MIS 301
Information Systems in Organizations
Dave Salisbury
salisbury@udayton.edu (email)
http://www.davesalisbury.com/ (web site)
IT Acquisition, Development &
Management
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Issues in managing information resources.
Role of the IS department and its relationships with end users.
Chief Information Office role.
IT acquisition and/or development.
IT project identification, justification, and planning.
IT acquisition options.
Application Service Providers (ASP’s)
Vendor and software selection.
Connecting IT applications to databases, other applications,
networks, and business partners.
Describe the need for business process redesign/re-engineering.
Systems Development Life Cycle
SDLC – Stage 1
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Stage 1: Project initiation. Projects
often start when a manager has a
problem or sees an opportunity.
SDLC – Stage 2
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Stage 2: Systems Analysis And Feasibility Studies
consists of two phases of analysis: systems analysis
and feasibility studies.
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Develop thorough understanding of the existing organization,
its operation, and the situation that is causing a problem.
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observation
review of documents
interviews
performance measurement.
Feasibility studies calculate the probability of success of the
proposed solution and include:
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Technology
Economics
Organizational factors
Legal, ethical, and other constraints
Two General Analysis Strategies
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Asking Strategies
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Questionnaires
Interviews
Focus groups
Deriving Strategies
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Form analysis
Observation
Feasibility
Financial/Economic
Feasibility
Can we afford it, and
do benefits outweigh
costs?
Technical
Feasibility
Does the capability
exist in our company
to build it?
Organizational
Feasibility
Is it a good fit with
the organization?
Legal/Ethical/Other
Feasibility
Includes behavioral &
operational
SDLC – Stage 3
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Stage 3: Logical Analysis And Design
emphasizes the design of system from the
user’s point of view.
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It identifies information requirements
Specifies operations such as input, output,
processing and storage.
Represent logical processes and data relationships
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data flow diagrams
entity-relationship diagrams
The logical design is followed by a physical
design.
Logical Analysis & Design
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Data Analysis & Design
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Process Analysis & Design
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Entities & Relationships
Tables
E-R diagramming (we’ve already done this)
Procedures
Programs
Data Flow Diagrams (DFDs)
Interface Design
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Input Forms
Output Reports
Screens
We’ve done this already in Access
Process Design - Context DFD
KITCHEN
CUSTOMER
0
Customer Order
Receipt
Food
Ordering
System
Food Order
Management
Reports
RESTAURANT
MANAGER
Decomposition Diagram
0
Food
Ordering
System
1.0
Receive
Customer
Food Order
2.0
3.0
4.0
Update
Goods Sold
File
Update
Inventory
File
Produce
Management
Reports
Level 0 Data Flow Diagram
KITCHEN
CUSTOMER
1.0
Customer Order
Receive
Customer
Food Order
Receipt
2.0
Update
Goods Sold
File
3.0
Goods
Sold Data
Formatted Goods
Sold Data
D1 GOODS SOLD
FILE
Food Order
Daily Goods
Sold Amounts
4.0
Update
Inventory
File
Formatted
Inventory Inventory Data
Data
D2 INVENTORY
FILE
Daily Inventory
Depletion Amounts
Produce
Management
Reports
RESTAURANT
Management MANAGER
Reports
SDLC – Stage 4
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Stage 4: Development or Acquisition the
actual development or acquisition of the
system.
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IS personnel use the specifications to purchase
the hardware and software required for the
system.
Programmers write code for parts of the system.
Technical writers develop documentation and
training materials.
IS personnel test the system
Users test prior to the actual implementation.
Acquiring IT Applications
Option 1 - Buy
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Advantages
Lots of choices
Time savings
Known quantity
No “paid beta” testing
May not have to hire
new people for the
project
Vendor updates
Lower cost
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Disadvantages
Not a perfect fit
May not be modifiable
May require
organizational changes
Lack of control over
updates
Integration with legacy
systems
Vendor may lose
interest in software
Acquiring IT Applications
Option 2- Lease
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Lease the application from an
outsourcer and install it on the
company’s premises
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Vendor can help with the installation and
frequently will contract for the operation
and maintenance
Many conventional applications are leased
this way.
Application system provider (ASP)
Acquiring IT Applications
Option 3 – Development In-House
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Build from scratch.
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Specialized applications for which components are not
available.
Strategic systems
Expensive and slow process
Best fit
Build from components.
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use standard components (e.g., a secure Web server), some
software languages (e.g., Java, Visual Basic, or Perl), and thirdparty subroutines to create and maintain applications on their
own.
