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ManagementInformationSystems
MANAGINGTHEDIGITALFIRM,12TH EDITION
CHAPTER13:BUILDINGINFORMATIONSYSTEMS
LearningObjectives
Chapter13
BUILDINGINFORMATIONSYSTEMS
Howdoesbuildingnewsystemsproduce organizationalchange? Whatarethecoreactivitiesinthesystems developmentprocess? Whataretheprincipalmethodologiesformodeling anddesigningsystems?
VIDEOCASES
Case1:IBM:BusinessProcessManagementinaServiceOrientedArchitecture andManagingProjects Case2:RapidApplicationDevelopmentWithAppcelerator InstructionalVideo1:SalesforceandGoogle:DevelopingSalesSupportSystemswith OnlineApps
Whatarethealternativemethodsforbuilding informationsystems? Whatarenewapproachesforsystembuildinginthe d digital lf firmera?

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CIMBGroupRedesignsItsAccountOpeningProcess
SystemsasPlannedOrganizationalChange
Problem: FinancialservicesproviderCIMBgroup wantedtoimproveefficiencyinbusinessprocesses, specificallyprocessofopeningaccountsatbranch Solutions:ARISBPMtoolused toidentify25areas p gefficiency. y UtilizedMalaysias y forimproving governmentIDsmartcardtoautomateinputting customerdata,reducingtimespentby50% Demonstratestheuseofinformationsystemsto streamlineandredesignbusinessprocesses Illustratesfirstkeystepinbuildingnewsystem analysis l i
StructuralorganizationalchangesenabledbyIT 1. Automation Increasesefficiency Replacesmanualtasks 2. Rationalizationofprocedures Streamlinesstandardoperatingprocedures Oftenfoundinprogramsformakingcontinuous qualityimprovements

