Chapter 11

Building Information Systems and Managing Projects

Student Objectives
1. Identify and describe the core problem-solving steps for developing new information
systems.
. Evaluate alternative methods for building information systems.
!. Compare alternative methodologies for modeling and designing systems.
". Determine how information systems projects should be selected and evaluated.
#. Assess requirements for successfully managing change created by new systems.
Chapter Outline
11.1 Problem Solving and Systems Development
Defining and nderstanding the !roblem
Developing Alternative "olutions
Evaluating and Choosing "olutions
Implementing the "olution
11.2 Alternative Systems-Building Approaches
#raditional "ystems Development $ifecycle
!rototyping
End-ser Development
!urchasing "olutions% Application "oftware !ac&ages and 'utsourcing
(apid Application Development for E-)usiness
11.3 Modeling and Designing Systems
"tructured *ethodologies
'bject-'riented Development
Computer-Aided "oftware Engineering +CA"E,
11.4 Project Management
!roject *anagement 'bjectives
"electing !rojects% *a&ing the )usiness Case for a -ew "ystem
*anaging !roject (is& and "ystem-(elated Change
*anaging !rojects on a .lobal "cale
11.5 Hands-on MIS
$ey %erms
#he following alphabetical list identifies the &ey terms discussed in this chapter. #he page
number for each &ey term is provided.
Acceptance testing/ 012 !E(# charts/ 034
Component-based development/ 056 !hased approach/ 012
Computer-aided software engineering
+CA"E,/ 056
!ortfolio analysis/ 055
Conversion/ 012 !rocess specifications/ 050
Customi7ation/ 058 !roduction/ 011
Data flow diagram +D9D,/ 054 !roject/ 052
Direct cutover/ 012 !roject management/ 052
Documentation/ 012 !rototyping/ 015
End-user development/ 013 (apid application development +(AD,/ 054
Ergonomics/ 034 (equest for !roposal +(9!,/ 058
9easibility study/ 010 "cope/ 052
9ormal planning and control tools/ 034 "coring model/ 038
.antt charts/ 034 "tructure chart/ 050
Implementation/ 03: "tructured/ 054
Information requirements/ 014 "ystem testing/ 012
Information systems plan/ 055 "ystems analysis/ 014
Intangible benefits/ 051 "ystems design/ 01;
<oint application design +<AD,/ 054 "ystems development life cycle +"D$C,/ 011
*aintenance/ 011 #angible benefits/ 051
'bject-oriented development/ 05; #est plan/ 012
'rgani7ational impact analysis/ 03; #esting/ 012
!arallel strategy/ 012 nit testing/ 012
%eaching Suggestions
#hroughout the te=tboo&/ the $audons> have stressed that information systems are sociotechnical
and part of the organi7ation. #his is an important point to reiterate to your students. A new
information system changes the way the organi7ation operates. "uccessful organi7ations choose
to change their structure and operations over time. #hey choose information systems designed to
mirror the organi7ational change and to serve it. -ew systems can change organi7ational
political arrangements and power relationships. #he information systems plan is the first step to
lin& the business plan to information systems. #he information systems plan helps an
organi7ation answer the following questions% ?hat do we need to do@ ?ho needs the
information@ ?ho creates it@ Aow can we create a system that will change our strategy or even
the business we are in@
Section 11.1, Problem Solving and Systems Development, #he opening case/ BA -ew
'rdering "ystem for .irl "cout Coo&iesC/ illustrates some of the steps required to design and
build new information systems. It also illustrates some of the benefits of a new system solution.
#he .irl "couts had an outdated manual paper-based system for processing coo&ie orders that
was e=cessively time consuming and error-ridden. #he .irl "couts tried several alternative
solutions before opting for a new ordering system using Duic&)ase as an application service
provider. As you wor& through the four steps of problem solution try to devise ways to put the
material into conte=t with your students> every day problems.
Section 11.2, Alternative Systems!"ilding Approac#es. #he traditional systems lifecycle
methodology is usually only used for very large/ comple= systems. #he "D$C is the oldest
method for building information systems. It is infle=ible and does not allow easy changes at any
step along the way. Aowever/ it can be effective for highly-structured systems such as
accounting/ payroll or comple= manufacturing systems. .overnment defense or space systems
often are mandated to use the system life cycle methodology because of the rigorous milestones
generated by the method.
End-user development is a hot area. Eou may want to note that originally/ personal computers
and spreadsheets were attempts by end users to provide their own end-user tools to get around
application bac&logs. End-user computing is difficult to manage and support. Aowever/ if
managed correctly it can be an effective way to meet end-user needs. And/ as usual/ ma&e sure
you emphasi7e that whether the organi7ation uses end-user development or some other approach/
the purpose of the system is to serve the strategies of the company and the end users.
Section 11.3, $odeling and Designing Systems. )oth object oriented software development
and ?eb services are very important to the changes and advancements in building information
systems because they contribute significantly to faster/ easier programming. Eou should review
these terms and concepts with your students to help them see why they are important and see the
trend of simplification that is growing. ?eb services enable firms to obtain software application
components delivered over the Internet for building new systems or integrating e=isting systems.
?eb services provide a common set of standards that enable organi7ations to lin& their systems
regardless of their technology platform through standard plug-and-play architecture.
)usinesses today are often required to build e-commerce and e-business applications very
rapidly to remain competitive. -ew systems are li&ely to have more interorgani7ational
requirements and processes than in the past. Companies are turning to rapid application design/
joint application design +<AD,/ and reusable software components to improve the systems
development process. (apid application development +(AD, uses object-oriented software/
visual programming/ prototyping/ and fourth-generation tools for very rapid creation of systems.
Component-based development e=pedites application development by grouping objects into
suites of software components that can be combined to create large-scale business applications.
Section 11.4, Pro%ect $anagement, "pend some time discussing why so many information
system projects fail. It is because the system wasn>t built correctly or was it really how the
project was managed or mismanaged that caused the failure@ #his section provides students with
an introduction to the methodology of project management. Although some of the techniques
and methods are considered older or less satisfactory/ students have a good chance of seeing
these methods in the wor&place. It is not a good idea to engage in a lengthy/ philosophical
discussion of the superiority of methods. Aowever/ it is a good idea to help students understand
that there is no one best method/ that each method is appropriate depending upon the situation
and the requirements. Eou should remind students of the largest problems% It ta&es too long to
build systems and they often do not wor& as intended. 'f course/ this is not always true/ but
building systems is difficult and labor intensive. #he point is to familiari7e students with
methods/ which after all/ are certainly better than no formal methods at all. Change certainly
should be a theme throughout the entire course. #he user-designer communication gap is a good
e=ample of a common problem that can cause an information systems project to fail. #he last
portion of the section provides some suggestions about managing global projects.
