1. Developing Business/IT Solutions
Chapter 12
Developing Business/IT Solutions
McGraw-Hill/Irwin
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

2. 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 you propose information systems solutions to simple business problems
Describe and give examples to illustrate how you might use each of the steps of the information systems development cycle to develop and implement a business information system

3. Learning Objectives
Explain how prototyping can be used as an effective technique to improve the process of systems development for end users and IS specialists
Understand the basics of project management and their importance to a successful system development effort
Identify the activities involved in the implementation of new information systems

4. Learning Objectives
Compare and contrast the four basic system conversation strategies
Describe several evaluation factors that should be considered in evaluating the acquisition of hardware, software, and IS services

5. Information Systems Development
IS Development
Information Systems Development
Applying the Systems Approach to IS Development
Also called Application Development
When the systems approach is applied to the development of an information systems solution to business problems, it is called information systems development or application development

6. Problem solving technique Interrelated activities
The Systems Approach
Problem solving technique
Interrelated activities
Recognize and define a problem or opportunity using systems thinking
Develop and evaluate alternative system solutions
Select the solution that best meets your requirements
Design the selected system solution
Implement and evaluate the success of the system
A problem solving technique that uses a systems orientation to define problems and opportunities and develop appropriate and feasible solutions
Analyzing a problem and formulating a solution involves these interrelated activities:
Recognize and define a problem or opportunity using systems thinking
Develop and evaluate alternative system solutions
Select the solution that best meets your requirements
Design the selected system solution
Implement and evaluate the success of the system

7. What is Systems Thinking?
Seeing the forest and the trees in any situation
Seeing interrelationships among systems rather than linear cause-and-effect chains
Seeing processes of change among systems rather than discrete snapshots of change
Seeing the system in any situation
Find the input, processing, output, feedback and control components

8. Systems Thinking Example

9. RWC 1: Virtualization Helps Developers
First used quietly for development tasks
Later introduced to IT Executives
Simplifies development and testing
Protection from system crashes
Create system snapshots and imaging
Restore to last-known good version
Doesn’t facilitate load testing
Need physical machine

10. Systems Analysis and Design (SA&D)
Overall process
Identification of business problems
Design
Implementation
Two most common approaches
Object-oriented analysis and design
Life cycle
SA&D is the overall process by which information systems are designed and implemented
Includes identification of business problems
Two most common approaches
Object-oriented analysis and design
Life cycle

11. Systems Development Lifecycle (SDLC)

12. Systems Development Process
Systems Investigation
First step
Consider multiple proposals
Preliminary feasibility study
Information needs of prospective users
Resource requirements
Costs
Benefits
Legal environment
Feasibility study may be unnecessary
Government mandate
Systems Investigation
The first step in the systems development process
May involve consideration of proposals generated by a business/IT planning process
Also includes the preliminary feasibility study of proposed information system solutions

13. Types of Feasibility Studies
Operational
Fix the problem, fit the organization
Economic
Cost/Benefit Analysis
Technical
Components and time available
Human Factors
Right people and roles available
Legal/Political
Government, patent, or license restrictions
Feasibility Studies
Operational Feasibility
How well the proposed system will
Support the business priorities of the organization
Solve the identified problem
Fit with the existing organizational structure
Economic Feasibility
An assessment of
Cost savings
Increased revenue
Decreased investment requirements
Increased profits
Cost/benefit analysis
Technical Feasibility
Determine the following can meet the needs of a proposed system and can be acquired or developed in the required time
Hardware
Software
Network
Human Factors Feasibility
Assess the acceptance level of
Employees
Customers
Suppliers
Management support
Determine the right people for the various new or revised roles
Legal/Political Feasibility
Assess
Possible patent or copyright violations
Software licensing for developer side only
Governmental restrictions
Changes to existing reporting structure

14. Produces the functional requirements
Systems Analysis
Produces the functional requirements
Basis for the design of the new system
In-depth study
Information needs
Company
End users
Business stakeholders
Existing system
Activities, resources, and products
An in-depth study of end user information needs
It produces the functional requirements used as the basis for the design of an information system
It typically involves a detailed study of the
Information needs of a company and end users
Activities, resources, and products of one or more of the information systems currently being used
Information system capabilities required to meet the information needs of business stakeholders

