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MANAGEMENT INFORMATION SYSTEMS 8/E
Unit 3 Systems Concepts & System Life Cycle Methodologies 1-1 1
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MANAGEMENT INFORMATION SYSTEMS 8/E
Chapter 6 Systems Concepts 6-2 1
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Four Model Types 1) Physical models 2) Narrative models
Three dimensional representation such as a scale model 2) Narrative models Spoken or written 3) Graphic models Abstraction of lines, symbols, or shapes 4) Mathematical models Equation(s) 2PS EOQ = M 6-3 2
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Economic Order Quantity Concept
A Graphic Model of the Economic Order Quantity Concept Cost Total cost Maintenance cost Purchasing cost EOQ Order Quantity 6-4 3
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Prepare Sales Order Report Prepare Sales Order Report
Sales Orders Sales Orders Customers 1. Edit Sales Orders Edit Sales Orders Edit Sales Orders 2. Enter Sales Order Data 1. Sales Order Data Sales Orders Enter Sales Orders 3. Prepare Sales Order Report Sales Orders Enter Sales Order Data Sales Order History File 2. Sales Order Report Prepare Sales Order Report 3. Sales Order History File Sales Orders Report Sales Manager A. A Flowchart B. A Data Flow Diagram 6-5 5
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Uses of Models All four models facilitate understanding and communication. The mathematical model also helps predict the future. 6-6 5
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The General Systems Model
Graphic diagram with an accompanying narrative that depicts all organizations in a general way using a systems framework The Physical System Material flow Personnel flow Machine flow Money flow 6-7 6
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The Physical System of the Firm
Transformation Process Output Resources Input Resources Boundary of the Firm 6-8
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The Conceptual System Open-loop systems
Closed-loop systems (feedback loop) Management control The information processor 6-9 8
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A Closed-Loop System Control Mechanism Input Resources Output
Feedback Feedback Input Resources Output Resources Transformation Process 6-10 9
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The Physical System of the Firm
as a Controlled System Management Information Information Input Resources Transformation Process Output Resources 6-11 10
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A Sales Report of Fast-Moving Products Year-to-Date % of Total
Item Number Item Description Sales Volume Year-to-Date Sales BRAKE PIPE $1, DOOR HANDLE GASKET , CLUTCH DRIVEN PLATE , CARPET SNAP , SPARK PLUG , HOSE CLIP RUBBER PLUG UPPER DOOR HINGE REAR TUBE SHOCK NEEDLE VALVE Totals $11, 6-12
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Information is Gathered from All of the Physical System Elements
Management Information Information Transformation Process Input Resources Output Resources 6-13 12
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Supplier Analysis Report
Item Number: Item Description: Upper Door Hinge SUPPLIER LAST UNIT DAYS TO PCT. NUMBER NAME DATE P.O. # QTY. PRICE RECEIPT REJECTS CARTER 7/ $ & SONS PACIFIC 4/ MACHINING A.B. 1/ MERRIL BAY AREA 8/ 6-14
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A Job Status Report Provides Information
about the Transformation Process Job Number: Customer: Wankel Automotive CURRENT STATUS Step 4-weld supports to frame Department 410-Welding Date and Time Begun-10/8; 10:15A Projected Job Completion-10/14; 9:30A NEXT PROCESS Step 5-paint frame Department 632-Paint 6-15
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The Information Processor Transforms
Data into Information Information Information Information Management Processor Data Input Transformation Process Output Resources Resources 6-16 15
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Conceptual System (cont.)
Dimensions of Information Relevancy Accuracy Timeliness Completeness Too Much Information is called ‘Information Overload’ 6-17 16
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Conceptual System (cont.)