Interactive Session& People& 'orfman Pacific (olls Out a )e* +ireless +arehouse
Case Study ,uestions
1. Compare 'orfman Pacific-s old and ne* order.pic/ing processes. 'iagram the
processes.
#he old system% #he old process relied on paper-based processes and tacit &nowledge of the
facility and the company>s customers. #he company>s I# systems were spread out over various
functional areas and did little to support a transparent inventory. #he warehouse wor&er/ called a
pic&er/ received a paper pic& tic&et from a supervisor. #he pic&er drove a for&lift to the area of
the warehouse where he or she e=pected to find the bin that stored the product on the tic&et. #he
wor&er manually pic&ed bo=es off of the shelf and then brought them to a pac&ing area to be
bo=ed/ labeled/ and loaded onto a truc&. )ins were labeled manually/ ma&ing them difficult to
read. "ometimes the bo=es held more than one product. Each pic&er had his or her own
preferred path to performing pic&ing duties. #he company>s E(! system did not integrate well
with other systems.
#he new system% #he new system banished paper. #he new E(! system and the warehouse
management system used software to manage the pic&ing/ pac&ing/ and shipping processes.
!ic&ers carrying mobile devices receive data telling them where to go/ what to pic&/ and where to
bring the merchandise using the most efficient route. !ic&ers armed with wireless scanning
devices were assured that the bar-code-labeled bins contained only one product type each.
. +hat role did end users play in developing 'orfman-s *ireless *arehouse system0
+hat *ould have happened to the project if users hadn-t been so involved0 12plain your
ans*er.
!robably the most important characteristic of this project is that Dorfman approached the change
as a business project rather than an I# project. A cross-functional team consisting of an outside
consultant as project manager and managers from distribution/ purchasing/ customer services/
and sales wor&ed on the transformation. #he I# department too& responsibility for choosing
hardware/ installing the hardware and software for the wireless warehouse/ and appointed an
administrator for the new warehouse management system. #he employees had to change the way
they wor&ed. Dorfman too& the job of selling the new systems to its wor&ers very seriously/
convincing them that the wireless warehouse would improve their lives and their job
performance.
#he new system could have easily failed if the employees had felt threatened by the new system.
#hey could have sabotaged the implementation and caused wor& to be delayed. )ecause the
users were heavily involved in the system>s development/ they had a feeling of ownership and
responsibility to ensure the success of the implementation. #hey were able to mold the system
according to their priorities and business requirements. #hey were given more opportunities to
control the outcome of the project.
!. +hat types of system.building methods and tools did 'orfman use for building its
*ireless *arehouse system0
It appears Dorfman used a system development life cycle approach in the new project. It first
defined the problem/ identified the causes/ identified the solution objectives/ and identified its
information requirements. #hen it identified alternative solutions. -e=t it evaluated the
alternatives and chose the best solution. In the implementation phase it created detailed design
specifications/ acquired the hardware/ acquired the software/ tested the system/ trained
employees/ converted the system/ and the evaluated the solution.
". 3o* did the ne* system change the *ay 'orfman ran its business0
#he old paper-based system was completely eliminated. #rac&ing inventory became seamless.
All of the company>s systems were integrated. #he company was able to handle twice the
number of orders during pea& seasons and reduced its labor costs almost 08 percent. It eliminated
the need for temporary wor&ers and overtime/ thus saving the company upwards of F468/888.
#. +hat problems did the ne* system solve0 +as it successful0
CE' Douglass Aighsmith>s goals were to reduce labor costs and create the most efficient way
for a streamlined warehouse staff to pic& products with the smallest error rate. Apparently the
problems were solved because the company eliminated temporary wor&ers and overtime and
saved the company at least F468/888. #he new system>s success can also be measured in
employee satisfaction and acceptance of the new system.
MIS In 4ction
5se your +eb.searching capabilities to ans*er the follo*ing 6uestions.
1. +hat are some of the components of a *ireless *arehouse system0
Data Capture handheld devices/ barcode readers/ (9ID tags/ hardware including central data
repository/ and software including a database management system.
!utput% label printingGboth stationary and mobile wireless/ reports.
Access points radio frequency access points/ antennas/ networ& routers.
. +hat companies manufacture these components0
*any different companies manufacture the necessary components for wireless warehouse
systems. Dee Electronics/ *icromaster and Apprise are just a few. #he lin& below provides
access to the Apprise ?eb site for further information.
http%HHwww.apprise.comHproductsHdistributionHwarehouse.asp
!. +hat other businesses or organi7ations have implemented *ireless *arehouses0
#his lin& provides access to an I)* Case "tudy about how "outhern ?ine I "pirits
implemented a wireless warehouse system in four months.
http%HHwww-082.ibm.comHsoftwareHsuccessHcssdb.nsfHC"H<(D"-2?.!E#@
'penDocumentI"iteJcorpIctyJenKus
". If you *ere implementing a *ireless *arehouse8 *hat potential problems *ould *orry
you most0
"tudent answers will vary based on their e=periences and depth of &nowledge about wireless
warehouses.
Interactive Session& Organi7ations& +hat +ent +rong *ith Maine-s )e* Medicaid
System0
Case Study ,uestions
1. 3o* important are information systems for Maine-s 'epartment of 3uman Services0
4naly7e the impact of its faulty Medicaid claims processing system.
#he state provides medical coverage for over 428/888 of its residents/ processing over :88/888
claims per wee& before the overhaul project started. #he *edicaid program was becoming
increasingly comple= as new services were added/ each with codes and subcodes assigned to
them. #he state also wanted to provide access to patient eligibility and claim status data online so
providers wouldn>t have to ma&e a telephone call to receive the information.
"hortly after the new system was implemented/ it rejected claims more frequently than the old
system. ?ithin two months/ 088/888 claims were fro7en. #he number would eventually reach
nearly 268/888. "ome providers who weren>t getting paid because the system wouldn>t or
couldn>t process their claims/ were forced to turn away patients or even shut down their
operations. #he disaster cost the state an additional F08 million dollars. *ore than a year after
rolling out the new system/ *aine was the only state that still had not satisfied AI!AA
requirements.
. 1valuate the ris/s of the Medicaid claims processing system project and /ey ris/ factors.
