McGraw-Hill/Irwin
Copyright © 2008
2008,The
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McGraw-HillCompanies,
Companies,Inc.
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reserved.
Chapter
12
Developing Business/IT Solutions
McGraw-Hill/Irwin
Copyright © 2008
2008,The
TheMcGraw-Hill
McGraw-HillCompanies,
Companies,Inc.
Inc.All
Allrights
rightsreserved.
reserved.
Learning Objectives
• Use the systems development process outlined
in this chapter and the model of IS components
from Chapter 1 as problem-solving frameworks
to help you propose information systems
solutions to simple business problems
• Describe and give examples to illustrate
how you might use each of the steps of the
information systems development cycle to
develop and implement a business information
system
12-3
Learning Objectives
• Explain how prototyping can be used as an
effective technique to improve the process
of systems development for end users and
IS specialists
• Understand the basics of project management
and their importance to a successful system
development effort
• Identify the activities involved in the
implementation of new information systems
12-4
Learning Objectives
• Compare and contrast the four basic system
conversation strategies
• Describe several evaluation factors that should
be considered in evaluating the acquisition of
hardware, software, and IS services
12-5
IS Development
• When the systems approach is applied to
the development of an information systems
solution to business problems, it is called
information systems development or
application development
12-6
Case 1: Customer-Driven Development
• At Intuit, development of new product ideas
are driven by a psychologist
• Playing nice
• Free-association sessions
• Focus is always on the customer
•
•
•
•
Making “pain points” less painful
Capturing pencil-and-paper users
Follow-me-homes
Simplifying language
12-7
Case Study Questions
• Should Intuit’s “far-out thinking” and acceptance
of failure as part of the application software
development process be duplicated at large
software development companies like
Microsoft?
• Should it be duplicated at the thousands of
small independent software companies that
exist?
12-8
Case Study Questions
• Which do you prefer?
• Intuit’s customer-driven development process
where hundreds of employees and managers
are sent to consult with customer in their homes
or places of business, or
• Microsoft’s process of using professional
anthropologists to do such research
12-9
Case Study Questions
• Intuit developed the wildly successful
QuickBooks: Simple Start Edition, which
eliminated all accounting jargon
• Could this idea be the foundation of a new
version of Intuit’s top-selling TurboTax software,
which removed all tax accounting jargon from
that product to reach the 20 million Americans
who do not use tax preparation software or a
professional tax preparer?
• Would such a product be possible or successful?
12-10
The Systems Approach
• A problem solving technique that uses a systems
orientation to define problems and opportunities
and develop appropriate and feasible solutions
• Analyzing a problem and formulating a solution
involves these interrelated activities:
• Recognize and define a problem or opportunity
using systems thinking
• Develop and evaluate alternative system solutions
• Select the solution that best meets your requirements
• Design the selected system solution
• Implement and evaluate the success of the system
12-11
What is Systems Thinking?
• Seeing the forest and the trees in any situation
• Seeing interrelationships among systems
rather than linear cause-and-effect chains
• Seeing processes of change among systems
rather than discrete snapshots of change
• See the system in any situation
• Find the input, processing, output, feedback
and control components
12-12
Systems Thinking Example
12-13
Systems Analysis and Design
• SA&D is the overall process by which
information systems are designed and
implemented
• Includes identification of business problems
• Two most common approaches
• Object-oriented analysis and design
• Life cycle
12-14
Systems Development Lifecycle (SDLC)
12-15
Systems Development Process
• Systems Investigation
• The first step in the systems development
process
• May involve consideration of proposals
generated by a business/IT planning process
• Also includes the preliminary feasibility study
of proposed information system solutions
12-16
Systems Development Process
• Feasibility Studies: a preliminary study to
determine the
•
•
•
•
•
Information needs of prospective users
Resource requirements
Costs
Benefits
Feasibility
• In some cases, a feasibility study is unnecessary
12-17
Operational Feasibility
• How well the proposed system will
• Support the business priorities of the
organization
• Solve the identified problem
• Fit with the existing organizational structure
12-18
Economic Feasibility
• An assessment of
•
•
•
•
•
Cost savings
Increased revenue
Decreased investment requirements
Increased profits
Cost/benefit analysis
12-19
Technical Feasibility
• Determine the following can meet the needs
of a proposed system and can be acquired or
developed in the required time
• Hardware
• Software
• Network
12-20
Human Factors Feasibility
• Assess the acceptance level of
•
•
•
•
Employees
Customers
Suppliers
Management support
• Determine the right people for the various
new or revised roles
12-21
Legal/Political Feasibility
• Assess
•
•
•
•
Possible patent or copyright violations
Software licensing for developer side only
Governmental restrictions
Changes to existing reporting structure
12-22
Systems Analysis
• An in-depth study of end user information needs
• It produces the functional requirements used as
the basis for the design of an information system
• It typically involves a detailed study of the
• Information needs of a company and end users
• Activities, resources, and products of one or more
