CHAPTER 8: Systems development (62 questions)
Investigating Conversion at Art.com
Art.com was an early Web pioneer, launching in 1995 with the purpose of selling all
kinds of visual art online. Since then, Art.com has assisted over four million
customers in decorating their walls by providing a virtual gallery of approximately
400,000 images. The company operates in both the United States and Europe and
employs more than 500 worldwide.
Art.com has over 12 million visitors to its WEB sites per month, most of whom visit
the site without making a purchase. Art.com wanted to increase the percentage of
visitors that make purchases-known as the conversion rate-by improving its Web site.
With 12 million visitors, even a small improvement could mean a major increase in
profits. The challenge was that the Web site has been continuously revised during the
company’s many years of business, and Art.com’s management did not know what
changes would improve the visitor’s experience. They certainly didn’t want to risk
changes that might inadvertently turn visitors away.
With the goal clearly articulated to “increase the conversion rate by offering the best
customer experience,” Art.com systems analysts began to investigate what portions of
the current system worked well, and what portions could be improved.
The systems investigation proved to be no small task. Art.com draws thousands of
images from product lines offered by many online properties. The company had been
using a traditional Web analytics information system that recorded information such
as number of visitors and which products were most popular; however, the system did
not evaluate information on site obstacles that might be discouraging sales. Art.com
needed a system that could provide more telling information such as key performance
indicators (KPI) that suggested what customers did not like about its site.
The systems team found an off-site-shelf solution that performed more detailed Web
analysis. The “online customer experience management solution” allowed systems
investigators to view key performance indicators and then review the qualitative
details of individual customer sessions on the site. Viewing the basic analytics
allowed the investigators to quickly find trends in customer activity. Drilling down
into those trends allowed the investigators to “play back” a customer’s activities on
the site to determine where the customer experienced problems or decided to leave the
site. Rather than having to guess what was happening on the site, investigators could
track the action in real-time.
Using the new online customer experience management solution allowed Art.com to
make several improvements to its Web site that contributed to a significant increase in
conversion rate and prevented possible disasters.
One example of disaster recovery took place Art.com sent sale coupons to many of its
customers. Unfortunately, the coupon numbers were not entered into the back-end
system, so when customers with coupons checked out, they received an “invalid
coupon code” error message. Most abandoned their purchase at that point. Art.com’s
new Web analytics tool alerted management to the problem within hours. The coupon
codes were added to the back-end system, and because user data was collected by the
system, Art.com contacted those who were frustrated by the error and entice back.
The quick correction of the problem probably saved Art.com $25,000 of revenue per
day.
In another example, the checkout process at Art.com’s French site was displaying
error messages to customers using out-dated browsers. Art.com’s new system caught
the problem when the alarm was raised and management corrected the problem within
days. Again, customers who experienced difficulties were contacted and enticed to
return.
In a third example, Art.com’s new system showed investigators that up to 20,000
visitors referred by Web search engines were greeted with a page that informed them
that “sorry, this product is no longer available.” Web developers at Art.com changed
the message to be less negative and more inviting by providing alternative products
that might interest those visitors.
Systems analysts depend on tools to provide them with information on which portions
of systems are working and which are not. Analysing a web site such as Art.com is
like analysing pedestrian traffic in a major city-it’s impossible without appropriate
tools. Using powerful Web analytics and an online customer experience management
systems, systems analysts can continuously review and investigate the effect that the
system is having on Web site visitors, launching systems development project as
needed.
Discussion Questions
1. What was Art.com’s biggest challenge in improving their customer’s online
experience?
2. How does the new online system allow Art.com to launch systems
development projects that can improve sales?
Critical Thinking Questions
1. What are some useful functions of a good Web analytics and online customer
experience management system?
2. During which stages of the systems development life cycle can Web analytics
be useful, and why?
Principle
Effective systems development requires a team effort of stakeholders, users,
managers, systems development specialists, and various support personnel, and
it starts with careful planning.
The systems development team consists of stakeholders, users, managers, systems
development specialists, and various support personnel. The development team is
responsible for determining the objectives of the information system and delivering to
the organization a system that meets its objectives.
