1. Building Information Systems
Chapter 11
Building Information Systems

2. What are the alternative methods for building information systems?
Essentials of Business Information Systems
Chapter 11 Building Information Systems
STUDENT OBJECTIVES
What are the core problem-solving steps for developing new information systems?
What are the alternative methods for building information systems?
What are the principal methodologies for modeling and designing systems?
How should information systems projects be selected and evaluated?
How should information systems projects be managed?

3. Problem: Inefficient manual procedures, high error rate.
Essentials of Business Information Systems
Chapter 11 Building Information Systems
A New Ordering System for Girl Scout Cookies
Problem: Inefficient manual procedures, high error rate.
Solutions: Eliminate manual procedures, design new ordering process, and implement database building software to batch and track orders automatically and schedule order pickups.
QuickBase for Corporate Workgroups software service increased efficiency and reduced errors.
Demonstrates IT’s role in updating traditional business processes.
Illustrates digital technology as the focus of designing and building new information systems.

4. New information systems are built as solutions to problems
Essentials of Business Information Systems
Chapter 11 Building Information Systems
Problem Solving and Systems Development
New information systems are built as solutions to problems
Four steps to building an information system
Define and understand the problem
Develop alternative solutions
Evaluate and choose a solution
Implement the solution
The first three steps are called systems analysis

5. Developing an Information System Solution
Essentials of Business Information Systems
Chapter 11 Building Information Systems
Problem Solving and Systems Development
Developing an Information System Solution
Developing an information system solution is based on the problem-solving process.
Figure 11-1

6. Defining and Understanding the Problem
Essentials of Business Information Systems
Chapter 11 Building Information Systems
Problem Solving and Systems Development
Defining and Understanding the Problem
What caused the problem?
Why does it persist?
Why hasn’t it been solved?
What are the objectives of a solution?
Information requirements

7. Developing Alternative Solutions
Essentials of Business Information Systems
Chapter 11 Building Information Systems
Problem Solving and Systems Development
Developing Alternative Solutions
Paths to a solution determined by systems analysis
Some solutions do not require an information system
Some solutions require modification of existing systems
Some solutions require new systems

8. Evaluating and Choosing Solutions
Essentials of Business Information Systems
Chapter 11 Building Information Systems
Problem Solving and Systems Development
Evaluating and Choosing Solutions
Feasibility issues
Costs and benefits
Advantages and disadvantages
Business value of systems
Change management

9. Implementing the Solution
Essentials of Business Information Systems
Chapter 11 Building Information Systems
Problem Solving and Systems Development
Implementing the Solution
Systems design
Completing implementation
Hardware selection and acquisition
Software development and programming
Testing
Training and documentation
Conversion
Production and maintenance
Managing the change

10. Traditional Systems Development Lifecycle
Essentials of Business Information Systems
Chapter 11 Building Information Systems
Alternative Systems-Building Approaches
Traditional Systems Development Lifecycle
Oldest method for building information systems
Phased approach with formal stages
Waterfall approach
Formal division of labor
Used for building large, complex systems
Time consuming and expensive to use

11. The Traditional Systems Development Lifecycle
Essentials of Business Information Systems
Chapter 11 Building Information Systems
Alternative Systems-Building Approaches
The Traditional Systems Development Lifecycle
The systems development lifecycle partitions systems development into formal stages, with each stage requiring completion before the next stage can begin.
Figure 11-3

12. Preliminary model built rapidly and inexpensive Four-step process
Essentials of Business Information Systems
Chapter 11 Building Information Systems
Alternative Systems-Building Approaches
Prototyping
Preliminary model built rapidly and inexpensive
Four-step process
Identify the user’s basic requirements
Develop an initial prototype
Use the prototype
Revise and enhance the prototype
Especially useful in designing a user interface

13. Completed more rapidly than systems developed with conventional tools
Essentials of Business Information Systems
Chapter 11 Building Information Systems
Alternative Systems-Building Approaches
End-User Development
End users create simple information systems with little or no assistance from technical specialists
Use fourth-generation languages, graphics languages, and PC software tools to access data, create reports, and develop information systems
Completed more rapidly than systems developed with conventional tools
Organizational risks

