10.10.

REDESIGNING REDESIGNING

THE ORGANIZATIONTHE ORGANIZATION

WITHWITH

INFORMATION SYSTEMSINFORMATION SYSTEMS

10.10.

REDESIGNING REDESIGNING

THE ORGANIZATIONTHE ORGANIZATION

WITHWITH

INFORMATION SYSTEMSINFORMATION SYSTEMS

INFORMATION SYSTEMS PLANINFORMATION SYSTEMS PLAN

DIRECTION OF SYSTEM DEVELOPMENT:DIRECTION OF SYSTEM DEVELOPMENT:• RATIONALERATIONALE• CURRENT SITUATIONCURRENT SITUATION• MANAGEMENT STRATEGYMANAGEMENT STRATEGY• IMPLEMENTATION PLANIMPLEMENTATION PLAN• BUDGETBUDGET

**

10.2

ENTERPRISE ANALYSISENTERPRISE ANALYSIS

ORGANIZATION-WIDE INFORMATION ORGANIZATION-WIDE INFORMATION NEEDS IN TERMS OF:NEEDS IN TERMS OF:

• ORGANIZATIONAL UNITSORGANIZATIONAL UNITS• FUNCTIONSFUNCTIONS

• PROCESSESPROCESSES• DATA ELEMENTSDATA ELEMENTS

HELPS IDENTIFY KEY ENTITIES & HELPS IDENTIFY KEY ENTITIES & ATTRIBUTES IN ORGANIZATION’S DATAATTRIBUTES IN ORGANIZATION’S DATA

**10.3

CRITICAL SUCCESS FACTORSCRITICAL SUCCESS FACTORS

SMALL NUMBER, EASILY IDENTIFIABLE SMALL NUMBER, EASILY IDENTIFIABLE OPERATIONAL GOALSOPERATIONAL GOALS

SHAPED BY INDUSTRY, MANAGER, SHAPED BY INDUSTRY, MANAGER, ENVIRONMENTENVIRONMENT

BELIEVED TO ASSURE FIRM’S SUCCESS.BELIEVED TO ASSURE FIRM’S SUCCESS.

USED TO DETERMINE ORGANIZATION’S USED TO DETERMINE ORGANIZATION’S INFORMATION REQUIREMENTSINFORMATION REQUIREMENTS

**

10.4

EXAMPLEEXAMPLE GOALSGOALS CRITICAL SUCCESS FACTORCRITICAL SUCCESS FACTOR

PROFIT CONCERNPROFIT CONCERN EARNINGS/SHAREEARNINGS/SHARE AUTOMOBILE INDUSTRYAUTOMOBILE INDUSTRY

RETURN ON INVESTMENTRETURN ON INVESTMENT STYLINGSTYLING

MARKET SHAREMARKET SHARE QUALITY DEALER SYSTEMQUALITY DEALER SYSTEM

NEW PRODUCTNEW PRODUCT COST CONTROLCOST CONTROL

ENERGY STANDARDSENERGY STANDARDS

NONPROFITNONPROFIT EXCELLENT HEALTH CAREEXCELLENT HEALTH CARE REGIONAL INTEGRATION OF HOSPITALSREGIONAL INTEGRATION OF HOSPITALS

MEETING GOVERNMENT REGULATIONSMEETING GOVERNMENT REGULATIONS EFFICIENT USE OF RESOURCESEFFICIENT USE OF RESOURCES

FUTURE HEALTH NEEDSFUTURE HEALTH NEEDS IMPROVED MONITORING OF REGULATIONSIMPROVED MONITORING OF REGULATIONS

Source: Rockart “Chief Executives Define Their Own Data Needs” (1979)Source: Rockart “Chief Executives Define Their Own Data Needs” (1979)