Totalqualitymanagement(TQM) Six Si sigma i
ORGANIZATIONAL CHANGECARRIES RISKSAND REWARDS
Themostcommonformsof organizationalchangeare automationandrationalization. Theserelativelyslowmoving and dslow l changing h i strategies t t i presentmodestreturnsbut littlerisk.Fasterandmore comprehensivechangesuch asredesignandparadigm shiftscarrieshighrewards butofferssubstantialchances offailure. FIGURE131
StructuralorganizationalchangesenabledbyIT 3. Businessprocessredesign Analyze, Analyze simplify simplify,andredesignbusiness processes Reorganize R i workflow, kfl combine bi steps,eliminate li i repetition 4. Paradigmshifts Rethinknatureofbusiness Definenewbusinessmodel Change Ch natureof forganization i i
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ASISBUSINESSPROCESSFORPURCHASINGABOOKFROMAPHYSICALBOOKSTORE
Businessprocessmanagement(BPM)
Varietyoftools,methodologiestoanalyze,design, optimizeprocesses Usedbyfirmstomanagebusinessprocessredesign
StepsinBPM
1.Identifyprocessesforchange 2.Analyzeexistingprocesses 3 Designthenewprocess 3.Design 4.Implementthenewprocess 5.Continuousmeasurement
FIGURE132
Purchasingabookfromaphysicalbookstorerequiresmanystepstobeperformedbyboththesellerand thecustomer. c stomer
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REDESIGNEDPROCESSFORPURCHASINGABOOKONLINE
VarietyoftoolsforBPM,to
Identifyanddocumentexistingprocesses
Identifyinefficiencies
FIGURE133
UsingInternettechnologymakesitpossibletoredesigntheprocessforpurchasingabooksothatitrequires fe erstepsandconsumes fewer cons mesfewer fe erresources. reso rces
Createmodelsofimprovedprocesses Captureandenforcebusinessrulesforperforming processes Integrateexistingsystemstosupportprocess improvements Verify V if that th tnewprocessesh haveimproved i d Measureimpactofprocesschangesonkeybusiness performance f i indicators di
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OverviewofSystemsDevelopment
CANBUSINESSPROCESSMANAGEMENTMAKEADIFFERENCE?
ReadtheInteractiveSessionanddiscussthefollowingquestions
Systemsdevelopment:
Activitiesthatgointoproducinganinformation y solutiontoanorganizational g problem p or system opportunity 1 Systemsanalysis 1.Systems 2.Systemsdesign 3.Programming 4.Testing . est g 5.Conversion 6 P d i and 6.Production dmaintenance i
WhyarelargecompaniessuchasAmerisourceBergenand Di b ldgood Diebold dcandidates did t for f b business i processmanagement? t? Whatwerethebusinessbenefitsforeachcompanyfrom redesigningandmanagingtheirbusinessprocesses? HowdidBPMchangethewaythesecompaniesrantheir businesses? WhatmightbesomeoftheproblemswithextendingBPM softwareacrossalargenumberofbusinessprocesses? p standtog gainthemostby yimplementing p g Whatcompanies BPM?
THESYSTEMS DEVELOPMENT PROCESS
Buildingasystemcanbe brokendownintosixcore activities. FIGURE134
Systemsanalysis
Analysisofproblemtobesolvedbynewsystem
Definingtheproblemandidentifyingcauses Specifyingsolutions
Systemsproposalreportidentifiesandexaminesalternative solutions
Identifyinginformationrequirements
Includesfeasibilitystudy
I Issolution l ti f feasible ibl and dgood di investment? t t? Isrequiredtechnology,skillavailable?
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Systemanalysis(cont.)
Establishinginformationrequirements Who Wh needs d what h ti information, f ti where, h when, h andhow Defineobjectivesofnew/modifiedsystem Detailthefunctionsnewsystem y mustperform p Faultyrequirementsanalysisisleadingcauseof systemsfailureandhighsystemsdevelopment cost
Systemsdesign
Describessystemspecificationsthatwilldeliver functionsidentifiedduringsystemsanalysis Shouldaddressallmanagerial,organizational,and g components p ofsystem y solution technological Roleofendusers
Userinformationreq requirements irementsdri drive es system stemb building ildin Usersmusthavesufficientcontroloverdesignprocessto ensuresystemreflectstheirbusinessprioritiesand informationneeds g effortismajor j cause Insufficientuserinvolvementindesign ofsystemfailure
OUTPUT Medium Content Timing INPUT Origins Flow Data entry USER INTERFACE Simplicity Efficiency Logic Feedback Errors DATABASE DESIGN Logical data model Volume and speed requirements File organization and design Record specifications
PROCESSING Computations Program modules Required reports Timing of outputs MANUAL PROCEDURES What activities Who performs them When H How Where CONTROLS Input p controls ( (characters, , limit, , reasonableness) ) Processing controls (consistency, record counts) Output controls (totals, samples of output) Procedural controls (passwords, special forms) SECURITY Access controls Catastrophe plans Audit trails
DOCUMENTATION Operations documentation Systems documents User documentation CONVERSION Transfer files Initiate new procedures Select testing method Cut over to new system TRAINING Select training techniques Develop training modules Identify y training g facilities ORGANIZATIONAL CHANGES Task redesign Job redesign Process design Organization structure design Reporting relationships
Programming:
Systemspecificationsfromdesignstageare translatedintosoftwareprogramcode
Testing
Ensuressystemproducesrightresults Unittesting:Testseachprograminsystemseparately Systemtesting:Testfunctioningofsystemasawhole Acceptancetesting:Makessuresystemisreadytobe usedinproductionsetting Testplan:Allpreparationsforseriesoftests
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ASAMPLETESTPLANTOTESTARECORDCHANGE
Conversion
Processofchangingfromoldsystemtonewsystem Fourmainstrategies
1. 2. 3. 4. Parallelstrategy Directcutover Pilotstudy Phasedapproach
FIGURE135
Whendevelopingatestplan, plan itisimperativetoincludethevariousconditionstobetested tested,the requirementsforeachconditiontested,andtheexpectedresults.Testplansrequireinputfrombothend usersandinformationsystemsspecialists.
Requiresendusertraining Finalizationofdetaileddocumentationshowinghow systemworksfromtechnicalandenduser standpoint

