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3. design

Chapter 10
Developing Business/IT
Solutions
McGraw-Hill/Irwin
Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.
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
10-2
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
10-3
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
10-4
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
10-5
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
10-6
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
10-7
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?
10-8
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?
– Can this really be made into a strategic
advantage over their competitors?
– How easy would it be for their competitors
to imitate this accomplishment?
10-9
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
10-10
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
10-11
Systems Thinking Example
10-12
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
10-13
Systems Development Lifecycle (SDLC)
10-14
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
10-15
Systems Development Process
Feasibility Study: a preliminary study to determine…
Information needs of prospective users
Resource requirements
Costs
Benefits
Feasibility
Sometimes unnecessary
10-16
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
10-17
Economic Feasibility
Cost/benefit
analysis
Cost savings
Assessment of
Increased revenue
Increased profits
Decreased
investment
requirements
10-18
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
10-19
Human Factors Feasibility
Assess the acceptance level of…
Employees
Customers
Suppliers
Management support
Find the right people for the new or revised roles
10-20
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
10-21
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
10-22
Organizational Analysis
Study of the
organization,
including…
Control
Management structure
People
Business activities
Storage
Environmental systems
Processing
Current information
systems
Input / output
10-23
Analysis of the Present System
Before designing a new system, study
the system being improved or replaced
Hardware and software
Network
System activities of input, processing,
output, storage, and control
People resources used to convert data
resources into information products
10-24
Logical Analysis
A logical model
is a blueprint of
the current
system
Displays what the current
system does, without regard to
how it does it
Allows an analyst to
understand the processes,
functions, and data associated
with a system, without getting
bogged down with hardware
and software
10-25
Functional Requirements
This systems analysis step is
one of the most difficult
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
10-26
Examples of Functional Requirements
User Interface
Automatic entry of product data and
easy-to-use 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 to customers
10-27
Three Areas of Systems Design Focus
10-28
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
10-29
Prototyping Life Cycle
10-30
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
10-31
Checklist for Corporate Websites
Remember the
customer
Aesthetics
Easy to navigate
Incompatibilities
Broadband
content
Searchability
Registration
forms
Dead links
10-32
System Specifications
User interface
methods and
products
Processing
procedures
Formalizing
the design of
Database
structures
Control
procedures
10-33
Examples of System Specifications
10-34
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
10-35
Focus on IS Activities
End-user documentation should focus on the
fundamental activities of an information system
Input
Processing
Output
Storage
Control
10-36
Focus of End-User Development
10-37
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
10-38
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
10-39
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
10-40
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
10-41
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
10-42
Implementation Process
10-43
Sample Implementation Process
10-44
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
10-45
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?
10-46
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?
10-47
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
10-48
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
10-49
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
10-50
Phases of Project Management
10-51
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
10-52
Hardware Evaluation Factors
Cost
Performance
Compatibility
Reliability
Ergonomics
Scalability
Software
Technology
Connectivity
Support
10-53
Software Evaluation Factors
Hardware
evaluation factors
apply to software,
as do these…
Quality
Efficiency
Flexibility
Security
Software that is slow,
hard to use, bugfilled, or poorly
documented is not a
good choice
at any price
Connectivity
Maintenance
Documentation
Hardware
10-54
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
10-55
IS Service Evaluation Factors
Systems
development
Performance
Maintenance
Conversion
Backup facilities
and services
Business position
& financial
strength
Training
Accessibility to
sales & support
Hardware
selection and
compatibility
Software
packages offered
10-56
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
10-57
Data Conversion
There is no standard format for a job description,
but most include…
Data conversion to new database
Correcting data errors
Filtering out unwanted data
Consolidating data from multiple databases
Organizing data into new data subsets
Improperly organized and formatted data
is a major cause of implementation failures
10-58
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
10-59
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
10-60
Major System Conversion Strategies
10-61
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
10-62
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
10-63
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
10-64
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
Most disruptive to the
organization over time
Takes the most time
10-65
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
10-66
Systems Maintenance Categories
Preventive
Corrective
Adaptive
Perfective
10-67
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
10-68
Implementation Challenges
10-69
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
10-70
Key Dimensions of Change Management
10-71
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
10-72
Change Management Process
10-73
Implementation Process
Acquisition
Software
development
Conversion
New system
implementation
process
Data
conversion
Documentation
Testing
Training
10-74
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
10-75
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
10-76
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
10-77
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?
10-78
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
10-79