of the information systems currently being used
• Information system capabilities required to meet
the information needs of business stakeholders
12-23
Organizational Analysis
• Study of the organization, including…
•
•
•
•
•
Management structure
People
Business activities
Environmental systems
Current information systems
• Input, processing, output, storage, and control
12-24
Analysis of the Present System
• Before designing a new system, it is important
to study the system to be improved or replaced
• Hardware and software
• Network
• People resources used to convert data
resources into information products
• System activities of input, processing,
output, storage, and control
12-25
Logical Analysis
• A logical model is a blueprint of the current
system
• It displays what the current system does,
without regard to how it does it
• It allows an analyst to understand the processes,
functions, and data associated with a system
without getting bogged down with hardware
and software
12-26
Functional Requirements
• This step of systems analysis is one of the most
difficult
• Determine what type of information each
business activity requires
• Try to determine the information processing
capabilities required for each system activity
• The goal is to identify what should be done,
not how to do it
12-27
Examples of Functional Requirements
• User Interface: automatic entry of product
data and easy-to-use data entry screens for
Web customers
• Processing: fast, automatic calculation of sales
totals and shipping costs
• Storage: fast retrieval and update of data from
product, pricing, and customer databases
• Control: signals for data entry errors and quick
e-mail confirmation for customers
12-28
Systems Design
• Systems design focuses on three areas
12-29
Prototyping
• Prototyping is the rapid development and
testing of working models
• An interactive, iterative process used during
the design phase
• Makes development faster and easier, especially
when end user requirements are hard to define
• Has enlarged the role of business stakeholders
12-30
Prototyping Life Cycle
12-31
User Interface Design
• Focuses on supporting the interactions between
end users and their computer-based applications
• Designers concentrate on the design of attractive
and efficient forms of user input and output
• Frequently a prototyping process
• Produces detailed design specifications for
information products, such as display screens
12-32
Checklist for Corporate Websites
•
•
•
•
•
•
•
•
Remember the customer
Aesthetics
Broadband content
Easy to navigate
Searchability
Incompatibilities
Registration forms
Dead links
12-33
System Specifications
• Formalizing the design of
•
•
•
•
User interface methods and products
Database structures
Processing procedures
Control procedures
12-34
Examples of System Specifications
User interface
specifications
Use personalized screens that welcome repeat Web
customers and that make product recommendations
Database
specifications
Develop databases that use object/relational database
management software to organize access to all customer
and inventory data and to multimedia product information
Software
specifications
Acquire an e-commerce software engine to process all
e-commerce transactions with fast responses, i.e., retrieve
necessary product data and compute all sales amounts in
less than one second
Hardware
and network
specifications
Install redundant networked Web servers and sufficient
high-bandwidth telecommunications lines to host the
company e-commerce website
Personnel
specifications
Hire an e-commerce manager and specialists and a
webmaster and Web designer to plan, develop, and
manage e-commerce operations
12-35
End User Development
• IS professionals play a consulting role, while
uses do their own application development
• A staff of user consultants may be available
to help with analysis, design, and installation
• Other support
• Application package training
• Hardware and software advice
• Help gaining access to organization databases
12-36
Focus on IS Activities
• End user development should focus on the
fundamental activities of an information system
•
•
•
•
•
Input
Processing
Output
Storage
Control
12-37
Focus of End User Development
12-38
Doing End User Development
• Application development capabilities built into
software packages make it easier for end users
to develop their own solutions
12-39
Encouraging End User Web Development
• Look for tools that make sense
• Some are more powerful or costly than needed
• Spur creativity
• Consider a competition among departments
• Set some limits
• Limit what parts of a web page or site can
be changed and who can do it
• Give managers responsibility
• Make them personally responsible for content
12-40
Encouraging End User Web Development
• Make users comfortable
• Training will make users more confident
• It can save the IT department the trouble
of fixing problems later on
• It can limit the need for continuous support
12-41
Implementing New Systems
• The systems implementation stage involves
•
•
•
•
•
•
Hardware and software acquisition
Software development
Testing of programs and procedures
Conversion of data resources
Conversion alternatives
Education/training of end users and
specialists who will operate the new system
12-42
Implementation Process
12-43
Case 2: Managing Radical Change
• HP is embarking on a makeover of its internal
tech systems
• Replacing 85 loosely connected data centers
around the world with 6 cutting-edge facilities
• Cutting thousands of smaller projects to focus
on a few corporate-wide initiatives
• Scrapping 784 databases for one data warehouse
• Laying off thousands of IT workers
• Building its own fiber-optic network to connect
the six data centers
12-44
Case Study Questions
• Will the initiatives being undertaken by CIO
Randy Mott to implement major changes to the
IT function at HP make IT a more efficient and
vital contributor to HP’s business success?
