Developing Business and IT Solutions

7/26/2019 Developing Business and IT Solutions

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McGraw-Hill/Irwin Copyright 2008, The McGraw-Hill Companies, Inc. All rights reserved.

Developing Business/IT Solutions

Chapter

12


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Use the systems development process outlinedin 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 todevelop and implement a business information

system

Learning Objectives


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Learning Objectives

Explain how prototyping can be used as aneffective 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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Learning Objectives

Compare and contrast the four basic systemconversation strategies

Describe several evaluation factors that should

be considered in evaluating the acquisition ofhardware, software, and IS services


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IS Development

When the systems approachis applied tothe development of an information systems

solution to business problems, it is called

information systems developmentor

application development


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Case 1: Customer-Driven Development

At Intuit, development of new product ideasare 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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Case Study Questions

Should Intuits far-out thinking and acceptanceof 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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Which do you prefer? Intuits customer-driven development process

where hundreds of employees and managers

are sent to consult with customer in their homes

or places of business, or

Microsofts process of using professional

anthropologists to do such research


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Intuit developed the wildly successfulQuickBooks: Simple Start Edition, which

eliminated all accounting jargon

Could this idea be the foundation of a new

version of Intuits 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 aprofessional tax preparer?

Would such a product be possible or successful?


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The Systems Approach

A problem solving technique that uses a systemsorientation 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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What is Systems Thinking?

Seeing the forest andthe trees in any situation Seeing interrelationshipsamongsystems

rather than linear cause-and-effect chains

Seeingprocessesof change amongsystems

rather than discrete snapshots of change

See thesystemin any situation

Find the input, processing, output, feedback

and control components


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Systems Thinking Example


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Systems Analysis and Design

SA&D is the overall process by whichinformation 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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Systems Development Lifecycle (SDLC)


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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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Systems Development Process

Feasibility Studies: a preliminary study todetermine the

Information needs of prospective users

Resource requirements

Costs

Benefits

Feasibility

In some cases, a feasibility study is unnecessary


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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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Economic Feasibility

An assessment of Cost savings

Increased revenue

Decreased investment requirements Increased profits

Cost/benefit analysis


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Technical Feasibility

Determine the following can meet the needsof a proposed system and can be acquired or

developed in the required time

Hardware

Software

Network


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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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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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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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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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Analysis of the Present System

Before designing a new system, it is importantto 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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Logical Analysis

A logical model is a blueprint of the currentsystem

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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Functional Requirements

This step of systems analysis is one of the mostdifficult

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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Examples of Functional Requirements

User Interface: automatic entry of productdata 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

e-mail confirmation for customers


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Systems Design

Systems design focuses on three areas


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Prototyping

Prototyping is the rapid development andtesting 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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Prototyping Life Cycle


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User Interface Design

Focuses on supporting the interactions betweenend 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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Checklist for Corporate Websites

Remember the customer Aesthetics

Broadband content

Easy to navigate Searchability

Incompatibilities

Registration forms Dead links


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System Specifications

Formalizing the design of User interface methods and products

Database structures

Processing procedures Control procedures


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Examples of System Specifications

User interfacespecifications Use personalized screens that welcome repeat Webcustomers 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

Softwarespecifications

Acquire an e-commerce software engine to process alle-commerce transactions with fast responses, i.e., retrieve

necessary product data and compute all sales amounts in

less than one second

Hardware

and networkspecifications

Install redundant networked Web servers and sufficient

high-bandwidth telecommunications lines to host thecompany 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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End User Development

IS professionals play a consulting role, whileuses 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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Focus on IS Activities

End user development should focus on thefundamental activities of an information system

Input

Processing

Output

Storage

Control


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Focus of End User Development


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Doing End User Development

Application development capabilities built into

software packages make it easier for end usersto develop their own solutions


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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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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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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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Implementation Process


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Case 2: Managing Radical Change

HP is embarking on a makeover of its internaltech 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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Will the initiatives being undertaken by CIORandy Mott to implement major changes to the

IT function at HP make IT a more efficient and

vital contributor to HPs 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 HPemployees throughout the world, and having

coffee talks with them?