15. Types of Analysis Organizational Present System Logical
Structure, people, activities
Present System
Hardware, software, network, input, output, processing
Logical
What the current system does
Not concerned with how it works
Types of Analysis
Organizational Analysis
Study of the organization, including…
Management structure
People
Business activities
Environmental systems
Current information systems
Input, processing, output, storage, and control
Analysis of the Present System
Before designing a new system, it is important to study the system to be improved or replaced
Hardware and software
Network
People resources used to convert data resources into information products
System activities of input, processing, output, storage, and control
Logical Analysis
A logical model is a blueprint of the current system
It displays what the current system does, without regard to how it does it
It allows an analyst to understand the processes, functions, and data associated with a system without getting bogged down with hardware and software

16. Functional Requirements
Goal: what needs to be done, not how
One of the most difficult steps
Determine what type of information each business activity requires
Determine the information processing capabilities required for each system activity
This step of systems analysis is one of the most difficult
Determine what type of information each business activity requires
Try to determine the information processing capabilities required for each system activity
The goal is to identify what should be done, not how to do it

17. Functional Requirements
This step of systems analysis is one of the most difficult
Determine what type of information each business activity requires
Try to determine the information processing capabilities required for each system activity
The goal is to identify what should be done, not how to do it

18. Systems Design
Focuses on three areas

19. Prototyping Life Cycle
Prototyping is the rapid development and testing of working models
An interactive, iterative process used during the design phase
Makes development faster and easier, especially when end user requirements are hard to define
Has enlarged the role of business stakeholders

20. User Interface Design
Supports interactions between end users and computer-based applications
Get help from end-users
Designers create attractive and efficient forms
Frequently a prototyping process
Produces detailed design specifications
Focuses on supporting the interactions between end users and their computer-based applications
Designers concentrate on the design of attractive and efficient forms of user input and output
Frequently a prototyping process
Produces detailed design specifications for information products, such as display screens
Checklist for Corporate Websites
Remember the customer
Aesthetics
Broadband content
Easy to navigate
Searchability
Incompatibilities
Registration forms
Dead links

21. System Specifications
Components of formal design
User interface methods and products
Database structures
Processing procedures
Control procedures
Examples of System Specifications
User interface specifications
Database specifications
Software specifications
Hardware and network specifications
Personnel specifications
Examples of System Specifications for an e-commerce system
User interface specifications - Use personalized screens that welcome repeat Web customers and that make product recommendations
Database specifications - Develop databases that use object/relational database management software to organize access to all customer and inventory data and to multimedia product information
Software specifications - Acquire an e-commerce software engine to process all e-commerce transactions with fast responses, i.e., retrieve necessary product data and compute all sales amounts in less than one second
Hardware and network specifications - Install redundant networked Web servers and sufficient high-bandwidth telecommunications lines to host the company e-commerce website
Personnel specifications - Hire an e-commerce manager and specialists and a webmaster and Web designer to plan, develop, and manage e-commerce operations

22. End User Development Users do own application development
IS professionals play a consulting role to help with analysis, design, and installation
Other support
Application package training
Hardware and software advice
Help gaining access to organization databases
Should focus on the same fundamental activities as any information system
Input, Processing, Output, Storage, Control
Application development capabilities built into software packages make it easier for end users to develop their own solutions

23. Encouraging End User Web Development
Look for tools that make sense
Spur creativity
Set some limits
Give managers responsibility
Make users comfortable
Look for tools that make sense
Some are more powerful or costly than needed
Spur creativity
Consider a competition among departments
Set some limits
Limit what parts of a web page or site can be changed and who can do it
Give managers responsibility
Make them personally responsible for content
Make users comfortable
Training will make users more confident
It can save the IT department the trouble of fixing problems later on
It can limit the need for continuous support