Ley ris& factors include the project si7e/ project structure/ and the level of technical e=pertise of
the information systems staff and project team. (is&s are also higher for systems where
information requirements are not clear and straightforward or the project team must master new
technology.
#he state>s I# department decided that a completely new system would be more cost-effective
and easier to maintain than upgrading the old system. #he outsourcing company hired to wor&
with the Department of Auman "ervices I# staff had never before designed a *edicaid claims
system.
Although not e=plicitly stated in the case study/ it appears as though the end-users/ the health
care providers/ were not consulted with on any part of the project. #here was a lac& of regard for
critical management guidelines.
!. Classify and describe the problems the Main 'epartment of 3uman Services faced in
implementing its ne* Medicaid claims processing system. +hat people8 organi7ation8 and
technology factors caused these problems0
People% #he C-"I contractor had never designed a *edicaid claims system before. #here didn>t
appear to be any training for the end-users/ the health-care providers. #he project team had
difficulty obtaining input from the *edicaid e=perts on staff at the )ureau of *edical "ervices/
forcing the project team to ma&e judgments about *edicaid rules and requirements without
them. #he team then had to reprogram parts of the system once the *edicaid e=perts became
available. "ensing that they would never catch up/ the team began to ta&e shortcuts.
Organi7ation% #he state and outsourcing company allowed only twelve months from inception
to roll-out for a project of this magnitude. #hat simply wasn>t enough time to constructively
plan/ design/ and implement a system of this magnitude.
%echnology% ?hen the DA" launched the new claims processing system it did not have a
bac&up or parallel system to support the deployment because the legacy system was
incompatible with the new code numbers and electronic claim forms. A parallel system was not
feasible economically or technically.
". 'escribe the steps you *ould have ta/en to control the ris/ in the Maine Medicaid
project. If you *ere in charge of managing this project8 *hat else *ould you have done
differently to increase chances for success0
#he state should have been more concerned about hiring an outsourcer that had e=perience in
designing and implementing these &inds of systems. #hat>s especially true since the state had
decided to build an entirely new system rather than redesign its old one. *ore time should have
been given to the project. #welve months simply wasn>t enough time to perform all of the steps
necessary for a successful project. Aad the "tate and the outsourcer used !E(# charts and .antt
charts/ they would have reali7ed that fact.
"tate officials should have been more insistent on obtaining input from the *edicaid e=perts on
staff at the )ureau of *edical "ervices from the beginning of the project rather than waiting until
much later when some of the software had to be rewritten. *ore effort should have gone into
training end-users.
MIS In 4ction
9isit the Office of MaineCare Services on the +eb at ***.maine.gov:bms: and then
ans*er the follo*ing 6uestions.
&n'ormation in ans(ers to )"estions 1 and 2 (ere copied directly 'rom t#e *eb site.
1. +hat services are available through MaineCare online0
#he 'ffice of *aineCare "ervices/ formerly the )ureau of *edical "ervices/ was created to
administer the Department>s major health care financing programs and health care benefits.
*aineCare "ervices coordinates the programs and benefits/ assures that they operate under
consistent policy in &eeping with the Department>s goals and 9ederal mandates/ and provides
accountability necessary to determine that they are administered in an effective and efficient
manner.
#he programs and health care benefits that *aineCare "ervices administers are% MaineCare/
Maine 1ye Care/ Maine (2 Plus/ and 'rugs for the 1lderly and 'isabled.
. +hat information is available regarding MaineCare and its compliance *ith 3IP44
standards0
#he "tate of *aineMs *eC*" (elease *anagement #eam had announced that *aineCare was
ready to test A-"I N:4- ;8:8A: transactions +AI!AA standard,. Aowever/ due to a recently
discovered software defect/ the *eC*" (elease *anagement #eamMs ability to begin testing and
to receive ;8:8A: transactions has been delayed. After careful consideration/ the *eC*"
(elease *anagement #eam has decided to put the #rading !artner Enrollment and *igration
!rocess on hold indefinitely.
)ased on the *eC*" repair timelines/ the "tate of *aineMs Electronic Data Interchange +EDI,
#eam is unable to provide a specific date for resuming the 501 I enrollment and testing process.
#he schedule that was publici7ed for receiving and testing files has been cancelled. #he EDI
#eam will provide updates to this web site as new information is made available.
#he "tate of *aineMs *eC*" (elease *anagement #eam apologi7es for any inconvenience this
delay will cause to our customers.
*aineCare is currently in the process of selecting a fiscal agent vendor that will implement a
*edicaid *anagement Information "ystem +**I", for *aineCare. ?e are on trac& with a
scheduled implementation of this **I" by <anuary 48:8. It is not anticipated that any AI!AA
transactions will be supported by the current **I" system +*EC*", prior to the transition to
the new 9iscal Agent. #his includes the 501 AI!AA Claims% !rofessional/ Dental/ or
Institutional.
?e encourage you to visit our web site http%HHwww.maine.govHbmsHprovider.htm and to sign up
for the '*" $ist"erv http%HHmailman.informe.orgHmailmanHlistinfoHproviderH to receive provider
updates on this topic. #han& youO
!. +hat information is available for providers *ho have had or are still having problems
using MaineCare-s claims processing system0
A host of information is available on the ?eb site under the *EC*" page lin&. It gives
providers and end-users a list of documents and B!rovider !ortal #oolsC to help with problems or
difficulties users may be having.
". 3o* easy is it to obtain this information0
It>s fairly easy to obtain the information although other lin&s on the site were e=tremely outdated.
Section 11.5, +andson $&S
4chieving Operational 12cellence& 'esigning an 1mployee %raining and S/ills %rac/ing
System and 'atabase& 'irt Bi/es 5S4
"oftware s&ills% Database design/ querying/ and reporting
)usiness s&ills% Employee training and s&ills trac&ing

Students *ill have to perform a systems analysis and then design a system solution using
database soft*are. %hey *ill need to identify information re6uirements and then map out
entities8 attributes8 and relationships to guide the design of database tables. %hey *ill need
to populate the database and generate 6ueries and reports that satisfy management
information re6uirements. %his project should not be assigned unless students have the
re6uisite database s/ills.
Prepare a systems analysis report describing 'irt Bi/e-s problem and a system solution
that can be implemented using PC database soft*are. %hen use the database soft*are to
develop a simple system solution. ;our report should include the follo*ing&
1. 'escription of the problem and its organi7ational and business impact.