Standards Measure of acceptable performance Usually stated in specific terms Used to control physical system Consists of: Management Information processor Objectives Overall goal that a system is to obtain Systems have one or more objectives 6-18
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A Comparison of Objectives and Standards
Objectives Standards of Performance Satisfy Customer Needs Achieve an annual sales volume of at least $25 million Maintain a 20% share of the market Maintain an annual growth rate of 15% Produce a return on investment for the owners Pay dividends to stockholders each quarter Maintain the price of the firm’s common stock above $85 per share Realize an after-tax profit of 15% of sales Maintain a record of accident-free days Keep employee turnover below 10% Operate efficiently Invest in the future Invest in a minimum of 15% of sales revenue in research and development Achieve stockout on no more than 2% of the items in inventory during the year Keep the number of backorders to less than 5% of all orders processed Have no plant shutdowns due to unavailable materials Develop sources of supply Have no legal actions filed against the firm by customers, suppliers, and the government Operate ethically 6-19
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Performance Standards are Made Available to Both Management and the Information Processor
Data Input Resources Transformation Process Output Resources 6-20 19
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Conceptual System (cont.)
Management by exception Compares standards with information output of system Manager becomes involved when system falls outside range of acceptable performance Capability provided by CBIS 6-21
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Conceptual System (cont.)
Critical Success Factors (CSFs) A CSF is one of the firm’s activities that has a strong influence on the firm’s ability to meet its objectives Firms have multiple CSFs CSFs focuses attention on a portion of a firm’s activities 6-22
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Changes are Made in the Physical System Through the Decision Flow
Standards Decisions Information Information Processor Management Data Output Resources Input Resources Transformation Process 6-23 20
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Conceptual System (cont.)
Decision Flow Data is transformed into information by the information processor Manager transforms information into decisions 6-24
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The General Systems Model of the Firm
Environment Standards Information and Data Decisions Information Information Processor Management Data Physical Resources Physical Resources Transformation Process Output Resources Input Resources 6-25 21
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General Systems Model in Context
Helps adjust firm Provides a sense of stability Provides mental picture of what to expect 6-26 23
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Problems -- Good and Bad
Problem solving Suppress harmful effects Capitalize on opportunity for benefit Decision The act of selecting a strategy or action 6-27 2
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Elements of Problem Solving
Desired state Current state Constraints Internal -- limited resources Environmental -- pressures to restrict resource flows } Difference = Solution Criterion 6-28 3
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Elements of the conceptual system
Problem Elements of the Problem-Solving Process Elements of the conceptual system Alternate solutions Standards Desired state Problem solver (manager) Current state Constraints Information Solution 6-29 4
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Problems versus Symptoms
Know the difference Symptoms are produced by the problem The problem causes the symptoms When the problem is corrected the symptoms will cease, but not vice versa 6-30 5
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Problem Structure Structured Unstructured Semistructured
Elements and relationships understood Unstructured No elements or relationships understood Semistructured Some elements understood DSS concept of managers and the computer working jointly towards a solution 6-31 6
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Problem Structure DSS Computer Solve Manager Solve Structured
Semi-structured Unstructured 6-32 7
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The Systems Approach John Dewey, 1910 Columbia philosophy professor
1. Recognize the controversy 2. Weigh alternative claims 3. Form a judgment Problem Solution 6-33 8
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Phases and Steps of the Systems Approach
Phase I: Preparation Effort Step 1. View the firm as a system Step 2. Recognize the environmental system Step 3. Identify the firm’s subsystems Phase II: Definition Effort Step 4. Proceed from a system to a subsystem level Step 5. Analyze system parts in a certain sequence Phase III: Solution Effort Step 6. Identify the alternative solutions Step 7. Evaluate the alternative solutions Step Select the best solution Step 9. Implement the solution Step Follow up to ensure that the solution is effective Decisions are made at each step of the definition and solution phases 6-34 10
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Steps taken in any order or at the same time
Preparation Effort Step 1 View the firm as a system Step 2 Recognize environmental system Step 3 Identify the firm’s subsystems Business areas Levels of management Resource flows Steps taken in any order or at the same time 6-35 12
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The Systems Approach Requires Decision Making
PHASE STEP DECISION Where is the problem? Do new data need to be gathered, or do data already exist? How will data be gathered? What is causing the problem? How many alternatives should be identified? Are these alternatives feasible? Which criteria should be used? How does each alternative measure up to each criterion? Do all criterion have equal weight? Is there enough information to make a selection? Which alternative measures up best to the criteria? When should this solution be implemented? How should the solution be implemented? Who should perform the evaluation? How well is the solution meeting the objectives? 4. Proceed from a system to a subsystem level. 5. Analyze system parts in a certain sequence. 6. Identify alternative solutions. 7. Evaluate the alternative solutions. 8. Select the best solution. 9. Implement the solution. 10. Follow up to ensure that the solution is effective. Definition Effort Solution Effort 6-36
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Each Functional Area is a Subsystem
President Marketing Subsystem Manufacturing Subsystem Finance Subsystem Human Resources Subsystem Information Services Subsystem 6-37 16
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Something Triggers the Definition Effort
The trigger can be: 1. An action 2. The passage of time 3. From within the firm or the environment 6-38 20
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Definition Effort Step 4: Proceed from System to Subsystem Level
Each level is a system Are subsystems integrated into a smoothly functioning unit? Does the subsystem need to be broken down further? 6-39 21
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Definition Effort [cont.]
