1. Developing Business/IT Solutions
Chapter 10
Developing Business/IT Solutions
McGraw-Hill/Irwin
Copyright © 2010 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 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 evaluation factors that should be considered in evaluating the acquisition of hardware, software, and IS services
Identify several change management solutions for user resistance to the implementation of new information systems

5. IS 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. Case 1: PayPal: Going Global
How do global companies keep consumer sites updated in the local language or localizing the content without spending a lot of time and money?
PayPal redesigned their software to allow simultaneous refreshes for 15 locales, ranging from France to Poland
Because of this, PayPal’s net total payment volume for 4Q 2007 was $14 billion

7. Case Study Questions
One challenge that PayPal faces, now that they’ve overcome the polylingual obstacle, is finding the best way to put this functionality in the hands of the business, so they don’t have to go through IT each time
How do you balance this need for responsiveness and flexibility with IT’s need for some degree of control, to make sure everything works with everything else?
Provide recommendations to managers who find themselves in this situation

8. Case Study Questions
PayPal opted to deviate from industry standards and build their own custom technology that would better suit their needs
When is it a good idea for companies to take this alternative?
What issues factor into that decision?

9. Case Study Questions
Although the new system has been quite successful, Pay-Pal has chosen not to license this technology to others, forgoing a potentially important revenue stream given the lack of good solutions to this problem
Why do you think PayPal chose not to sell this technology?
Can this really be made into a strategic advantage over their competitors?
How easy would it be for their competitors to imitate this accomplishment?

10. A problem solving technique with a systems orientation
The Systems Approach
A problem solving technique with a systems orientation
Recognize and define the problem or opportunity
Develop an appropriate, feasible solution
Develop and evaluate alternative solutions
Select the solution that best meets your needs
Design the selected solution
Implement the solution
Evaluate the success of the system

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

12. Systems Thinking Example

13. Systems Analysis and Design
SA&D is the overall process by which information systems are designed and implemented
Identification of business problems
Propose an IS solution
Design and implement the proposed solution
Two most common approaches
Object-oriented analysis and design
Life cycle

14. Systems Development Lifecycle (SDLC)

15. Systems Development Process
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

16. Systems Development Process
Feasibility Study: a preliminary study to determine…
Information needs of prospective users
Resource requirements
Costs
Benefits
Feasibility
Sometimes unnecessary

17. 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

18. Economic Feasibility Assessment of Cost savings Cost/benefit analysis
Increased revenue
Increased profits
Decreased investment requirements

19. Technical Feasibility
Can the following meet the needs of a proposed system and can be acquired or developed in the required time?
Hardware
Software
Network

20. Human Factors Feasibility
Assess the acceptance level of…
Employees
Customers
Suppliers
Management support
Find the right people for the new or revised roles

21. Legal/Political Feasibility
Assess
Possible patent or copyright violations
Violations of antitrust laws
Foreign trade restrictions
Any existing contractual obligations
Changes to existing reporting and power structures

22. Systems Analysis An in-depth study of end user information needs
Produces functional requirements used as the basis for the design of an information system
Typically involves a detailed study
Information needs of a company & end users
Activities, resources, and products of the information systems currently being used
Information system capabilities required to meet the information needs of business stakeholders

23. Organizational Analysis
Study of the organization, including…
Management structure
People
Business activities
Control
Environmental systems
Storage
Processing
Current information systems
Input / output

24. Analysis of the Present System
Before designing a new system, study the system being improved or replaced
Hardware and software
Network
System activities of input, processing, output, storage, and control
People resources used to convert data resources into information products

25. A logical model is a blueprint of the current system
Logical Analysis
A logical model is a blueprint of the current system
Displays what the current system does, without regard to how it does it
Allows an analyst to understand the processes, functions, and data associated with a system, without getting bogged down with hardware and software

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

27. Examples of Functional Requirements
User Interface
Automatic entry of product data and easy-to-use screens for Web customers
Processing
Fast, automatic calculation of sales totals and shipping costs
Storage
Fast retrieval and update of data from product, pricing, and customer databases
Control
Signals for data entry errors and quick confirmation to customers

