ICT for Strategic Advantage

TOPIC FOUR SYSTEM SELECTION, IMPLEMENTATION AND REVIEW

At the end of this Topic you will be able to:
Understand different alternatives for acquiring information systems
Explain the differences between bespoke and end-user development
Understand factors affecting software acquisition
escribe different changeover strategies
Understand organisational aspects of system implementation
Understand other implementation issues including: file conversion! training! maintenance
and review
METHODS OF SOFTWARE ACQUISITION
There are three main methods for acquiring the information system necessary to support a
particular business need" These are bespoke development! off-the-shelf software and end-
user development"
BESPOKE DEVELOPMENT
#espoke development the term for when an information system is developed from scratch by
an $% professional to suit the business requirements of the application" The $% professionals
will either work for the business! in which case we refer to this as in-house bespoke
development! or for a third party such as a software house! in which case we say that the
software development has been &outsourced&" #espoke development has the benefit of
producing software tailored to the precise requirements of the business" 'n the downside!
there are a number of difficulties:
Cost: #espoke development is the most expensive way of developing new information
systems"
Tim: #espoke development! especially when using formal structured development
methodologies! is notorious for time overruns! with delays of months or years not uncommon"
Q!"#it$: #espoke software is not usually free from bugs( software bugs can range from the
trivial to the catastrophic! the latter often attributable to poor analysis of requirements"
PURCHASE %OFF&THE&SHELF% SOFTWARE
'ff-the-shelf purchase of packaged software is an acquisition method which involves direct
purchase of a pre-written application used by more than one company" This type of software
is pre-written and is available for a whole variety of hardware platforms from )*s to
mainframes" 'ff-the-shelf software is written to offer a broad functionality that will suit a wide
range of different businesses" This broad range of functions has the benefit of fitting the
requirements of a large number of businesses" $t also may offer too many features for any
particular business! which may then feel that it is paying for things it will not use" At the same
time! it may require businesses to process information in a particular way which is at odds
with the way they normally do business" Alternatively! a certain off-the-shelf software
package may not offer sufficient features" +or example! a well-known accounting package in
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the U, only offers an eight-character code for the customer&s order number! when it would
appear that some -. per cent of U, companies use longer order number codes"
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The ma/or benefit! however! of off-the-shelf software packages is their low cost when
compared with acquiring bespoke software with the same level of functionality" $n addition!
because packaged software has been developed for a commercial market! it is less likely to
suffer from the bugs that afflict bespoke software"
$n a tailored off-the-shelf purchase! pre-written software is purchased from a supplier! but it is
possible to configure it to be specific to the company" $n a component off-the-shelf purchase!
different modules may be purchased from different suppliers and built together" 0isual #asic
controls for graphing is a good example of a component that can be added to an off-the-shelf
application"
END&USER DEVELOPED SOFTWARE
End-user developed software is software written by non-$% professionals! i"e" the business
users" End-user applications are more limited in scope" Applications may be departmental or
personal in nature and are usually output or report oriented rather than input driven" These
applications may either be written by $T professionals or by the end-users themselves" $f the
latter is the case! they are often referred to as end-user developed applications"
%uch systems may be simple 1e"g" a spreadsheet or a small )* database2 or less commonly
they may be more sophisticated 1e"g" a production planning system based on sales forecast
data from several branches of the same organisation2" %uch applications are typically for
individual or departmental use! although in the case of the second example above the
system may have company-wide relevance" The main benefit of end-user developed
software is that it is normally used by those who develop it and so the requirements are not
sub/ect to mistranslation or the provision of over-sophisticated solutions" The negative side to
this is that in some cases inappropriate software development tools might be used 1such as
complicated spreadsheets instead of the construction of a database2" A further significant
concern with end-user development is that software may be riddled with bugs as a
consequence of corner cutting 1poor or non-existent design! little or no testing and no
documentation2"
There are also a number of hybrid approaches to acquisition" A group of organisations in the
same business or activity area may have information systems requirements which
individually may be very expensive to develop" A solution may be for a bespoke system to be
developed by a third party! which allows the development costs to be spread among all the
organisations involved" 3ood examples here are a university student records system and
various systems used in police forces across the U,"
%imilarly! an off-the-shelf package may provide 4. per cent of the required features! but
