1. Week 3: Systems Thinking and Managing Complexity MIS5001: Management Information Systems David S. McGettigan Adapted from material by Arnold Kurtz, David Schuff, and Paul Weinberg

2. 2 Agenda Prior Lecture Recap Managing Complexity:  Person: Role of the CIO  Methodology: System Development Lifecycle  Tool: Business Process Mapping (covered in last week’s lecture and in this week’s reading) Case study: STARS Air Ambulance: An Information Systems Challenge Next Week

3. 3 Prior Lecture Recap Decision making  Structured vs. Non-structured decision  Recurring vs. Nonrecurring Types of Systems  Transaction Processing Systems  Management Information Systems  Decision Support Systems Business Process Management  Definition  Benefits  Linkage to IS

4. Role of the CIO Effective leadership is not about making speeches or being liked; leadership is defined by results not attributes. Peter Drucker

5. 5 CIO Responsibilities Strategic Planning – Aligning the direction of IS with that of the business Operations – running the corporate information center Project Management – responsibility for large scale and high cost technical initiatives Discussion: what are the ideal characteristics of the CIO? Why can an effective CIO be difficult to find? Source: Gray, Paul: Manager’s Guide to Making Decisions about Information Systems

6. 6 IT Governance Steering Committees – objectives are to link IT with Corporate strategy, establish priorities, allocate resources, and facilitate communication.  IT Steering Committee – provides guidance across the company or divisions.  Program Steering Committee – provides guidance within a particular initiative. Discussion: What IT committees are likely to be in place within a firm? How can a firm avoid all IT decisions going to committee while ensuring appropriate business buy-in? Case Study: What governance was in place at STARS Air Ambulance? Source: Gray, Paul: Manager’s Guide to Making Decisions about Information Systems

7. 7 State of the CIO Most Time Spent  Collaborating with CXOs  Making Strategic Decisions  Working on Strategic Business Planning Obstacles to Success  Overwhelming Project Backlog and Requests  Ability to Execute Remains a Top Concern  Focus on Cost Cutting Opportunities  Using IT to Enable / Standardize Business Processes  Measuring Success and Proving Business Value A Modern CIO  Deputies Run Operations  Focus on Strategy and Execution Source: www.cio.com: “State of the CIO”www.cio.com

8. System Development Lifecycle Good plans shape good decisions. That's why good planning helps to make elusive dreams come true. Lester R. Bittel, The Nine Master Keys of Management

9. 9 Introduction Systems development life cycle (SDLC) - a structured step-by-step approach for developing information systems. Management Information Systems for the Information Age (Fourth Edition) (Fourth Edition) Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved

10. 10 Seven Phases in the SDLC Phase 1: Plan Planning phase - involves determining a solid plan for developing your information system. Critical success factor (CSF) - a factor simply critical to your organization’s success. Management Information Systems for the Information Age (Fourth Edition) (Fourth Edition) Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved

11. 11 Seven Phases in the SDLC Phase 1: Plan Project scope – high-level system requirements. Project scope document – written project scope definition. Project plan – defines the what, when, and who questions. Project milestones - key dates for deliverables. Project manager - an expert in project planning. Management Information Systems for the Information Age (Fourth Edition) (Fourth Edition) Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved

12. 12 Seven Phases in the SDLC Phase 2: Analysis Analysis phase - involves end users and IT specialists working together to gather, understand, and document the business requirements for the proposed system. Business requirements - the detailed set of knowledge worker requests that the system must meet in order to be successful. Management Information Systems for the Information Age (Fourth Edition) (Fourth Edition) Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved

13. 13 Seven Phases in the SDLC Phase 2: Analysis Joint application development (JAD) - knowledge workers and IT specialists meet, sometimes for several days, to define or review the business requirements for the system. Requirements definition document – prioritizes the business requirements and places them in a formal comprehensive document. Sign-off - the knowledge workers’ actual signatures indicating they approve all of the business requirements. Management Information Systems for the Information Age (Fourth Edition) (Fourth Edition) Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved

14. 14 Seven Phases in the SDLC Phase 3: Design Design phase - build a technical blueprint of how the proposed system will work. Technical architecture - defines the hardware, software, and telecommunications equipment required to run the system. Management Information Systems for the Information Age (Fourth Edition) (Fourth Edition) Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved

15. 15 Seven Phases in the SDLC Phase 3: Design Modeling - the activity of drawing a graphical representation of a design. Graphical user interface (GUI) - the interface to an information system. GUI screen design - the ability to model the information system screens for an entire system. Management Information Systems for the Information Age (Fourth Edition) (Fourth Edition) Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved

16. 16 Seven Phases in the SDLC Phase 3: Design Management Information Systems for the Information Age (Fourth Edition) (Fourth Edition) Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved

