chapter12: redesigning the oganization with information systems
DESCRIPTION
© 2003 by Prentice HallTRANSCRIPT
12.1 © 2003 by Prentice Hall
1212
REDESIGNING THEREDESIGNING THE
ORGANIZATIONORGANIZATION
WITH WITH
INFORMATIONINFORMATION
SYSTEMSSYSTEMS
Chapter
12.2 © 2003 by Prentice Hall
• How could building a new system change How could building a new system change the way an organization works?the way an organization works?
• How can a company make sure that the How can a company make sure that the new information systems it builds fit its new information systems it builds fit its business plan?business plan?
• What are the steps required to build a new What are the steps required to build a new information system?information system?
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
OBJECTIVES
12.3 © 2003 by Prentice Hall
• What alternative methods for building What alternative methods for building information systems are available?information systems are available?
• Are there any techniques or system-building Are there any techniques or system-building approaches to help us build approaches to help us build e-commerce and e-business applications e-commerce and e-business applications more rapidly?more rapidly?
OBJECTIVES
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
12.4 © 2003 by Prentice Hall
• Major risks and uncertainties in systems Major risks and uncertainties in systems developmentdevelopment
• Controlling information systems development Controlling information systems development outside the information systems departmentoutside the information systems department
MANAGEMENT CHALLENGES
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
12.5 © 2003 by Prentice Hall
Information systems planInformation systems plan
• Road map indicating direction of systems Road map indicating direction of systems developmentdevelopment
SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Linking Information Systems to the Business Plan
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Enterprise Analysis (Business SystemsEnterprise Analysis (Business SystemsPlanning)Planning)
• Analysis of organization-wide information Analysis of organization-wide information requirementsrequirements
• Identifies key entities and attributesIdentifies key entities and attributes
SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Establishing Organizational Information Requirements
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SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Process/Data Class Matrix
Figure 12-1
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Strategic Analysis or Critical SuccessStrategic Analysis or Critical SuccessFactorsFactors
• Small number of easily identifiable Small number of easily identifiable operational goalsoperational goals
• Shaped by industry, firm, manager, and Shaped by industry, firm, manager, and broader environmentbroader environment
• Used to determine information requirements Used to determine information requirements of organizationof organization
SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Establishing Organizational Information Requirements
12.9 © 2003 by Prentice Hall
SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Using CSFs to Develop Systems
Figure 12-2
12.10 © 2003 by Prentice Hall
• AutomationAutomation:: Speeding up performance Speeding up performance
• Rationalization of procedures:Rationalization of procedures: Streamlining of operating proceduresStreamlining of operating procedures
• Business process reengineering:Business process reengineering: Radical design of business processesRadical design of business processes
• Paradigm shift:Paradigm shift: Radical reconceptualization Radical reconceptualization
SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Systems Development and Organizational Change
12.11 © 2003 by Prentice Hall
SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Organizational Change Carries Risks and Rewards
Figure 12-3
12.12 © 2003 by Prentice Hall
Work Flow ManagementWork Flow Management
• Process of streamlining business Process of streamlining business procedures procedures
• Documents can be moved easily and Documents can be moved easily and efficiently from one location to anotherefficiently from one location to another
BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM)
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Business Process Reengineering
12.13 © 2003 by Prentice Hall
BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM)
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Redesigning Mortgage Processing in the United States
Figure 12-4a
12.14 © 2003 by Prentice Hall
BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM)
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Redesigning Mortgage Processing in the United States
Figure 12-4b
12.15 © 2003 by Prentice Hall
• Senior management needs to develop broad Senior management needs to develop broad strategic vision strategic vision
• Management must understand and measure Management must understand and measure performance of existing processes as performance of existing processes as baselinebaseline
• Information technology should be allowed to Information technology should be allowed to influence process design from startinfluence process design from start
• IT infrastructure should be able to support IT infrastructure should be able to support business process changes business process changes
BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM)
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Steps in Effective Reengineering
12.16 © 2003 by Prentice Hall
How information systems contributeHow information systems contributeto Total Quality Managementto Total Quality Management