others may need to be added through some bespoke development by either $%5$T
professionals or by end-users"
FACTORS AFFECTIN' SOFTWARE ACQUISITION
There are a number of factors that will influence the choice of acquisition method" The first of
these are time! cost and quality considerations" $f an organisation has a pressing problem
that requires a new information system quickly! it is probable that a package or tailored
package will be sought" The different acquisition options have different strengths when
considered in terms of these three critical criteria"
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Table 6 shows how the alternatives compare with regards to these criteria" 7uality of the
delivered product is considered from two respects: the number of bugs or errors found and
the suitability of the software in meeting the requirements of the business user"
A()!isitio* O+tio* D#i,-$
Tim
Cost Q!"#it$
./!0s1
Q!"#it$
.2it /!si*ss
*3s1
#espoke in-house )oor )oor )oor 3ood
#espoke software house 3ood 0ery poor 8edium 8edium
End-user development )oor 8edium )oor 3ood
Tailored-off the shelf 3ood 3ood 3ood 8edium
%tandard-off the shelf 0ery good 0ery good 0ery good )oor
Table 6" Alternatives for procurement of software
The benefit of packaged software occurs because the cost of developing and debugging the
software is shared between more than one company" This results in lower and fewer bugs
than bespoke development for a single company" The use of software by more than one
company is also its greatest weakness! since its features must suit the typical company" As a
consequence! it may not meet the needs of an individual company" 'ther factors affecting
software acquisition include the following:
O-0"*is"tio* si45
A small to medium-si9ed business will inevitably have relatively limited resources for the
purchasing of information systems and information technology 1$%5$T2" This suggests that
there will be a tendency for such organisations to favour the purchase of off-the-shelf
packages or possibly end-user applications development"
I*&6o!s IS7IT 8+-tis
:here little in-house $%5$T expertise exists! either in the form of $%5$T professionals or
experienced end-users! there will be a need to use third parties in the acquisition of new
business information systems" These may include software vendors for off-the-shelf software
packages! the use of consultants and5or software houses" )recisely what form of third party
is used will depend on the other factors discussed here"
Com+#8it$ o2 t6 -)!i-3 i*2o-m"tio* s$stm
:here a business information system requirement is particularly complex! or for an unusual
application not available as a packaged solution! it is possible that one may view bespoke
software 1either developed in-house or by a third party2 as the only viable solution" ;owever!
complexity does not necessarily equate to &uniqueness&" +or example! one could regard a
materials requirements planning system or a complete accounting system as complex! but
many packages exist for a variety of hardware platforms" Therefore! complexity is not
necessarily an indicator that an off-the-shelf package should be ruled out"
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U*i)!*ss o2 t6 /!si*ss o- /!si*ss "-" to / s!++o-t3
The higher the degree of uniqueness which exists in the area to be supported! the less likely
it is that a suitable off-the-shelf package can be found" This is clearly an indicator! therefore!
for bespoke development of some kind" As before! we must not confuse uniqueness with
complexity" $t may well be feasible for a non $%5$T specialist to develop a solution using tools
available to end-user developers" 'f course! if the required system is both complex and
carries a high degree of uniqueness! then bespoke development by $%5$T professionals is
probably the best acquisition method"
IS7IT 8+-tis "mo*0 *3&!s-s
A certain degree of $%5$T literacy and expertise is necessary if end-users are to be able to
develop information systems" $n addition! such literacy is desirable when selecting suitable
off-the-shelf packaged software! as it can help the business focus more clearly on its precise
requirements both from a functional and a technological perspective" $f an organisation has
little end-user $%5$T expertise of its own! but has its own $%5$T department! it will be very much
dependent on solutions provided by $%5$T professionals with or without third-party support"
Li*9"0s :it6 8isti*0 "++#i("tio*s so2t:"-
:here new business software needs to integrate very tightly with existing information
systems! there is a higher probability that at least some bespoke development work will need
to be done to integrate the two systems" Also! a high degree of integration may imply that the
new information system has to be developed in a bespoke fashion in order to achieve the
desired level of integration" ;aving said that! many software vendor supply packages for
different business areas which integrate very well with each other"
#y looking at combinations of the above! it is possible to come up with a &best-fit& acquisition
method" +igure 6 illustrates the relationship between the complexity of the required
application 1as driven by the business needs2 and the uniqueness of the application under
consideration"
*ompexity
of
application
;igh 'ff-the-shelf package #espoke development
<ow
'ff-the-shelf package
'r! end-user
development
#espoke or end-user
development
<ow ;igh
Uniqueness of desired application
+igure 6" Application *omplexity 0 Uniqueness
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ACQUISITION CHOICES AND METHODS
:hen considering acquisition choices and methods! the make or buy decision will occur and
different suppliers of off-the-shelf or bespoke solutions will be evaluated" The economic!
