redesigning the organization with information systems

10.1Prof Jess Role @ UEAB 2010

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

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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 & PROCESS REENGINEERING & TOTAL QUALITY CONTROLTOTAL QUALITY CONTROL

• OVERVIEW OF SYSTEMS OVERVIEW OF SYSTEMS DEVELOPMENTDEVELOPMENT

• ALTERNATIVE APPROACHESALTERNATIVE APPROACHES**


INFORMATION SYSTEMS INFORMATION SYSTEMS PLANPLAN

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

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

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3. CURRENT SYSTEMS: Major systems supporting 3. CURRENT SYSTEMS: 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: New system projects 4. NEW DEVELOPMENTS: 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)

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

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

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

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ENTERPRISE ANALYSISENTERPRISE ANALYSIS (BUSINESS SYSTEMS PLANNING) (BUSINESS SYSTEMS PLANNING) ORGANIZATION-WIDE INFORMATION NEEDS ORGANIZATION-WIDE INFORMATION NEEDS

IN TERMS OF:IN TERMS OF:• ORGANIZATIONAL UNITSORGANIZATIONAL UNITS• FUNCTIONSFUNCTIONS• PROCESSESPROCESSES• DATA ELEMENTSDATA ELEMENTS HELPS IDENTIFY KEY HELPS IDENTIFY KEY

ENTITIES & ATTRIBUTES ENTITIES & ATTRIBUTES IN IN ORGANIZATIONORGANIZATION’’S DATAS DATA

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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 FIRMBELIEVED TO ASSURE FIRM’’S SUCCESSS SUCCESS• USED TO DETERMINE ORGANIZATIONUSED TO DETERMINE ORGANIZATION’’S 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: Styling, quality dealer system, CSF: Styling, quality dealer system, cost control, energy standardscost control, energy standards

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


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

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

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CRITICAL SUCCESS FACTORS CRITICAL SUCCESS FACTORS Example: NONPROFIT CONCERNExample: NONPROFIT CONCERN


USING CSFs TO DEVELOP SYSTEMSUSING CSFs TO DEVELOP SYSTEMS

• COLLECT MANAGERSCOLLECT MANAGERS’’ CSFs CSFs• AGGREGATE, ANALYZE INDIVIDUALSAGGREGATE, ANALYZE INDIVIDUALS’’

CSFsCSFs• DEVELOP AGREEMENT ON COMPANY DEVELOP AGREEMENT ON COMPANY

CSFsCSFs• DEFINE COMPANY CSFsDEFINE COMPANY CSFs• USE CSFs TO DEVELOP INFORMATION USE CSFs TO DEVELOP INFORMATION

SYSTEM PRIORITIESSYSTEM PRIORITIES• DEFINE DSS & DATABASESDEFINE DSS & DATABASES

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SPECTRUM OF ORGANIZATIONAL SPECTRUM OF ORGANIZATIONAL CHANGECHANGE

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

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

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

• PARADIGM SHIFTPARADIGM SHIFT**


PARADIGM SHIFTPARADIGM SHIFT

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

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

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

• REENGINEERING: Redesigning REENGINEERING: 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

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

2. Identify process to be redesigned2. Identify process to be redesigned3. Understand, measure performance of 3. Understand, measure performance of

existing processesexisting processes4. Identify opportunities for applying 4. Identify opportunities for applying

information technologyinformation technology5. Build prototype of new process5. Build prototype of new process

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

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SYSTEMS ANALYSISSYSTEMS ANALYSIS


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

technical resourcestechnical resources• ECONOMIC: Will benefits outweigh costs?ECONOMIC: Will benefits outweigh costs?• OPERATIONAL: Is solution desirable OPERATIONAL: Is solution desirable

within existing conditions?within existing conditions?

INFORMATION REQUIREMENTS: Detailed INFORMATION REQUIREMENTS: 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: Components, LOGICAL DESIGN: Components, data as needed by applicationsdata as needed by applications

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

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DESIGN SPECIFICATIONSDESIGN SPECIFICATIONS

• OUTPUT: Medium, content, timingOUTPUT: Medium, content, timing• INPUT: Origins, flow, data entryINPUT: Origins, flow, data entry• USER INTERFACE: Simplicity, efficiency, logic, USER INTERFACE: Simplicity, efficiency, logic,

feedback, errorsfeedback, errors• DATABASE DESIGN: Logical data relations, volume, DATABASE DESIGN: Logical data relations, volume,