• Defend your position on each of the major
initiatives he is implementing
• Do you approve of the change management job
Mott is doing, including his meetings with HP
employees throughout the world, and having
“coffee talks” with them?
12-45
Case Study Questions
• Assume you have been hired as a management
consultant or coach to CIO Mott
• What are several suggestions you might
give him to help him successfully implement
his ambitious plans for IT changes at HP?
12-46
Project Management
• The skills and knowledge necessary to be
a good project manager will translate into
virtually any project environment
• The people who have acquired them
are sought after by most organizations
12-47
What is a Project?
• Every project has
•
•
•
•
•
•
A set of activities with a clear beginning and end
Goals
Objectives
Tasks
Limitations or constraints
A series of steps or phases
• Managing a project effectively requires
• Process
• Tools
• Techniques
12-48
Sample Implementation Process
12-49
Phases of Project Management
• There are five phases in most projects
•
•
•
•
•
Initiating/Defining
Planning
Executing
Controlling
Closing
12-50
Initiating/Defining Phase
• Example activities
•
•
•
•
State the problem(s) and/or goal(s)
Identify the objectives
Secure resources
Explore the costs/benefits in the feasibility study
12-51
Planning Phase
• Example activities
• Identify and sequence activities
• Identify the “critical path”
• Estimate the time and resources needed for
project completion
• Write a detailed project plan
12-52
Execution Phase
• Example activities
• Commit resources to specific tasks
• Add additional resources and/or personnel
if necessary
• Initiate work on the project
12-53
Controlling Phase
• Example activities
•
•
•
•
Establish reporting obligations
Create reporting tools
Compare actual progress with baseline
Initiate control interventions, if necessary
12-54
Closing Phase
• Example activities
•
•
•
•
•
•
Install all deliverables
Finalize all obligations and commitments
Meet with stakeholders
Release project resources
Document the project
Issue a final report
12-55
Evaluating Hardware, Software, Services
• Establish minimum physical and performance
characteristics for all hardware and software
• Formalize these requirements in an RFP/RFP
• Send RFQ to appropriate vendors
• Evaluate bids when received
•
•
•
•
All claims must be demonstrated
Obtain recommendations from other users
Search independent sources for evaluations
Benchmark test programs and test data
12-56
Hardware Evaluation Factors
• Major evaluation factors
•
•
•
•
•
•
•
•
•
•
Performance
Cost
Reliability
Compatibility
Technology
Ergonomics
Connectivity
Scalability
Software
Support
12-57
Software Evaluation Factors
• Hardware evaluation factors apply to software,
as do these
•
•
•
•
•
•
•
•
Quality
Efficiency
Flexibility
Security
Connectivity
Maintenance
Documentation
Hardware
Software that is slow,
hard to use, bug-filled,
or poorly documented
is not a good choice
at any price
12-58
Evaluating IS Services
• Examples of IS services
•
•
•
•
•
•
•
Developing a company website
Installation or conversion of hardware/software
Employee training
Hardware maintenance
System design and/or integration
Contract programming
Consulting services
12-59
IS Service Evaluation Factors
• IS evaluation factors include
•
•
•
•
•
•
•
•
•
•
Performance
Systems development
Maintenance
Conversion
Training
Backup facilities and services
Accessibility to sales and support
Business position and financial strength
Hardware selection and compatibility
Software packages offered
12-60
Other Implementation Activities
• The keys to successful implementation of
a new business system
•
•
•
•
Testing
Data conversion
Documentation
Training
12-61
System Testing
• System testing may involve
•
•
•
•
Testing and debugging software
Testing website performance
Testing new hardware
Review of prototypes
12-62
Data Conversion
• Data conversion includes
• Converting data elements from the old database
to the new database
• Correcting data errors
• Filtering out unwanted data
• Consolidating data from several databases
• Organizing data into new data subsets
• Improperly organized and formatted data is a
major cause of implementation failures
12-63
Documentation
• User Documentation
• Sample data entry screens, forms, reports
• System operating instructions
• Systems Documentation
• Method of communication among those
developing, implementing, and maintaining
a computer-based system
• Detailed record of the system design
• Extremely important when diagnosing
problems and making system changes
12-64
Training
• End users must be trained to operate a new
business system or its implementation will fail
• May involve only activities, such as data entry,
or all aspects of system use
• Managers and end users must understand how
the new technology impacts business operations
• System training should be supplemented with