Step 5: Analyze System Parts in a Certain Sequence 1. Evaluation standards. They must be valid, realistic, understandable, measurable 2. Compare system outputs with standards 3. Evaluate management 4. Evaluate the information processor 5. Evaluate the inputs and input resources 6. Evaluate the transformation processes 7. Evaluate the output resources 6-40 23
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Each Part of the System Is Analyzed in Sequence
1. Standards 3. 4. Information processor Management 6. 7. 5. 2. Input resources + Inputs. Transformation Output Outputs resources processes 6-41 24
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Solution Effort Step 6: Identify alternatives
Find different ways to solve the same problem Brainstorming Joint Application Design (JAD) session Step 7: Evaluate alternative solutions Step 8: Select the best solution Analysis Judgment Bargaining 6-42 27
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Final Steps of the Solution Effort
Step 9: Implement the solution Step 10: Follow-up to ensure that the solution is effective 6-43 32
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An Integrative Model of the Systems Approach
Definition Effort 4. Proceed from a system to a subsystem level 5. Analyze system parts in a certain sequence Solution Effort 6. Identify alternative solutions 7. Evaluate the alternative solutions 8. Select the best solution 9. Implement the solution 10. Follow-up to ensure solution is effective 6-44
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Review of Systems Approach
Integrating each step of the systems approach is a managerial challenge Managerial preparation effort is a good starting point Next, manager engages in functional decomposition Definition effort Finally, manager solves problem Solution effort 6-45
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Summary Models are abstractions of reality Physical system
Four types of models General systems model Physical system Conceptual system Information Processor Computer Noncomputer 6-46
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Summary [cont.] Management by exception Managerial problem solving
Classification of problems Structured Unstructured Use of the systems approach 6-47
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MANAGEMENT INFORMATION SYSTEMS 8/E
Chapter 7 System Life Cycle Methodologies 7-48 Copyright 2001 Prentice-Hall, Inc. 1
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The Systems Life Cycle (SLC)
Methodology Recommended way of doing something An application of the systems approach to the task of developing and using a computer-based system Often called waterfall approach 7-49 2
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Phases in the SDLC 1) Planning 2) Analysis 3) Design 4) Implementation
5) Use 7-50
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The System Development Life Cycle (SDLC)
SDLC is the phrase that encompasses the planning, analysis, design, and implementation phases of the system life cycle Who participates IS personnel User Information specialists can consult Traditional Information specialists working with users. A new strategy: Outsourcing 7-51 3
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Life Cycle Management An upward migration Executive responsibility
MIS steering committee Functions Set policy Control the purse strings Resolve conflicts 7-52 4
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Managers of Systems Life Cycles are Arranged in a Hierarchy
Executives MIS Steering Committee Marketing Project leader -Warehouse location model team Project leader ISDN system team Manufacturing Project leader MRP 11 team Project leader Credit approval system team Finance Human Resources Project leader HRIS team 7-53 5
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Main Advantages of the Steering Committee
Total firm support Projects will be characterized by good planning and control Establishes policies, provides fiscal control, and resolves conflicts Since the steering committee will probably not get involved with the details of the work, a project team is usually appointed. 7-54 6
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Planning Phase Benefits Define scope of the project
Spot potential problems Arrange tasks in sequence Provide basis for control 7-55 7
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Steps 1. Recognize problem (the trigger) 2. Define problem
3. Set objectives 4. Identify constraints Recall that objectives, standards, and constraints are problem-solving elements. 7-56 8