. Proposed solution and solution objectives.
!. Information re6uirements to be addressed by the solution.
". Management8 organi7ation8 and technology issues to be addressed by the solution8
including changes in business processes.
On the basis of the re6uirements you have identified8 design the solution using database
soft*are and populate it *ith at least 1< records per table. Consider *hether you can use or
modify the e2isting employee database in your design. Print out the design for each table in
your ne* application. 5se the system you have created to create 6ueries and reports that
*ould be of most interest to management8 such as *hich employees have college educations
or *hich employees have training in project management or advanced computer.aided
design =C4'> tools.
#he e=ample solution file represents one of many alternative database designs that would satisfy
Dirt )i&es>s requirements.
#his file can be found in the *icrosoft Access file named% "ss#ch$$ running case solution%mdb%
Improving 'ecision Ma/ing& 5sing 'atabase Soft*are to 'esign a Customer System for
4uto Sales
"oftware s&ills% Database design/ querying/ reporting/ and forms
)usiness s&ills% "ales lead and customer analysis
Prepare a systems analysis report detailing 4ce-s problem and a system solution that can be
implemented using PC database management soft*are. %hen use database soft*are to
develop a simple system solution. ;our systems analysis report should include the
follo*ing&
1. 'escription of the problem and its organi7ational and business impact.
. Proposed solution8 solution objectives8 and solution feasibility.
!. Costs and benefits of the solution you have selected. %he company has a PC *ith
Internet access and the full suite of Microsoft Office des/top productivity tools.
". Information re6uirements to be addressed by the solution.
#. Management8 organi7ation8 and technology issues to be addressed by the solution8
including changes in business processes.
On the basis of the re6uirements you have identified8 design the database and populate it
*ith at least 1< records per table. Consider *hether you can use or modify the e2isting
customer database in your design. Print out the database design. %hen use the system you
have created to generate 6ueries and reports that *ould be of most interest to management.
Create several prototype data input forms for the system and revie* them *ith your
instructor. %hen revise the prototypes.
#he e=ample solution file represents one of many alternative database designs that would satisfy
Ace>s requirements. #his file can be found in the *icrosoft Access file named% "ss&ch$$
solution'ile%mdb%
4chieving Operational 12cellence& 4naly7ing +eb Site 'esign and Information
(e6uirements
"oftware s&ills% ?eb browser software
)usiness s&ills% Information requirements analysis/ ?eb site design
9isit the +eb site of your choice and e2plore it thoroughly. Prepare a report analy7ing the
various functions provided by that +eb site and its information re6uirements. ;our report
should ans*er these 6uestions& +hat functions does the +eb site perform0 +hat data
does it use0 +hat are its inputs8 outputs8 and processing0 +hat are some of its other
design specifications0 'oes the +eb site lin/ to any internal systems or systems of other
organi7ations0 +hat value does this +eb site provide the firm0
?eb systems serve a critical role in today>s business environment. As such/ major firms have
?eb site presence and consider this technology critical to their success. #he purpose of this
project is to give the students e=perience in evaluating a ?eb system and thin&ing through how
well the site design meets the requirements of the business and its customers. 'nce a group has
selected a ?eb site to analy7e/ they should begin to develop a set of criteria they believe enables
the firm to address the needs of the firm. #hey can also list the strengths and wea&nesses of the
?eb site. #hey can do this by developing a sliding scale and allocating weights to each criteria
selected. #his will enable them to ran& and quantify how they feel the ?eb site meets those
criteria.
(evie* ,uestions
1. +hat are the core problem.solving steps for developing ne* information systems0
?ist and describe the problem.solving steps for building a ne* system.
9igure ::.: outlines the four steps of the problem-solving process. #hey include%
Define and understand the problem entails defining the problem and identifying its
causes/ solution objectives/ and information requirements.
Develop alternative solutions entails defining alternative solutions and most li&ely
paths to follow given the nature of the problem.
Choose the best solution entails an assessment of the technical/ financial/ and
organi7ational feasibility of each alternative and selection of the best solution.
Implement the solution entails finali7ing design specifications/ acquiring hardware
and software/ testing/ providing training and documentation/ conversion/ and
evaluating the system once it is in production.
'efine information re6uirements and e2plain *hy they are important for developing a
system solution.
Information requirements involve identifying who needs what information/ where/ when/ and
how. #hey define the objectives of the new or modified system and contain a detailed
description of the functions the new system must perform. .athering information
requirements is perhaps the most difficult tas& of the systems analyst/ and faulty
requirements analysis is a leading cause of systems failure and high systems development
costs.
?ist the various types of design specifications re6uired for a ne* information system.
"ystems design shows how the chosen solution should be reali7ed. A system design is the
model or blueprint for an information system solution and consists of all the specifications
that will deliver the functions identified during systems analysis. #hese specifications should
address all of the technical/ organi7ational/ and people components of the system solution.
#able ::.: lists the types of specifications that would be produced during system design.
#hey include% 'utput/ input/ user interface/ database/ processing/ manual procedures/ security
and controls/ conversion/ training and documentation/ and organi7ational changes.
12plain *hy the testing stage of systems development is so important. )ame and
describe the three stages of testing for an information system.
#esting is critical to the success of a system because it is the only way to ascertain whether
the system will produce the right results. #hree stages of information system testing are%
nit testing refers to separately testing or chec&ing the individual programs.
"ystem testing the entire system as a whole is tested to determine whether program
modules are interacting as planned.
Acceptance testing - the system undergoes final certification by end users to ensure
that it is ready for installation.
'escribe the roles documentation8 conversion8 production8 and maintenance play in
systems development.
Documentation shows how the system wor&s from both a technical and end-user
standpoint.
Conversion is the process of changing from the old system to the new system.
!roduction is the operation of the system once it has been installed and conversion is
complete. #he system will be reviewed during production by both users and technical
specialists to determine how well it has met its original objectives and to decide
whether any revisions or modifications are needed.
*aintenance is modifications to hardware/ software/ documentation/ or procedures to
a production system to correct errors/ meet new requirements/ and improve
processing efficiency.
. +hat are the alternative methods for building information systems0
'efine the traditional systems lifecycle and describe its advantages and disadvantages
for systems building.
#he traditional systems lifecycle is a formal methodology for managing the development of
systems and is still the principal methodology for medium and large projects. #he overall
development process is partitioned into distinct stages/ each of which consists of activities
that must be performed to fashion and implement an information system. #he stages are
usually gone through sequentially with formal Bsign-offC agreements among end users and
data processing specialists to validate that each stage has been completed. sers/ managers/
and data processing staff have specified responsibilities in each stage. #he approach is slow/
e=pensive/ infle=ible/ and is not appropriate for many small des&top systems.
