1 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Chapter 10 Developing Business/Information Technology Solutions

2 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives  Use the systems development process outlined in this chapter, and the model of IS components from Chapter 1 as problem- solving frameworks to help propose information systems solutions to simple business problems.

3 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives (continued)  Describe how you might use each of the steps of the information systems development cycle to develop and implement an e-business system.  Explain how prototyping improves the process of systems development for end users and IS specialists.

4 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives (continued)  Identify the activities involved in the implementation of new information systems.  Describe evaluation factors that should be considered in evaluating the acquisition of hardware, software, and IS services.

5 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Section I Developing e-Business Systems

6 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Information Systems Development  The systems approach to problem solving applied to the development of information system solutions to business problems.

7 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. The Systems Approach  The systems approach to problem solving  Recognize and define a problem or opportunity using systems thinking  Develop and evaluate alternative system solutions

8 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. The Systems Approach (continued)  Systems approach to problem solving (continued)  Select the system solution that best meets your requirements  Design the selected system solution  Implement and evaluate the success of the designed system

9 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. The Systems Approach (continued)  Systems Thinking  “seeing the forest AND the trees”  Seeing “interrelationships” among “systems” rather than linear cause-and- effect chains when events occur  Seeing “processes” of change among “systems” rather than discrete “snapshots” of change, whenever change occurs.

10 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. The Systems Approach (continued)  Systems thinking (continued)  Use a systems context  Try to find systems, subsystems, and components of systems in any situation you are studying

11 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. The Systems Development Cycle  Investigation  Analysis  Design  Implementation  Maintenance

12 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Prototyping  The rapid development and testing of working models of new applications in an interactive, iterative process.  Sometimes called rapid application design (RAD).  Simplifies and accelerates systems design.

13 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Prototyping (continued)  The prototyping process

14 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Starting the Systems Development Process  Systems Investigation Phase  Feasibility studies  Organizational feasibility  Economic feasibility  Technical feasibility  Operational feasibility

15 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Starting the Systems Development Process (continued)

16 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Starting the Systems Development Process (continued)

17 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Starting the Systems Development Process (continued)  Cost/Benefit Analysis  Tangible costs  Intangible costs  Tangible benefits  Intangible benefits

18 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Starting the Systems Development Process (continued)

19 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Systems Analysis  Systems analysis is an in-depth study of end user information needs that produces functional requirements.

20 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Systems Analysis (continued)  Traditionally involves a detailed study of…  Information needs of the company & end users  Activities, resources, & products of one or more of the present information systems  The IS capabilities required to meet information needs of the company, the end users, and all business stakeholders that may use the system

21 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Systems Analysis (continued)  Organizational analysis  Study  Management structure  The people  Business activities  Environmental systems  The current information system

22 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Systems Analysis (continued)  Analysis of the present system  Analyze how the present system..  Uses hardware  Uses software  Is networked  Uses people resources to convert data resources into information products.  How the IS activities of input, processing, output, storage, and control are accomplished.

23 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Systems Analysis (continued)  Functional requirements analysis  What type of information does each business activity require?  Format, volume, frequency, response times  What are the information processing capabilities required?  Input, processing, output, storage, control

24 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Systems Analysis (continued)  Functional requirements analysis (continued)  Finally, develop functional requirements  End user information requirements that are not tied to the hardware, software, network, data, and people resources  Goal – identify what should be done, not how to do it.

25 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Systems Design  Specifies HOW the system will meet the information needs of users  Focuses on three major products  User interface design  Data design  Database structures  Process design  Processing and control procedures

26 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Systems Design (continued)  User interface design  Focuses on supporting the interactions between end users and the computer-based applications  Display screens  Interactive user/computer dialogues  Audio responses  Forms, documents, and reports

27 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Systems Design (continued)  System specifications  Formalizes the design of the application’s user interface methods & products  Formalizes database structures  Formalizes processing and control procedures

28 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. End User Development  IS professionals play a consulting role  Training in the use of application packages  Assistance with the selection of hardware and software  Assistance in gaining access to organization databases  Assistance in the analysis, design, and implementation of your application

29 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. End User Development (continued)  The application development process  Output  What information is needed and in what form?  Input  What data are available? From what sources? In what form?