• Simplify product or production processSimplify product or production process
• Enable benchmarkingEnable benchmarking
• Use customer demands as guide to Use customer demands as guide to improve products and servicesimprove products and services
• Reduce cycle timeReduce cycle time
BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM)
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Process Improvement and Total Quality Management (TQM)
12.17 © 2003 by Prentice Hall
Systems developmentSystems development
• Activities that go into producing Activities that go into producing information systems solution information systems solution
Systems analysisSystems analysis
• Analysis of problems that organization Analysis of problems that organization aims to resolve using information systemsaims to resolve using information systems
OVERVIEW OF SYSTEMS DEVELOPMENT
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Overview
12.18 © 2003 by Prentice Hall
BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM)
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
The Systems Development Process
Figure 12-5
12.19 © 2003 by Prentice Hall
Feasibility studyFeasibility study
• Determining achievability of solution Determining achievability of solution
Establishing information requirementsEstablishing information requirements
• Stating information needs that new Stating information needs that new system must satisfysystem must satisfy
• Identifying who, when, where and how Identifying who, when, where and how components of informationcomponents of information
OVERVIEW OF SYSTEMS DEVELOPMENT
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Overview
12.20 © 2003 by Prentice Hall
• Details how system will meet information Details how system will meet information requirements as determined by systems requirements as determined by systems analysisanalysis
• Increases users’ understanding and Increases users’ understanding and acceptance of the systemacceptance of the system
• Reduces problems caused by power Reduces problems caused by power transfers, intergroup conflict, and transfers, intergroup conflict, and unfamiliarity with the new system unfamiliarity with the new system
BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM)
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Systems Design
12.21 © 2003 by Prentice Hall
ProgrammingProgramming
• Process of translating system specifications Process of translating system specifications into program codeinto program code
TestingTesting
• Checks whether the system produces Checks whether the system produces desired results under known conditionsdesired results under known conditions
• Unit testing, system testing, acceptance Unit testing, system testing, acceptance testing, test plantesting, test plan
BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM)
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Completing the Systems Development Process
12.22 © 2003 by Prentice Hall
BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM)
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
A Sample Test Plan to Test a Record Change
Figure 12-6
12.23 © 2003 by Prentice Hall
ConversionConversion
• Process of changing from old system to Process of changing from old system to new systemnew system
• Strategies:Strategies:
– ParallelParallel– Direct cutoverDirect cutover– Pilot studyPilot study– Phased approach Phased approach – DocumentationDocumentation
BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM)
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Completing the Systems Development Process
12.24 © 2003 by Prentice Hall
Production and maintenanceProduction and maintenance
• Production is stage after new system is Production is stage after new system is installed and the conversion is completeinstalled and the conversion is complete
• Maintenance is changes in hardware, Maintenance is changes in hardware, software, documentation, or procedures of software, documentation, or procedures of production system to correct errors production system to correct errors
BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM)
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Completing the Systems Development Process
12.25 © 2003 by Prentice Hall
Systems lifecycleSystems lifecycle
• Traditional methodology for developing Traditional methodology for developing information systeminformation system
• Partitions systems development process Partitions systems development process into formal stages that must be completed into formal stages that must be completed sequentiallysequentially
ALTERNATIVE SYSTEM-BUILDING APPROACHES
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Traditional Systems Lifecycle
12.26 © 2003 by Prentice Hall
Prototyping Prototyping
• Process of building experimental system Process of building experimental system quickly and inexpensively for demonstration quickly and inexpensively for demonstration and evaluation and evaluation
Prototype Prototype
• Preliminary working version of information Preliminary working version of information system for demonstration and evaluation system for demonstration and evaluation
ALTERNATIVE SYSTEM-BUILDING APPROACHES
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Prototyping
12.27 © 2003 by Prentice Hall
Iterative Iterative
• A process of repeating over and over A process of repeating over and over again the steps to build systemagain the steps to build system
ALTERNATIVE SYSTEM-BUILDING APPROACHES
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Prototyping
12.28 © 2003 by Prentice Hall
ALTERNATIVE SYSTEM-BUILDING APPROACHES
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
The Prototyping Processes
Figure 12-7