A system analyst is a professional who specializes in analysing and designing
business systems. The programmer is responsible for modifying or developing
programs to satisfy user requirements. Other support personnel on the development
team include technical specialists, either IS department employees or outside
consultants. Depending on the magnitude of the systems development project and the
number of IS systems development specialists on the team, the team may also include
on or more IS managers.
An information system planning refers to the translation of strategic and
organizational goals into systems development initiatives. Benefits of IS planning
include a long-range view of information technology use and better use if IS
resources. Planning requires developing overall IS objectives; identifying resource
requirements; setting schedules, milestones, and deadlines; and developing the IS
planning document.
Principle
System development often uses different approaches and tools such as traditional
development, prototyping, rapid application development, end-user
development, computer-aided software engineering, and object-oriented
development to select, implement, and monitor projects.
The five phases of the traditional SDLC are investigation, analysis, design,
implementation, and maintenance and review. Systems investigation involves
identifying potential problems and opportunities and considering them light of
organizational goals. Systems analysis seeks a general understanding of the solution
required to solve the problem; the existing system is studied in in detail and
weaknesses are identified. Systems design involves creating new or modified system
requirements. Systems implementation encompasses programming, testing, training,
conversion, and operation of the system. Systems operation involves running the
system once it is implemented. Systems maintenance and review entails monitoring
the system and performing enhancements or repairs.
Prototyping is an iterative development approach that involves defining the problem,
building the initial version, having users utilize and evaluate the initial version,
providing feedback, and incorporating suggestions into the second version. Rapid
application development (RAD) uses tools and techniques designed to speed
application development. Its use reduces paper-based documentation, automates
program source code generation, and facilitates user participation in development
activities. An agile, or extreme programming approach allows systems to change as
they are being developed. RAD makes extensive use of the joint application
development (JAD) process to gather data and perform requirements analysis. JAD
involves group meetings in which users, stakeholders, and IS professionals work
together to analyse existing systems, propose possible solutions, and define the
requirements for a new or modified system.
The end-user SDLC is used to support projects where the primary effort is undertaken
by a combination of business managers and users. End-user SLDC is becoming
increasingly important as more users develop systems for their personal computers.
The use of automated tools enables detailed development tracking, and control of the
project schedule. Effective use of these tools enables a project manager to deliver a
high quality system and to make intelligent trade-offs among cost, schedule, and
quality. CASE tools can automate many of the systems development tasks, thus
reducing the time and effort required to complete them while ensuring good
documentation. With the object-oriented systems development (OOSD) approach, a
project can be broken down into a group of objects that interact. Instead of requiring
thousands or millions of lines of detailed computer instructions or code, the systems
development project might require a few dozen or maybe a hundred objects.
Principle
Systems development starts with investigation and analysis of existing systems.
In most organizations, a systems request form initiates the investigation process. This
form typically includes the problems in or opportunities for the system, objectives of
systems investigation, overview of the proposed system, and expected costs and
benefits of the proposed system. The systems investigation is designed to assess the
feasibility of implementing solutions for business problems. An investigation team
follows up on the request and performs a feasibility analysis that addresses technical,
economic, legal, operational, and schedule feasibility. Object-oriented systems
investigation is being used to a greater extent today. As a final step in the
investigation process, a systems investigation report should be prepared to document
relevant findings.
Systems analysis is the examination of existing systems, which begins once approval
for further study is received from management. Additional study of selected systems
allows those involved to further understand the system’s weaknesses and potential
improvement areas. An analysis team is assembled to collect and analyse data on the
existing system.
Data collection methods include observation, interviews, and questionnaires. Data
analysis manipulates the collected data to provide information. Data modelling is used
to model organizational objects and associations using text and graphical diagrams. It
is most often accomplished through the use of entity-relationship (ER) diagrams.
Activity modelling is often accomplished through the use of data-flow diagrams
(DFDs), which model objects, associations, and activities by describing how data can
flow between and around various objects. DFDs use symbols for data flows,
processing, entities, and data stores. The overall purpose of requirements analysis is to
determine user and organizational needs. Object-oriented systems analysis also
involves diagramming techniques, such as a generalization/specialization hierarchy
diagram.
Principle
Designing new systems or modifying existing ones should always be aimed at
helping an organization achieve its goals.