30 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. End User Development (continued)  The application development process (continued)  Processing  What operations or transformation processes will be required to convert available inputs into the desired output?  What software package can best perform the required operations?

31 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. End User Development (continued)  The application development process (continued)  Storage  Control  How will you protect against accidental loss or damage to end user files?

32 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. End User Development (continued)

33 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Section II Implementing e-Business Systems

34 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Implementation  This is the actual deployment of the information technology system.  Follows the investigation, analysis, and design stages of the systems development cycle.

35 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Implementing New Systems

36 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Evaluating Hardware, Software, & Services  May require suppliers to present bids and proposals based on system specifications  Minimum acceptable physical & performance characteristics for all hardware and software requirements are established  Large businesses and government agencies formalize requirements by listing them in a Request for Proposal (RFP) or a Request for Quotation (RFQ)

37 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Evaluating Hardware, Software, and Services (continued)  May use a scoring system for evaluation  Determine evaluation factors and assign points  Performance of hardware and software must be demonstrated and evaluated  May use benchmark test programs

38 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Evaluating Hardware, Software, and Services (continued)  Hardware evaluation factors  Performance  Speed, capacity, throughput  Cost  Lease or purchase price  Cost of operations and maintenance

39 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Evaluating Hardware, Software, and Services (continued)  Hardware evaluation factors (continued)  Reliability  Risk of malfunction & maintenance requirements  Error control and diagnostic features  Compatibility  With existing hardware and software?  With hardware & software provided by competing suppliers?

40 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Evaluating Hardware, Software, and Services (continued)  Hardware evaluation factors (continued)  Technology  Year of product life cycle  Does it use a new, untested technology?  Does it run the risk of obsolescence?  Ergonomics  “human factors engineered”?  User-friendly?  Safe, comfortable, easy to use?

41 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Evaluating Hardware, Software, and Services (continued)  Hardware evaluation factors (continued)  Connectivity  Easily connected to WANs and LANs that use different types of network technologies and bandwidth alternatives?  Scalability  Can it handle the processing demands of end users, transactions, queries, & other processing requirements?

42 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Evaluating Hardware, Software, and Services (continued)  Hardware evaluation factors (continued)  Software  Is system and application software available that can best use this hardware?  Support  Is support available?

43 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Evaluating Hardware, Software, and Services (continued)  Software evaluation factors  Quality  Bug free?  Efficiency  Well-developed system of program code that does not use much CPU time, memory capacity, or disk space?

44 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Evaluating Hardware, Software, and Services (continued)  Software evaluation factors (continued)  Flexibility  Can it handle our processes easily without major modification?  Security  Does it provide control procedures for errors, malfunctions, and improper use?

45 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Evaluating Hardware, Software, and Services (continued)  Software evaluation factors (continued)  Connectivity  Web-enabled?  Language  Is the programming language familiar to internal software developers?

46 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Evaluating Hardware, Software, and Services (continued)  Software evaluation factors (continued)  Documentation  Well-documented? Help screens and helpful software agents?  Hardware  Does existing hardware have the features required to best use this software?

47 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Evaluating Hardware, Software, and Services (continued)  Software evaluation factors (continued)  Other factors  Performance, cost, reliability, availability, compatibility, modularity, technology, ergonomics, scalability, and support characteristics

48 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Evaluating Hardware, Software, and Services (continued)  Evaluating IS Services  Performance  Past performance in view of past promises  Systems development  Are website and other e-business developers available? Quality and cost

49 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Evaluating Hardware, Software, and Services (continued)  Evaluating IS services (continued)  Maintenance  Is equipment maintenance provided? Quality and cost  Conversion  What systems development & installation services will they provide during the conversion period?

50 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Evaluating Hardware, Software, and Services (continued)  Evaluating IS services (continued)  Training  Provided? Quality and cost  Backup  Are similar computer facilities available nearby for emergency backup purposes?

51 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Evaluating Hardware, Software, and Services (continued)  Evaluating IS services (continued)  Accessibility  Services from local or regional sites?  Customer support center?  Customer hot line?  Business position  Financially strong with good industry market prospects?

52 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Evaluating Hardware, Software, and Services (continued)  Evaluating IS services (continued)  Hardware  Provide a wide selection of compatible hardware devices and accessories?  Software  Offer a variety of useful e-business software and application packages?