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Steps (cont.) 5. Conduct feasibility study (TENLOS) Technical
Economic return Noneconomic return Legal and ethical Operational Schedule 7-57 9
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Steps (cont.) 6. Prepare study project proposal
Goes to MIS steering committee 7. Approve or disapprove (go/no go) Key questions? 1. Will the system accomplish its goals? 2. Is this the best way to go about it? 7-58 10
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Steps (cont.) 8. Establish a control mechanism Think in terms of:
1. What 2. Who 3. When (Person-months versus calendar months) PERT and CPM network diagrams 7-59 11
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Conduct a feasibility study
The Planning Phase MIS Steering Comm Manager Systems Analyst Recognize the problem 1. Define the problem 2. Set system objectives 3. Consult 4. Identify system constraints Conduct a feasibility study 5. Prepare a system study proposal 6. 7. Approve or disapprove the study project Establish a control mechanism 8. 7-60 12
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Outline of a System Study Proposal
1. Executive summary 2. Introduction 3. System objectives and constraints 4. Possible system alternatives 5. The recommended system study project 5.1 Tasks to be performed 5.2 Human resource requirements 5.3 Schedule of work 5.4 Estimated cost 6. Expected impact of the system 6.1 Impact on the firm’s organization structure 6.2 Impact on the firm’s operations 6.3 Impact on the firms resources 7. General development plan (analysis, design, and implementation phase) 8. Summary 7-61
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A Project Schedule 0.75 0.25 Time Estimate Subtask Responsibility
Functional System: Marketing Subsystem: Product Model: Product Deletion Time Estimate (Person Months) Subtask Responsibility 1. Identify deletion criteria 2. Identify output information requirements Systems analyst Product manager Network specialist 0.75 0.25 7-62 14
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Project Schedule (cont.)
3. Identify input data Systems analyst requirements DBA 4. Prepare new system Systems analyst documentation 5. Design network Network specialist 6. Design database DBA 7. Review design Product manager Systems analyst 8. Prepare program Programmer 7-63 15
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Project Schedule (cont.)
9. Code program Programmer 10. Test program Programmer Operations staff 11. Approve program Product manager VP of marketing 12. Prepare database DBA 13. Educate users Systems analyst 14. Cutover to model Operations staff 7-64 16
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Analysis Phase Steps 1. Announce 2. Organize project team
Reasons for project Purpose: inform and counteract fear 2. Organize project team User(s) Specialists Define roles 7-65 17
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Analysis Phase (cont.) 3. Define information needs Methods
Personal interview (the preferred method) Observation Record search (includes review of existing documentation) Surveys A project directory can be maintained as an encompassing set of documentation to describe the system 7-66 18
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Analysis Phase (cont.) 4. Define system performance criteria
5. Prepare design proposal (Compare to system study proposal) 6. Approve or disapprove the design project 7-67 19
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MIS Steering Committee
The Analysis Phase MIS Steering Committee Manager Systems Analyst Announce the system study Organize the project team Define information needs Define system performance criteria Prepare design proposal Approve or disapprove the design project 1. 2. 3. 4. 5. 6. 7-68 20
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Outline of a Design Proposal
1. Executive summary 2. Introduction 3. Problem definition 4. System objectives and constraints 5. Performance criteria 6. Possible system alternatives 7. The recommended design project 7.1 Tasks to be performed 7.2 Human resource requirements 7.3 Schedule of work 7.4 Estimated cost 8. Expected impact of the system 8.1 Impact on the firm’s organization structure 8.2 Impact on the firm’s operations 8.3 Impact on the firms resources 9. General development plan (analysis, design, and implementation) 10. Summary 7-69
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The Design Phase MIS Steering Committee Manager Systems Analyst 1. 2.