The purpose of systems design is to prepare the detailed design needs for a new
system or modifications to an existing system. Logical systems design refers to the
way the various components of an information system will work together. Physical
systems design refers to the specification of the actual physical components.
If new hardware or software will be purchased from a vendor, a formal request for
proposal (RFP) is needed. The RFP outlines the company’s needs; in response, the
vendor provides a written reply. Organizations have three alternatives for acquiring
computer systems: purchase, lease, or rent.
RFPs from various vendors are reviewed and narrowed down to the few most likely
candidates. Near the end of the design stage, an organization prohibits further changes
in the design of the system. The design specifications are then said to be frozen. One
of the most important steps in systems design is to develop a good contract if new
computer facilities are being acquired. The final step is to develop a design report that
details the outputs, inputs, and user interfaces. It also specifies hardware, software,
databases, telecommunications, personnel, and procedure components and the way
these components are related.
Environmental design, also called green design, involves systems development efforts
that slash power consumption, take less physical space, and result in systems that can
be disposed in a way that doesn’t negatively affect the environment. TA numbers of
companies are developing products and service to help save energy. Environmental
design also deals with companies are developing systems to dispose of old equipment.
The U.S. government is also involved in environmental design. It has planned to
require federal agencies to purchase energy-efficient computer systems and
equipment. The plan would require federal agencies to use the Electronic Product
Environmental Assessment tool (EPEAT) to analyse the energy usage of new
systems. The U.S. Department of Energy rates products with the Energy Star
designation to help people select products that save energy and are friendly to the
environment.
Principle
The primary emphasis of systems implementation is to make sure that the right
information is delivered to the right format at the right time.
The purpose of systems implementation is to install a system and make everything,
including users, ready for its operation. Systems implementation includes hardware
acquisition, software acquisition or development, user preparation, hiring and training
of IS personnel, site and data preparation, installation, testing, start-up, and user
acceptance. Hardware acquisition requires purchasing, leasing, or renting computer
resources from a vendor. Increasingly, companies are using service providers to
acquire software, Internet access, and other IS resources.
Software can be purchased from external vendors or developed in-house—a decision
termed the make-or-buy decision. Implementation must also address database and
telecommunications systems, user preparation, and IS personnel requirements. User
preparation involves readying managers, employees, and other users for the new
system. New IS personnel may need to be hired, and users must be well trained in to
system’s functions. The physical site of the system must be prepared, and any existing
data to be used in the system must be converted to the new format. Hardware is
installed during the implementation step. Testing includes program (unit) testing,
systems testing, volume testing, integration testing, and acceptance testing.
Start-up begins with the final testes information system. When start-up is finished, the
system is fully operational. There are a number of different start-up approaches.
Direct conversion [ also called plunge or direct cutover] involves stopping the old
system and starting the new system on a given date. With the phase-in approach,
sometimes called a piecemeal approach, components of the old one are slowly phased
out. When everyone is confident that the new system is performing as expected, the
old system is completely phased out. Pilot start-up involves running the new system
for one group of users rather than all users. Parallel start-up involves running both the
old and new system is compared closely with the output of the old system, and any
differences are reconciled. When users are comfortable that the new system is
working correctly, the old system is eliminated. The final step of implementation is
user acceptance.
Principle
Maintenance and review add to the useful life of a system but can consume large
amounts of resources, so they benefit from the same rigorous methods and
project management techniques applied to systems development.
Systems operation is the use of a new or modified system. Systems maintenance
involves checking, changing, and enhancing the system to make it more useful in
obtaining user and organizational goals. Maintenance is critical for the continued
smooth operation of the system. Some major reasons for maintenance are changes in
business processes; new requests from stakeholders, users, and managers; bugs or
errors in the program; technical and hardware problems; corporate mergers and
acquisitions; government regulations; change in the operating system or hardware;
and unexpected events, such as terrorist attacks.
Systems review is the process of analysing systems to make sure that they are
operating as intended. It involves monitoring systems to be sure they are operating as
designed. The two types of review procedures are event-driven and time-driven. An
event-driven review is triggered by a problem or opportunity. A time-driven review is
started after a specified amount of time.