#he systems lifecycle consists of systems analysis/ systems design/ programming/ testing/
conversion/ and production and maintenance. "ystems analysis is the phase where the
problem that the organi7ation is trying to solve is analy7ed. #echnical specialists identify the
problem/ gather information requirements/ develop alternative solutions/ and establish a
project management plan. )usiness users provide information requirements/ establish
financial or operational constraints/ and select the solution. During systems design/ technical
specialists> model and document design specifications and select the hardware and software
technologies for the solution. )usiness users approve the specifications.
During the programming phase/ technical specialists translate the design specifications into
software for the computer. During the testing phase/ technical specialists develop test plans
and conduct unit/ system/ and acceptance tests. )usiness users provide test data and
scenarios and validate test results.
During the conversion phase/ technical specialists prepare a conversion plan and supervise
conversion. )usiness users evaluate the new system and decide when the new system can be
put into production. During the production and maintenance phase/ technical specialists
evaluate the technical performance and perform maintenance. )usiness users use the system
and evaluate its functional performance.
#he advantages of using this method for building information systems include that it is
highly structuredP it has a rigorous and formal approach to requirements and specifications
and tight controls over the system building processP it is appropriate for building large
transaction processing and management information systems and for building comple=
technical systems. #he disadvantages include% it is very costly and time-consumingP it is
infle=ible and discourages change even though requirements will change during the project
due to the long time this method requiresP it is ill-suited to decision-oriented applications that
can be rather unstructured and for which requirements are difficult to define.
'efine information system prototyping and describe its benefits and limitations. ?ist
and describe the steps in the prototyping process.
Information system prototyping is an e=plicitly interactive system design methodology that
builds an e=perimental model of a system as a means of determining information
requirements. !rototyping builds an e=perimental system quic&ly and ine=pensively for
demonstration and evaluation so that users can better determine information requirements. A
preliminary model of a system or important parts of the system is built rapidly for users to
e=periment with. #he prototype is modified and refined until it conforms precisely to what
users want. Information requirements and design are determined dynamically as users
interact with and evaluate the prototype.
!rototyping is most valuable when requirements are uncertain and cannot be entirely
prespecified or when the appropriate design solution is unclear. !rototyping is especially
helpful for designing end-user interfaces +screens and reports, and for determining elusive
requirements of decision-support type applications. !rototyping can help reduce
implementation costs by capturing requirements more accurately at an earlier point in the
implementation process. It is not so useful for a very structured/ well-understood/ or routine
problem.
It is best suited for smaller applications oriented toward simple data manipulation. $arge
systems with comple= processing may only be able to have limited features prototyped. #he
prototype may be built so rapidly that design is not well thought out or must be rewor&ed for
a production environment. #he problem arises when the prototype is adopted as the
production version of the system without careful analysis and validation. !rototypes are built
so rapidly that documentation and testing are glossed over. #he system is so easily changed
that documentation may not be &ept up-to-date.
#he steps in prototyping include identifying the users basic requirementsP developing a
wor&ing prototype of the system outlined in the basic requirements/ using the prototype/ and
revising and enhancing the prototype based on the users reaction. #he third and fourth steps
are repeated until users are satisfied with the prototype.
'efine end.user development and e2plain its advantages and disadvantages.
End-user development refers to the development of information systems by end users with
minimal or no assistance from professional systems analysts or programmers. #his is
accomplished through sophisticated user-friendly software tools and gives end users direct
control over their own computing.
Advantages include improved requirements determination/ reali7ing large productivity gains
when developing certain types of applications/ enabling end users to ta&e a more active role
in the systems development process/ many can be used for prototyping/ and some have new
functions such as graphics/ modeling/ and ad-hoc information retrieval.
Disadvantages include not being suited for large transaction-oriented applications or
applications with comple= updating requirements/ standards for testing and quality assurance
may not be applied/ and proliferation of uncontrolled data and private information systems.
End-user development is suited to solving some of the bac&log problem because the end
users can develop their needed applications themselves. It is suited to developing low-
transaction systems. End-user development is valuable for creating systems that access data
for such purposes as analysis +including the use of graphics in that analysis, and reporting. It
can also be used for developing simple data-entry applications.
!olicies and procedures to manage end-user development include the following%
#he organi7ation must establish sufficient support facilities for end-user computing%
information centers or distributed end-user computing centers.
#raining and support should be targeted to the specific needs of those being trained.
End-user application development should not be allowed to be underta&en randomly
but should be incorporated into the organi7ations strategic plan.
*anagement should develop controls over end-user computing in the following areas%
Cost justification of end-user information system project
Aardware and software standards for user-developed applications
Company-wide standards for microcomputers/ word processing software/ database
management systems/ graphics software/ and query and reporting tools
Duality assurance reviews that specify whether the end-user systems must be
reviewed by information systems and internal audit specialists
Control for end-user developed applications covering testing/ documentation/
accuracy/ and completeness of input and update/ bac&up/ recovery/ and supervision
Critical applications that supply data to other important systems should be flagged
and subjected to more rigorous standards
'escribe the advantages and disadvantages of developing information systems based on
application soft*are pac/ages.
"oftware pac&ages provide several advantages% +:, the vendor has already established most
of the design that may easily consume up to 68 percent of development timeP +4, programs
are pretested/ cutting down testing time and technical problemsP +0, the vendor often installs
or assists in the installation of the pac&ageP +;, periodic enhancement or updates are supplied
by the vendorP +6, vendors also maintain a permanent support staff well versed in the
pac&age/ reducing the need for individual organi7ations to maintain such e=pertise in-house/
and +2, the vendor supplies documentation.
#he usage of software pac&ages has several disadvantages% +:, there are high conversion
costs for systems that are sophisticated and already automatedP +4, pac&ages may require
e=tensive customi7ation or reprogramming if they cannot easily meet unique requirements/
and +0, a system may not be able to perform many functions well in one pac&age alone.
'efine outsourcing. 'escribe the circumstances in *hich it should be used for building
information systems. +hat are the hidden costs of offshore soft*are outsourcing0
'utsourcing is the process of turning over an organi7ations computer center operations/
telecommunications networ&s/ or applications development to e=ternal vendors who provide
these services. 'utsourcing is an option often considered when the cost of information
systems technology has risen too high. 'utsourcing is seen as a way to control costs or to
develop applications when the firm lac&s its own technology resources to do this on its own.