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SUMMARY OF SYSTEMS DEVELOPMENT ACTIVITIES CORE ACTIVITY
Systems analysis
Productionandmaintenance
Systemreviewedtodetermineifrevisionsneeded Mayincludepostimplementationauditdocument Maintenance
Changes h inh hardware, d software, f d documentation,or procedurestoaproductionsystemtocorrecterrors, meetnewrequirements requirements,orimproveprocessing efficiency
20%debugging,emergencywork 20%changestohardware,software,data,reporting 60%ofwork:Userenhancements,improvingdocumentation, recodingforgreaterprocessingefficiency
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DESCRIPTION
Identify problem(s) Specify solutions Establish information requirements Create design specifications
Systems design
Programming
Translate design specifications into code d Unit test Systems test Acceptance test Plan conversion Prepare documentation Train users and technical staff Operate the system Evaluate the system Modify the system
Testing
Conversion
Production and maintenance
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Mostprominentmethodologiesformodelingand designingsystems:
1. Structuredmethodologies 2. Objectorienteddevelopment
Dataflowdiagram:
Primarytoolforrepresentingsystemscomponent processesandflowofdatabetweenthem Offerslogicalgraphicmodelofinformationflow High g levelandlowerleveldiagrams g canbeusedtobreak processesdownintosuccessivelayersofdetail Datadictionary:Definescontentsofdataflowsanddatastores Processspecifications:Describetransformationoccurring withinlowestlevelofdataflowdiagrams Structurechart:Topdownchart,showingeachlevelofdesign, relationshiptootherlevels levels,andplaceinoveralldesignstructure
Structuredmethodologies

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Structured:Techniquesarestepbystep, step progressive Processoriented:Focusingonmodelingprocesses oractionsthatmanipulatedata Separatedatafromprocesses

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DATAFLOWDIAGRAMFORMAILINUNIVERSITYREGISTRATIONSYSTEM
HIGHLEVELSTRUCTURECHARTFORAPAYROLLSYSTEM
FIGURE136
Thesystemhasthreeprocesses:Verifyavailability(1.0),Enrollstudent(2.0),andConfirmregistration(3.0). Thenameandcontentofeachofthedataflo flows sappearadjacenttoeacharro arrow.Thereisonee external ternalentit entity inthissystem:thestudent.Therearetwodatastores:thestudentmasterfileandthecoursefile.
FIGURE137
Thisstructurechartshowsthehighestormostabstractlevelofdesignforapayrollsystem,providingan o er ie oftheentires overview system. stem
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CLASSAND INHERITANCE
Thisfigureillustrateshow classesinheritthecommon featuresoftheirsuperclass. superclass FIGURE138
Objectorienteddevelopment
Objectisbasicunitofsystemsanalysisanddesign
Object:
Combinesdataandtheprocessesthatoperateonthosedata Dataencapsulatedinobjectcanbeaccessedandmodified onlybyoperations,ormethods,associatedwiththatobject
Objectorientedmodelingbasedonconceptsofclass andinheritance
Objectsbelongtoacertainclassandhavefeaturesofthat class ayinherit e tstructures st uctu esand a dbehaviors be a o sof o amore o egeneral, ge e a , May ancestorclass
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Objectorienteddevelopment
Moreiterativeandincrementalthantraditional p structureddevelopment
Systemsanalysis:Interactionsbetweensystemandusers analyzedtoidentifyobjects Designphase:Describeshowobjectswillbehaveand interact;groupedintoclasses,subclassesandhierarchies Implementation: Someclassesmaybereusedfromexisting libraryofclasses,otherscreatedorinherited
Computeraidedsoftwareengineering(CASE)
Softwaretoolstoautomatedevelopmentandreduce p work, ,including g repetitive
Graphicsfacilitiesforproducingchartsanddiagrams p g generators,reporting p gfacilities Screenandreport Analysisandcheckingtools Datadictionaries Codeanddocumentationgenerators
Becauseobjectsarereusable,objectoriented developmentcanpotentiallyreducetimeandcostof d l development t

Supportiterativedesignbyautomatingrevisionsand changesandprovidingprototypingfacilities Requireorganizationaldisciplinetobeusedeffectively

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AlternativeSystemsBuildingApproaches
AlternativeSystems y Building gMethods

Traditionalsystemslifecycle Prototyping Enduserdevelopment Application pp softwarepackages p g Outsourcing
Traditionalsystemslifecycle:
Oldestmethodforbuildinginformationsystems Phasedapproachdividesdevelopmentintoformal stages
Followswaterfall waterfall approach:Tasksinonestagefinish beforeanotherstagebegins
Maintainsformaldivisionoflaborbetweenendusers andinformationsystemsspecialists Emphasizesformalspecificationsandpaperwork Stillusedforbuildinglargecomplexsystems Canbecostly,timeconsuming,andinflexible

