Chapter 12
Implementing
Business/IT Solutions
Section 1
Developing Business Systems
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II. The Systems Approach
 Uses a systems orientation to defining and solving
problems and opportunities
 Problem Solving – there are specific steps in solving
any problem
 Recognize/Define a Problem or Opportunity – recognize it
exists
 Develop and Evaluate Alternative System Solutions – what
are the different ways to solve this problem?
 Select the Best System Solution – decide which alternative is
best
 Design the Selected System Solution – design the system for
the chosen solution
 Implement and Evaluate the Success of the Designed System
– put the solution into effect and monitor results for the
outcome
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II. The Systems Approach
Systems Thinking
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The Systems Development Life Cycle
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Systems Development Lifecycle (SDLC) Waterfall Development Methodology
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VI. Systems Design
The Prototyping Process
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IV. Starting the Systems Development
Process
 Systems development can be very costly,
investigations are made to determine whether to
proceed
 Feasibility Studies – identify needs, resources, costs,
benefits
 Operational Feasibility – will the proposed system
fit existing business environment and objectives?
 Technical Feasibility – degree to which current
technical resources can be applied to the new
system
 Human Factors Feasibility – assess the degree of
approval/resistance to the new system
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IV. Starting the Systems Development
Process
Economic Feasibility – the extent to which the
proposed system will provide positive
economic benefits to the organization
 Cost/Benefit Analysis – do the benefits justify the costs?
 Tangible Costs/Benefits – can be calculated/quantified
(hardware, software, increase in payroll)
 Intangible Benefits – hard to calculate (customer
approval, political feedback)
Legal/Political Feasibility – what are the
legal/political ramifications of the new
system?
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IV. Starting the Systems Development Process
Feasibility Factors
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Cost/Benefit Analysis
• Costs versus Benefits
• Tangible costs and benefits can be quantified with a
high degree of certainty
– Example: decrease in operating costs
• Intangible costs and benefits are harder to estimate
– Example: improved customer service
11
Assess Financial Viability
Net Present Value
 PV
= Cash flow amount
(1 + interest rate)n , where


 NPV
interest rate = required return
n = number of years in future
=  PV(future cash inflows) – 
PV(future cash outflows)
12
Assess Financial Viability
Return on Investment
ROI = NPV
PV(cash outflows)
Generally, if
NPV>=0,
Project is OK
If NPV < 0,
Project is
unacceptable
10-13
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VI. Systems Design
• Create a new system to solve the
problem/opportunity
• Prototyping – create working models of the
proposed system
• The Prototyping Process – prototypes are
developed quickly for trial by users to obtain
user feedback
• User Interface Design – critical because the
interface is the part of the systems closest to the
user
• System Specifications – listing of elements that
formalize the design
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Tracking Tasks Using Gantt Chart
2
3
Task
4 5 6
Week
7 8 9
10
11
12
13
Go to Library
Go to Bookstore
Select and Purchase Book
Skim Book
Write Phase One
Read Book Carefully
Write Phase Two
10-15
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Tracking Tasks Using PERT Chart
Go to Library
4 weeks
Go to Bookstore
4 weeks
Select and
purchase book
1 week
Skim book
3 weeks
Write Phase One
2 weeks
Write Phase Two
3 weeks
Read book carefully
3 weeks
10-16
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Section 2
Implementing Strategic Business Systems
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II. Implementing New Systems
May be difficult and time-consuming
The Implementation Process
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Hardware Evaluation Factors
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Performance
Cost
Reliability
Compatibility
Technology
Ergonomics
Connectivity
Scalability
Software
Support
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Software Evaluation Factors
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Quality
Efficiency
Flexibility
Security
Connectivity
Maintenance
Documentation
Hardware
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IS Services Evaluation Factors
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Performance
Systems development
Maintenance
Conversion
Training
Backup
Accessibility
Business Position
Hardware
Software
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V. Other Implementation Activities
Testing – testing and debugging are important,
does the system work as it should?
Data Conversion – new implementations often
require replacing software and databases
Documentation – an important means of
communication, often overlooked
Training – training users is vital, usually underbudgeted, and expensive
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V. Other Implementation Activities
System Conversion Strategies
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V. Other Implementation Activities
 System Conversion Strategies – cutting over to the
new system
 Parallel – most expensive but safest, run both systems
until everyone is satisfied, then turn off old system
 Pilot – let only a select few users use the new system
until they are happy, then implement the new system
for everyone; best user representation can be selected
for the trials
 Phased (Modular) – gradual conversion one module at a
time, combines best of both direct and modular while
minimizing risks
 Direct – simplest but most dangerous method, turn off
the old system and turn on the new one
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V. Other Implementation Activities
 Postimplementation Activities – Use and Maintenance
– the longest and most costly phase of a system’s life;
correct errors, improve performance, adapt to
changes in the business environment
 Systems Maintenance – making changes to the system
 Corrective – fix errors
 Adaptive – adding new functionality
 Perfective – improve performance
 Preventative – reduce chances of future system failure
 Postimplementation Review – ensure the new system
meets established business objectives
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