SESSION 12SESSION 12

REDESIGNING THEREDESIGNING THE

ORGANIZATIONORGANIZATION

WITH WITH

INFORMATION SYSTEMSINFORMATION SYSTEMS

• Building a new information system is Building a new information system is planned organizational changeplanned organizational change

• Develop an Develop an Information Systems PlanInformation Systems Plan that that supports their overall business plan supports their overall business plan

• Understand the essential information Understand the essential information requirement of the organization to develop requirement of the organization to develop an effective information system planan effective information system plan

SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE

Linking Information Systems to the Business Plan

Enterprise Analysis (Business SystemsEnterprise Analysis (Business SystemsPlanning)Planning)

• Analysis of organization-wide information Analysis of organization-wide information requirements that examines the entire org. in requirements that examines the entire org. in terms of organizational units, processes and terms of organizational units, processes and data elementsdata elements

• Identifies key entities and attributesIdentifies key entities and attributes

Establishing Organizational Information Requirements

SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE

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

Establishing Organizational Information Requirements

SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE

Using CSFs to Develop Systems

Figure 13-2

SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE

• 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 Development and Organizational Change

SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE

Organizational Change Carries Risks and Rewards

Figure 13-3

SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE

• 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

Steps in Effective Reengineering

BUSINESS PROCESS REENGINEERING AND

TOTAL QUALITY MANAGEMENT (TQM)

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 improve Use customer demands as guide to improve products and servicesproducts and services

• Reduce cycle timeReduce cycle time

• Improve the quality and precision of designImprove the quality and precision of design

• Increase the precision of productionIncrease the precision of production

Process Improvement and Total Quality Management (TQM)

BUSINESS PROCESS REENGINEERING AND

TOTAL QUALITY MANAGEMENT (TQM)

Systems developmentSystems development

• Activities that go into producing Activities that go into producing information systems solution to an information systems solution to an organizational problem or opportunityorganizational problem or opportunity

• Structured problem solving with distinct Structured problem solving with distinct activitiesactivities

OVERVIEW OF SYSTEMS DEVELOPMENT

Overview

The Systems Development Process

Figure 13-5

OVERVIEW OF SYSTEMS DEVELOPMENT

1. Systems analysis1. Systems analysis

• Analysis of problems that organization aims to Analysis of problems that organization aims to resolve using information systemsresolve using information systems

• Feasibility studyFeasibility study• Determining achievability of solution Determining achievability of solution

• Establishing information requirementsEstablishing information requirements

• Stating information needs that new system Stating information needs that new system must satisfymust satisfy

• Identifying who, when, where and how Identifying who, when, where and how components of informationcomponents of information

OVERVIEW OF SYSTEMS DEVELOPMENT

• Details how system will meet information Details how system will meet information requirements as determined by systems analysisrequirements as determined by systems analysis

• Consists of all the system specifications that will Consists of all the system specifications that will deliver the functions identified during system deliver the functions identified during system analysisanalysis

• Increases users’ understanding and acceptance Increases users’ understanding and acceptance of the systemof the system• Reduces problems caused by power transfers, Reduces problems caused by power transfers,

intergroup conflict, and unfamiliarity with the intergroup conflict, and unfamiliarity with the new system new system

2. Systems Design2. Systems Design

OVERVIEW OF SYSTEMS DEVELOPMENT

3. Programming3. Programming

• Process of translating system specifications Process of translating system specifications into program codeinto program code

4. Testing4. Testing

• 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 testingtesting

OVERVIEW OF SYSTEMS DEVELOPMENT

5. Conversion5. Conversion

• 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

OVERVIEW OF SYSTEMS DEVELOPMENT

6. Production and maintenance6. Production 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

OVERVIEW OF SYSTEMS DEVELOPMENT

Traditional Systems lifecycleTraditional Systems lifecycle

• Traditional methodology for developing Traditional methodology for developing information systeminformation system

• Partition systems development process Partition systems development process into formal stages that must be completed into formal stages that must be completed sequentiallysequentially

ALTERNATIVE SYSTEM-BUILDING APPROACHES

Prototyping Prototyping

• Process of building experimental system quickly and Process of building experimental system quickly and inexpensively for demonstration and evaluation inexpensively for demonstration and evaluation

Prototype Prototype

• Preliminary working version of information Preliminary working version of information system for demonstration and evaluation system for demonstration and evaluation

Iterative Iterative

• A process of repeating over and over again the A process of repeating over and over again the steps to build systemsteps to build system

ALTERNATIVE SYSTEM-BUILDING APPROACHES

The Prototyping Processes

Figure 13-7

ALTERNATIVE SYSTEM-BUILDING APPROACHES

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

Advantages and Disadvantages of Prototyping

ALTERNATIVE SYSTEM-BUILDING APPROACHES

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

Application Software Packages

ALTERNATIVE SYSTEM-BUILDING APPROACHES

The Effects of Customizing a Software Package on Total Implementation Costs

Figure 13-8

ALTERNATIVE SYSTEM-BUILDING APPROACHES

• 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

• Improves requirements gathering leading Improves requirements gathering leading to higher level of user involvement and to higher level of user involvement and satisfaction satisfaction

End-User Development

ALTERNATIVE SYSTEM-BUILDING APPROACHES

• Cannot easily handle processing of large Cannot easily handle processing of large numbers of transactions or applications numbers of transactions or applications

• Occurs outside the management controlOccurs outside the management control• Testing and documentation may be Testing and documentation may be

inadequateinadequate• Control over data can be lost Control over data can be lost

End-User Development

ALTERNATIVE SYSTEM-BUILDING APPROACHES

• 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

Outsourcing

ALTERNATIVE SYSTEM-BUILDING APPROACHES