QM 240-Chapter 14 Redesigning the Organization with Information systems Prepared by Dr Kamel ROUIBAH / Dept. QM & IS Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 1 Objectives • Identify and describe the different steps of the systems development process. • Explain and introduce students to alternatives to systems development • Evaluate their advantages and disadvantages • ONLY SECTONS 3 , 4) Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 2 12.3. Overview of Systems Development Establishing information requirement System design Completing the system development process Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 3 System development life cycle according to Laudon and Laudon: 6 phases Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 4 Phase 1: Analysis • Definition of Analysis – Refers to the analysis of a problem that the organization will try to solve with an information system • Activities – Identify the problem & its causes and specify solutions – Identify the “information requirements” that must be met by a system solution – Perform “feasibility study” • E.g. of techniques – 5W + H Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 5 The “5w’s and an H” • • • • • • W1. Who has the problem? W2. What does the problem seem to be? W3. When does the problem occur? W4. Where does the problem occur? W5. Why does the problem occur? What is root cause? H1. How does the problem occur? How can the problem be solved? • Other techniques: Why-Why Diagram (see Chapter 3) Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 6 Phase 1: Analysis (Con’d) • Information requirements “”متطلبات – Refers to a detailed statement of the information needs that a new system must satisfy – Identifies who needs what information, when, where, and how the information is needed. – E.g. system must be able to authenticate users • Feasibility – Refers to the way to determine whether the solution is achievable, given the organization’s resources and constraints. – Assess cost & benefits – All solutions are achievable given unlimited time and resources Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 7 Phase 2: Systems Design • Definition – The details on how a system will meet the information requirements determined by the systems analysis. – E.g. track video tapes rented from a video store and produce a daily management report • Activities: create design specifications such as – – – – End-users’ input/ output (errors, feedback) User interface Database design (ERD, reports, forms) Automatic vs manual procedures (what activities, who perform, when, how and where) – Security aspect (access control) Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 8 Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 9 Six phases of systems development/ Programming • Definition – Programming is the process of translating the system specifications prepared during the design stage into program code. • Activities – Write codes – Identify errors Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 10 Phase 4: Testing • Definition – Testing is the process that determines whether the system produces the desired results under known conditions – Why • Activities (3 types of tests) – “Unit testing” is the process of testing each program separately in the system; it is sometimes called “program testing” – “System testing” tests the functioning of the information system as a whole in order to determine if discrete or separate modules will function together as planned. – “Acceptance testing” provides the final user and management certification that the system is ready to be used in a production setting. Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 11 Why testing • Objective is to eliminate bugs, i.e. program code defects • Example: Patriot missile that killed 28 American in Saudi Arabia 1991 • Results haves shown that 60% of errors discovered during testing are result of specification that were missing or in conflict • 0 defect is the subject of Total Quality Management (TQM) Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 12 Other examples • Calculate salary • If salary – =40 hours – <40 – > 40 • If Hourly pay hourly rate & overtime rate • If Temporary pay daily rate Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 13 Unit testing, system testing & acceptance testing System testing = test of the whole program System Program1 Program2 Program3 Program n Unit testing System testing does not eliminate all errors (99%) Acceptance testing provide certificate the system is Ok Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 14 Phase 4: Testing (Con’d) • Remark – The system development team carefully plan the three previous tests called also the “test plan” • Test plan – Is prepared by the development team in conjunction with the users – Includes all of the preparations for the series of tests to be performed on the system. Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 15 Phase 5: Conversion • Definition – Conversion is the process of changing from the old system to the new system. • Three activities (03) – Plan conversion (there are four strategies) – Prepare documentation, i.e. it is descriptions of how an information system works from either a technical or end-user standpoint – Train end users Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 16 Four conversion can be deployed • Direct cutover: a risky conversion approach where the new system completely replaces the old one on an appointed day. • Parallel strategy: a conversion approach where both the old system and the new system are run together for a time until everyone is assured that the new one functions correctly. • Phased approach: introduces the new system in stages either by functions (e.g. in marketing then in manufacturing) or by organizational units. • Pilot study: a strategy to introduce the new system to a limited area of the organization until it is proven to be fully functional; only then can the conversion to the new system across the entire organization takes place. Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 17 Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 18 Phase 6: Production & Maintenance • Definition – Production is the stage after the new system is installed and the conversion is complete – Then the system is reviewed by end-users and technical specialists to determine how well it has met its original goals. • Maintenance – The changes in hardware, software, documentation, or procedures to a production system – Why changes? – Three reasons: correct errors, meet new requirements, or improve processing efficiency Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 19 Phase 6: Production & Maintenance (Con’d) • Remark about importance of maintenance – 20% of time are devoted to debugging problems – 20% are concerned with changes in data, files, reports, hardware, or system software. – 60% of all maintenance work consists of making user enhancements, improving documentation, and recoding system components for greater processing efficiency. • But – Maintenance problems could be reduced significantly through better systems analysis and design practices Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 20 Maintenance