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THEPROTOTYPING PROCESS
Theprocessofdevelopingaprototype canbebrokendownintofoursteps. Becauseaprototypecanbedeveloped quicklyandinexpensively,systems builderscangothroughseveral iterations,repeatingsteps3and4,to prototype yp before refineandenhancethep arrivingatthefinaloperationalone. FIGURE139
Prototyping
Buildingexperimentalsystemrapidlyand p yforenduserstoevaluate inexpensively Prototype:Workingbutpreliminaryversionof informationsystem
Approvedprototypeservesastemplateforfinalsystem
Steps S in i prototyping i
1. 2. 3. 4.
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Identifyuserrequirements Developinitialprototype Useprototype Reviseandenhanceprototype

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Advantagesofprototyping
Usefulifsomeuncertaintyinrequirementsordesign solutions Oftenusedforenduserinterfacedesign More M lik likely l tof fulfill lfillend duserrequirements i
Enduserdevelopment:
Usesfourthgenerationlanguagestoallowendusers psystems y withlittleornohelp pfrom todevelop technicalspecialists Fourthgenerationlanguages:Lessproceduralthan conventionalprogramminglanguages

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Disadvantages g
Mayglossoveressentialsteps Maynotaccommodatelargequantitiesofdataor largenumberofusers
Maynotundergofulltestingordocumentation
PCsoftwaretools Querylanguages Reportgenerators G hi l Graphics languages Applicationgenerators Application pp softwarep packages g Veryhighlevelprogramminglanguages
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Enduserdevelopment(cont.):
Advantages:
Morerapid p completion p ofprojects p j Highlevelofuserinvolvementandsatisfaction
Applicationsoftwarepackages
Savetimeandmoney Manyoffercustomizationfeatures:
Softwarecanbemodifiedtomeetuniquerequirementswithout destroyingintegrityofpackagesoftware
Disadvantages:
Notdesignedforprocessingintensiveapplications q management g andcontrol, ,testing, g, Inadequate documentation Lossofcontroloverdata
Evaluationcriteriaforsystemsanalysisinclude:
Functionsprovidedbythepackage,flexibility,userfriendliness, hardwareandsoftwareresources, resources databaserequirements, requirements installationandmaintenanceefforts,documentation,vendor quality,andcost
Managingenduserdevelopment
Require q costj justificationofendusersystem y projects p j Establishhardware,software,andqualitystandards
RequestforProposal(RFP)
Detailedlistofquestionssubmittedtopackagedsoftwarevendors Used U dtoevaluate l alternative l i software f packages k
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Outsourcing
Severaltypes
CloudandSaaSproviders
Subscribingcompaniesusesoftwareandcomputerhardware providedby p yvendors
Outsourcing(cont.)
Advantages Allows All organization i ti fl flexibility ibilit i inITneeds d Disadvantages Hiddencosts,e.g.
Identifyingandselectingvendor Transitioningtovendor
Externalvendors
Hiredtodesign, g ,createsoftware Domesticoutsourcing Drivenbyfirmsneedforadditionalskills,resources, assets Offshoreoutsourcing Drivenbycostsavings
Opening O i upproprietary i business b i processesto thirdparty

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TOTALCOSTOFOFFSHOREOUTSOURCING
ApplicationDevelopmentfortheDigitalFirm
Rapidapplicationdevelopment(RAD)
Processofcreatingworkablesystemsinaveryshort periodoftime p Utilizestechniquessuchas: Visualprogrammingandothertoolsforbuilding graphicaluserinterfaces Iterativeprototypingofkeysystemelements program g codegeneration g Automationofp Closeteamworkamongendusersandinformation systemsspecialists
FIGURE1310
Ifafirmspends$10milliononoffshoreoutsourcingcontracts,thatcompanywillactuallyspend15.2 percentinextracostsevenunderthebestcasescenario.Intheworstcasescenario, p ,wherethereisa dramaticdropinproductivityalongwithexceptionallyhightransitionandlayoffcosts,afirmcanexpectto payupto57percentinextracostsontopofthe$10millionoutlayforanoffshorecontract.
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Jointapplicationdesign(JAD)
Usedtoaccelerategenerationofinformation requirementsandtodevelopinitialsystems design Brings i end dusersand di information f i systems specialiststogetherininteractivesessionto di discuss systems d design i Cansignificantly g yspeed p up pdesign g p phaseand involveusersatintenselevel
Agiledevelopment
Focusesonrapiddeliveryofworkingsoftwareby glarge g p project j intoseveralsmallsubp projects j breaking Subprojects
T Treated t dasseparate, t complete l t projects j t Completedinshortperiodsoftimeusingiterationand continuousfeedback
Emphasizesfacetofacecommunicationoverwritten d documents, t allowing ll i collaboration ll b ti and dfaster f t decisionmaking