technical! and operational feasibilities will be evaluated for each of the suppliers after a
tender or request for proposals has been sent out to suppliers" $f a company decides to use a
third party to develop its information systems or provide other $% services! this is known as
outsourcing" :hen purchasing a system! structured decision making is required to ensure
that the best option is selected" Three methods for making product or supplier decisions are
given below"
F"t!- C6(9#ist 2i-st (!t 8(#!sio*
This checklist is initially used to exclude products that are perhaps missing a key function or
do not support the operating system used by the company" The feature checklist is the most
useful and easily applied tool that can be developed in-house! or! drawn up by external
sources including the industry maga9ines"
F"t!- C6(9#ist 3t"i#3 -"*9i*0
The detailed ranking attaches relative importance to features by extending them! and give
each feature a weighting of say between =.> and =6..> points for each factor and then add up
the scores for the different products
Fi*"# S#(tio* !si*0 B*(6m"-9i*0
'nce the list of possible software has been narrowed down using the feature checklists to
two or three contenders! a number of options are available to make the final decision" These
can be quite costly for both purchaser and supplier" +irst! it is possible to benchmark against
other organisations who are performing similar tasks ? what are their experiences! what
performance is the software achieving! are they an independent reference site@" %econd! if it
is a large order5contract! the suppliers can be asked to provide the software and test
important functions using example process scenarios from the company"
SOFTWARE SELECTION FACTORS
:hen comparing software! cost is an obvious constraint on any purchase! but since this is
often a fixed constraint! the focus would be on the technical merits of the products and how
they vary" #oci/ suggests eight key factors in deciding on software:
+unctionality
Ease of use
)erformance
*ompatibility
%ecurity
%tability or reliability
)rospects for long-term support of product
Extensibility
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SYSTEMS IMPLEMENTATION
'nce Unit testing! system testing and acceptance testing 1<ecture A2 has been successfully
completed! the next step is to implement the system with limited disruption to operation and
business activities of the company" *hoosing the implementation strategy is one of the
important decisions that the pro/ect management team must make during the implementation
phase" *hangeover can be defined as moving from the old information system to the new
information system" Bote that this changeover is required whether the previous information
system is computer or paper based" #efore considering the alternatives! it may be relevant to
briefly discuss the main factors that managers should consider when evaluating the
alternatives" These factors are:
Cost5 This is of course an important consideration! but the quality of the new system is
often more important"
Tim5 There will be a balance between the time available and the desired quality of the
system which will need to be evaluated"
Q!"#it$ o2 *: s$stm "2t- (6"*0o,-5 This will be dependent on the number of
bugs and suitability for purpose"
Im+"(t o* (!stom-s5 :hat will be the effect on customer service if the changeover
overruns or if the new system has bugs@
Im+"(t o* m+#o$s5 ;ow much extra work will be required by employees during the
changeover@ :ill they be remunerated for this@
There are four main alternatives for moving from a previous system to a new system"
P"-"### -!**i*0
:ith parallel running the old and new systems are operated together for a period until the
company is convinced that the new system performs adequately" This presents a lower risk
than the immediate cutover method! since if the new system fails! the company can revert to
the old system and customers will not be greatly affected" )arallel running sometimes also
involves using a manual or paper-based system as backup in case the new system fails" The
cost of running two systems in parallel is high! not only in terms of maintaining two sets of
software and possibly hardware! but also in the costs of the human operators repeating
operations such as keying in customer orders twice" $ndeed! the increase in workload may be
such that overtime or additional staff may be required" The parallel method is only
appropriate when the old and new systems perform similar functions and use similar
software and hardware combinations" This makes it unsuitable for business reengineering
pro/ects where completely new ways of working are being introduced that involve staff
working on different tasks or in different locations"
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Di-(t (6"*0o,-
This method involves moving directly from the original system to the new system at a
particular point in time" 'n a designated date! the old system is switched off and all staff
move to using the new system" *learly! this is a high-risk strategy since there is no fallback
position if serious bugs are encountered" ;owever! this approach is adopted by many large
companies! since it may be impractical and costly to run different systems in parallel" #efore
cutover occurs! the company will design the system carefully and conduct extensive testing
to make sure that it is reliable and so reduce the risk of failure"
Pi#ot st!3$
$n a pilot implementation! the system will be trialled in a more limited area before it is
deployed more extensively" This could include deploying the system in one operating region
of the company! possibly a single country! or in a limited number of offices" This approach is
common in multinational or national companies with several offices" %uch a pilot study
usually acts as a trial before more extensive deployment in a big bang implementation"
P6"s3 im+#m*t"tio*
A phased implementation involves delivering different parts of the system at different times"
These modules do not all become live simultaneously! but rather in sequence" As such! this
alternative is part way between the big bang and parallel running approaches" Each module
can be introduced as either immediate cutover or in parallel" $n a modular accounting system!
