1. Developing Business/IT Solutions
Chapter 12
Developing Business/IT Solutions
McGraw-Hill/Irwin
Copyright © 2009 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
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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
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4. Compare and contrast the four basic system conversation strategies
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
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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
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6. Case 1: PayPal: Going Global All Languages at a Time
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.
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7. Case Study Questions
One of the challenges that PayPal faces now that they have managed to overcome the polylingual obstacle is finding the best way to put this functionality in the hands of the business, so that they do not have to go through IT each time. How do you balance this need for responsiveness and flexibility versus IT’s need to keep some degree of control to make sure everything keeps working with everything else? Provide some recommendations to managers who find themselves in this situation.
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? Provide a discussion and some examples.
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8. 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? Do you really think this can be made into a strategic advantage over their competitors? How easy would it be for their competitors to imitate this accomplishment?
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9. The Systems Approach
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
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10. 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
See the system in any situation
Find the input, processing, output, feedback and control components
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11. Systems Thinking Example
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12. Systems Analysis and Design
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
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13. Systems Development Lifecycle (SDLC)
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14. 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
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15. Systems Development Process
Feasibility Studies: a preliminary study to determine the
Information needs of prospective users
Resource requirements
Costs
Benefits
Feasibility
In some cases, a feasibility study is unnecessary
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16. 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
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17. An assessment of Economic Feasibility Cost savings Increased revenue
Decreased investment requirements
Increased profits
Cost/benefit analysis
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18. 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
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19. Human Factors Feasibility
Assess the acceptance level of
Employees
Customers
Suppliers
Management support
Determine the right people for the various new or revised roles
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20. Legal/Political Feasibility
Assess
Possible patent or copyright violations
Software licensing for developer side only
Governmental restrictions
Changes to existing reporting structure
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21. Systems Analysis 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
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22. Organizational Analysis
Study of the organization, including…
Management structure
People
Business activities
Environmental systems
Current information systems
Input, processing, output, storage, and control
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23. 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
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24. A logical model is a blueprint of the current system
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
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25. 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
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26. Examples of Functional Requirements
User Interface: automatic entry of product data and easy-to-use data entry 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 for customers
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27. Systems design focuses on three areas
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28. 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
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29. Prototyping Life Cycle
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30. 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
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31. Checklist for Corporate Websites
Remember the customer
Aesthetics
Broadband content
Easy to navigate
Searchability
Incompatibilities
Registration forms
Dead links
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32. System Specifications
Formalizing the design of
User interface methods and products
Database structures
Processing procedures
Control procedures
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33. Examples of System Specifications
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
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34. End User Development
IS professionals play a consulting role, while uses do their own application development
A staff of user 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
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35. Focus on IS Activities
End user development should focus on the fundamental activities of an information system
Input
Processing
Output
Storage
Control
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36. Focus of End User Development
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37. Doing End User Development
Application development capabilities built into software packages make it easier for end users to develop their own solutions
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38. Encouraging End User Web Development
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
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39. Encouraging End User Web Development
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
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40. 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
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41. Implementation Process
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42. Case 2: Queen’s Medical Center, National Public Radio, Worldspan, and Others
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) and a backlog of commitment (projects that are approved but not started). CIOs need to pay attention to both types of a backlogs.
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43. Case Study Questions
The case notes that a changing environment or business priorities can render an ongoing project obsolete even before it has been completed. What alternatives do CIOs who find themselves in this situation have with respect to dealing with the troubled project? Would you go ahead and finish it, or scrap it altogether? How would you justify either position?
Do you agree with the statement: “Application backlog is not a problem one solves, it’s a condition one lives with”? Why or why not? To the extent that it is true, how can IT executives manage things differently to make this situation more approachable? Provide some specific suggestions.
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44. Case Study Questions
Susan Powers at Worldspan says she addresses the backlog problem by positioning her IT organization as a resource that should be used and managed in the most effective manner, like any other a company may have. What do you think of this approach? Is IT really like any other resource? In which way is IT different than other areas of a company like marketing or finance?