CHAPTER 8: SELF-ASSESSMENT TEST
Effective systems development requires a team effort of stakeholders, users,
managers, systems development specialists, and various support personnel, and
it starts with careful planning
1. _______________is the activity of creating or modifying existing business
systems. It refers to all aspects of the process-from identifying problems to be
solved or opportunities to be exploited to the implementation and refinement
of the chosen solution.
2. Which of the following individuals ultimately benefit from a system
development project?
a.
b.
c.
d.
Computer programmers
System analysts
Stakeholders
Senior-level managers
3. Like a contractor constructing a new building or renovating an existing one,
the programmer takes the plans from the systems analyst and builds or
modifies necessary software. True or False?
Systems development often uses different approaches and tools as traditional
development, prototyping, rapid application development, end- user
development, computer-aided software engineering, and object-oriented
development to select, implement, and monitor projects.
4. What employs tools, techniques, and methodologies designed to speed
application development?
a. Rapid application development
b. Joint optimization
c. Prototyping
d. Extended application development
5. ______________ takes an iterative approach to the systems development
process. During each iteration. Requirements and alternative solutions to the
problem are identified and analysed, new solutions are designed, and a portion
of the system is implemented.
Systems development starts with investigation and analysis of existing
systems.
6. Feasibility analysis is typically done during which systems development
stage?
a. Investigation
b. Analysis
c. Design
d. Implementation
7. Rapid application development (RAD) employs tools, techniques, and
methodologies designed to speed application development. True or False?
Designing new systems or modifying existing ones should always be aimed at
helping an organization achieve its goals.
8. Scenarios and sequence diagrams are used with ____________.
a. Object-oriented design
b. Point evaluation
c. Incremental design
d. Nominal evaluation
9. ______________ Involves systems development efforts that slash power
consumption and require less physical space.
10. Near the end of the design stage, an organization prohibits further changes in
the design of the system. This is called ______________.
The primary emphasis of systems implementation is to make sure that right
information is delivered to the right person in the right format at the right
time.
11. Software can be purchased from external developers or developed in house.
This decision id often called the _______________ decision.
12. The phase-in approach to conversion involves running both the old system and
the new system for a three months or longer. True or False?
Maintenance and review add to the useful life of a system but can consume
large amounts of resources, so they benefit from the same rigorous methods
and project management techniques applied to systems development.
13. A system review that is caused by a problem with an existing system is called?
a. Object review
b. Structured review
c. Event-driven review
d. Critical factors review
14. Monitoring a system after it has been implemented to make it more useful in
achieving user and organizational goals is called ____________.
Review questions
1. What is an information system stakeholder?
2. What is the goal of information systems planning? What steps are involved in
IS planning?
3. What are the steps of the traditional systems development life cycle?
4. What is the difference between systems investigation and system analysis?
Why is it important to identify and remove errors early in the systems
development life cycle?
5. What is the difference between a programmer and a systems analyst?
6. List the different types of feasibility.
7. What is the purpose of systems analysis?
8. How dies the JAD technique support the RAD systems development life
cycle?
9. What is prototyping?
10. What are the steps of object-oriented systems development?
11. What is an RFP? What is typically included in one? How is it used?
12. What is systems operation?
13. What activities go on during the user preparation phase of systems
implementation?
14. Give three examples of a computer system vendor.
15. What are the financial options of acquisition?
16. How can SaaS be used in software acquisition?
17. What are some of the reasons for program maintenance?
18. Describe how you back up the files you use at school.
Discussion questions
1. Why is it important for business managers to have a basic understanding of the
systems development process?
2. Briefly describe the role of a system user in the systems investigation and
systems analysis stages of a project.
3. For what types of systems development projects might prototyping be
especially useful? What are the characteristics of a system development with a
prototyping technique?
4. Imagine that your firm has never developed an information system plan. What
sort of issues between the business function and IS organization might exists?
5. You have been hired by your university to find an outsourcing company to
perform the university’s payroll function. What are your recommendations?
Describe the advantages and disadvantages of the outsourcing approach for
this application.
6. Briefly describe when you would use the object-oriented approach to systems
development instead of the traditional systems development life cycle.
7. How important are communications skills to IS personnel? Consider this
statement: “IS personnel need a combination of skills—one third technical
skills, one-third business skills, and one-third communications skills. “ Do you
think this is true? How would this affect the training of IS personnel?
