11.1 © 2007 by Prentice Hall

11Chapter

Building Information Systems

Building Information Building Information SystemsSystems

11.2 © 2007 by Prentice Hall

STUDENT OBJECTIVES

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 11 Building Information SystemsChapter 11 Building Information Systems

• Identify and describe the core problem-solving steps for developing new information systems.

• Evaluate models for assessing the business value of information systems.

• Assess the requirements for successfully managing change created by new systems.

• Evaluate alternative methods for building information systems.

• Compare alternative methodologies for modeling and designing systems.

11.3 © 2007 by Prentice Hall

A New Ordering System for Girl Scout Cookies

• Problem: Inefficient manual procedures, high error rate.

• Solutions: Eliminate manual procedures, design new ordering process, and implement database building software to batch and track orders automatically and schedule order pickups.

• QuickBase for Corporate Workgroups software service increased efficiency and reduced errors.

• Demonstrates IT’s role in updating traditional business processes.

• Illustrates digital technology as the focus of designing and building new information systems.

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 11 Building Information SystemsChapter 11 Building Information Systems

11.4 © 2007 by Prentice Hall

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 11 Building Information SystemsChapter 11 Building Information Systems

Interactive Session: Girl Scout CookiesInteractive Session: Girl Scout Cookies

A New Ordering System for Girl Scout Cookies

• Think of a time when you were charged with the task of selling a product

• How did you keep track of your orders?

• How did you keep track of your inventory?

• What were some of the weaknesses of your methods?

• How could information systems have improved your transaction and supply chain processes?

11.5 © 2007 by Prentice Hall

Problem Solving and Systems Development

• New information systems are built as solutions to problems

• Four steps to building an information system• Define and understand the problem

• Develop alternative solutions

• Choose the best solution

• Implement the solution

• The first three steps are called systems analysis

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 11 Building Information SystemsChapter 11 Building Information Systems

11.6 © 2007 by Prentice Hall

Figure 11-1Developing an information system solution is based on the problem-solving process.

Problem Solving and Systems Development

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 11 Building Information SystemsChapter 11 Building Information Systems

Developing an Information System SolutionDeveloping an Information System Solution

11.7 © 2007 by Prentice Hall

Defining and Understanding the ProblemDefining and Understanding the Problem

• What caused the problem?

• Why does it persist?

• Why hasn’t it been solved?

• What are the objectives of a solution?

• Information requirements

Problem Solving and Systems Development

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 11 Building Information SystemsChapter 11 Building Information Systems

11.8 © 2007 by Prentice Hall

Problem Solving and Systems Development

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 11 Building Information SystemsChapter 11 Building Information Systems

Developing Alternative SolutionsDeveloping Alternative Solutions

• Paths to a solution determined by systems analysis

• Some solutions do not require an information system

• Some solutions require modification of existing systems

• Some solutions require new systems

11.9 © 2007 by Prentice Hall

Evaluating and Choosing SolutionsEvaluating and Choosing Solutions

• Feasibility issues

• Costs and benefits

• Advantages and disadvantages

• Business value of systems

• Change management

Problem Solving and Systems Development

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 11 Building Information SystemsChapter 11 Building Information Systems

11.10 © 2007 by Prentice Hall

Implementing the SolutionImplementing the Solution

• Systems design

• Completing implementation• Hardware selection and acquisition• Software development and programming• Testing• Training and documentation• Conversion• Production and maintenance

• Managing the change

Problem Solving and Systems Development

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 11 Building Information SystemsChapter 11 Building Information Systems

11.11 © 2007 by Prentice Hall

Interactive Session: Problem SolvingInteractive Session: Problem Solving

Problem Solving and Systems Development

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 11 Building Information SystemsChapter 11 Building Information Systems

• Think of a problem you recently attempted to solve

• How did you define the problem?

• What solutions were available to you?

• Which solution did you choose? Why?

• How did you implement the solution?

• What changes resulted from implementing the solution? How did you manage these changes?

11.12 © 2007 by Prentice Hall

Making the Business Case for a New SystemMaking the Business Case for a New System

Understanding the Business Value of Systems and Managing Change

• Financial issues• Tangible benefits• Intangible benefits• Capital budgeting methods

• Nonfinancial issues• Strategic advantages• Information systems plan• Portfolio analysis• Scoring model

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 11 Building Information SystemsChapter 11 Building Information Systems

11.13 © 2007 by Prentice Hall

Figure 11-3

Companies should examine their portfolio of projects in terms of potential benefits and likely risks. Certain kinds of projects should be avoided altogether and others developed rapidly. There is no ideal mix. Companies in different industries have different information systems needs.