28. Three Areas of Systems Design Focus

29. Prototyping
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
Enlarged the role of business stakeholders

30. Prototyping Life Cycle

31. Frequently a prototyping process
User Interface Design
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

32. Checklist for Corporate Websites
Remember the customer
Aesthetics
Broadband content
Easy to navigate
Searchability
Incompatibilities
Registration forms
Dead links

33. System Specifications
User interface methods and products
Processing procedures
Formalizing the design of
Database structures
Control procedures

34. Examples of System Specifications

35. End-User System Development
IS professionals play a consulting role, while users do their own application development
Consultants may be available to help with analysis, design, and installation
Other support
Application package training
Hardware and software advice
Help gaining access to organization databases

36. Focus on IS Activities
End-user documentation should focus on the fundamental activities of an information system
Input
Processing
Output
Storage
Control

37. Focus of End-User Development

38. End-User Application Development
Application development capabilities are often built into software packages
Makes it easier for users to develop their own solutions
To encourage end-user Web development
Look for tools that make sense
Spur creativity
Set some limits
Give managers responsibility
Make users comfortable

39. Object-Oriented Analysis and Design
Object-oriented programming (OOP)
Uses objects to design applications
Employs inheritance, modularity, polymorphism, encapsulation
Popular OOP programming languages
C++, Delphi, Java, JavaScript, Perl, PHP, RealBasic, Ruby, VB.Net, Visual FoxPro

40. Object-Oriented Analysis and Design
Object-oriented analysis (OOA)
Aims to model the problem domain by developing an object-oriented system
Does not take into account implementation constraints, nor how the system will be built
Produces a description of what is to be built, using concepts and relationships between concepts

41. Object-Oriented Analysis and Design
Object-oriented design (OOD)
Designers look for logical solutions to solve a problem using objects
Takes the conceptual model from OOA and adds implementation constraints
Concepts in the conceptual model are mapped to
Concrete classes and abstract interfaces
Roles that objects take in various situations

42. Implementing New Systems
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

43. Implementation Process

44. Sample Implementation Process

45. Case 2: The Science Behind Change
Responses to change are predictable, universal
We avoid it
Can cause physical & psychological discomfort
Traditional change management tactics
Carrot and stick
More effective methods
Paint a broad picture with gaps
Ask questions
Maintain allegiance to work employees love
Offer training

46. Case Study Questions
Although a very detailed change proposal may prevent people from making their own connections, it may lead others to consider the proposal vague and unfinished
How do you balance these two concerns?
What guidelines would you use to ensure that you are not veering too far off in either direction?

47. Case Study Questions
Kevin Sparks of Blue Cross and Blue Shield of Kansas City had a difficult time convincing his people of the need for change
What would you have suggested that he should do before you read the case?
What about afterward?
How did your recommendations change as a result?

48. Case Study Questions
Organizational change goes beyond promotions and the threat of layoffs
What other ways than those discussed in the case would you use to entice people to embrace proposed changes?
Provide several suggestions and justify their rationale

49. Project Management
The skills and knowledge necessary to be a good project manager will translate into virtually any project environment
The people who have acquired them are sought after by most organizations

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

51. Phases of Project Management

52. Evaluating Hardware, Software, Services
Establish minimum physical and performance characteristics for all hardware and software
Formalized in an RFP/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

53. Hardware Evaluation Factors
Performance
Cost
Reliability
Compatibility
Technology
Ergonomics
Connectivity
Scalability
Software
Support

54. Software Evaluation Factors
Hardware evaluation factors apply to software, as do these…
Quality
Efficiency
Flexibility
Security
Connectivity
Software that is slow, hard to use, bug-filled, or poorly documented is not a good choice at any price
Maintenance
Documentation
Hardware

55. Evaluating IS Services
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

56. IS Service Evaluation Factors
Performance
Systems development
Maintenance
Conversion
Training
Backup facilities and services
Accessibility to sales & support
Business position & financial strength
Hardware selection and compatibility
Software packages offered