It is seldom used for a system that is strategically important.
3o* can businesses rapidly develop e.business applications0
(AD is a process for developing systems in a very short time period by using prototyping/
fourth-generation tools/ and close teamwor& among users and systems specialists. (AD
allows the creation of wor&ing software in a very short time through objects and automation
of much of the code generation. sually they depend on interfaces to databases.
!. +hat are the principal methodologies for modeling and designing systems0
Compare object.oriented and traditional structured approaches for modeling and
designing systems.
#he traditional structured methodology focuses on what the new system is intended to do and
then develops the procedures and data to do it. 'bject-oriented development de-emphasi7es
system procedures and instead creates a model of a system composed of individual objects
that combine data and procedures. #he objects are independent of any specific system.
#hese objects can then be placed into any system being built that needs to ma&e use of the
data and functions. In addition/ in traditional structured methodologies all wor& is done
serially/ with wor& on each phase begun only when the previous phase is completed. 'bject-
oriented development theoretically allows simultaneous wor& on design and programming.
#hese systems usually are easier to build and more fle=ible. *oreover/ any objects created
this way are reusable for other programs.
". 3o* should information systems projects be selected and evaluated0
12plain the difference bet*een tangible and intangible benefits0
#angible benefits can be quantified and assigned a monetary value.
Intangible benefits are classified as nonquantifiable and cannot be assigned a monetary value.
?ist si2 tangible benefits and si2 intangible benefits.
"tudents can use #able ::.0 to answer this question.
#angible benefits include% increased productivity/ lower operational costs/ reduced
wor&force/ lower computer e=penses/ lower outside vendor costs/ lower clerical and
professional costs/ reduced rate of growth in e=penses/ reduced facility costs/ and increased
sales.
Intangible benefits include% improved asset utili7ation/ improved resource control/ improved
organi7ational planning/ increased organi7ational planning/ increased organi7ational
fle=ibility/ more timely information/ more information/ increased organi7ational learning/
legal requirements attained/ enhanced employee goodwill/ increased job satisfaction/
improved decision ma&ing/ improved operations/ higher client satisfaction/ and better
corporate image.
?ist and describe the major components of an information systems plan.
"tudents can use #able ::.; to answer this question. *ajor components of an information
systems plan include% +:, !urpose of the !lan/ +4, "trategic )usiness !lan (ationale/ +0,
Current "ystems/ +;, -ew Developments/ +6, *anagement "trategy/ +2, Implementation of
the !lan/ and +1, )udget (equirements.
'escribe ho* portfolio analysis and scoring models can be used to establish the *orth
of systems.
!ortfolio analysis and scoring models can be used to evaluate alternative information systems
projects. !ortfolio analysis is used to help in evaluating alternative system projects.
!ortfolio analysis inventories all of the firm>s information systems projects and assets/
including infrastructure/ outsourcing contracts/ and licenses. 9irms try to improve the return
on their information system portfolios by balancing the ris& and return from their systems
investments. )y using portfolio analysis/ management can determine the optimal mi= of
investment ris& and reward for their firms/ balancing ris&ier/ high-reward projects with safer/
lower-reward ones.
"coring models give alternative systems a single score based on the e=tent to which they
meet selected objectives. #able ::.6 can be used to e=plain how a simple scoring system
wor&s.
#. 3o* should information systems projects be managed0
12plain the importance of implementation for managing the organi7ational change
surrounding a ne* information system.
#he term implementation refers to the entire process of organi7ational change surrounding
the introduction of a new information system. Information systems design and the entire
implementation process should be managed as planned organi7ational change using an
organi7ational impact analysis. A very large percentage of information systems fail to deliver
benefits or solve the problems for which they were intended because the process or
organi7ational change surrounding system building was not properly addressed. #he
principal causes of information system failure are +:, insufficient or improper user
participation in the systems development process/ +4, lac& of management support/ +0, high
levels of comple=ity and ris&/ and +;, poor project management.
'efine the user.designer communication gap and e2plain the /inds of implementation
problems it creates.
#he user-designer communication gap deals with the relationship that e=ists between end
users and information systems specialists. #hese two groups have different bac&grounds/
interests/ and priorities and has traditionally been a problem for information systems
implementation efforts. #hese differences create user-designer communications gaps.
Information systems specialists often have a highly technical orientation to problem solving/
focusing on technical solutions in which hardware and software efficiency is optimi7ed at the
e=pense of ease of use or organi7ational effectiveness. End users prefer systems that are
oriented toward solving business problems or facilitating organi7ational tas&s.
?ist and describe the factors that influence project ris/ and describe strategies for
minimi7ing project ris/s.
"trategies you can follow to increase the chances of a successful system include%
-ew systems that involve challenging and comple= technology can be helped by
recruiting project leaders with strong technical and administrative e=perience.
If the firm does not have staff with the required technical s&ills or e=pertise/
outsourcing or using e=ternal consultants are options that may be pursued.
sing formal planning and control tools/ such as !rogram Evaluation and (eview
#echnique +!E(#, or .antt charts improve project management by listing the specific
activities that ma&e up a project/ their duration/ and the sequence and timing of tas&.
!romote user participation by ma&ing user education and training easily available/
and by providing better incentives for users who cooperate.
E=ercise sensitivity to ergonomic issues.
"olve organi7ational problems prior to introducing new systems.
'escribe tactics for managing global projects.
!roject management challenges for global systems are complicated by the international
environment. ser information requirements/ business processes/ and wor& cultures differ
from country to country. It is difficult to convince local managers anywhere to change their
business processes and ways of wor&ing to align with units in other countries/ especially if
this might interfere with their local performance.
#actics for managing global projects include%
Involve people in change
!ermit each country unit to develop one transnational application first in its home
territory and then throughout the world.
Develop new transnational centers of e=cellence/ or a single center of e=cellence.
'iscussion ,uestions
1. 'iscuss the role of business end users and information system professionals in
developing a system solution. 3o* do both roles differ *hen the solution is developed
using prototyping or end.user development0
)usiness end users are the people who actually use the system. It is critical that these
individuals play a role in any systems development efforts. #heir input greatly enhances the
whole systems development process. )usiness end users who are involved in systems
development projects feel more BownershipC towards it/ and will strive harder to ensure that
the system is successful. !oint out to students that no matter how well a system is designed/
without user acceptance it will suffer major consequences/ and many actually fail.