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

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

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

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

audit trailsaudit trails• DOCUMENTATION: Operations, systems, userDOCUMENTATION: Operations, systems, user• CONVERSION: Transfer files, initiate new CONVERSION: Transfer files, initiate new

procedures, select testing modules, cut procedures, select testing modules, cut over to new systemover to new system

• TRAINING: Select training techniques,TRAINING: Select training techniques, develop training modules, identify develop training modules, identify training facilitiestraining facilities

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

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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

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COMPLETING SYSTEM COMPLETING SYSTEM DEVELOPMENT PROCESSDEVELOPMENT PROCESS

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

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

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

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

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

certificationcertification

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

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TESTINGTESTING


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

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

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

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

system workssystem works**


PRODUCTION & MAINTENANCEPRODUCTION & MAINTENANCE

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

• MAINTENANCE: Upkeep, update, MAINTENANCE: 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: Is there a PROJECT DEFINITION: Is there a problem? Can it be solved with a project?problem? Can it be solved with a project?

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

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

• PROGRAMMING: Develop software codePROGRAMMING: Develop software code**


SYSTEM LIFECYCLESYSTEM LIFECYCLE

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

• POSTINSTALLATION: On-going POSTINSTALLATION: 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

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ALTERNATIVE SYSTEM-ALTERNATIVE SYSTEM-BUILDING APPROACHESBUILDING APPROACHES

• PROTOTYPINGPROTOTYPING

• APPLICATION SOFTWARE APPLICATION SOFTWARE PACKAGESPACKAGES

• END-USER DEVELOPMENTEND-USER DEVELOPMENT

• OUTSOURCINGOUTSOURCING

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

• ITERATIVE PROCESSITERATIVE PROCESS

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STEPS IN PROTOTYPINGSTEPS IN PROTOTYPING

1. IDENTIFY USER1. IDENTIFY USER’’S REQUIREMENTSS REQUIREMENTS2. DEVELOP PROTOTYPE2. DEVELOP PROTOTYPE3. USE PROTOTYPE3. USE PROTOTYPE4. REVISE & ENHANCE PROTOTYPE4. REVISE & ENHANCE PROTOTYPE BEST FOR DESIGN OF END-USER BEST FOR DESIGN OF END-USER

INTERFACE: How end-user interacts INTERFACE: How end-user interacts with systemwith system

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APPLICATION SOFTWARE APPLICATION SOFTWARE PACKAGESPACKAGES

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

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

to meet organizationto meet organization’’s needss needs• MUST WEIGH COSTS / BENEFITSMUST WEIGH COSTS / BENEFITS• REQUEST FOR PROPOSAL (RFP): Detailed REQUEST FOR PROPOSAL (RFP): Detailed

questions sent to vendorsquestions sent to vendors**


CUSTOMIZATIONCUSTOMIZATION

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

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END-USER DEVELOPMENTEND-USER DEVELOPMENT

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

WEAKNESSES: Relatively inefficient, slow WEAKNESSES: 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

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OUTSOURCINGOUTSOURCING

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

TO EXTERNAL VENDORSTO EXTERNAL VENDORS

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OUTSOURCINGOUTSOURCING

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

DEVELOPING APPLICATIONDEVELOPING APPLICATION• IF PREDICTABILITY OF IF PREDICTABILITY OF

UNINTERRUPTED SERVICE NOT UNINTERRUPTED SERVICE NOT IMPORTANTIMPORTANT

• IF EXISTING SYSTEM IS IF EXISTING SYSTEM IS LIMITED, INEFFECTIVE, LIMITED, INEFFECTIVE, INFERIORINFERIOR

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SYSTEMS LIFECYCLESYSTEMS LIFECYCLEPHASES:PHASES:

• PROJECT DEFINITIONPROJECT DEFINITION

• SYSTEM STUDYSYSTEM STUDY

• DESIGNDESIGN

• PROGRAMMINGPROGRAMMING

• INSTALLATIONINSTALLATION

• POST-IMPLEMENTATIONPOST-IMPLEMENTATION

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OBJECT - ORIENTED SOFTWARE OBJECT - ORIENTED SOFTWARE DEVELOPMENTDEVELOPMENT

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

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

REDUCES DEVELOPMENT TIME & COST REDUCES 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

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c h a p t e r

1010 REDESIGNING REDESIGNING

THE THE ORGANIZATION ORGANIZATION

WITH WITH INFORMATION INFORMATION

SYSTEMSSYSTEMS

redesigning the organization with information systems

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