57. Other Implementation Activities
The keys to successful implementation of a new business system
Testing
Data conversion
Documentation
Training
System testing involves
Testing and debugging software
Testing website performance
Testing new hardware
Review of prototypes

58. Data Conversion
There is no standard format for a job description, but most include…
Data conversion to new database
Correcting data errors
Filtering out unwanted data
Consolidating data from multiple databases
Organizing data into new data subsets
Improperly organized and formatted data is a major cause of implementation failures

59. Documentation User Documentation Systems 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

60. Training
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 both understand how the new technology impacts business operations
System training should be supplemented with hardware device and software training

61. Major System Conversion Strategies

62. Direct Conversion Simplest conversion strategy
Most disruptive to the organization
Sometimes called slam dunk or cold turkey
Highest risk of failure
Turns off old system, turns on new one
May be only solution in emergency implementations, or if old and new system can’t coexist

63. Parallel Conversion
Old and new systems run simultaneously until everyone is satisfied that
The new system functions correctly, and the old system is no longer needed
Conversion cutover can be single or phased
Lowest risk, but highest cost
Up to 4 times more than using old system
Best choice where an automated system is replacing a manual one

64. 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

65. Phased Conversion Phased or gradual conversion
Takes advantage of both the direct and parallel approaches
Minimizes the risks involved
Allows new system to come online as logically ordered functional components
Most disruptive to the organization over time
Disadvantages
Takes the most time

66. Post-Implementation Activities
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 for application development
May exist for years

67. Systems Maintenance Categories
Preventive
Corrective
Adaptive
Perfective
There are four basic categories of system maintenance
Corrective: fix bugs and logical errors
Adaptive: add new functionality
Perfective: improve performance
Preventive: reduce chances of failure

68. Post-Implementation Review
Ensures that the newly implemented system meets the established business objectives
Errors must be corrected by the maintenance process
Includes a periodic review/audit of the system, as well as continuous monitoring

69. Implementation Challenges

70. User Resistance and Involvement
Solving User Resistance Problems
Education and training
User involvement in organizational changes, IS development
End-user participation before new system is implemented
Involvement, commitment of top management and all business stakeholders

71. Key Dimensions of Change Management

72. Change Management People are a major focus of change management
Involve as many people as possible in e-business planning and application development
Make constant change an expected part of the culture
Tell everyone as much as possible about everything, as often as possible, in person
Make liberal use of financial incentives and recognition
Work within the company culture, not around it

73. Change Management Process

74. Implementation Process
Acquisition
Conversion
New system implementation process
Software development
Documentation
Data conversion
Testing
Training

75. Case 3: Infosys Knowledge Management
Knowledge belongs to the entire company
Central knowledge portal (KShop) was established
Patronage low, but boosted by incentives
Questionable content contributed, as well as reviewer ratings
Heavy burden on volunteer reviewers
Incentives discouraged knowledge sharing without compensation

76. Case 3: Infosys Knowledge Management
Adjustments to KShop program
Decoupled knowledge sharing from economic incentives
Emphasized recognition and personal visibility for knowledge contributions
New scoring emphasized usefulness and benefit of contributions
Demanded tangible proof to justify high ratings
Modified forms/templates to make contributing easier
Introduced hierarchy of roles, including KM prime and knowledge champions

77. Case 3: Infosys Knowledge Management
Results of changes
Immediate drop in number of contributors and new knowledge assets
Slow stabilization, then an increase at more manageable pace
Lower search costs
Significant increases in quality and utility of knowledge assets

78. Case Questions
Why do you think the knowledge management system at Infosys faced such serious implementation challenges?
What steps did the KM group at Infosys take to improve participation in the KM system?
Why were some of these initiatives counterproductive?
Do you think the corrective measures KM took will succeed?

79. Case Questions
What change management initiatives should the KM group have initiated at Infosys before attempting to develop and implement knowledge management at the company?
Defend your proposals, paying particular attention to the final quote by a longtime KM manager at Infosys