8. You have been hired to perform systems investigation for a French restaurant
owner in a large metropolitan area. She is thinking of opening a new
restaurant with a state of-the art computer system that would allow customers
to place orders on the internet or at Kiosks at restaurant tables. Describe how
you would determine the technical, economic, legal, operational, and schedule
feasibility for the restaurant and its new computer system
9. Identify some of the advantages and disadvantages of purchasing a database
package versus the DaaS approach.
10. Assume that you are the owner of a company that is about to start marketing
and selling bicycles over the internet. Describe your top three objectives in
developing a new Web site for this systems development project.
11. Assume that you want to start a new video-rental business for students at your
college or university. Go through logical design for a new information system
to help you keep track of the videos in your inventory.
12. Identify some of the advantages and disadvantages of purchasing versus
leasing hardware.
13. Identify some of the advantages and disadvantages of purchasing versus
developing software.
14. Identify the various forms of testing used. Why are there so many different
types of tests?
15. What is the goal of conducting a systems review? What factors need to be
considered during systems review?
16. How would you go about evaluating a software vendor?
17. Assume that you have a personal computer that is several years old. Describe
the steps you would use to perform a system review to determine whether you
should acquire a new PC.
18. Describe how you would select the best admissions software for your college
or university. What features would be most important for school
administrators? What features would be most important for students?
CASE STUDIES
Case One
Information and Security Systems at all England Lawn Tennis and Croquet
Club
For 351 days a year, the All England Lawn Tennis and Croquet Club is quiet private
tennis club set a sleepy suburb of London. For 14 days each year, half a million tennis
enthusiasts arrive at the club from around the world to witness the Wimbledon
Championships. Needless to say, much preparation is required as the club
accommodate world tennis stars, their fans, and the press and television crews. Many
information systems of all types are required to support the global sporting event.
Information systems specialists at the club work to support the event, maintain the
club’s culture, brand, and values, and support the Club’s primary mission:” to blend
tradition with innovation to substantially improve the quality of the Wimbledon
experience for all the key stakeholders.”
A primary goal for the annual two-week event is the security and safety of all in
attendance. To accomplish this goal, the Club has invested in a new electronic
security and surveillance system. With so many people to watch on a vast property,
Club management knew that they would need state-of-the-art automated surveillance
software. The Club management wanted a system that could integrate images from
video cameras, intruder alarms, trip wires with identifying information such as license
plates to provide real-time reports of suspicious activities. With these specifications in
mind, the Club found a solution in a Digital and Video Security (DVS) solution
designed by IBM. The system provides “ real-time intelligence to automatically
monitor trends and analyse events captured by security devices.”
The system was tested at the 2007 Wimbledon Championships with success. At the
2008 event, the system was extended to hundreds of cameras. Because the system is
scalable, it can grow each year as attendance grows at the event without any
degradation in performance.
Besides the half-million attendees, millions of fans can now view the event and
related information online thanks to another new information systems development
project. Knowing that interest in the event was continuously growing, Wimbledon
event coordinators looked for ways to provide remote coverage to more tennis fans. A
system was developed called SlamTracker that provides live online scoring for
matches in progress. Additional SlamTracker tools allow fans to track player
progression and other important player- and match statistics.
Those watching the event in person and on TV have noticed other high- tech
improvements. Large LED screens have been installed on the main courts, providing
the audience with statistics such as the speed of the serve. Other systems are provided
to the athletes to display important statistics and trend captured during the last match
so that the players can see improvements are required and create strategies for the
next match.
Systems analysts work year round to improve information systems for the next
Wimbledon Championships. Security systems, media systems, Web systems, and a
host of other types of systems are examined for strengths and weaknesses searching
for ways to improve the experience. In 1990, Wimbledon decided to hire one
company to manage all of its systems: IBM. While outsourcing its systems to IBM
may be costly, other savings make it well worth the investment. With all of its
systems managed by one company, the All England Lawn Tennis and Croquet Club
can integrate its systems more easily, saving money by removing redundancy that
often exists with multivendor systems. Furthermore, All England Lawn Tennis and
Croquet Club is not in the business of information systems. For 351 days a year, the
club would rather focus on its own membership rather than on the two-week event
next summer.
Discussion Questions
1. How do information systems implemented at the All England Lawn Tennis
and Croquet Club support its primary goals?