CRITICAL SUCCESS FACTORS & GOALS

CRITICAL SUCCESS FACTORS & GOALS

10.5

USING CSFs TO DEVELOP SYSTEMSUSING CSFs TO DEVELOP SYSTEMS

• COLLECT MANAGERS’ CSFsCOLLECT MANAGERS’ CSFs• AGGREGATE, ANALYZE INDIVIDUALS’ CSFsAGGREGATE, ANALYZE INDIVIDUALS’ CSFs• DEVELOP AGREEMENT ON COMPANY CSFsDEVELOP AGREEMENT ON COMPANY CSFs• DEFINE COMPANY CSFsDEFINE COMPANY CSFs• USE CSFs TO DEVELOP INFORMATION USE CSFs TO DEVELOP INFORMATION

SYSTEM PRIORITIESSYSTEM PRIORITIES• DEFINE DSS & DATABASESDEFINE DSS & DATABASES

**

10.6

SPECTRUM OF ORGANIZATIONAL CHANGE

SPECTRUM OF ORGANIZATIONAL CHANGE

• AUTOMATION: Using Technology to Perform AUTOMATION: Using Technology to Perform Tasks Efficiently / EffectivelyTasks Efficiently / Effectively

• RATIONALIZATION OF PROCEDURES: RATIONALIZATION OF PROCEDURES: Streamline SOPs; Eliminate BottlenecksStreamline SOPs; Eliminate Bottlenecks

• BUSINESS REENGINEERING: Radical Redesign BUSINESS REENGINEERING: Radical Redesign of Processes to Improve Cost, Quality, Service; of Processes to Improve Cost, Quality, Service; Maximize Benefits of TechnologyMaximize Benefits of Technology

• PARADIGM SHIFTPARADIGM SHIFT

**

10.7

PARADIGM SHIFTPARADIGM SHIFT• PARADIGM IS A COMPLETE MENTAL PARADIGM IS A COMPLETE MENTAL

MODEL OF HOW A COMPLEX SYSTEM MODEL OF HOW A COMPLEX SYSTEM FUNCTIONSFUNCTIONS

• A PARADIGM SHIFT INVOLVES A PARADIGM SHIFT INVOLVES RETHINKING THE NATURE OF THE RETHINKING THE NATURE OF THE BUSINESS, THE ORGANIZATION; A BUSINESS, THE ORGANIZATION; A COMPLETE RECONCEPTION OF HOW COMPLETE RECONCEPTION OF HOW THE SYSTEM SHOULD FUNCTIONTHE SYSTEM SHOULD FUNCTION

**

10.8

RISKS & REWARDSRISKS & REWARDS

RISKRISK

RETURNRETURN

LowLow

LowLow HighHigh

HighHigh

10.9

BUSINESS REENGINEERINGBUSINESS REENGINEERING

• WORKFLOW MANAGEMENT: WORKFLOW MANAGEMENT: Streamlining Procedures to Move Streamlining Procedures to Move Documents Easily, Efficiently from One Documents Easily, Efficiently from One Location to AnotherLocation to Another

• MEASURE EXISTING PROCESSES AS MEASURE EXISTING PROCESSES AS BASELINEBASELINE

• USE INFORMATION TECHNOLOGY TO USE INFORMATION TECHNOLOGY TO CREATE NEW DESIGN OPTIONSCREATE NEW DESIGN OPTIONS

**10.10

SYSTEM DEVELOPMENT PROCESSSYSTEM DEVELOPMENT PROCESS

• SYSTEMS ANALYSISSYSTEMS ANALYSIS

• SYSTEM DESIGNSYSTEM DESIGN

• PROGRAMMINGPROGRAMMING

• TESTINGTESTING

• CONVERSIONCONVERSION

• PRODUCTION & MAINTENANCEPRODUCTION & MAINTENANCE

**

SYSTEMS ANALYSISSYSTEMS ANALYSIS

ANALYSIS OF PROBLEM TO BE ANALYSIS OF PROBLEM TO BE SOLVED WITH AN INFORMATION SOLVED WITH AN INFORMATION

SYSTEMSYSTEM

FEASIBILITY STUDY: CAN FEASIBILITY STUDY: CAN PROBLEM BE SOLVED WITHIN PROBLEM BE SOLVED WITHIN CONSTRAINTS?CONSTRAINTS?