24. Object-Oriented Analysis and Design
Object – anything a programmer needs manipulated
Object-Oriented Programming (OOP) techniques:
Inheritance
Modularity
Polymorphism
Encapsulation
Object-Oriented Analysis (OOA)
Model of object interaction, not solution
Object-Oriented Design (OOD)
Solution based on constraints
Once an object is defined by a programmer, its characteristics can be used to allow one object to interact with another object or pass information to another object. The behavior of an object-oriented system entails collaboration between these objects, and the state of the system is the combined state of all the object in it
Inheritance. The ability of one object to inherit the characteristics of a higher order object.
• Modularity. The extent to which a program is designed as a series of interlinked yet stand-alone modules. For example, all cars have wheels; therefore, an object defined as a sports car and as a special type of the object cars must also have wheels.
• Polymorphism. The ability of an object to behave differently depending on
the conditions in which its behavior is invoked. For example, two objects that
inherit the behavior speak from an object class animal might be a dog object and
a cat object. Both have a behavior defined as speak . When the dog object is
commanded to speak, it will bark, whereas when the cat object is commanded to
speak, it will meow .
• Encapsulation. Concealing all of the characteristics associated with a particular
object inside the object itself. This paradigm allows objects to inherit characteristics
simply by defining a subobject. For example, the object airplane contains all
of the characteristics of an airplane: wings, tail, rudder, pilot, speed, altitude, and
so forth.
Object-Oriented Analysis - an object-oriented analysis model does not take into account implementation constraints, such as concurrency, distribution, persistence, or inheritance, nor how the system will be built. Because object-oriented systems are modular, the model of the system can be divided into multiple domains, each of which are separately analyzed and represent separate business, technological, or conceptual areas of interest. The result of object-oriented analysis is a description of what is to be built, using concepts and relationships between concepts, often expressed as a conceptual model.
Object-oriented design (OOD) - takes the conceptual model that results from the object-oriented analysis and adds implementation constraints imposed by the environment, the programming language, and the chosen tools, as well as architectural assumptions chosen as the basis of the design.

25. Implementation Process
The systems implementation stage involves
Hardware and software acquisition
Software development
Testing of programs and procedures
Conversion of data resources
Conversion alternatives
Education/training of end users and specialists who will operate the new system

26. Sample Implementation Process

27. RWC 2: Difficult Path to Software Upgrades
System upgrades are daunting
Failures are costly
Loss of immediate revenue
Loss of customer loyalty
Three to six month recovery
Contingency plans
Backup website
Extra operators in call center
Packet implementation helps
Basic install
Additional features

28. Project Management
The skills and knowledge necessary to be a good project manager will translate into virtually any project environment
Sought after by most organizations

29. Managing a project effectively requires
What is a Project?
Every project has
A set of activities with a clear beginning and end
Goals
Objectives
Tasks
Limitations or constraints
A series of steps or phases
Managing a project effectively requires
Process
Tools
Techniques

30. Phases of Project Management
Initiating/Defining Phase
State the problem(s) and/or goal(s)
Identify the objectives
Secure resources
Explore the costs/benefits in the feasibility study
Planning
Identify and sequence activities
Identify the “critical path”
Estimate the time and resources needed for project completion
Write a detailed project plan
Execution Phase
Commit resources to specific tasks
Add additional resources and/or personnel if necessary
Initiate work on the project
Controlling Phase
Establish reporting obligations
Create reporting tools
Compare actual progress with baseline
Initiate control interventions, if necessary
Closing Phase
Install all deliverables
Finalize all obligations and commitments
Meet with stakeholders
Release project resources
Document the project
Issue a final report

31. Evaluating Hardware, Software, Services
Establish minimum physical and performance characteristics
Formalize in an RFP or RFQ
Send RFQ to appropriate vendors
Evaluate bids when received
All claims must be demonstrated
Obtain recommendations from other users
Search independent sources for evaluations
Benchmark test programs and test data
Establish minimum physical and performance characteristics for all hardware and software
Formalize these requirements in an RFP (request for proposal) or RFQ (request for quotation)
Send RFQ to appropriate vendors
Evaluate bids when received
All claims must be demonstrated
Obtain recommendations from other users
Search independent sources for evaluations
Benchmark test programs and test data