14. Purchasing Solutions: Application Software Packages and Outsourcing
Essentials of Business Information Systems
Chapter 11 Building Information Systems
Alternative Systems-Building Approaches
Purchasing Solutions: Application Software Packages and Outsourcing
Request for Proposal (RFP)
Application software packages
Generalized systems for universal functions with standard processes
Customization
Outsourcing
Application service providers (ASPs)
Offshore outsourcing

15. Rapid Application Development for E-Business
Essentials of Business Information Systems
Chapter 11 Building Information Systems
Alternative Systems-Building Approaches
Rapid Application Development for E-Business
Agility and scalability
Rapid application development (RAD)
Creating workable systems in a very short period of time
Joint application design (JAD)
End users and information systems specialists working together on design

16. Structured methodologies
Essentials of Business Information Systems
Chapter 11 Building Information Systems
Modeling and Designing Systems
Structured methodologies
Data flow diagram
Process specifications
Structure chart
Object-oriented development
Based on concepts of class and inheritance
Component-based development and Web services
Computer-aided software engineering (CASE)

17. Class and Inheritance Essentials of Business Information Systems
Chapter 11 Building Information Systems
Modeling and Designing Systems
Class and Inheritance
This figure illustrates how classes inherit the common features of their superclass.
Figure 11-8

18. Project Management Objectives
Essentials of Business Information Systems
Chapter 11 Building Information Systems
Project Management
Project
Planned series of related activities for achieving a specific business objective
Project Management
Application of knowledge, skills, tools, and techniques to achieve targets within specified budget and time constraints
Scope
Time
Cost
Quality
Risk
Project Management Objectives

19. Selecting Projects: Making the Business Case for a New System
Essentials of Business Information Systems
Chapter 11 Building Information Systems
Project Management
Selecting Projects:
Making the Business Case for a New System
Determining project costs and benefits
Tangible benefits
Intangible benefits
Capital budgeting methods
Information systems plan
Portfolio analysis
Scoring model

20. A System Portfolio Essentials of Business Information Systems
Chapter 11 Building Information Systems
Project Management
A System Portfolio
Companies should examine their portfolio of projects in terms of potential benefits and likely risks. Certain kinds of projects should be avoided altogether and others developed rapidly. There is no ideal mix. Companies in different industries have different information systems needs.
Figure 11-9

21. Managing Project Risk and System-related Change
Essentials of Business Information Systems
Chapter 11 Building Information Systems
Understanding the Business Value of Systems and Managing Change
Managing Project Risk and System-related Change
Implementation and change management
Implementation
User-designer communications gap
Controlling risk factors
Formal planning and tools
Gantt Chart
PERT chart
Overcoming user resistance
Ergonomics
Organizational impact analysis

22. Interactive Session: People
Essentials of Business Information Systems
Chapter 11 Building Information Systems
Understanding the Business Value of Systems and Managing Change
Interactive Session: People
Dorfman Pacific Rolls Out a New Wireless Warehouse
Read the Interactive Session and then discuss the following questions:
Compare Dorfman Pacific’s old and new order-picking processes. Diagram the processes.
What role did end users play in developing Dorfman’s wireless warehouse system? What would have happened to the project if users hadn’t been so involved? Explain your answer.
What types of system-building methods and tools did Dorfman use for building its wireless warehouse system?
How did the new system change the way Dorfman ran its business?
What problems did the new system solve? Was it successful?

23. Interactive Session: Organizations
Essentials of Business Information Systems
Chapter 11 Building Information Systems
Understanding the Business Value of Systems and Managing Change
Interactive Session: Organizations
What Went Wrong with Maine’s New Medicaid System?
Read the Interactive Session and then discuss the following questions:
How important are information systems for Maine’s Department of Human Services? Analyze the impact of its faulty Medicaid claims processing system.
Evaluate the risks of the Medicaid claims processing system project and key risk factors.
Classify and describe the problems the Maine Department of Human Services faced in implementing its new Medicaid claims processing system. What people, organization, and technology factors caused these problems?
Describe the steps you would have taken to control the risk in the Maine Medicaid project. If you were in charge of managing this project, what else would you have done differently to increase chances for success?