Componentbaseddevelopment
Groupsofobjectsthatprovidesoftwareforcommon (e.g., g ,onlineordering) g)andcanbecombinedto functions( createlargescalebusinessapplications Webservices
ReusablesoftwarecomponentsthatuseXMLandopenInternet standards(platform p independent) p Enableapplicationstocommunicatewithnocustom programmingrequiredtosharedataandservices Can C engageother th W Web bservices i f formorecomplex l t transactions ti Usingplatformanddeviceindependentstandardscanresultin significantcostsavingsandopportunitiesforcollaborationwith othercompanies
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher.
Pi t di Printed in th the U United it d St States t of fA America. i Copyright 2011 Pearson Education, Inc. P bli hi as Prentice Publishing P ti Hall H ll
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ManagementInformationSystems

Howdoesbuildingnewsystemsproduce organizationalchange? Whatarethecoreactivitiesinthesystems developmentprocess? Whataretheprincipalmethodologiesformodeling anddesigningsystems?

Whatarethealternativemethodsforbuilding informationsystems? Whatarenewapproachesforsystembuildinginthe d digital lf firmera?

StructuralorganizationalchangesenabledbyIT 1. Automation Increasesefficiency Replacesmanualtasks 2. Rationalizationofprocedures Streamlinesstandardoperatingprocedures Oftenfoundinprogramsformakingcontinuous qualityimprovements

Prentice Hall 2011

Purchasingabookfromaphysicalbookstorerequiresmanystepstobeperformedbyboththesellerand thecustomer. c stomer

Prentice Hall 2011

UsingInternettechnologymakesitpossibletoredesigntheprocessforpurchasingabooksothatitrequires fe erstepsandconsumes fewer cons mesfewer fe erresources. reso rces

Prentice Hall 2011

Prentice Hall 2011

Whendevelopingatestplan, plan itisimperativetoincludethevariousconditionstobetested tested,the requirementsforeachconditiontested,andtheexpectedresults.Testplansrequireinputfrombothend usersandinformationsystemsspecialists.

Requiresendusertraining Finalizationofdetaileddocumentationshowinghow systemworksfromtechnicalandenduser standpoint

Prentice Hall 2011

Production and maintenance

Prentice Hall 2011

Structured:Techniquesarestepbystep, step progressive Processoriented:Focusingonmodelingprocesses oractionsthatmanipulatedata Separatedatafromprocesses

Thesystemhasthreeprocesses:Verifyavailability(1.0),Enrollstudent(2.0),andConfirmregistration(3.0). Thenameandcontentofeachofthedataflo flows sappearadjacenttoeacharro arrow.Thereisonee external ternalentit entity inthissystem:thestudent.Therearetwodatastores:thestudentmasterfileandthecoursefile.

Thisstructurechartshowsthehighestormostabstractlevelofdesignforapayrollsystem,providingan o er ie oftheentires overview system. stem

Prentice Hall 2011

Prentice Hall 2011

Becauseobjectsarereusable,objectoriented developmentcanpotentiallyreducetimeandcostof d l development t

Supportiterativedesignbyautomatingrevisionsand changesandprovidingprototypingfacilities Requireorganizationaldisciplinetobeusedeffectively

AlternativeSystems y Building gMethods

Maintainsformaldivisionoflaborbetweenendusers andinformationsystemsspecialists Emphasizesformalspecificationsandpaperwork Stillusedforbuildinglargecomplexsystems Canbecostly,timeconsuming,andinflexible

Identifyuserrequirements Developinitialprototype Useprototype Reviseandenhanceprototype

Opening O i upproprietary i business b i processesto thirdparty

Prentice Hall 2011

Emphasizesfacetofacecommunicationoverwritten d documents, t allowing ll i collaboration ll b ti and dfaster f t decisionmaking

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