#he role of the information system professional is to design a system that meets both the
needs of the organi7ation and its end users. #he role of an information system professional is
to clearly understand the needs of the organi7ation and those of the people who will
ultimately be the users of the system. )y &eeping communication lines open and have
involvement of different levels of personnel/ a common goal can be achieved.
?hen a solution is developed using prototyping/ the system is rapidly and ine=pensively
developed for end users to interact with and evaluate. #he prototype is refined and enhanced
until users are satisfied that it includes all of their requirements and can be used as a template
to create the final system. !rototyping encourages end-user involvement in systems
development and iteration of design until specifications are captured accurately. #he rapid
creation of prototypes can result in systems that have not been completely tested or
documented or that are technically inadequate for a production environment.
.It has been said that systems fail *hen systems builders ignore @peopleA problems. +hy
might this be so0
"ystem building efforts often fail because there is too much emphasis on the technology and
not enough attention to changes in organi7ational structure/ job design/ wor&flows/ and
reporting relationships. Inattention to these issues often breeds resistance to a new system
and may also produce a system that is incompatible with the organi7ation. Conflicts between
the technical orientation of system designers and the business orientation of end users must
also be resolved for successful implementation of systems. #he success or failure of
organi7ational change can be determined by how well information systems specialists/ end
users/ and decision ma&ers deal with &ey issues at various stages of implementation.
9ideo Case ,uestions
Eou will find a video case illustrating some of the concepts in this chapter on the $audon ?eb
site at www.prenhall.comHlaudon along with questions to help you analy7e the case.
%eam*or/& Analy,ing *eb Site -e)"irements
+ith three or four of your classmates8 visit the +eb site of i%unes8 MP!.com8 the Internet
Movie 'atabase8 or a company described in this te2t that uses the +eb. (evie* the +eb
site for the company you select. 5se *hat you have learned from the +eb site and this
chapter to prepare a report describing the functions of that +eb site and some of its design
specifications. If possible8 use electronic presentation soft*are to present your findings to
the class.
)ecause ?eb systems play such a central role in today>s information systems world/ the
purpose of this project is to give the students e=perience in evaluating a ?eb system and
thin& through what it ta&es to develop a good ?eb site. After selecting the ?eb system/ the
groups should begin this project by developing a set of functions that they feel are critical
factors to its success. #hey may also develop a table outlining what they believe are critical
+ease of use/ well laid out/ good colors/ fast loading/ informative/ clic& options/ etc.,.
Business Problem.Solving Case& .iti,ens /ational !an0 Searc#es 'or a System
Sol"tion
Case Study ,uestions
1. +hat *as the initial problem that Mar/ Singleton *as trying to solve at Citi7ens
)ational0 3o* *ell did he apply the four steps of problem solving0
A major part of Citi7en -ational>s strategy for continuing growth was to implement customer
relationship management +C(*, software. #he C(* strategy targeted the ban&>s two main
contact points with customers% the ban&>s call center and its sales force. #he main goal for the
implementation was to increase sales by raising the number of contacts relationship ban&ers
were ma&ing and improving the trac&ing of these activities so the ban& could learn more
from them.
#he four steps of problem solving include%
Define and understand the problem% it appears that "ingleton defined and understood
the problem of trying to get more information and use it more efficiently to e=pand
sales
Develop alternative solutions% it doesn>t appear as though "ingleton or the outsourcer
fulfilled this step very well. #hey only considered one C(* system and didn>t
evaluate it well against organi7ational goals
Choose the best solution% 'bviously/ if the previous step failed/ so did this one. #he
union of old-fashioned business sensibility with powerful enterprise software was a
mismatch almost immediately. #he "iebel software was simply too rich in features.
#he ban& spent an inordinate amount of time switching off features that hindered
productivity.
Implement the solution% "everal things went wrong% Employees found the software to
be too complicated. #he e=tra navigation was confusing and inefficient. #he users
resisted the new system. It didn>t ma&e sense for them to change their tried-and-true
methods simply because new software required change. #his points directly to the
Quser-designer communication gap> issue. #he ban& also e=perienced compatibility
issues between database formats. #he ban& spent three years trying to ma&e the
implementation wor&. #hey finally gave up and switched to another system.
. +hat *as the business case for implementing a ne* system0 +hat *ere some of the
tangible benefits0 +hat *ere some of the intangible benefits0
Citi7ens -ational )an& of #e=as wanted to continue increasing its mar&et share to at least 68
percent in eight counties in the state. It planned to use customer relationship management
software to help improve its call center and sales force. It targeted its relationship ban&ers
that drive most of its business and increase loan sales and deposits.
#he main goal for the implementation was to increase sales by raising the number of contacts
the relationship ban&ers were ma&ing and improve the trac&ing of these activities so that the
ban& could learn more from them.
#angible benefits% approve credit and loan applications more quic&lyP store interactions
between relationship ban&ers and customer electronically.
Intangible benefits% the old paper system allowed salespeople who left the organi7ation to
ta&e their customer records with them. #he new system would prevent that. #he paper system
also created too much information for the CE' and managers to process effectively.
!. +hy didn-t the implementation of the Siebel C(M solution *or/ out for Citi7ens
)ational0 +hat *ere the biggest factors0 3o* *ould you classify these factors in terms
of organi7ation8 technology8 and people issues0
#he business was too small to effectively use a system designed for larger organi7ations. #he
union of old-fashioned business sensibility with powerful enterprise software was a
mismatch almost immediately.
Organi7ation% #he approach of Citi7ens -ational toward nearly all business functions/ from
trac&ing customer leads to generating reports about them/ was very basic. #he new software
was simply too rich in features.
%echnology% #he software had more functions than necessary or manageable. Employees
found the software to be too complicated. )an&ers were not able to view multiple
relationships between a customer and the ban& on the same screen. #he e=tra navigation was
confusing and inefficient. Compatibility issues between the database formats in "iebel and
those used by the ban&>s core applications created problems for employees.
People% #he relationship ban&ers resisted the new system. It didn>t ma&e sense for them to
change their methods because of the software. #he users did not have an incentive to use the
new system because their compensation was based on sales/ and sales had become harder to
ma&e.
