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