SIM, pertemuan10.1 © 2008 by Abdul Hayat Redesigning the Organization With information Systems REDESIGNING THE ORGANIZATIONWITHINFORMATIONSYSTEMS Pertemuan 10 & 11

SIM, pertemuan10.2 © 2008 by Abdul Hayat Redesigning the Organization With information Systems How could building a new system change the way an organization works?How could building a new system change the way an organization works? How can a company make sure that the new information systems it builds fit its business plan?How can a company make sure that the new information systems it builds fit its business plan? What are the steps required to build a new information system?What are the steps required to build a new information system? OBJECTIVES

SIM, pertemuan10.3 © 2008 by Abdul Hayat Redesigning the Organization With information Systems What alternative methods for building information systems are available?What alternative methods for building information systems are available? Are there any techniques or system- building approaches to help us buildAre there any techniques or system- building approaches to help us build e-commerce and e-business applications more rapidly? OBJECTIVES

SIM, pertemuan10.4 © 2008 by Abdul Hayat Redesigning the Organization With information Systems Major risks and uncertainties in systems developmentMajor risks and uncertainties in systems development Determining when new systems and business processes can have the greatest strategic impactDetermining when new systems and business processes can have the greatest strategic impact MANAGEMENT CHALLENGES

SIM, pertemuan10.5 © 2008 by Abdul Hayat Redesigning the Organization With information Systems Information systems plan Road map indicating direction of systems developmentRoad map indicating direction of systems development SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Linking Information Systems to the Business Plan

SIM, pertemuan10.6 © 2008 by Abdul Hayat Redesigning the Organization With information Systems Enterprise Analysis (Business Systems Planning) Analysis of organization-wide information requirementsAnalysis of organization-wide information requirements Identifies key entities and attributesIdentifies key entities and attributes SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Establishing Organizational Information Requirements

SIM, pertemuan10.7 © 2008 by Abdul Hayat Redesigning the Organization With information Systems SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Process/Data Class Matrix Figure 12-1

SIM, pertemuan10.8 © 2008 by Abdul Hayat Redesigning the Organization With information Systems Strategic Analysis or Critical Success Factors Small number of easily identifiable operational goalsSmall number of easily identifiable operational goals Shaped by industry, firm, manager, and broader environmentShaped by industry, firm, manager, and broader environment Used to determine information requirements of organizationUsed to determine information requirements of organization SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Establishing Organizational Information Requirements

SIM, pertemuan10.9 © 2008 by Abdul Hayat Redesigning the Organization With information Systems SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Using CSFs to Develop Systems Figure 12-2

SIM, pertemuan10.10 © 2008 by Abdul Hayat Redesigning the Organization With information Systems Automation : Speeding up performanceAutomation : Speeding up performance Rationalization of procedures: Streamlining of operating proceduresRationalization of procedures: Streamlining of operating procedures Business process reengineering: Radical design of business processesBusiness process reengineering: Radical design of business processes Paradigm shift: Radical reconceptualizationParadigm shift: Radical reconceptualization SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Systems Development and Organizational Change

SIM, pertemuan10.11 © 2008 by Abdul Hayat Redesigning the Organization With information Systems SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Organizational Change Carries Risks and Rewards Figure 12-3

SIM, pertemuan10.12 © 2008 by Abdul Hayat Redesigning the Organization With information Systems Business Process Reengineering Reorganizes work flows, combining steps to eliminate redundant paper- intensive tasksReorganizes work flows, combining steps to eliminate redundant paper- intensive tasks Large payoff from IT investment if processes are redesigned before applying technologyLarge payoff from IT investment if processes are redesigned before applying technology BUSINESS PROCESS REENGINEERING AND PROCESS IMPROVEMENT Business Process Reengineering

SIM, pertemuan10.13 © 2008 by Abdul Hayat Redesigning the Organization With information Systems BUSINESS PROCESS REENGINEERING AND PROCESS IMPROVEMENT Redesigning Mortgage Processing in the United States Figure 12-4a