53 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Other Implementation Activities  Testing  May involve website performance testing  Testing and debugging software  Testing new hardware  Reviewing prototypes of displays, reports, and other output  Should occur throughout the development process

54 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Other Implementation Activities (continued)  Documentation  Sample data entry screens, forms, and reports are examples.  Serves as a method of communication among the people responsible for developing, implementing, and maintaining the system  A detailed record of the system’s design  Important in diagnosing errors & making changes

55 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Other Implementation Activities (continued)  Training  End users must be trained to operate a new e-business system or implementation will fail  May be limited in scope or may involve all aspects of the proper use of the new system  Managers and end users must be educated in how the new technology impacts business operations and management

56 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Other Implementation Activities (continued)  Conversion methods  Parallel  Both old and new systems are operated until the project development team and end users agree to switch completely  Phased  Only parts of the new application or only a few locations at a time are converted

57 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Other Implementation Activities (continued)  Conversion methods (continued)  Pilot  One department or other work site serves as a test site  Plunge  A direct cutover to the newly developed system

58 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Other Implementation Activities (continued)

59 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Other Implementation Activities (continued)  IS Maintenance  Systems maintenance  Postimplementation review

60 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Discussion Questions  Why has prototyping become a popular way to develop e-business applications. What are prototyping’s advantages and disadvantages?  What are the three most important factors you would use in evaluating computer hardware? Computer software?

61 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Discussion Questions (continued)  Assume that in your first week on a new job you are asked to use a type of business software that you have never used before. What kind of user training should your company provide to you before you start?  What is the difference between the parallel, plunge, phased, and pilot forms of IS conversion? Which strategy is best?

62 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Discussion Questions (continued)  What are several key factors in designing a successful e-commerce or internet website?

63 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Real World Case 1 – Fidelity Investments  Evaluating Usability in Website Design  Is a usability lab like Fidelity’s necessary, or are there other alternatives for testing usability in website design?  Which is the better approach?

64 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Real World Case 1 (continued)  Evaluate the suggestions for good website design shared by companies in this case. Which are the most important to you?  In what order would you rate the companies in this case in terms of website design?

65 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Real World Case 1 (continued)  What are your choices for the top five design failures at business websites?  Why were those your choices?

66 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Real World Case 2 – PacifiCorp, Reynolds, & Zurich NA  This case describes a change in focus in IT project management from time to market and market share goals, to profitable projects completed on time and on budget.  Why has there been a change of focus in IT project management?  Is this change necessary?

67 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Real World Case 2 (continued)  What are the reasons for the difference in the project management focus of the meetings held by PacifiCorp and Reynolds?  Which is more important?

68 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Real World Case 2 (continued)  What are the benefits to IT project management of project status transparency and the project agreement as practiced by Zurich NA?  Will the change in focus in IT project management stifle creativity and innovation in business system design?

69 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Real World Case 3 – IMG Worldwide  IT Resource Acquisition Strategies  Do you agree with the methods and criteria that Gergely Tapolyai of IMG uses to evaluate IT products?

70 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Real World Case 3 (continued)  What characteristics of the OshKosh B’Gosh buying process should be implemented by other companies?

71 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Real World Case 3 (continued)  What other evaluation methods and criteria (whether mentioned in this case or not) are crucial to the IT acquisition process?  Why?

72 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Real World Case 4 – Macy’s and Lands’ End  Systems Design Criteria for Website Shopability  Considerations  Trust  Categories  Search  Product pages  Navigation

73 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Real World Case 4 (continued)  How does the Macy’s website measure up to the five shopability criteria discussed in this case?  Which do you like best? Macy’s or the Lands’ End websites.

74 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Real World Case 4 (continued)  What are several other website design suggestions that either website could make to improve their shopability?

75 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Real World Case 5 – GM Locomotive Group  Failure in ERP System Implementation  GM Locomotive says the problem wasn’t with the ERP software. Then what DID cause the major failure of their ERP system?

76 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Real World Case 5 (continued)  What major shortcomings in systems implementation, conversion, or project management practices do you recognize in this case?

77 McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Real World Case 5 (continued)  What would you advise GM Locomotive to do differently to avoid similar problems in their upcoming ERP implementations?