**

FEASIBILITYFEASIBILITY• TECHNICAL: Assess Hardware, Software, TECHNICAL: Assess Hardware, Software,

Technical ResourcesTechnical Resources

• ECONOMIC: Will Benefits Outweigh CostsECONOMIC: Will Benefits Outweigh Costs

• OPERATIONAL: Is Solution Desirable OPERATIONAL: Is Solution Desirable Within Existing Conditions?Within Existing Conditions?

• INFORMATION REQUIREMENTS: Detailed INFORMATION REQUIREMENTS: Detailed Statement of New System NeedsStatement of New System Needs

**

SYSTEM DESIGNSYSTEM DESIGN DETAILS HOW SYSTEM WILL MEET NEEDS:DETAILS HOW SYSTEM WILL MEET NEEDS:

• LOGICAL DESIGN: Components, Data as Needed by LOGICAL DESIGN: Components, Data as Needed by ApplicationsApplications

• PHYSICAL DESIGN: Physical Location of Components and PHYSICAL DESIGN: Physical Location of Components and DataData

END USERS: Needs Drive Design; Must Have Input, END USERS: Needs Drive Design; Must Have Input, Understand How Solution Meets Their NeedsUnderstand How Solution Meets Their Needs

• OUTPUTOUTPUT– MEDIUMMEDIUM– CONTENTCONTENT– TIMINGTIMING

**

ROLE OF END USERSROLE OF END USERS

• USERS DRIVE SYSTEMS EFFORTUSERS DRIVE SYSTEMS EFFORT

• MUST HAVE SUFFICIENT CONTROL MUST HAVE SUFFICIENT CONTROL TO ENSURE SYSTEM REFLECTS TO ENSURE SYSTEM REFLECTS BUSINESS PRIORITIES, NEEDSBUSINESS PRIORITIES, NEEDS

• FUNCTIONAL USERS DRIVE FUNCTIONAL USERS DRIVE SYSTEM NEEDSSYSTEM NEEDS

COMPLETING SYSTEM DEVELOPMENT PROCESS

COMPLETING SYSTEM DEVELOPMENT PROCESS

• PROGRAMMING: Translating PROGRAMMING: Translating needs to Program Codeneeds to Program Code

• TESTING: Does System Produce TESTING: Does System Produce Desired Results?Desired Results?

**

TESTINGTESTING

• UNIT TESTING: Tests Each Unit SeparatelyUNIT TESTING: Tests Each Unit Separately• SYSTEM TESTING: Do Modules Function SYSTEM TESTING: Do Modules Function

as planned?as planned?• ACCEPTANCE TESTING: Final ACCEPTANCE TESTING: Final

CertificationCertification• TEST PLAN: Preparations for Tests to be TEST PLAN: Preparations for Tests to be

PerformedPerformed

**

CONVERSIONCONVERSION

• PARALLEL: Old & New Run Same Problems. Give PARALLEL: Old & New Run Same Problems. Give Same Results?Same Results?

• DIRECT: Risky Conversion to New SystemDIRECT: Risky Conversion to New System• PILOT: Introduce Into One Area. Does it Work? PILOT: Introduce Into One Area. Does it Work?

Yes: Introduce into Other AreaYes: Introduce into Other Area• PHASED: Introduce in StagesPHASED: Introduce in Stages• CONVERSION PLAN: Schedule for ConversionCONVERSION PLAN: Schedule for Conversion• DOCUMENTATION: Description of How System DOCUMENTATION: Description of How System

WorksWorks

**

PRODUCTION & MAINTENANCEPRODUCTION & MAINTENANCE

• PRODUCTION: Constant Review by PRODUCTION: Constant Review by Users & Operators. Does it Meet Users & Operators. Does it Meet Goals?Goals?