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Assume you have been hired as a managementconsultant 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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Project Management

The skills and knowledge necessary to bea 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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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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Sample Implementation Process


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Phases of Project Management

There are five phases in most projects Initiating/Defining

Planning

Executing

Controlling

Closing

I i i i /D fi i Ph


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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

Pl i Ph


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Planning Phase

Example activities Identify and sequence activities

Identify the critical path

Estimate the time and resources needed for

project completion

Write a detailed project plan

E ti Ph


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Execution Phase

Example activities Commit resources to specific tasks

Add additional resources and/or personnel

if necessary

Initiate work on the project

C t lli Ph


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Controlling Phase

Example activities Establish reporting obligations

Create reporting tools

Compare actual progress with baseline

Initiate control interventions, if necessary

Cl i Ph


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Closing Phase

Example activities Install all deliverables

Finalize all obligations and commitments

Meet with stakeholders

Release project resources

Document the project

Issue a final report

E l ti H d S ft S i


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Evaluating Hardware, Software, Services

Establish minimum physical and performancecharacteristics 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

H d E l ti F t


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Hardware Evaluation Factors

Major evaluation factors Performance

Cost

Reliability

Compatibility Technology

Ergonomics

Connectivity

Scalability

Software

Support

S ft E l ti F t


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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

E l ti IS S i


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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

IS Ser ice E al ation Factors


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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

Other Implementation Activities


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Other Implementation Activities

The keys to successful implementation ofa new business system

Testing

Data conversion

Documentation

Training

System Testing


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System Testing

System testing may involve Testing and debugging software

Testing website performance

Testing new hardware

Review of prototypes

Data Conversion


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Data Conversion

Data conversion includes Converting data elements from the old databaseto 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 amajor cause of implementation failures

Documentation


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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

Training


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Training

End users must be trained to operate a newbusiness 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 howthe new technology impacts business operations

System training should be supplemented with

training related to Hardware devices

Software packages

Major System Conversion Strategies


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Major System Conversion Strategies

Direct Conversion


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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

Parallel Conversion


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Parallel Conversion

Old and new systems are run simultaneouslyuntil everyone is satisfied that The new system functions correctly

The old system is no longer needed

Conversion to new system can be singlecutover 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

Pilot Conversion


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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

Phased Conversion


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Phased Conversion

A phased or gradual conversion Takes advantage of both the direct and parallelapproaches

Minimizes the risks involved

Allows the new system to be brought onlineas logically ordered functional components

Disadvantages

Takes the most time Created the most disruption to the organization

over time

Post-Implementation Activities


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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

Systems Maintenance


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Systems Maintenance

There are four basic categories of systemmaintenance

Corrective: fix bugs and logical errors

Adaptive: add new functionality

Perfective: improve performance

Preventive: reduce chances of failure

Post-Implementation Review


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Post-Implementation Review

Ensures that the newly implemented systemmeets 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

Case 3: Indiana University Financial Aid


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Success or failure is in the eye of the beholder

A PeopleSoft implementation at Indiana

University resulted in denials of financial aid

Contributors to the problem

Software did not align with business processes

Limited time for testing and training

Interface issues between the loan systems at

lending institutions and the university Transactions blocked for minor exceptions

Poor project management and tracking



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Project management violations

Poor or no due diligence

No user training

Absence of system alerts

System interface problems were ignored

The complex project wasnt broken down

into smaller, progressively delivered chunks



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As with any story, there are always two sides.

Indiana University sees the problem as a

surprise; outside observers see the problem as

predictable and preventable

What do you think?

Is it possible that some implementation problems

cannot be easily foreseen or prevented?



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What could Indiana University have done

differently to prevent this unfortunate even

from occurring?

Is there evidence to suggest that it learned

from this experience?

Case 4: In-House Development


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Case 4: In House Development

Custom code continues to be the secret sauce

that gives many businesses an edge

Making business processes faster and more

efficient

Delivering new services

Improving customer support

Innovation in other ways, usually something

unique

Case 4: In-House Development


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Case 4: In House Development

The do-it-yourself approach isnt cheap

High salaries for developers and IT managers

Dozens or hundreds of personnel needed

Before, computer hardware dictated the choiceof operating systems and development software

Developing in C++ costs half as much as

developing in Cobol

Newer packages unhitch programmers from

mainframes and proprietary platforms



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Jeff Brandmaier, senior VP and CIO at H&R

Block Inc., describes in-house developed

applications as the stuff that gives you

competitive advantage.

Why do you think he feels this way?

Can a modern organization be competitive

without developing any applications in-house?



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The case points out that despite the use of vendor

applications, there is still a lot of manually

intensive work that goes on in the development

process.

Why do you think vendor applications stillrequire in-house developers?

Documents

Developing Business and IT Solutions