32. Hardware Evaluation Factors
Performance
Cost
Reliability
Compatibility
Technology
Ergonomics
Connectivity
Scalability
Software
Support
Hardware Evaluation Factors Rating Performance
What is its speed, capacity, and throughput?
Cost
What is its lease or purchase price? What will be its cost of operation and maintenance?
Reliability
What are the risk of malfunction and its maintenance requirements?
What are its error control and diagnostic features?
Compatibility
Is it compatible with existing hardware and software?
Is it compatible with hardware and software provided by competing suppliers?
Technology
In what year of its product life cycle is it?
Does it use a new untested technology, or does it run the risk of obsolescence?
Ergonomics
Has it been “human factors engineered” with the user in mind?
Is it user-friendly, designed to be safe, comfortable, and easy to use?
Connectivity
Can it be easily connected to wide area and local area networks that use different types of network technologies and bandwidth alternatives?
Scalability
Can it handle the processing demands of a wide range of end users, transactions, queries, and other information processing requirements?
Software
Are system and application software available that can best use this hardware?
Support
Are the services required to support and maintain it available?
Overall Rating

33. Software Evaluation Factors
Most Hardware Evaluation Factors Apply
Quality
Efficiency
Flexibility
Security
Connectivity
Maintenance
Documentation
Hardware
Overall Rating
Software that is slow, hard to use, bug-filled, or poorly documented is not a good choice at any price
Software Evaluation Factors Rating
Quality
Is it bug-free, or does it have many errors in its program code?
Efficiency
Is the software a well-developed system of program code that does not use
much CPU time, memory capacity, or disk space?
Flexibility
Can it handle our business processes easily, without major modification?
Security
Does it provide control procedures for errors, malfunctions, and improper use?
Connectivity
Is it Web-enabled so it can easily access the Internet, intranets, and extranets, on
its own, or by working with Web browsers or other network software?
Maintenance
Will new features and bug fixes be easily implemented by our own software
developers?
Documentation
Is the software well documented? Does it include help screens and helpful
software agents?
Hardware
Does existing hardware have the features required to best use this software?
Other Factors
What are its performance, cost, reliability, availability, compatibility,
modularity, technology, ergonomics, scalability, and support characteristics?
(Use the hardware evaluation factor questions in Figure )
Overall Rating
Software that is slow, hard to use, bug-filled, or poorly documented is not a good choice at any price

34. Examples of IS services
Developing a company website
Installation or conversion of hardware/software
Employee training
Hardware maintenance
System design and/or integration
Contract programming
Consulting services

35. IS Service Evaluation Factors
IS evaluation factors include
Performance
Systems development
Maintenance
Conversion
Training
Backup facilities and services
Accessibility to sales and support
Business position and financial strength
Hardware selection and compatibility
Software packages offered
Evaluation Factors for IS Services Rating Performance
What has been their past performance in view of their past promises?
Systems Development
Are Web site and other e-business developers available?
What are their quality and cost?
Maintenance
Is equipment maintenance provided?
What are its quality and cost?
Conversion
What systems development and installation services will they provide during the conversion period?
Training
Is the necessary training of personnel provided?
Backup
Are similar computer facilities available nearby for emergency backup purposes?
Accessibility
Does the vendor provide local or regional sites that offer sales, systems development, and hardware maintenance services?
Is a customer support center at the vendor’s Web site available? Is a customer hotline provided?
Business Position
Is the vendor financially strong, with good industry market prospects?
Hardware
Do they provide a wide selection of compatible hardware devices and accessories?
Software
Do they offer a variety of useful e-business software and application packages?
Overall Rating