A System PortfolioA System Portfolio

Understanding the Business Value of Systems and Managing Change

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 11 Building Information SystemsChapter 11 Building Information Systems

11.14 © 2007 by Prentice Hall

New System ChallengesNew System Challenges

• User interface design

• Costs to implement or run

• User involvement and influence• User-designer communications gap

• Management support and commitment

• Level of complexity and risk

• Quality of project management

Understanding the Business Value of Systems and Managing Change

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 11 Building Information SystemsChapter 11 Building Information Systems

11.15 © 2007 by Prentice Hall

Managing Change SuccessfullyManaging Change Successfully

• Outsourcing and external consultants

• Formal planning and control tools

• User education and training

• Ergonomics

• Organizational impact analysis

Understanding the Business Value of Systems and Managing Change

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 11 Building Information SystemsChapter 11 Building Information Systems

11.16 © 2007 by Prentice Hall

Change Management Delivers for Australian Change Management Delivers for Australian Social ServicesSocial Services

• Read the Focus on People and then discuss the following questions:• What problems were Australia’s social welfare systems

facing?• How did Centrelink attempt to solve these problems?• What other solutions might have worked?• What people, organization, and technology factors

impacted this problem and its solution?• Describe the role that Jane Treadwell played in the

development of Centrelink. What choices and techniques contributed to her success as an executive?

Understanding the Business Value of Systems and Managing Change

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 11 Building Information SystemsChapter 11 Building Information Systems

11.17 © 2007 by Prentice Hall

Traditional Systems Development LifecycleTraditional Systems Development Lifecycle

Alternative Systems-Building Approaches

• Oldest method for building information systems

• Phased approach with formal stages

• Waterfall approach

• Formal division of labor

• Used for building large, complex systems

• Time consuming and expensive to use

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 11 Building Information SystemsChapter 11 Building Information Systems

11.18 © 2007 by Prentice Hall

Figure 11-5

The systems development lifecycle partitions systems development into formal stages, with each stage requiring completion before the next stage can begin.

The Traditional Systems Development LifecycleThe Traditional Systems Development Lifecycle

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 11 Building Information SystemsChapter 11 Building Information Systems

Alternative Systems-Building Approaches

11.19 © 2007 by Prentice Hall

PrototypingPrototyping

• Preliminary model built rapidly and inexpensive

• Four-step process• Identify the user’s basic requirements

• Develop an initial prototype

• Use the prototype

• Revise and enhance the prototype

• Especially useful in designing a user interface

Alternative Systems-Building Approaches

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 11 Building Information SystemsChapter 11 Building Information Systems

11.20 © 2007 by Prentice Hall

MarriottMarriott’’s New Revenue Management System Yields Successs New Revenue Management System Yields Success

• Read the Focus on Organizations and then discuss the following questions:• What problem did Marriott face?

• What business goals was the company trying to achieve?

• What alternatives were available for solving Marriott’s problem?

• Did Marriott select the best solution?

• How did prototyping help Marriott come up with its solution?

• What people, organization, and technology factors were involved in the solution that the company chose?

Alternative Systems-Building Approaches

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 11 Building Information SystemsChapter 11 Building Information Systems

11.21 © 2007 by Prentice Hall

EndEnd--User DevelopmentUser Development

Alternative Systems-Building Approaches

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 11 Building Information SystemsChapter 11 Building Information Systems

• End users create simple information systems with little or no assistance from technical specialists

• Use fourth-generation languages, graphics languages, and PC software tools to access data, create reports, and develop information systems

• Completed more rapidly than systems developed with conventional tools

• Organizational risks

11.22 © 2007 by Prentice Hall

Purchasing Solutions: Application Software Packages Purchasing Solutions: Application Software Packages and Outsourcingand Outsourcing

• Request for Proposal (RFP)

• Application software packages• Generalized systems for universal functions with standard

processes

• Customization

• Outsourcing• Application service providers (ASPs)

• Offshore outsourcing

Alternative Systems-Building Approaches

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 11 Building Information SystemsChapter 11 Building Information Systems

11.23 © 2007 by Prentice Hall

Rapid Application Development for ERapid Application Development for E--BusinessBusiness

• Agility and scalability

• Rapid application development (RAD)• Creating workable systems in a very short period of

time

• Joint application design (JAD)• End users and information systems specialists

working together on design

Alternative Systems-Building Approaches

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 11 Building Information SystemsChapter 11 Building Information Systems

11.24 © 2007 by Prentice Hall

• Structured methodologies• Data flow diagram• Process specifications• Structure chart

• Object-oriented development• Based on concepts of class and inheritance• Component-based development and Web services

• Computer-aided software engineering (CASE)

Modeling and Designing Systems: Structured and Object-Oriented Methodologies

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 11 Building Information SystemsChapter 11 Building Information Systems

11.25 © 2007 by Prentice Hall

Figure 11-11This figure illustrates how classes inherit the common features of their superclass.

Class and InheritanceClass and Inheritance

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 11 Building Information SystemsChapter 11 Building Information Systems

Modeling and Designing Systems: Structured and Object-Oriented Methodologies