17. 17 Seven Phases in the SDLC Phase 4: Development Development phase - take all of your detailed design documents from the design phase and transform them into an actual system. Management Information Systems for the Information Age (Fourth Edition) (Fourth Edition) Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved

18. 18 Seven Phases in the SDLC Phase 5: Test Testing phase - verifies that the system works and meets all of the business requirements defined in the analysis phase. Test conditions - the detailed steps the system must perform along with the expected results of each step. Management Information Systems for the Information Age (Fourth Edition) (Fourth Edition) Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved

19. Pharma Computer Systems Testing /Qualification KEY: Formal – Under Change Control; QA signatures required; full documentation required Controlled – No QA signatures required; full documentation required; must track problems Informal – No QA signatures needed; full documentation required Formal - Protocol, scripts, PQ SOP’s, training Unit Testing Application PQ Testing Integration Testing System Testing Application IQ Testing Application OQ Testing Development Testing TESTING Validation Testing Application Site PQ Testing Traceability to URS and FRS across all testing Validation Plan Technical Documentation Infrastructure Qualification Informal - Protocol, scripts, static verification, Unit Test SOP’s, training Informal - Protocol, scripts, Integration Testing SOP’s, training Controlled - Protocol, scripts, System Test SOP’s, training Formal - Protocol, scripts, IQ SOP’s, training Formal - Protocol, scripts, OQ SOP’s, training Formal - Protocol, scripts, PQ SOP’s, training Customization Testing Customization/Integration Testing End to End Testing; Boundary Testing; Error Handling H/W; S/W; O/S; Envir. Qualification Subset of System Testing; Test Critical Functionality Subset Of OQ Connectivity, possibly mini-workflow Formal - Protocol, scripts, SOP’s training Stress/Load Testing DR Scheme & Exercise Matrices Val Plan Doc(s) Sizing; Config; etc. Protocol; Scripts; SOP’s Plan; Scripts; Summaries

20. 20 Seven Phases in the SDLC Phase 6: Implement Implementation phase - distribute the system to all of the knowledge workers for use. User documentation - how to use the system. Online training - runs over the Internet or off a CD- ROM. Workshop training - is held in a classroom environment and lead by an instructor. Management Information Systems for the Information Age (Fourth Edition) (Fourth Edition) Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved

21. 21 Seven Phases in the SDLC Phase 6: Implement Change Management – the “change curve”  Shock  Denial  Hostility  Negotiation  Depression  Trial  Acceptance

22. 22 Seven Phases in the SDLC Phase 7: Maintain Maintenance phase - monitor and support the new system to ensure it continues to meet the business goals. Help desk - a group of people who responds to knowledge workers’ questions. Management Information Systems for the Information Age (Fourth Edition) (Fourth Edition) Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved

23. 23 Why System Projects Fail 20% of systems are successful, 80% of systems fail. Five primary reasons why systems fail include:  Unclear or missing requirements  Skipping SDLC phases  Failure to manage project scope Scope creep – project scope increases Feature creep – developers add extra features  Failure to manage project plan  Changing technology Relate to Case Study: were projects at Stars Air Ambulance “failing”? Why or why not? Management Information Systems for the Information Age (Fourth Edition) (Fourth Edition) Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved

24. 24 Preventing Failure: Prototyping Advantages:  Encourages participation.  Resolves discrepancies  Gives a feel for the final system.  Helps determine technical feasibility.  Helps sell the idea of a proposed system. Disadvantages:  Leads to the belief that the final system will follow shortly.  Gives no performance indication.  Leads the team to skip testing and documentation. Management Information Systems for the Information Age (Fourth Edition) (Fourth Edition) Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved

25. 25 Advantages:  Focus on unique core competencies.  Exploit the intellect of another organization.  Better predict future costs.  Acquire leading-edge technology.  Reduce costs.  Improve performance accountability. Disadvantages:  Reduces technical know-how for future innovation.  Reduces degree of control.  Increases vulnerability of strategic information.  Increases dependency on other organizations. Management Information Systems for the Information Age (Fourth Edition) (Fourth Edition) Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Preventing Failure: Outsourcing Experience

26. 26 The Role of Knowledge Workers Participation in the systems development process is vitally important because they are …  Business process expert  Liaison to the customer  Quality control analyst  Manager of other people User acceptance testing (UAT) – determines if the system satisfies the business requirements. Management Information Systems for the Information Age (Fourth Edition) (Fourth Edition) Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved

27. Case Study: STARS Air Ambulance Discussion Questions:  Identify three or four of the most critical challenges facing the new CIO and make recommendations for how Khan can tackle each of these challenges.  What should Kahn’s objectives be for his upcoming meeting with the CEO and how can he prepare to best meet them?  What should Kahn do about departments contacting their “favorite IS staff member” when they need technical assistance? How can he change this practice and still gain the trust and support of the CEO and other senior managers? 27

28. Next Week Disruptive Technology and Organization Innovation