Prepare the detailed design system The Design Phase 2. Identify alternate system configurations 3. Evaluate system configurations 4. Select the best configuration 5. Prepare the implementation proposal Approve or disapprove the system implementation 6. 7-70 22
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Design Phase 1. Prepare detailed design
Structured design (top down) System level Subsystem level Documentation tools 2. Identify alternate system configurations Refine to a manageable set 7-71 23
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Popular Documentation Tools
Data Modeling Entity-relationship diagram Data dictionary Screen/printer layout form Process Modeling System flowchart Program flowchart Data flow diagram Structured English Object Modeling Object relationship model Class specification 7-72
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Data Flow Diagram of Four Data Processing Subsystems
Sales orders Customers Accepted orders Rejected sales order notices 1.1 Order Entry Order log removals file Filled items 1.2 Inventory Payments by customers Statements Invoices Inventory ledger data 1.3 Billing Purchasing data 1.4 Accounts Receivable Billed orders 2 Received items Receivables ledger data 2 3 7-73 3
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Data Flow Diagram of Order Entry System
Sales orders Edit rejects Sales order edit rejects Customer 1.1.1 Edit order data Edited orders Rejected sales order notices Customer credit file 1.1.2 Compute credit check Credit data Accepted orders 1.1.3 Log in orders Edited and checked orders 1.2 Sales order credit rejects Credit rejects Order data 1.1.4 Mark filled orders Completed orders Date filled 1.3 Order log 7-74
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Hardware Choices Make Possible Multiple System Configurations
System Elements Alternatives Input CRT terminal Hardcopy terminal OCR Order log Magnetic tape DASD Customer credit file Magnetic tape DASD Rejected orders file Magnetic tape DASD Accepted orders file Magnetic tape DASD Completed orders file Magnetic tape DASD Rejected orders notice Printer CRT terminal Hardcopy terminal Batch Processing Online 7-75 29
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Alternatives Selected for Detailed Study
Alternative Input Order Log Customer Credit File Accepted & Rejected Orders File Completed Orders File Rejected Orders Notice 1. Scanner Magnetic tape Magnetic tape Magnetic tape Magnetic tape Printer 2. Keyboard terminal Magnetic tape Magnetic tape Magnetic tape Magnetic tape Printer 3. Magnetic tape Hardcopy terminal Keyboard terminal Magnetic tape Magnetic tape Magnetic tape 7-76 30
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Design Phase (cont.) 3. Evaluate configurations
4. Select best configuration 5. Prepare implementation proposal 6. Approve or disapprove the system implementation 7-77 24
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Outline of an Implementation Proposal
1. Executive summary 2. Introduction 3. Problem definition 4. System objectives and constraints 5. Performance criteria 6. System design 6.1 Summary description 6.2 Equipment configuration 7. The recommended implementation project 7.1 Tasks to be performed 7.2 Human resource requirements 7.3 Schedule of work 7.4 Estimated cost 8. Expected impact of the system 8.1 Impact on the firm’s organization structure 8.2 Impact on the firm’s operations 8.3 Impact on the firms resources 9. General implementation plan 10. Summary 7-78
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Implementation Phase Acquire and integrate the physical and conceptual resources to produce a working system 7-79 33
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Steps for the Implementation Phase
1. Plan implementation 2. Announce 3. Obtain hardware resources RFP / Written Proposals 4. Obtain software resources "Make or buy" 5. Prepare database 6. Prepare physical facilities 7. Educate participants and users 8. Prepare cutover proposal 9. Approve or disapprove cutover to new systsem 10. Cutover to new system 7-80 34
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The Implementation Phase
MIS Steering Committee Manager Information Specialists Plan the implementation 1. 2. Announce the implementation 3 Obtain the hardware resources Control Control 4 Obtain the software resources 5 Prepare the database 6 Prepare the physical facilities 7 Educate the participants and users 8. Cutover the new system 7-81 35
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Outline of a Request for Proposal
1. Letter of transmittal 2. System objective and applicable constraints 3. System design 3.1 Summary description 3.2 Performance criteria 3.3 Equipment configuration 3.4 Summary system documentation 3.5 Estimated transaction volume 3.6 Estimated file size 4. Installation schedule 7-82
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Outline of Supplier Proposal
1. Letter of transmittal 2. Summary of recommendations 3. Advantages 4. Equipment configuration 5. Equipment specifications 5.1 Performance data 5.2 Prices 6. Satisfaction and performance criteria 7. Delivery schedule 7-83
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Cutover Approaches Pilot Old System Immediate Old System Phased
Immediate cutover Pilot System Phased cutover Parallel cutover Immediate Old System New System Phased New System Old System Old System Parallel New system 7-84 Time 38
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Use Phase 1. Use 2. Audit (post implementation review)