2. How do information systems add to the enjoyment of viewing the Wimbledon
Championships through multiple channels-in person, on TV, and online?
Critical Thinking Questions
1. What other sporting events might benefit from the technologies used at
Wimbledon?
2. How might systems failure cause catastrophe for Wimbledon Championships
organizers?
Case Two
Rogers Pulls an All-Nighter
Rogers Communications is one of Canada’s largest telecom companies. It offers
phone services, wireless phone services, Internet service, and cable TV service.
Rogers provides small shops in 93 malls across Canada to service its customers. The
stores sell a wide variety of phones and other telecom devices and services.
Until recently Rogers outsourced the information technology services for its mall
stores to a third-party company. Francois Chavallier, vice-president of retail systems
for Rogers Retail, thought that Rogers could improve its systems and business
practices if it took control of its own systems. “ When you have different stores with
different systems and management structures, the experience cannot be consistent.
Our goal was to achieve that consistency and raise the bar, “ says Chevallier.
Chevallier proposed a massive upgrade of Rogers’ retail systems that would provide
consistency in business practises and customer experience, and connect all data in a
unified system accessible from headquarters. The project faced two big challenges.
First, to avoid any interruption to service, systems in all 93 stores should be upgraded
simultaneously when stores were closed, which is tricky when dealing with stores
across four time zones. Second, the upgrade would take place in the middle of winter
when weather was unpredictable, with periodic snow and wind storms and
temperature diving as low as -27 degrees Celsius (-17 F).
This challenging project would require more human resources than Chevallier had.
He pulled in an outside company, Connections Canada Inc. (CCI), to assist with the
project. The team decided that the upgrade would need to take place at all locations
simultaneously over six a six-hour period while the stores were closed, which meant
working through the night. In order for the upgrade to go flawlessly, the team would
need to invest in practice, training, and preparation. Unfortunately they had only four
months to prepare.
They decided to create a virtual store, or staging facility, at CCI that mimicked the
real Rogers’ mall stores. The components of the new system sere set up in the virtual
store including all software and hardware: routers, computers, cash-registers, and PIN
readers. The intentions were to create and configure a system for each store using the
staging facility, and then ship the preconfigured components of the system to each
store- a kind of “ store-in-a-box.”
Experts from different fields including information systems, human resources,
operations, finance, supply chain, real estate, marketing, inventory management, and
internal communications assisted in configuring the system to meet all organizational
needs. The finance expert set up the banking environment for each store. The supply
chain expert modified the supply-chain elements of the system. In other words, each
expert worked on his or her area of specialty. The team used a SharePoint intranet to
allow all experts involved to communicate online. They spent weeks developing,
testing, and adjusting the new system in the virtual store. The development continued
until all experts were satisfied.
Once the system was designed and running smoothly in the store prototype, four
actual stores were selected for testing. One at a time, the system was installed in each
store. With each installation, lessons were learned and problems became fewer. The
installation at the fourth store was carried out flawlessly.
The new system was ready for installation in the remaining stores. One technician
was hired and trained for each of the store installations. Many back-up technicians
were trained as well in case the primary technician failed to show up. The store-in-abox was shipped to each of stores in shipping containers that could withstand the
coldest Canadian winter temperatures. Communications were set up that would allow
each technician to give a step-by-step report to the control center at headquarters. At
headquarters, ten project managers would be tracking the progress of their district
reporting to the primary project managers. If trouble arose, it could be addressed
within minutes.
The installation went off without a hitch. The project was completed on schedule in
four months at a cost of one million dollars. In the end, 500 Rogers employees were
trained on the new system, which included an “ intranet for resources and policies, a
new supply chain model, integrated point-of-sale and merchandise management
systems, and a foundation for good customer service. “ The team credits the success
of this ambitious systems development project to its detailed preparation, especially
the staging facility, and tight communications and cooperation throughout the
practices.
Discussion Questions
1. What challenges did Rogers face in the installation of its new retail system?
2. What implementation techniques did Rogers employ to assure a smooth
transition to the new system?
Critical Thinking Questions
1. Why did Rogers feel it necessary to upgrade all stores at the same time? What
are the benefits and risks of that decision?
2. What role did communications technologies play in the success of this system
upgrade?