12.29 © 2003 by Prentice Hall
1.1. Identifying user’s basic requirementsIdentifying user’s basic requirements
2.2. Developing initial prototypeDeveloping initial prototype
3.3. Using prototypeUsing prototype
4.4. Revising and enhancing prototypeRevising and enhancing prototype
ALTERNATIVE SYSTEM-BUILDING APPROACHES
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Steps in Prototyping
12.30 © 2003 by Prentice Hall
AdvantageAdvantage
• Useful in designing information system’s Useful in designing information system’s end-user interfaceend-user interface
DisadvantageDisadvantage
• Rapid prototyping can gloss over Rapid prototyping can gloss over essential steps in systems developmentessential steps in systems development
ALTERNATIVE SYSTEM-BUILDING APPROACHES
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Advantages and Disadvantages of Prototyping
12.31 © 2003 by Prentice Hall
Application software packagesApplication software packages
• Set of prewritten, precoded application Set of prewritten, precoded application software programs commercially available software programs commercially available for sale or leasefor sale or lease
CustomizationCustomization
• Modification of software package to meet Modification of software package to meet organization’s unique requirements without organization’s unique requirements without destroying the software’s integritydestroying the software’s integrity
ALTERNATIVE SYSTEM-BUILDING APPROACHES
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Application Software Packages
12.32 © 2003 by Prentice Hall
ALTERNATIVE SYSTEM-BUILDING APPROACHES
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
The Effects of Customizing a Software Package on Total Implementation Costs
Figure 12-8
12.33 © 2003 by Prentice Hall
Request for Proposal (RFP)Request for Proposal (RFP)
• Detailed list of questions submitted to Detailed list of questions submitted to vendors of software or other servicesvendors of software or other services
• Determines how well vendor’s product Determines how well vendor’s product can meet organization’s specific can meet organization’s specific requirementsrequirements
ALTERNATIVE SYSTEM-BUILDING APPROACHES
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Application Software Packages
12.34 © 2003 by Prentice Hall
• Development of information systems by Development of information systems by end users with little or no formal end users with little or no formal assistance from technical specialistsassistance from technical specialists
• Allows users to specify their own Allows users to specify their own business needs business needs
ALTERNATIVE SYSTEM-BUILDING APPROACHES
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
End-User Development
12.35 © 2003 by Prentice Hall
ALTERNATIVE SYSTEM-BUILDING APPROACHES
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
End-User Versus System Lifecycle Development
Figure 12-9
12.36 © 2003 by Prentice Hall
• Improves requirements gathering leading Improves requirements gathering leading to higher level of user involvement and to higher level of user involvement and satisfaction satisfaction
• Cannot easily handle processing of large Cannot easily handle processing of large numbers of transactions or applications numbers of transactions or applications
ALTERNATIVE SYSTEM-BUILDING APPROACHES
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
End-User Development
12.37 © 2003 by Prentice Hall
• Practice of contracting computer center Practice of contracting computer center operations, telecommunications operations, telecommunications networks, or applications development to networks, or applications development to external vendorsexternal vendors
ALTERNATIVE SYSTEM-BUILDING APPROACHES
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Outsourcing
12.38 © 2003 by Prentice Hall
• Approach for software developmentApproach for software development
• De-emphasizes procedures De-emphasizes procedures
• Shifts focus from modeling business Shifts focus from modeling business processes and data to combining data processes and data to combining data and procedures to create objectsand procedures to create objects
APPLICATION DEVELOPMENT FOR THE DIGITAL FIRM
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Object-Oriented Software Development
12.39 © 2003 by Prentice Hall
• Process for developing systems in short Process for developing systems in short time period time period
• Uses prototyping, fourth-generation tools, Uses prototyping, fourth-generation tools, and close teamwork and close teamwork
APPLICATION DEVELOPMENT FOR THE DIGITAL FIRM
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Rapid Application Development (RAD)
12.40 © 2003 by Prentice Hall
• Software components deliverable over Software components deliverable over Internet Internet
• Enable one application to communicate Enable one application to communicate with another with no translation requiredwith another with no translation required
APPLICATION DEVELOPMENT FOR THE DIGITAL FIRM
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Web Services
12.41 © 2003 by Prentice Hall
• E-commerce and e-business require E-commerce and e-business require systems planning and systems analysis systems planning and systems analysis based on a broader view of organizationbased on a broader view of organization
APPLICATION DEVELOPMENT FOR THE DIGITAL FIRM
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 12 Redesigning the Organization With information SystemsChapter 12 Redesigning the Organization With information Systems
Looking Beyond the Organization
12.42 © 2003 by Prentice Hall
1212
REDESIGNING THEREDESIGNING THE
ORGANIZATIONORGANIZATION
WITH WITH
INFORMATIONINFORMATION
SYSTEMSSYSTEMS
Chapter