SIM, pertemuan10.14 © 2008 by Abdul Hayat Redesigning the Organization With information Systems BUSINESS PROCESS REENGINEERING AND PROCESS IMPROVEMENT Redesigning Mortgage Processing in the United States Figure 12-4b

SIM, pertemuan10.15 © 2008 by Abdul Hayat Redesigning the Organization With information Systems Senior management needs to develop broad strategic visionSenior management needs to develop broad strategic vision Management must understand and measure performance of existing processes as baselineManagement must understand and measure performance of existing processes as baseline Information technology should be allowed to influence process design from startInformation technology should be allowed to influence process design from start IT infrastructure should be able to support business process changesIT infrastructure should be able to support business process changes BUSINESS PROCESS REENGINEERING AND PROCESS IMPROVEMENT Steps in Effective Reengineering

SIM, pertemuan10.16 © 2008 by Abdul Hayat Redesigning the Organization With information Systems How information systems contribute to Total Quality Management Simplify product or production processSimplify product or production process Enable benchmarkingEnable benchmarking Use customer demands as guide to improve products and servicesUse customer demands as guide to improve products and services Reduce cycle timeReduce cycle time BUSINESS PROCESS REENGINEERING AND PROCESS IMPROVEMENT Process Total Quality Management (TQM) and Six Sigma

SIM, pertemuan10.17 © 2008 by Abdul Hayat Redesigning the Organization With information Systems Systems development Activities that go into producing information systems solutionActivities that go into producing information systems solution Systems analysis Analysis of problems that organization aims to resolve using information systemsAnalysis of problems that organization aims to resolve using information systems OVERVIEW OF SYSTEMS DEVELOPMENT Overview

SIM, pertemuan10.18 © 2008 by Abdul Hayat Redesigning the Organization With information Systems OVERVIEW OF SYSTEMS DEVELOPMENT The Systems Development Process Figure 12-5

SIM, pertemuan10.19 © 2008 by Abdul Hayat Redesigning the Organization With information Systems Feasibility study Determining achievability of solutionDetermining achievability of solution Establishing information requirements Stating information needs that new system must satisfyStating information needs that new system must satisfy Identifying who, when, where and how components of informationIdentifying who, when, where and how components of information OVERVIEW OF SYSTEMS DEVELOPMENT Overview

SIM, pertemuan10.20 © 2008 by Abdul Hayat Redesigning the Organization With information Systems Details how system will meet information requirements as determined by systems analysisDetails how system will meet information requirements as determined by systems analysis Specifications for the system solutionSpecifications for the system solution Should reflect user business priorities and information needsShould reflect user business priorities and information needs OVERVIEW OF SYSTEMS DEVELOPMENT Systems Design

SIM, pertemuan10.21 © 2008 by Abdul Hayat Redesigning the Organization With information Systems Programming Process of translating system specifications into program codeProcess of translating system specifications into program codeTesting Checks whether the system produces desired results under known conditionsChecks whether the system produces desired results under known conditions Unit testing, system testing, acceptance testing, test planUnit testing, system testing, acceptance testing, test plan OVERVIEW OF SYSTEMS DEVELOPMENT Completing the Systems Development Process

SIM, pertemuan10.22 © 2008 by Abdul Hayat Redesigning the Organization With information Systems OVERVIEW OF SYSTEMS DEVELOPMENT A Sample Test Plan to Test a Record Change Figure 12-6

SIM, pertemuan10.23 © 2008 by Abdul Hayat Redesigning the Organization With information Systems Conversion Process of changing from old system to new systemProcess of changing from old system to new system Strategies:Strategies: –Parallel –Direct cutover –Pilot study –Phased approach –Documentation OVERVIEW OF SYSTEMS DEVELOPMENT Completing the Systems Development Process