". +as ,uic/Base a better solution for Citi7ens )ational0 If so8 *hy0 +hat factors
suggest that the ban/ ended up *ith the right approach and the right choice of
product0
Duic&base was a much better solution for the ban& because it was a smaller application
program. It included modules for databases/ spreadsheets/ and sales management/ all of
which could be easily manipulated for the ban&>s business functions. It is designed to
organi7e/ trac&/ and share information among team members in the wor&place. Employees
can customi7e the pac&age themselves. #he business can modify its database structure to
meet specific business function. #he cost of ownership and maintenance fees were much
lowers. #he ban&ers were able to use the software anywhere they had access to a browser.
#he ban& implemented Duic&)ase using a phased rollout to ma&e it easier on employees.
Duic&base was integrated with the ban&>s core applications.
#. Based on this case study8 *hat /ind of organi7ation do you thin/ *ould benefit from
using the Siebel C(M pac/age0 Bive an e2ample of such an organi7ation and justify
your choice. ;ou may use the +eb to research your ans*er8 including Oracle-s +eb site.
Answers will vary to the first part of this question.
sing 'racle>s ?eb site/ the type of companies using the "iebel C(* pac&age runs the
gamut/ including Alas&a Airlines/ the City of -ew Eor&/ Comp"A +a national retail chain,
Aori7on Aealthcare/ and Rirgin *obile "A +a telecommunications company,.
C. Could Citi7ens )ational have made a better choice of soft*are for its C(M system the
first time around0 12plain your ans*er.
"ince the ban&>s first choice of a software solution didn>t wor& out/ it>s obvious the
organi7ation could have made a better choice. 9or the most part/ not matching the software
to the core competencies in the organi7ation was the biggest problem in this case study.
Chapter Summary
Section 11.11 Problem Solving and Systems Development
#he core problem-solving steps for developing new information systems are% +:, define and
understand the problem/ +4, develop alternative solutions/ +0, evaluate and choose the solutions/
and +;, implement the solution. #he first step entails defining the problem and identifying its
causes/ solution objectives/ and information requirements. #he second step identifies alternative
solutions to the problem. #he third step entails an assessment of the technical/ financial/ and
organi7ational feasibility of each alternative and selection of the best solution. #he fourth step
entails finali7ing design specifications/ acquiring hardware and software/ testing/ providing
training and documentation/ conversion/ and evaluating the system once it is in production.
Section 11.21 Alternative Systems!"ilding Approac#es.
#here are a number of alternative methods for building information systems/ each suited to
different types of problems. #he oldest method for building systems is the systems lifecycle/
which requires that information systems be developed in formal stages. #he stages must proceed
sequentially and have defined outputsP each requires formal approval before the ne=t stage can
commence. #he system lifecycle is rigid and costly/ but nevertheless useful for large projects
that need formal specifications and tight management control over each stage of systems
building.
!rototyping consists of building an e=perimental system rapidly and ine=pensively for end users
to interact with and evaluate. #he prototype is refined and enhanced until users are satisfied that
it includes all of their requirements and can be used as a template to create the final system.
!rototyping encourages end-user involvement in systems development and iteration of design
until specifications are captured accurately. #he rapid creation of prototypes can result in
systems that have not been completely tested or documented or that are technically inadequate
for a production environment.
End-user development is the development of information systems by end users/ either alone or
with minimal assistance from information systems specialists. End-user-developed systems can
be created rapidly and informally using fourth-generation software tools. #he primary benefits
of end-user development are improved requirements determinationP reduced application bac&logP
and increased end-user participation in/ and control of/ the systems development process.
Aowever/ end-user development/ in conjunction with distributed computing/ has introduced new
organi7ational ris&s by propagating information systems and data resources that do not
necessarily meet quality assurance standards and that are not easily controlled.
9irms can also build systems by purchasing software or software services from outside vendors.
'ne alternative is to purchase an application software pac&age/ which eliminates the need for
writing software programs when developing an information system. Application software
pac&ages are helpful if a firm does not have the internal information systems staff or financial
resources to custom develop a system.
Another alternative is to outsource systems development wor&. 'utsourcing consists of using an
e=ternal vendor to build +or operate, a firm>s information systems. #he wor& is done by the
domestic or offshore vendor rather than by the organi7ation>s internal information systems staff.
If it is properly managed/ outsourcing can save application development costs or enable firms to
develop applications without an internal information systems staff. Aowever/ firms ris& losing
control of their information systems and becoming too dependent on e=ternal vendors.
)usinesses today are often required to build e-commerce and e-business applications very
rapidly to remain competitive. Companies are turning to rapid application design/ joint
application design +<AD,/ and reusable software components +including ?eb services, to speed
up the systems development process.
Section 11.31 $odeling and Designing Systems.
#he two principal methodologies for modeling and designing information systems are structured
methodologies and object-oriented development. "tructured methodologies focus on modeling
processes and data separately. #he data flow diagram is the principal tool for structured analysis/
and the structure chart is the principal tool for presenting structured software design. 'bject-
oriented development models a system as a collection of objects that combine processes and
data. Companies are turning to rapid application design +(AD,/ joint application design +<AD,/
and reusable software components to improve the systems development process.
Section 11.41 Pro%ect $anagement.
#o determine whether an information system is a good investment for the company/ one must
calculate its costs and benefits. #angible benefits are quantifiable/ and intangible benefits cannot
be immediately quantified but may provide quantifiable benefits in the future. )enefits that
e=ceed costs should then be analy7ed using capital budgeting methods/ such as net present value
+-!R,/ to ma&e sure they represent a good return on the firm>s invested capital.
'ther models for evaluating information systems investments involve nonfinancial and strategic
considerations. 'rgani7ations should develop information systems that describe how
information technology supports the company>s overall business plan and strategy. !ortfolio
analysis and scoring models can be used to evaluate alternative information systems projects.
A very large percentage of information systems fail to deliver benefits or solve the problems for
which they were intended because the process or organi7ational change surrounding system
building was not properly addressed. #he inherent user-designer communications gap warrants
close attention by everyone involved in a project.
#he term implementation refers to the entire process of organi7ational change surrounding the
introduction of a new information system. Information systems design and the entire
implementation process should be managed as a planned organi7ational change using an
organi7ational impact analysis. *anagement support and control of the implementation process
are essential/ as are mechanisms for dealing with the level of ris& in each new systems project.
9ormal planning and control tools trac& the resource allocations and specific project activities.
sers can be encouraged to ta&e active roles in systems development and become involved in
installation and training.
#here are two tactics for managing projects on a global scale% :, permit each country unit in a
global corporation to develop one transnational application first in its home territory/ and then
throughout the world. 4, develop new transnational centers of e=cellence/ or a single center of
e=cellence.