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45. 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
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46. 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
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47. Sample Implementation Process
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48. Phases of Project Management
There are five phases in most projects
Initiating/Defining
Planning
Executing
Controlling
Closing
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49. Initiating/Defining Phase
Example activities
State the problem(s) and/or goal(s)
Identify the objectives
Secure resources
Explore the costs/benefits in the feasibility study
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50. Example activities Planning Phase Identify and sequence activities
Identify the “critical path”
Estimate the time and resources needed for project completion
Write a detailed project plan
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51. Example activities Execution Phase Commit resources to specific tasks
Add additional resources and/or personnel if necessary
Initiate work on the project
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52. Example activities Controlling Phase Establish reporting obligations
Create reporting tools
Compare actual progress with baseline
Initiate control interventions, if necessary
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53. Example activities Closing Phase Install all deliverables
Finalize all obligations and commitments
Meet with stakeholders
Release project resources
Document the project
Issue a final report
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54. Evaluating Hardware, Software, Services
Establish minimum physical and performance characteristics for all hardware and software
Formalize these requirements in an RFP/RFP
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
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55. Hardware Evaluation Factors
Major evaluation factors
Performance
Cost
Reliability
Compatibility
Technology
Ergonomics
Connectivity
Scalability
Software
Support
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56. Software Evaluation Factors
Hardware evaluation factors apply to software, as do these
Quality
Efficiency
Flexibility
Security
Connectivity
Maintenance
Documentation
Hardware
Software that is slow, hard to use, bug-filled, or poorly documented is not a good choice at any price
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57. 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
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58. 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
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59. Other Implementation Activities
The keys to successful implementation of a new business system
Testing
Data conversion
Documentation
Training
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60. System testing may involve
Testing and debugging software
Testing website performance
Testing new hardware
Review of prototypes
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61. 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
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62. Systems Documentation
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
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63. 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 understand how the new technology impacts business operations
System training should be supplemented with training related to
Hardware devices
Software packages
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64. Major System Conversion Strategies
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65. Direct Conversion Direct 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
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66. 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
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67. 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
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68. A phased or gradual conversion
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
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69. 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 does application development
May exist for years
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70. There are four basic categories of system maintenance
Systems Maintenance
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
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71. 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
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72. Case 3: Intuit Inc.: Customer-Driven Development
At Intuit, development of new product ideas are driven by a psychologist
Playing nice
Free-association sessions
Focus is always on the customer
Making “pain points” less painful
Capturing pencil-and-paper users
Follow-me-homes
Simplifying language
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73. Case Study Questions
Should Intuit’s “far-out thinking” and acceptance of failure as part of the application software development process be duplicated at large software development companies like Microsoft?
Should it be duplicated at the thousands of small independent software companies that exist?
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74. Which do you prefer? Case Study Questions
Intuit’s customer-driven development process where hundreds of employees and managers are sent to consult with customer in their homes or places of business, or
Microsoft’s process of using professional anthropologists to do such research
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75. Case Study Questions
Intuit developed the wildly successful QuickBooks: Simple Start Edition, which eliminated all accounting jargon
Could this idea be the foundation of a new version of Intuit’s top-selling TurboTax software, which removed all tax accounting jargon from that product to reach the 20 million Americans who do not use tax preparation software or a professional tax preparer?
Would such a product be possible or successful?
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76. Case 4: Hewlett-Packard: Managing Radical Change
HP is embarking on a makeover of its internal tech systems
Replacing 85 loosely connected data centers around the world with 6 cutting-edge facilities
Cutting thousands of smaller projects to focus on a few corporate-wide initiatives
Scrapping 784 databases for one data warehouse
Laying off thousands of IT workers
Building its own fiber-optic network to connect the six data centers
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77. Case Study Questions
Will the initiatives being undertaken by CIO Randy Mott to implement major changes to the IT function at HP make IT a more efficient and vital contributor to HP’s business success?
Defend your position on each of the major initiatives he is implementing
Do you approve of the change management job Mott is doing, including his meetings with HP employees throughout the world, and having “coffee talks” with them?
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78. Case Study Questions
Assume you have been hired as a management consultant or coach to CIO Mott
What are several suggestions you might give him to help him successfully implement his ambitious plans for IT changes at HP?
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