36. Other Implementation Activities
Testing
Data conversion
Documentation
Training
The keys to successful implementation of a new business system
Testing
Data conversion
Documentation
Training
System testing may involve
Testing and debugging software
Testing website performance
Testing new hardware
Review of prototypes
Data conversion includes
Converting data elements from the old database to the new database
Correcting data errors
Filtering out unwanted data
Consolidating data from several databases
Organizing data into new data subsets
Improperly organized and formatted data is a major cause of implementation failures
User Documentation
Sample data entry screens, forms, reports
System operating instructions
Systems Documentation
Method of communication among those developing, implementing, and maintaining a computer-based system
Detailed record of the system design
Extremely important when diagnosing problems and making system changes
End users must be trained to operate a new business system or its implementation will fail
May involve only activities, such as data entry, or all aspects of system use
Managers and end users must understand how the new technology impacts business operations
System training should be supplemented with training related to
Hardware devices
Software packages

37. Major System Conversion Strategies
Parallel Conversion
Old and new systems are run simultaneously until everyone is satisfied that
The new system functions correctly
The old system is no longer needed
Conversion to new system can be single cutover or phased cutover
Has the lowest risk, but the highest cost
Can cost 4 times more than using the old system
Best choice where an automated system is replacing a manual one
Pilot Conversion
Scenarios best suited to a pilot conversion
Multiple business locations
Geographically diverse locations
Advantages of single location conversion
Can select a location that best represents the conditions across the organization
Less risky in terms of loss of time or delays in processing
Can be evaluated and changed before further installations
Phased Conversion
A phased or gradual conversion
Takes advantage of both the direct and parallel approaches
Minimizes the risks involved
Allows the new system to be brought online as logically ordered functional components
Disadvantages
Takes the most time
Created the most disruption to the organization over time
Direct or Plunge conversion
The simplest conversion strategy
The most disruptive to the organization
Sometimes referred to as the slam dunk or cold-turkey strategy
May be the only viable solution in cases of emergency implementation or if the old and new system cannot coexist
Has the highest risk of failure
Involves turning off the old system and turning on the new one
(Plunge)

38. Post-Implementation Activities
System Maintenance
Corrective: fix bugs and logical errors
Adaptive: add new functionality
Perfective: improve performance
Preventive: reduce chances of failure
Post Implementation Review
Correct Errors
Periodic review/audit
Single most costly activity
The single most costly activity
Correcting errors or faults in the system
Improving system performance
Adapting the system to changes in the operating or business environment
Requires more programmers than does application development
May exist for years
System Maintenance
Four basic categories
Corrective: fix bugs and logical errors
Adaptive: add new functionality
Perfective: improve performance
Preventive: reduce chances of failure
Post Implementation Review
Ensures that the newly implemented system meets the established business objectives
Errors must be corrected by the maintenance process
Periodic review/audit of the system as well as continuous monitoring

39. RWC 3: PayPal Going Global
How do global companies keep their consumer sites updated in the local language or localizing the content without spending a lot of time and money?
PayPal redesigned software
Allow simultaneous refreshes for 15 locales ranging from France to Poland.
Result
Net total payment volume – $14 billion
12 percent of U.S. e-commerce
8 percent of global e-commerce.
How do you global companies keep their consumer sites updated in the local language or localizing the content without spending a lot of time and money?
PayPal addressed this challenge by redesigning their software to allow simultaneous refreshes for 15 locales ranging from France to Poland.
Because of this, PayPal’s net total payment volume for the fourth quarter 2007 was $14 billion, which represent almost 12 percent of U.S. e-commerce, and almost 8 percent of global e-commerce.

40. Demand for IT is increasing Requests for IT projects are piling up.
RWC 4: Project Backlog
Demand for IT is increasing
Requests for IT projects are piling up.
Budget is not increasing.
Backlog is number-one barrier to effectiveness,
Two types of backlog
Backlog of desire
Applications that users are yearning for
Backlog of commitment
Projects that are approved but not started
CIOs need to pay attention to both types of a backlogs.
According to an annual survey by CIO Magazine, the demand for IT is increasing and the requests for IT projects are piling up.
The biggest challenge is that the budget to deal with today’s demand is not increasing.
For CIOs, managing this application backlog is the number-one barrier to their job effectiveness, regardless of industry or company size.
There are two types of backlog
– backlog of desire (applications that users are yearning for)
– backlog of commitment (projects that are approved but not started).
CIOs need to pay attention to both types of a backlogs.