REDESIGNING THE ORGANIZATION WITH INFORMATION SYSTEMS 10. REDESIGNING THE ORGANIZATION WITH INFORMATION SYSTEMS

Learning Objectives Demonstrate how building new systems can produce organizational change Explain how organization can develop suitable info systems Identify core activities in systems development process *

Learning Objectives Analyze organizational requirements for building successful systems Describe models for determining business value of info systems *

Information Systems Plan Direction of system development: Rationale Current situation Management strategy Implementation plan Budget *

(Business Systems Planning) 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 *

Requirements Analysis Revisited Interview Document-oriented approach: descriptive paperwork Form-oriented approach: input (application) and output (report) forms.

Critical Success Factors Small number, easily identifiable operational goals Shaped by industry, manager, environment Believed to assure firm’s success. Used to determine organization’s information requirements *

Using CSFs to Develop Systems Collect manager’s CSFs Aggregate, analyze individual’s CSFs Develop agreement on company CSFs Define company CSFs Use CSFs to develop information system priorities Define DSS & databases *

Logical Design Revisited Organize by relevance and usage The results can be implemented using many tools and platforms (portable) The results do not change as rapidly (stable)

Spectrum Of Organizational Change Automation Rationalization Business reengineering (BPR) Paradigm shift

Spectrum Of Organizational Change Automation: using technology to perform tasks efficiently (physical design, implementation / testing)

Spectrum Of Organizational Change Rationalization of procedures: streamline sops; Eliminate bottlenecks. Find a different way to organize the processes. (Logical Design level)

Spectrum Of Organizational Change Business Reengineering: radical redesign of processes to improve cost, quality, service; Maximize benefits of technology. Accomplish the same goal with different means. (Requirements Analysis level)

Spectrum Of Organizational Change: 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 re-conception of how the system should function. (Enterprise View level) *

Risks & Rewards High RISK Low Low High RETURN

IT Capabilities & Impacts Transactional: transforms unstructured processes to routine transactions to improve efficiency Geographical: IT makes processes independent of location Automational: replaces, reduces human labor * Source: Davenport & Short “The New Industrial Engineering”(1990)

IT Capabilities & Impacts Analytical: can bring complex analytical methods to bear on process Informational: makes vast amounts of detailed information available Sequential: enables changes in sequence, parallel tasks * Source: Davenport & Short “The New Industrial Engineering”(1990)

IT Capabilities & Impacts Knowledge management: allows capture, dissemination of knowledge, expertise Tracking: allows detailed tracking of task status, inputs, outputs Disintermediation: connects parties who otherwise depend on an intermediary * Source: Davenport & Short “The New Industrial Engineering”(1990)

System Development Process Systems analysis System design Programming Testing Conversion Production & maintenance *

Systems Analysis Analysis of problem to be solved with an information system Feasibility study: can problem be solved within constraints? The system to be analyzed is the business system. *

Systems Analysis: Feasibility Technical: assess hardware, software, technical resources Economic: will benefits outweigh costs Operational: is solution desirable within existing conditions? Information requirements: detailed statement of new system needs *

Role Of End Users Users drive systems effort Must have sufficient control to ensure system reflects business priorities, needs Functional users drive system needs Most of the projects fail because of user resistance

Completing System Development Process Programming: translating needs to program code Testing: does system produce desired results? Assess the success of the system (must know the goals) *

Managing Change User involvement & influence Management support Level of complexity & risk Project size Project structure Experience with technology *

Managing Implementation Increase user involvement Detect, overcome user resistance, counter implementation Control risk factors Employ ergonomics *

Ergonomics: Interaction of people and machines. The easier the task, the higher the acceptance Work environment Design of jobs Health issues End-user interface of info system *

Scoring Model / Factor Rating: Identify desirable features Provide weights for each (add to 1.00) Look at each alternative: Which features are present? To what extent (as an amount)? Score the alternative

Scoring Model: Rank-order the alternatives Select highest ranked option *