SIM, pertemuan10.24 © 2008 by Abdul Hayat Redesigning the Organization With information Systems Production and maintenance Production is stage after new system is installed and the conversion is completeProduction is stage after new system is installed and the conversion is complete Maintenance is changes in hardware, software, documentation, or procedures of production system to correct errorsMaintenance is changes in hardware, software, documentation, or procedures of production system to correct errors OVERVIEW OF SYSTEMS DEVELOPMENT Completing the Systems Development Process

SIM, pertemuan10.25 © 2008 by Abdul Hayat Redesigning the Organization With information Systems Systems lifecycle Traditional methodology for developing information systemTraditional methodology for developing information system Partitions systems development process into formal stages that must be completed sequentiallyPartitions systems development process into formal stages that must be completed sequentially ALTERNATIVE SYSTEM-BUILDING APPROACHES Traditional Systems Lifecycle

SIM, pertemuan10.26 © 2008 by Abdul Hayat Redesigning the Organization With information Systems Prototyping Process of building experimental system quickly and inexpensively for demonstration and evaluationProcess of building experimental system quickly and inexpensively for demonstration and evaluationPrototype Preliminary working version of information system for demonstration and evaluationPreliminary working version of information system for demonstration and evaluation ALTERNATIVE SYSTEM-BUILDING APPROACHES Prototyping

SIM, pertemuan10.27 © 2008 by Abdul Hayat Redesigning the Organization With information Systems Iterative A process of repeating over and over again the steps to build systemA process of repeating over and over again the steps to build system ALTERNATIVE SYSTEM-BUILDING APPROACHES Prototyping

SIM, pertemuan10.28 © 2008 by Abdul Hayat Redesigning the Organization With information Systems ALTERNATIVE SYSTEM-BUILDING APPROACHES The Prototyping Processes Figure 12-7

SIM, pertemuan10.29 © 2008 by Abdul Hayat Redesigning the Organization With information Systems 1.Identifying user’s basic requirements 2.Developing initial prototype 3.Using prototype 4.Revising and enhancing prototype ALTERNATIVE SYSTEM-BUILDING APPROACHES Steps in Prototyping

SIM, pertemuan10.30 © 2008 by Abdul Hayat Redesigning the Organization With information Systems Advantage Useful in designing information system’s end-user interfaceUseful in designing information system’s end-user interfaceDisadvantage Rapid prototyping can gloss over essential steps in systems developmentRapid prototyping can gloss over essential steps in systems development ALTERNATIVE SYSTEM-BUILDING APPROACHES Advantages and Disadvantages of Prototyping

SIM, pertemuan10.31 © 2008 by Abdul Hayat Redesigning the Organization With information Systems Application software packages Set of prewritten, precoded application software programs commercially available for sale or leaseSet of prewritten, precoded application software programs commercially available for sale or leaseCustomization Modification of software package to meet organization’s unique requirements without destroying the software’s integrityModification of software package to meet organization’s unique requirements without destroying the software’s integrity ALTERNATIVE SYSTEM-BUILDING APPROACHES Application Software Packages

SIM, pertemuan10.32 © 2008 by Abdul Hayat Redesigning the Organization With information Systems ALTERNATIVE SYSTEM-BUILDING APPROACHES The Effects of Customizing a Software Package on Total Implementation Costs Figure 12-8

SIM, pertemuan10.33 © 2008 by Abdul Hayat Redesigning the Organization With information Systems Request for Proposal (RFP) Detailed list of questions submitted to vendors of software or other servicesDetailed list of questions submitted to vendors of software or other services Determines how well vendor’s product can meet organization’s specific requirementsDetermines how well vendor’s product can meet organization’s specific requirements ALTERNATIVE SYSTEM-BUILDING APPROACHES Application Software Packages

