1. Developing Business/IT Solutions Chapter 10 Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

2. 10-2 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. 10-3 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. 10-4 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. 10-5 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. 10-6 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. 10-7 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. 10-8 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. 10-9 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. 10-10 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. 10-11 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. 10-12 Systems Thinking Example

13. 10-13 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. 10-14 Systems Development Lifecycle (SDLC)

15. 10-15 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. 10-16 Systems Development Process Feasibility Study: a preliminary study to determine… Information needs of prospective users Resource requirements Costs Benefits Feasibility Sometimes unnecessary

17. 10-17 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. 10-18 Economic Feasibility Assessment of Cost savings Increased revenue Decreased investment requirements Increased profits Cost/benefit analysis

19. 10-19 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. 10-20 Human Factors Feasibility Customers Suppliers Employees Management support Find the right people for the new or revised roles Assess the acceptance level of…

21. 10-21 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. 10-22 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. 10-23 Organizational Analysis Study of the organization, including… Input / output Management structure People Current information systems Business activities Environmental systems Processing Storage Control

24. 10-24 Analysis of the Present System Network Hardware and software People resources used to convert data resources into information products Before designing a new system, study the system being improved or replaced System activities of input, processing, output, storage, and control

25. 10-25 Logical Analysis Allows an analyst to understand the processes, functions, and data associated with a system, without getting bogged down with hardware and software Displays what the current system does, without regard to how it does it A logical model is a blueprint of the current system

26. 10-26 Functional Requirements 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 This systems analysis step is one of the most difficult

27. 10-27 Examples of Functional Requirements Automatic entry of product data and easy-to-use screens for Web customers User Interface Fast, automatic calculation of sales totals and shipping costs Processing Fast retrieval and update of data from product, pricing, and customer databases Storage Signals for data entry errors and quick e-mail confirmation to customers Control

28. 10-28 Three Areas of Systems Design Focus

29. 10-29 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. 10-30 Prototyping Life Cycle

31. 10-31 User Interface Design Focuses on supporting the interactions between end-users and their computer-based applications Produces detailed design specifications for information products, such as display screens Designers concentrate on the design of attractive and efficient forms of user input and output Frequently a prototyping process

32. 10-32 Checklist for Corporate Websites Incompatibilities Easy to navigate Remember the customer Registration forms Aesthetics Dead links Searchability Broadband content

33. 10-33 System Specifications Processing procedures Control procedures Database structures User interface methods and products Formalizing the design of

34. 10-34 Examples of System Specifications

35. 10-35 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. 10-36 Focus on IS Activities End-user documentation should focus on the fundamental activities of an information system Input Processing Output Storage Control

37. 10-37 Focus of End-User Development

38. 10-38 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. 10-39 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. 10-40 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. 10-41 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. 10-42 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. 10-43 Implementation Process

44. 10-44 Sample Implementation Process

45. 10-45 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. 10-46 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. 10-47 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. 10-48 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. 10-49 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. 10-50 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. 10-51 Phases of Project Management

52. 10-52 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. 10-53 Hardware Evaluation Factors Performance Scalability Ergonomics Reliability Software Cost Compatibility Support Connectivity Technology

54. 10-54 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

55. 10-55 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. 10-56 IS Service Evaluation Factors Performance Business position & financial strength Backup facilities and services Maintenance Hardware selection and compatibility Systems development Conversion Software packages offered Accessibility to sales & support Training

57. 10-57 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. 10-58 Data Conversion Correcting data errors Filtering out unwanted data Data conversion to new database Consolidating data from multiple databases Organizing data into new data subsets Improperly organized and formatted data is a major cause of implementation failures There is no standard format for a job description, but most include…

59. 10-59 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

60. 10-60 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. 10-61 Major System Conversion Strategies

62. 10-62 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. 10-63 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. 10-64 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. 10-65 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 Disadvantages Takes the most time Most disruptive to the organization over time

66. 10-66 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. 10-67 Systems Maintenance Categories Corrective Adaptive Preventive Perfective

68. 10-68 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. 10-69 Implementation Challenges

70. 10-70 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. 10-71 Key Dimensions of Change Management

72. 10-72 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. 10-73 Change Management Process

74. 10-74 Implementation Process New system implementation process Acquisition Conversion Software development Documentation Data conversion Testing Training

75. 10-75 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. 10-76 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. 10-77 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. 10-78 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. 10-79 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