By information specialist(s) By internal auditor (a different one from the project team member) 3. Maintain the system Correct errors Keep current Improve 4. Prepare reengineering proposal 5. Approve or disapprove reengineering 7-85 39
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The Use Phase 2 1 3 4 5 MIS Steering Committee Manager
Information Specialists 2 Audit the system 1 Use the system Control 3 Maintain the system 4 Prepare re- engineering proposal Approve or disapprove the reengineering proposal 5 7-86
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Prototyping Type I -- Becomes operational system
Type II -- Serves as a blueprint 7-87 41
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Development of a Type I Prototype
1. Identify user needs 2. Develop a prototype N Prototype acceptable? 3. Y 4. Use the prototype 7-88 42
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Development of a Type II Prototype
Identify user needs Development of a Type II Prototype Develop a prototype N Prototype acceptable? Y Code the operational system N Test the operational system System acceptable? Y Use the operational system 7-89 43
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The Attraction of Prototyping
Communications between the systems analyst and user are improved. The analyst can do a better job of determining the user’s needs. The user plays a more active role in system development. The information specialists and the user spend less time and effort in developing the system. Implementation is much easier because the user knows what to expect. 7-90 44
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Potential Pitfalls of Prototyping
The haste to deliver the prototype may produce shortcuts in problem definition, alternative evaluation, and documentation. The users may get so exited about the prototype that they have unrealistic expectations of the operational system. Type I prototypes might not be as efficient as systems coded in a programming language. The computer-human interface provided by certain prototyping tools may not reflect good design techniques. 7-91 45
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Applications That Are Good Prospects for Prototyping
High risk Considerable user interaction Large number of users A need for quick delivery An expected short use phase of the system An innovative system Unpredictable user behavior 7-92 46
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Rapid Application Development (RAD)
Information engineering (IE) Key ingredients Management should be experimenters or early adapters Specialized teams Methodologies (RAD life cycle) Tools (I-CASE, 4GLs) RAD and the SLC are applications of the systems approach Tools are mainly 4th generation languages and CASE tools 7-93 47
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Rapid application development
Strategic overview of the information needed to run an enterprise as efficiently as possible Data model Design of records used by specific procedures Strategic overview of the functions and goals of an enterprise The process needed to operate the enterprise and how they interrelate Information strategy planning (ISP) Business area analysis (BAA) Design of procedures for specific applications Rapid application development (RAD) . Data Activities Rapid Application Development is an Integral Part of Information Engineering 7-94 49
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Business Process Redesign (BPR)
Often used to react to systems that can no longer function adequately in the current business environment of the firm (legacy systems fall into this category) Three techniques for business process redesign are 1) reverse engineering 2) restructuring 3) reengineering 7-95
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Reverse Engineering Reverse Engineering Produces Documentation on Successively Higher Levels but Leaves the System Unchanged Reverse Reverse Reverse Reverse Engineering Engineering Engineering Engineering Planning Phase Analysis Phase Design Phase Implementation Phase 7-96
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Restructuring Planning Phase Analysis Phase Design Phase
Implementation Phase 7-97
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Reengineering Planning Phase Analysis Phase Design Phase
Reverse Engineering Reverse Engineering Reverse Engineering Reverse Engineering Forward Engineering Forward Engineering Forward Engineering Forward Engineering Planning Phase Analysis Phase Design Phase Implementation Phase 7-98
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Selection of BPR Components
Based upon functional quality What the system does Based upon technical quality How the system does its job The relationship between these two characteristics suggest which BPR technique would be appropriate 7-99
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Selection of BPR Components
Reverse Engineer Restructure Do Nothing Good Functional Quality (What?) Forward Engineer Poor Reengineer Poor Good Technical Quality (How?) 7-100
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SLC, Prototyping, RAD, and BPR in Perspective
SLC, prototyping, and RAD are all methodologies Recommended ways of implementing a computer-based system BPR revamps systems that were implemented with computer technology that has become obsolete 7-101
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Summary System Life Cycle Cycle management responsibility
Planning Analysis Design Implementation Use Cycle management responsibility Other methodologies 7-102
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