• MAINTENANCE: Upkeep; Update; MAINTENANCE: Upkeep; Update; Corrections Over TimeCorrections Over Time

**

SYSTEMS DEVELOPMENTSYSTEMS DEVELOPMENT CORE ACTIVITYCORE ACTIVITY DESCRIPTIONDESCRIPTION

SYSTEMS ANALYSISSYSTEMS ANALYSIS IDENTIFY PROBLEM(S)IDENTIFY PROBLEM(S) SPECIFY PROBLEMSPECIFY PROBLEM ESTABLISH INFORMATION REQUIREMENTSESTABLISH INFORMATION REQUIREMENTS

SYSTEMS DESIGNSYSTEMS DESIGN CREATE LOGICAL DESIGN SPECIFICATIONSCREATE LOGICAL DESIGN SPECIFICATIONS CREATE PHYSICAL DESIGN SPECIFICATIONSCREATE PHYSICAL DESIGN SPECIFICATIONS MANAGE TECHNICAL REALIZATION OF SYSTEMMANAGE TECHNICAL REALIZATION OF SYSTEM

PROGRAMMINGPROGRAMMING TRANSLATE DESIGN INTO CODETRANSLATE DESIGN INTO CODE

TESTINGTESTING UNITUNIT SYSTEMSSYSTEMS ACCEPTANCEACCEPTANCE

CONVERSIONCONVERSION PLANPLAN PREPARE DOCUMENTATIONPREPARE DOCUMENTATION TRAIN USERS & TECHNICAL STAFFTRAIN USERS & TECHNICAL STAFF

PRODUCTION & PRODUCTION & MAINTENANCEMAINTENANCE

OPERATE OPERATE EVALUATEEVALUATE MODIFYMODIFY

IMPLEMENTING CHANGEIMPLEMENTING CHANGE

ALL ACTIVITIES WORK TOWARD ADOPTING, ALL ACTIVITIES WORK TOWARD ADOPTING, MANAGING, ROUTINIZING INNOVATIONMANAGING, ROUTINIZING INNOVATION

• CHANGE AGENT: Individual Acting as Catalyst to CHANGE AGENT: Individual Acting as Catalyst to Insure Success in Adapting to New SystemInsure Success in Adapting to New System

• USER-DESIGNER COMMUNICATIONS GAPUSER-DESIGNER COMMUNICATIONS GAP: : Differences in Backgrounds, Interests, Priorities Differences in Backgrounds, Interests, Priorities that Impede Communications & Problem Solving that Impede Communications & Problem Solving Between End-users & SpecialistsBetween End-users & Specialists

**

Factors Critical For SuccessFactors Critical For Success

• User InvolvementUser Involvement

• Management SupportManagement Support

• Level of Complexity and RiskLevel of Complexity and Risk

• Management of Implementation Management of Implementation ProcessProcess

DESIGNING FOR THE ORGANIZATIONDESIGNING FOR THE ORGANIZATION

JOB DESIGNJOB DESIGN

STRATEGICSTRATEGICPEOPLE-PEOPLE-TECHNOLOGY TECHNOLOGY

PLANNINGPLANNING

WORK STANDARDS & PERFORMANCE MONITORING

TRAINING & TRAINING & PILOTINGPILOTING

ERGONOMICS:ERGONOMICS: *HARDWARE * WORKSTATIONS *HARDWARE * WORKSTATIONS *SOFTWARE * WORK ENVIRONMENT*SOFTWARE * WORK ENVIRONMENT

HEALTH & SAFETYHEALTH & SAFETY

EMPLOYEE COMMUNICATIONS EMPLOYEE COMMUNICATIONS MECHANISMSMECHANISMS

LEGAL/REGULATORY LEGAL/REGULATORY COMPLIANCECOMPLIANCE

EMPLOYEE EMPLOYEE PARTICIPATIONPARTICIPATION

MANAGEMENT CHALLENGESMANAGEMENT CHALLENGES

• MAJOR RISKS/UNCERTAINTIES IN MAJOR RISKS/UNCERTAINTIES IN SYSTEM DEVELOPMENTSYSTEM DEVELOPMENT

• DIFFICULT TO DETERMINE DIFFICULT TO DETERMINE BENEFITSBENEFITS

• MANAGING CHANGEMANAGING CHANGE

**