training related to
• Hardware devices
• Software packages
12-65
Major System Conversion Strategies
12-66
Direct Conversion
• Direct conversion
• The simplest conversion strategy
• The most disruptive to the organization
• Sometimes referred to as the slam dunk or
cold-turkey strategy
• May be the only viable solution in cases of
emergency implementation or if the old and
new system cannot coexist
• Has the highest risk of failure
• Involves turning off the old system and turning
on the new one
12-67
Parallel Conversion
• Old and new systems are run simultaneously
until everyone is satisfied that
• The new system functions correctly
• The old system is no longer needed
• Conversion to new system can be single
cutover or phased cutover
• Has the lowest risk, but the highest cost
• Can cost 4 times more than using the old system
• Best choice where an automated system is
replacing a manual one
12-68
Pilot Conversion
• Scenarios best suited to a pilot conversion
• Multiple business locations
• Geographically diverse locations
• Advantages of single location conversion
• Can select a location that best represents
the conditions across the organization
• Less risky in terms of loss of time or delays
in processing
• Can be evaluated and changed before further
installations
12-69
Phased Conversion
• A phased or gradual conversion
• Takes advantage of both the direct and parallel
approaches
• Minimizes the risks involved
• Allows the new system to be brought online
as logically ordered functional components
• Disadvantages
• Takes the most time
• Created the most disruption to the organization
over time
12-70
Post-Implementation Activities
• The single most costly activity
• Correcting errors or faults in the system
• Improving system performance
• Adapting the system to changes in the operating
or business environment
• Requires more programmers than does
application development
• May exist for years
12-71
Systems Maintenance
• There are four basic categories of system
maintenance
•
•
•
•
Corrective: fix bugs and logical errors
Adaptive: add new functionality
Perfective: improve performance
Preventive: reduce chances of failure
12-72
Post-Implementation Review
• Ensures that the newly implemented system
meets the established business objectives
• Errors must be corrected by the maintenance
process
• Includes a periodic review/audit of the system
as well as continuous monitoring
12-73
Case 3: Indiana University Financial Aid
• Success or failure is in the eye of the beholder
• A PeopleSoft implementation at Indiana
University resulted in denials of financial aid
• Contributors to the problem
• Software did not align with business processes
• Limited time for testing and training
• Interface issues between the loan systems at
lending institutions and the university
• Transactions blocked for minor exceptions
• Poor project management and tracking
12-74
Case 3: Indiana University Financial Aid
• Project management violations
•
•
•
•
•
Poor or no due diligence
No user training
Absence of system alerts
System interface problems were ignored
The complex project wasn’t broken down
into smaller, progressively delivered chunks
12-75
Case Study Questions
• As with any story, there are always two sides.
Indiana University sees the problem as a
surprise; outside observers see the problem as
predictable and preventable
• What do you think?
• Is it possible that some implementation problems
cannot be easily foreseen or prevented?
12-76
Case Study Questions
• What could Indiana University have done
differently to prevent this unfortunate even
from occurring?
• Is there evidence to suggest that it learned
from this experience?
12-77
Case 4: In-House Development
• Custom code continues to be the secret sauce
that gives many businesses an edge
• Making business processes faster and more
efficient
• Delivering new services
• Improving customer support
• Innovation in other ways, usually something
unique
12-78
Case 4: In-House Development
• The do-it-yourself approach isn’t cheap
• High salaries for developers and IT managers
• Dozens or hundreds of personnel needed
• Before, computer hardware dictated the choice
of operating systems and development software
• Developing in C++ costs half as much as
developing in Cobol
• Newer packages unhitch programmers from
mainframes and proprietary platforms
12-79
Case Study Questions
• Jeff Brandmaier, senior VP and CIO at H&R
Block Inc., describes in-house developed
applications as “the stuff that gives you
competitive advantage.”
• Why do you think he feels this way?
• Can a modern organization be competitive
without developing any applications in-house?
12-80
Case Study Questions
• The case points out that despite the use of vendor
applications, there is “still a lot of manually
intensive work that goes on in the development
process.”
• Why do you think vendor applications still
require in-house developers?
12-81