
System Operation
and Maintenance
System
Termination
System
Termination
SystemsDevelopmentProjects
SystemsMaintenanceProjects
SystemsTermination
Projects
Project Teams(Development Teams),with User Participantsas Appropriate
Operations Personneland End Users
Mainteanance Teams
IS Personnel andEnd Users
...
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Other Methods
Investment Strategy Analysis
A strategy based upon portfolio planning andinvestment analysis.
Four major types of systems for the 1990's
1. Institutional procedures- the processing ofinternal transactions, as represented by many oftoday's mainline systems
2. Professional support system- engineeringsupport (CAD) Managerial decision-makingsupport (DSS, GSS)
3. Physical automation
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Other Methods
4. Systems that serve users outside the company,i.e. customers and suppliers. EDI, Voice mail, 800numbers, Fax
5. Basic infrastructure telecommunications networking
data base
office automation & DSS
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Other Methods
Alpha Company 1. Renovate existing manufacturing systems around
data base technology
2. Invest heavily in increasing the productivity of
engineers 3. Foster innovation among the professional staff
4. Invest heavily in CAD/CAM
Beta Company
1. Create new systems only when old ones fail 2. BE A FOLLOWER
3. Invest only when IT has a bottom line impact
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Other Methods
Scenario Planning (WHAT IF)
The scenarios help identify problems andmanage assumptions.
They also provide flexibility in the plans and ameans of escape if necessary.
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Other Methods
1. Elements of a scenario
the business environment the effects of deregulation
shifting towards a service economy ; away from MASSproduction
Mergers and acquisitions
increased foreign competition
National budget deficits
Interest rates (not in 1992) Changes in the strength of the US dollar
unemployment
corporate down sizing
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Other Methods
Government & society information accuracy
privacy (see Scientific American August, 1992)
access to information
property rights
people changes
Financial considerations ROI
TECHNOLOGY speed of change
quick obsolescence
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Other Methods
2. Creating Scenarios
a. deterministic : spreadsheet what if analysis Lotus 123
b. Cross-impact analysis: a model of major eventsand trends. Data can come from Delphi studies.
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Other methods
Creative problem Solving
Couger's Method; a 1992 Working paper
the 5 phases
1. fact finding
2. problem finding
3. idea finding
4. solution finding 5. acceptance finding
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Other Methods
Creative problem Solving (cont)
divergence-convergence activities
recursiveness (iterative) and non-linearity
using creativity techniques in each phase
EBS
alternative selection
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Other Methods
The Architecture Building Approach
The blue print for the information technologyinfrastructure.
1. support communications flows
the flow of formal authority - financialconsolidations of profit and loss centers via acomputer
flows of regulated activities- online bankingsystems
informal communication flows- E-mail, voice mail
work constellations- expert systems
ad hoc decision processes- document retrieval
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Other Methods
The Architecture Building Approach (cont)
2. help people communicate
provide different types of views of the same thing
3. support organizational decision making
help executives rethink how the business shouldbe what kind of structure is needed ?
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Establishing Organizational MIS
Requirements SUMMARY Successful strategy has two main ingredients:
1. Look to the future
2. link system plans to business plans
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Establishing Organizational MIS
Requirements SUMMARY The 3 Stages of developing a plan:
1. Understand the business use a model or framework to help
USE THE RIGHT MODEL OR FRAMEWORK
2. Identify the firms INFORMATION needs
3. Rank the opportunities presented by information
technology in terms of their relative importanceand the relative VALUE added to the business.
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Evaluating the Relative Worth of
MIS Applications strategic: IS activities critical to the currentcompetitive strategy and to future strategicdecisions. IS applications are part of new
strategic direction Factory: IS applications are vital to the
successful functioning of well-defined, wellaccepted activities. Not part of future
strategic operations
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Evaluating the Relative Worth of
MIS Applications Support: IS applications are useful insupporting activities. not vital to criticaloperations and not included as part of future
strategic direction. Turnaround: IS in transition- from support to
strategic. Vital to strategic success.
How does this relate to the Daft WeickModel?
What about Uncertainty/Equivocality?
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Linking Business
and systems planning Using Steering Committees 1. Can consist of
upper management from all divisions andfunctions
Department management from all divisionsand functions
Technical management from all divisions andfunctions
IS, IE, Eng
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Linking Business
and systems planning 2. There job is to: "steer" direct, push, pull, etc. the Organization
investments in the direction that benefits the
company the most; the STRATEGIC direction.
3. How do they do that?
Information scanning
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Linking Business
and systems planning 4. Advantages of steering committeesfrom Drury (1984)
1. Increases the attention of top managementto computing
2. Users become more involved with thesystem
3. The system departments are more awareof user needs
4. There is better long range planning for IS
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Linking Business
and systems planning Other approaches IS mgrs. and analysts
User-group
Multi-department, IS, executive mgmt
Combination
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Cost-Benefit Analysis
A technique for estimating the payoff to beexpected from an information system.
A. Cost benefit Analysis a quantitative support $
Table 17.6 p 693
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Cost-Benefit Analysis
B. Basic Stages of Cost benefit analysis
Identification of costs
fixed costs
operational costs (variable costs)
Identify Benefits
Tangible $
cost savings Cost avoidance
revenue increases
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Cost-Benefit Analysis
B. Basic Stages of Cost benefit analysis(cont)
Intangible not $
Table 17.7 page 694
Compare and analyze
NVP
IRR ROI
Then PRAY
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Methods of Acquiring IS
1. Internal Development
Pros and Cons Discussion
Techniques
SDLC
Prototyping
SAD
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Methods of Acquiring IS
2. Purchase
Canned vs Custom Discussion
3. External Systems integrator
4. Outsourcing
5. A combination approach
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Agents Involved in
an MIS Project A. The Actors Z-1992 Figure 17.10 p 704
B. The theories From Markus C. The Roles:
The users are interested in systemperformance Yes/NO
Management controls the resources Yes/no
MIS implements a system that SATISFIES theusers' needs as well as the constraints and
objectives from MGT.