Alternatively, companies can outsource the entire development
process to an integrator that assembles the components
Offers the greatest flexibility
Least expensive option in the long run
Can also result in a number of false starts and wasted
experimentations.
Software Vendor Selection
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Identify Potential Vendors
Determine the Evaluation Criteria
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RFP-Request For Proposal
List of users
Evaluate Vendors and Packages
Choose the Vendor and Package
Negotiate A Contract
Establish A Service Level Agreement-(SLA)
Evaluating Hardware and Software
Hardware Evaluation
 Performance
 Cost
 Reliability
 Compatibility
 Technology
 Connectivity
 Scalability
 Support
 Software
Software Evaluation
 Quality
 Flexibility
 Security
 Connectivity
 Language
 Documentation
 Hardware
 Efficiency
SDLC – Stage 5
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Stage 5: Implementation is an important stage; the
system can fail here even if it has all the specified
functionality.
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Users need training
Forms need to be ordered
Help desk needs to be created
Also requires a conversion from a previous system.
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Parallel conversion: Old and new systems operate concurrently
for a test period, and then the old system is discontinued.
Direct cutover: The old system is turned off, and the new
system is turned on.
Pilot conversion: The new system is implemented in a subset of
locations then extended
Phased conversion: Replace the modules one at a time.
Installation Conversion Methods
Old System
New System
Old System
Old System
Old System
New System
New System
New System
Parallel
Pilot
Phased
Plunge
SDLC – Stages 6, 7, 8
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Stage 6: Operation. Post production
environment – where we actually use it.
Stage 7: Post-Audit Evaluation reviews the
stages and processes to determine best
practice methods.
Stage 8: Maintenance. Every system needs
two regular types of maintenance:
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Fixing of bugs
Regular system updating
Alternatives to SDLC methodologies
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Prototyping
Joint application design (JAD)
Rapid application development (RAD)
Object-oriented development (OO)
Extreme Programming (XP)
Component-based development
A rapid prototyping development
process versus SDLC
System Development Alternatives
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End-User Development: Let users build their
own systems
Outsourcing: Outsource the entire systems
development process
Purchasing: (“The make-or-buy decision”) Let
users use off-the-shelf software packages.
Utility computing, consists of a virtualized
pool of “self-managing” IT resources
(computing power and storage capacity) that
can be dynamically allocated for any
application
System Development Alternatives
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ASP-Application Service Provider, is an agent
or vendor who assembles the software
needed by enterprises and packages them
usually with outsourced development,
operations, maintenance, and other services.
The main difference between an ASP and an
outsourcer is that an ASP will manage
application servers in a centrally controlled
location, rather than on a customer’s site.
The End-User Relationship
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ISD is a service department
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End-user relationships are important
Issues between techies and non-techies
Outsourcing and end-user computing arose out of perceived
indifference of ISD (and computing power becoming cheap
enough to make end-user development feasible)
To improve collaboration, the ISD and end users may
employ three common arrangements:
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the steering committee
service-level agreements
the information center.
End User Development
Controls
What controls
are needed?
Input
What data
is required?
Processing
What operations
on the input
is required?
Storage
Will the
application need
to store data?
Output
What information
is needed?
ISD & Approaches to End-Users
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Let them sink or swim. Don’t do anything; let
the end user beware.
Use the stick. Establish policies and
procedures to control end-user computing so
that corporate risks are minimized, and try to
enforce them.
Use the carrot. Create incentives to
encourage certain end-user practices that
reduce organizational risks.
