1. Lecture 13- Business Information Systems: Developing Business Information Systems

2. Business Information Systems - Developing Business Information Systems
What system to adopt
Type of systems
Off the shelf: a system that has been pre-developed and is meant for a “general audience”
Be-Spoke: a system that is specifically developed for the customer
Business Information Systems - Developing Business Information Systems

3. Off-the-shelf versus Be-spoke
Pros
Professional
Cheaper
Tried and tested
Many options
Can match competitors
Cons
Too general
Licensing
Upgrades at developer pace
Pros
Task specific
Affordable
Control
Upgrade when required
Differentiator (competitive advantage)
Cons
Depends on level of understanding and professionalism of developer
Customer should know what they want
Business Information Systems - Developing Business Information Systems

4. Systems Development Cycle
System Investigation (With Feasibility Study)
Functional Requirements
Systems Analysis
Systems Design
Systems Implementation
Systems Maintenance
System Retirement
DOCUMENTATION T E S I N G
Business Information Systems - Developing Business Information Systems

5. Business Information Systems - Developing Business Information Systems
Problem
You are the owner of an upcoming insurance company. You have a number of agents who go out to solicit for clients. Your product portfolio includes vehicle, immovable property, personal, and household.
You have decided to automate your business as a measure of gaining competitive advantage.
Business Information Systems - Developing Business Information Systems

6. Business Information Systems - Developing Business Information Systems
Views on the problem
Does the organization have an inhouse IT team
What is the industry trend
Do we have a website and internet connectivity
Check the current processes, what can be automated does it bring an advantage
Does it make us more accessible to clients, website, mobile app, make-you-know-us portal
Is it financially feasible
Product appetite
Geographical coverage of the company
Packages we are offering to the different markets
What clientele do we have and the market
Interfacing with the payment methods
Product span
Accessing clientel according to the products on offer
Can we further manipulate the data for business improvement
Realtime online customer interface
Business Information Systems - Developing Business Information Systems

7. Business Information Systems - Developing Business Information Systems
System Investigation
What is the problem or opportunity?
Is there a problem at all?
What are the current processes procedures in use
What are the deficiencies in the procedures
Can the processes be improved under the current procedures
What are the opportunities
 Can the processes be improved through the use of technology.
 Can there be totally different processes, something that is currently not being done
Business Information Systems - Developing Business Information Systems

8. Business Information Systems - Developing Business Information Systems
Feasibility
Is it feasible to solve the problem? (Now that we have identified that there is a problem or opportunity, is there a feasible way of solving it)
Organizational Feasibility
Economic Feasibility
Technical/Technological Feasibility
Operational Feasibility
Business Information Systems - Developing Business Information Systems

9. Business Information Systems - Developing Business Information Systems
Feasibility
Organizational Feasibility
Does web-based selling of insurance fit your organization
Do you have the right attitude towards the product
Change management
Who should be leading the project for it to have a greater chance of success
Economic Feasibility
Are you going to save on travel costs
Are you increasing the sales
Increased profits
Are you increasing your catchment area
Are you offering a new product/opportunity
What material/resources are required in general
Business Information Systems - Developing Business Information Systems

10. Business Information Systems - Developing Business Information Systems
Feasibility
Technical Feasibility
Availability of end users computing
Availability of the software
Availability of the hardware to host the software
Operational Feasibility
Are your agents ready for it
Is the backend staff ready for it
Does the system require integration with existing systems
Do you have the ICT support
Who are your clients and will they be comfortable with it
Business Information Systems - Developing Business Information Systems

11. Business Information Systems - Developing Business Information Systems
Cost Benefit Analysis
A comparison of the cost of the project to the accrued benefits.
Tangible Benefits
Intangible Benefits
Tangible Costs
Intangible Costs
Conclusion: To what extent is the system good for the organization (Note that not all new systems will be good for the organization)
Business Information Systems - Developing Business Information Systems

12. Tangible Costs - to which putting a figure is “easy”
Cost of hardware
Tablets
Servers
Internet
Portable printers
Training Costs
Software (purchasing, licensing)
Systems software
Clients
Retrenchment packages
Installation costs
Obsolescence of hardware
Business Information Systems - Developing Business Information Systems