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Agents Involved in
an MIS Project D. Problems Encountered: Actors have their own agendas
Users generally do not KNOW what theywant/need
COMMUNICATION can be a problem
cognitive style
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Who Initiates A Project?
Managing The Application DevelopmentPortfolio
I. How System Projects are begun
A. Reasons for Projects
1. Solve a problem
2. Capitalize on an opportunity
3. Respond to a directive
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Who Initiates A Project?
Capability: Efficiency improve processing speed
Point of sale systems, Bar coding
ability to handle increased volume
PC vs. manual methods, more PC's, LAN
faster retrieval of information
Bigger, faster data storage, SQL-based DBMS
Canned-software (Order entry, Manufacturing, etc.)
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Who Initiates A Project?
Control: Efficiency/Effectiveness Improved accuracy and consistency
automating the process to reduce human error
Computer prompting, error detection, field value
checks Provide better security
Need to know screens
Password protection
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Who Initiates A Project?
Communication: Effectiveness Enhance communication
Credit card systems, brokerage systems, E-Mail
Integration of business areas: Coordination
CIM, LAN communication, Manufacturing systems
(ACCOUNTING, MATERIALS MGMT &MANUFACTURING)
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Who Initiates A Project?
Competitive Advantage: Effectiveness: a strategicweapon
Lock in customers
by offering a better price
by providing a unique service
by presenting distinctive products
Examples: American Hospital Supply, Eaasy SaberSystem, MAC
Lock out competitors
This happens when one locks in customers
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Who Initiates A Project?
Competitive Advantage: Effectiveness: a strategicweapon (cont)
Improve arrangement with suppliers
EDI, long term contracts, the Japanese way, JIT
Quality programs, Shared Data Bases
Form a basis for new products
the value of information, commercial data bases onanything, mailing lists, Market Research, Shop RitePrice Plus, Prodigy, CompuServe.
INNOVATION
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Who Initiates A Project?
B. Sources of Project Requests
1.Department Managers: Improve control, Power
Form processing systems, QC
2. Senior executives: Strategic, competitiveadvantage EIS, DSS, Market Research , E-Mail,Big systems
3. Systems analysts: Efficiency Speed accuracy,upgrades
4. Outside Groups: Regulatory Special accountingsystems, OSA control
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Who Initiates A Project?
C. Managing the portfolio direction (cont)
In other organizations Power
Political
Favored son
Fear
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Who Initiates A Project?
D. Integration
Application should be integrated (yes & no)
Horizontal- (marketing, Manufacturing, accounting)
Vertical- upper level to lower level mgmt Distributed- separate system in different plants
different hardware, software
Integration- External-Internal EDI
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Who Initiates A Project?
II The Project
A. Project request
WHAT IS THE PROBLEM
DETAILS of THE PROBLEM
IMPACT OF THE PROBLEM (how significant is it)
PROPOSED SOLUTION
JUSTIFICATION (5 C's)
BENEFITS (5 C's)
Who else knows
Intangibles
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Who Initiates A Project?
B. Preliminary Investigation
(Fig 2.6, 75)
by the team- SA, IE, Mgrs., etc
1. Scope of the study Clarify and understand the project request
Determine size
Assess cost/benefits
Determine feasibility - Technical, operational, economic
Report findings with recommendations
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Who Initiates A Project?
2. Conducting the investigation Reviewing organizational documents
Conducting interviews
Observations
Questionnaires
Do the work
Experiment
Plant site visits
Vendor demonstrations
Seminar
?
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Who Initiates A Project?
2. Conducting the investigation (cont) Conferences
Workshops
literature: trade/academic
Personal contacts
KEY: Learn, Understand, Listen, Integrate
Wh I i i A P j ?
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Who Initiates A Project?
3. Testing Project Feasibility Operational
Is there support/resistance; from or by who
Are current business methods acceptable?
If not a change may be welcomed
Have the user's been involved? If not get theminvolved
Will the system cause harm?
Wh I iti t A P j t?
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Who Initiates A Project?
3. Testing Project Feasibility (cont) Technical
Does the necessary tech exist? Can it be acquired?
Does the proposed equipment have the right
capacity for the data? Remember Tracks System Does the propose have the right:
response time, interface,
Can the system be expanded?
Are the accuracy, reliability, ease of use, ease of
access, security ok?
Wh I iti t A P j t?
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Who Initiates A Project?
3. Testing Project Feasibility (cont) Economic
include cost to conduct full systems integration
cost of hardware/software/ other
benefits in terms of reduced costs
opportunity costs
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Wh I iti t A P j t?
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Who Initiates A Project?
3. Suitable end-user developments
One-time Inquires
Simple reports
Minor changes Presentations
What if analysis
Wh I iti t A P j t?
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Who Initiates A Project?
4. What should not be handled
High volume transactions
Use of traditional programming languages
(Basic, FORTRAN, etc.) Yeah right!! Changing data values in a Org DB
Applications spanning several departments
Applications requiring formal documentation
Major long-term applications (the New Post office) Applications requiring formal spec's
In time as hardware/software changes thesewill also change