Offer support. Develop services to aid end
users in their computing activity
Which application development
approach to use depends on…
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Package functionalities
Information requirements
User friendliness
Hardware & software
resources
Installation & integration
issues
Maintenance services
requirements
Vendor quality & track record
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Total cost of ownership
Ability to measure tangible
benefits
Personnel needed for
development
Forecasting and planning for
emerging technologies
Ease/cost/limits of scalability
Sizing requirements
Performance requirements
Security Requirements
System Acquisition Methods - Advantages
and Disadvantages of Buy/Lease
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Advantages
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Software can be tried out
Software has been used
for similar problems in
other organizations
Reduces time spent on
analysis, design and
programming
Good documentation that
will be maintained
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Disadvantages
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Controlled by another
company with its own
priorities & business
considerations
Packages limitations may
prevent desired business
processes
May be difficult to get
needed enhancements
Lack of intimate
knowledge of how it
works and why it works
that way
System Acquisition Methods - Advantages
and Disadvantages of Traditional SDLC
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Advantages
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Forces staff to go
systematically through
every step in a structured
process
Enforces quality by
maintaining standards
Lower probability of
missing important issues
in collecting user
requirements
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Disadvantages
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May produce excessive
documentation
Users may be unwilling
or unable to study the
specifications they
approve
Takes too long to get
from idea to system
Users sometimes can’t
easily describe what they
need until they see it
System Acquisition Methods - Advantages
and Disadvantages of Prototyping
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Advantages
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Helps clarify user
requirements
Helps verify early on the
feasibility of the design
Promotes genuine user
participation
Promotes close working
relationships between
designers & users
Works well for ill-defined
problems
May produce part of the
final system
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Disadvantages
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May encourage
inadequate problem
analysis
Not practical with large
numbers of users
User may not want to
give up the throwaway
prototype when the final
system is ready
May generate confusion
about when/whether the
system is complete and
ready for production
System may be built
quickly, which may lead
to lower quality
System Acquisition Methods - Advantages
and Disadvantages of EU Development
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Advantages
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Bypasses the IS group &
avoids delays
User controls the
application and can
change as needed
Directly meets user
requirements
Increased user
acceptance
Frees up IT resources
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Disadvantages
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May lead to lower quality
systems
May eventually require IT
group to maintain
Poor documentation
Poor quality control
System may not have
adequate interfaces with
other systems
Business Process Reengineering-BPR
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Fitting commercial software
Streamlining the supply chain
Participating in private or public e-marketplaces
Improving customer service
Conducting e-procurement
Enabling direct online marketing
Reducing cost and improving productivity
Automating old processes
Transformation to e-business
Business changes brought on by
information technology
Old Rule
Intervening Technology
New Rule
Information appears only in one place at
one time
Shared databases, client/server,
internet/intranets
Information appears simultaneously
wherever needed
Only experts perform complex work
Expert systems, neural networks
Novices can perform complex work
Business must be either centralized or
distributed
Telecommunications, networks,
client/server, intranet
Business can be both centralized and
distributed
Only managers make decisions
DSS, enterprise systems, AI
Decision-making is part of all jobs
Field personnel need offices to have access
to their information
Wireless, pervasive computing, WWW,
email
Field personnel can work from any location
with full information access
The best contact is personal
Interactive media, desktop
teleconferencing, email
The best contact is the most cost-effective
that meets requirements
You have to locate items manually
Tracking technology, groupware,
workflow software, search engines
Items are located automatically
Plans get revised periodically
High-performance computing, intelligent
agents
Plans get revised when it’s needed
People must work in one place to work
together
Groupware, telecommunications, email,
client/server, GSS
People can work together from anywhere,
anytime
Products take long time to develop, and
custom products are expensive
CAD/CAM, EDI, groupware, imaging, JIT,
expert systems, CASE
Customized products can be made quickly
and cheaply, time to market can be reduced
Organizations and processes are
information based
AI, expert systems
Organizations and processes are knowledge
based
Move labor to cheaper markets – off-shore
Robots, imaging technologies, OO
programming, expert systems, GIS
Work can be done in countries with high
wages
BPR-Restructuring the Organization
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Structures
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Thick (many levels)
hierarchical structure
Thin (single level)
structure
Network structure
Virtual Network structure
or organization
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Important Because
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Management suited to
strategy
Better response to
Opportunities and
Threats
Higher morale
Developing Culture
Control
BPR - Change Management
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Organization transformation refers to an organization
with a “new face,”
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business processes, structure, strategy, and procedures are
completely different from the old one.
radical transformation can be a lengthy, expensive, and
complex process,
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organizational learning
changes in management and personnel
creation of a new structure
employee retraining.
Change Management refers to the implementation,
control and guidelines to introduce change into
organizations.
The Transition Environment
The IS Department
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The reporting relationship of the ISD is
important
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reflects the focus of the department
Tends to follow its reporting relationship
The name of the ISD is also important
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Reflects its standing and purpose
Data Processing (DP) Department.
Management Information Systems (MIS) Department
Information Systems Department (ISD)
Status of the ISD
The CIO (Chief Information Officer)
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ISD is a service department in a rapidly changing
environment thus making the department’s
projections and planning difficult.
The changing role of the ISD highlights the fact that
the CIO is becoming an important member of the
firm's top management team.
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Realization of the need for IT-related disaster planning and
the importance of IT to the firm’s activities.
Aligning IT with the business strategy
Implementing state-of-the-art solutions
Providing information access
Being a business visionary who drives business strategy
Coordinating resources