cost Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 21 Summary of system development Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 22 12.4. Alternative System-Building Approaches Traditional Systems Development Lifecycle (SDLC) Alternatives to SDLC Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 23 Alternatives • In house development • Buy or purchase software package • Lease • Outsourcing- العهودية Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 24 Traditional system development life cycle (SDLC) • Systems development lifecycle – A traditional methodology for developing an information system that partitions the systems development process into formal stages that must be completed sequentially with a very formal division of labor between end users and information systems specialists. • Characteristics – Activities are performed sequentially ()عمليات متتالية – The next activity only starts once the previous is finished Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 25 Three disadvantages of traditional SDLC • Advantages: it is more suitable – for large complex systems – with formal requirements – Tight control of system building process • Disadvantages – Is costly, time consuming and inflexible (frozen requirements cannot be changed) – Each phase (stage) should be completed before moving to the next one – Does not allow includes changes once the system is developed – Encourages to freeze requirements early in the development process – Is not adequate for many small desktop systems which are less structured and more individualized Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 26 Improving or alternatives to the traditional SDLC Prototyping Object-oriented Analysis and Design & RAD Application software package End-user development Outsourcing Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 27 Prototyping ()نموذج • Definition – The process of building an experimental system quickly and inexpensively for demonstration and evaluation so that users can better determine information requirements. • Result is a prototype – It aims to create a rapid system that need further improvement. – The focus is on developing a small model, or prototype, of the overall system. – Users work with the prototype and suggest modifications Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 28 Prototyping approach (four steps) • Step 1: system designer identify and collect the user’s basic requirements. • Step 2: system designer develops an initial prototype quickly using par example CASE tools or any database management system • Step 3: user uses the prototype-interface in order to identify how well it meets his or her needs and make suggestions for improving • Step 4: system designer revises and enhance the prototype according to end-users suggestions. • After the prototype has been revised, the cycle returns to Step 3. Steps 3 and 4 are repeated until the user is satisfied. • Remark: end-user interface refers to the part of an information system through which the end user interacts with the system, such as on-line screens and commands Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 29 Prototyping approach / Advantages & disadvantages • Iterative: it is a process of repeating over and over again the steps to build a system • Better works when the end-users’ requirements are fuzzy “”غامضة or evolves uncertainty • It has disadvantage since manager don’t see the necessity to continue the process of system development such as reprogramming, redesign, a full documentation and testing • Development is facilitated by CASE tools such as Oracle (Designer 2000) or MS ACCESS Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 30 Application software package • Application Software Package – A set of prewritten, pre-coded application software programs that are commercially available for sale or lease ()تأجير. – Example: Oracle or Power Builder for web pages creation, – They allow to built information system easily but for specific application such as payroll system – If the package cannot fulfill most of the organization’s requirements, then it has to be customized • Customization ( )التّفصيل أو التخصيص – The modification of a software package to meet an organization’s unique requirements without destroying the package software’s integrity. Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 31 Advantages vs. disadvantages of application software package • Advantages Dr K. ROUIBAH • Disadvanatges Chapter 14 (240) / dept QM & IS 32 End –user development • End-user development – The development of information systems by end users with little or no formal assistance from technical specialists – E.g. creation of a small DB by a user • Benefits and limitations – Advantages: less cost – Disadvantage: risky approach, since there is a lack of control and problem of data exchange with other systems in the company Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 33 Traditional system-life development vs End-user development Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 34 Outsourcing ()العهودية • Definition: The practice of contracting: – Computer center operations, – Telecommunications networks, or – Applications development to external vendors. • Examples – Most call centers in Europe and USA are outsourced in India – Projection: India will reach 6% of the world market • Remark – It is the most used approach in Kuwait – It should be approached carefully • Question – What you need to do before outsourcing? • Response: Require much of information about – Capacity of outsourcing companies – Operating costs Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 35 Benefits and limitations • Benefits • Limits – It can save application development costs – It may allow firms to develop applications without internal information system staff – It is appropriate for applications that: • Are not sources of competitive advantage (core business) or • Require technical expertise not available in the firm. Dr K. ROUIBAH – It can make firms lose control over their information systems and make them too dependent on external vendors – It might generate extra “hidden” cost that might undercut anticipated benefits • Examples of extra costs – Under estimate evaluating a vendor of IT services – Cost to transits to a new vendor or – Cost to make sure the outsourcer fulfills his contractual obligations Chapter 14 (240) / dept QM & IS 36 Example of outsourcing • • • • Big players like Telstra in Australia are opting for services from countries like India Class discussion: Why India is becoming the most Eldorado for western firms outsourcing? Why Arab countries are lacking behind India? Response: – – – There are multinational companies, such as Microsoft, IBM and HSBC that move their business to India There is abundance of cheap and highly skilled workers There is business-friendly and stable government Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 37 Summary of alternatives: advantages vs disadvantages Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 38 Taken from Hoffer et al. (2002)/ chapter 11 Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 39 End chapter 14 Dr K. ROUIBAH Chapter 14 (240) / dept QM & IS 40