SIM, pertemuan10.34 © 2008 by Abdul Hayat Redesigning the Organization With information Systems Development of information systems by end users with little or no formal assistance from technical specialistsDevelopment of information systems by end users with little or no formal assistance from technical specialists Allows users to specify their own business needsAllows users to specify their own business needs ALTERNATIVE SYSTEM-BUILDING APPROACHES End-User Development

SIM, pertemuan10.35 © 2008 by Abdul Hayat Redesigning the Organization With information Systems ALTERNATIVE SYSTEM-BUILDING APPROACHES End-User Versus System Lifecycle Development Figure 12-9

SIM, pertemuan10.36 © 2008 by Abdul Hayat Redesigning the Organization With information Systems Improves requirements gathering leading to higher level of user involvement and satisfactionImproves requirements gathering leading to higher level of user involvement and satisfaction Cannot easily handle processing of large numbers of transactions or applicationsCannot easily handle processing of large numbers of transactions or applications ALTERNATIVE SYSTEM-BUILDING APPROACHES End-User Development

SIM, pertemuan10.37 © 2008 by Abdul Hayat Redesigning the Organization With information Systems Practice of contracting computer center operations, telecommunications networks, or applications development to external vendorsPractice of contracting computer center operations, telecommunications networks, or applications development to external vendors ALTERNATIVE SYSTEM-BUILDING APPROACHES Outsourcing

SIM, pertemuan10.38 © 2008 by Abdul Hayat Redesigning the Organization With information Systems System modeled as a collection of objects and relationships between themSystem modeled as a collection of objects and relationships between them Iterative and incrementalIterative and incremental Shifts focus from modeling business processes and data to combining data and procedures to create objectsShifts focus from modeling business processes and data to combining data and procedures to create objects APPLICATION DEVELOPMENT FOR THE DIGITAL FIRM Object-Oriented Software Development

SIM, pertemuan10.39 © 2008 by Abdul Hayat Redesigning the Organization With information Systems ALTERNATIVE SYSTEM-BUILDING APPROACHES Figure 12-10

SIM, pertemuan10.40 © 2008 by Abdul Hayat Redesigning the Organization With information Systems Process for developing systems in short time periodProcess for developing systems in short time period Uses prototyping, fourth-generation tools, and close teamworkUses prototyping, fourth-generation tools, and close teamwork APPLICATION DEVELOPMENT FOR THE DIGITAL FIRM Rapid Application Development (RAD)

SIM, pertemuan10.41 © 2008 by Abdul Hayat Redesigning the Organization With information Systems Software components deliverable over InternetSoftware components deliverable over Internet Enable one application to communicate with another with no translation requiredEnable one application to communicate with another with no translation required Standards and protocols:Standards and protocols: XML, extensible markup languageXML, extensible markup language WSDL, web services description languageWSDL, web services description language UDDI, universal description, discovery and integrationUDDI, universal description, discovery and integration SOAP, simple object access protocolSOAP, simple object access protocol APPLICATION DEVELOPMENT FOR THE DIGITAL FIRM Web Services

SIM, pertemuan10.42 © 2008 by Abdul Hayat Redesigning the Organization With information Systems ALTERNATIVE SYSTEM-BUILDING APPROACHES Figure 12-11

SIM, pertemuan10.43 © 2008 by Abdul Hayat Redesigning the Organization With information Systems ALTERNATIVE SYSTEM-BUILDING APPROACHES Figure 12-12

SIM, pertemuan10.44 © 2008 by Abdul Hayat Redesigning the Organization With information Systems E-commerce and e-business require systems planning and systems analysis based on a broader view of organizationE-commerce and e-business require systems planning and systems analysis based on a broader view of organization APPLICATION DEVELOPMENT FOR THE DIGITAL FIRM Looking Beyond the Organization

SIM, pertemuan10.45 © 2008 by Abdul Hayat Redesigning the Organization With information Systems 12 REDESIGNING THE ORGANIZATIONWITHINFORMATIONSYSTEMS Chapter