13. Business Information Systems - Developing Business Information Systems
Tangible Benefits
Reduced costs of agents
Increased Market Share (though could also be intangible depending on measure)
Reduced Processing time
Better Monitoring and Evaluation of Agents
Availability of new products
Business Information Systems - Developing Business Information Systems

14. Business Information Systems - Developing Business Information Systems
Intangible costs
Resistance from employees
Loss of human touch between agents and the customers
Strained relations within the organization due to retrenchment
Time consuming, lose some of the business while transitioning
Lose good culture
Customers end  discomfort with system
Perception of the level at which the system operates (ICT system replacing “everything”)
Business Information Systems - Developing Business Information Systems

15. Business Information Systems - Developing Business Information Systems
Intangible Costs
Change management
Insecurity of affected employees
Reduced morale
Resistance of change affecting productivity
RISKS
Failure of system
Failure of system to meet the objectives
Competitive rivalry (external)
Sabotage (internal)
Business Information Systems - Developing Business Information Systems

16. Business Information Systems - Developing Business Information Systems
Intangible Benefits
Improved Customer satisfaction
Due to reduced processing time
Convenience, comfort of home
Improved service quality
Customer confidence when you pay them quickly
Improved image of organization
Business Information Systems - Developing Business Information Systems

17. Business Information Systems - Developing Business Information Systems
Systems Analysis
In-depth study of the user environment  Functional Requirements for new system (Contract on which the new system is based)
Components
Organizational Analysis
Readiness
Preparedness
Fit to purpose
Analysis of existing system
Schematic of system
What needs to be done (Functional Requirements)
Business Information Systems - Developing Business Information Systems

18. Business Information Systems - Developing Business Information Systems
Systems Design
Three parts to the system
User facing
Systems functions
Database
Entity Relationship Diagram
Process Flows
Data Flow Diagram
External Facing (e.g., Interfacing with statutory bodies, interfacing with extranet)
Business Information Systems - Developing Business Information Systems

19. Business Information Systems - Developing Business Information Systems
Data Flow Diagrams
What are they: Data flow diagrams model the logic of the process flow in a given system. Data input is converted into output following a given set of procedures.
Why are they necessary: They are used mainly as part of Systems Design
Business Information Systems - Developing Business Information Systems

20. Business Information Systems - Developing Business Information Systems
Data Flow Diagram
Process
One or more inflows
One or more outflows
An algorithm
Converts inflows to outflows
Data Store
Format of Data
At least one inflow
At least one outflow (To avoid having a sink)
External Store
At least one inflow or one outflow
Flow
Direction
Labelled
Business Information Systems - Developing Business Information Systems

21. Systems Implementation
Hardware and Software Acquisition
Skills Acquisition
Software Development
Data conversion
Importation of all data
Importation of new data
End users training
System Change Over
Pilot
Parallel Run
Phased
Absolute
Business Information Systems - Developing Business Information Systems

22. Business Information Systems - Developing Business Information Systems
Systems Maintenance
Fine Tuning of system
Correction of errors
Enhancements on new user requirements
Addition of new modules for new processes
Business Information Systems - Developing Business Information Systems

23. Overarching Processes
Testing
Testing by the Developers
Testing by the Quality Control Team
Testing by the Users
Training
ICT Personnel
Development of system
Maintenance of system
User training
New Business functions
Use of system
Adapting as system changes
Business Information Systems - Developing Business Information Systems

24. Overarching Processes
Documentation
System Documentation
Requirements Specifications
Systems Analysis and Design
User Manuals
Code
Comments in the System
Systems Manual
Business Information Systems - Developing Business Information Systems

25. Overarching Processes
Acceptance by users
Commences with the user requirements being the problem at hand
Agreed System to be developed
Agreed User interfaces
Agreed Final system
Engagement of users
Business Information Systems - Developing Business Information Systems

26. Business Information Systems - Developing Business Information Systems
DFD Example
A client of a mobile bank wants to transfer money to a relative. The client has an account with the provider. The client enters the details of the recipient, that is the name and the phone number. After the number has been accepted by the service provider the customer then enters an amount to be transferred. If the amount is less than the balance in the account the money is then transferred.
Business Information Systems - Developing Business Information Systems