for example! the core accounting functions! such as accounts payable! accounts receivable
and general ledger! could be introduced first! with a sales order processing and then
inventory control module introduced later" This gives staff the opportunity to learn about the
new system more gradually and problems encountered on each module can be fixed as they
are introduced"
Although this may appear to be an attractive approach! since if a new module fails the other
modules will still be available! it is difficult to implement in practice" To achieve a phased
implementation requires that the architecture of the new system and old system are designed
in a modular way! and that the modules can operate independently without a high degree of
coupling" +or all systems! however! data exchange will be required between the different
modules and this implies that common data exchange formats exist between the old and the
new systems" This is often not the case! particularly if the software is sourced from different
suppliers" esigners of systems are using techniques such as ob/ect-oriented design to
produce modules with fewer and clearer dependencies between each other" This should help
in making phased implementations more practical" $n the example given for the modular
accounting system! modules in the old and new system would have to have facilities to
transfer data"
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USIN' COMBINATIONS OF CHAN'EOVER METHODS
The different changeover methods are often used in con/unction for different stages of an
implementation" +or example! in a national or international implementation it is customary to
trial the pro/ect in a single region or country using a pilot of the system" $f a pilot system is
considered successful there is then a choice of one of the following:
$mmediately implementing the system elsewhere using the big bang approach
Cunning the new and old systems in parallel until it is certain that the new system is
stable enough(
$f the new system is modular in construction! it is possible for the implementation to be
phased! with new modules gradually being introduced as they are completed and the
users become familiar with the new system(
parallel running will probably also occur in this instance! in case there is a need to revert
to the old system in the event of failure of the new system"
'nce the system is proved in the first area! then further rollout will probably occur through
the big bang approach" Table D summarises the advantages and disadvantages of each of
these changeover strategies"
Mt6o3 M"i* "3,"*t"0 M"i* 3is"3,"*t"0
irect Capid! lowest cost ;igh risk if serious errors in
system
)arallel <ower risk than immediate %lower and higher cost than
cutover immediate cutover
)hased 3ood compromise between
immediate cutover and parallel
running
ifficult to achieve technically
due to interdependencies
between modules
)ilot Essential for multinational or
national rollouts
;as to be used in combination
with the other methods
Table D" Advantages and disadvantages of changeover strategies
OR'ANISATIONAL CHAN'E MANA'EMENT
The implementation of a new system will always cause disruption to staff! because changes
to their patterns of working will occur" $n some cases staff may be transferred to new roles"
The change involved in the introduction of the new system needs management so staff
motivation and productivity are not adversely affected" The best approach to managing this
change is to use education to communicate the purpose of the system to the staff! in other
words! to sell the system to them" This education should target all employees in the
organisation who will be affected by the change" $t involves:
Explaining why the system is being implemented
Explaining how staff will be affected
$nvolve users in specification! testing and review: treat them as customers
Training users in use of the software
Above all! listening to users and acting on what they say
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FILE CONVERSION
+ile conversion is a ma/or part of the systems implementation +ile creation or file conversion!
means converting existing master file records and reference file records on to a file suitable
for the new system" A system cannot become operational until master files for the new
system have been created" As an example a sales ledger application package cannot be
brought into use until the user has created a sales ledger file for existing customers for the
new system" +ile conversion can be tedious and time consuming" #ecause of the volume of
data that must be copied on to the new files! the problem of input errors getting on to the
master file is a serious one! in spite of data validation checks in the file conversion program"
'nce the file has been created extensive checking for accuracy is essential! otherwise
considerable problems may arise when the system becomes operational" :here the file
conversion is from manual records the manager or systems analyst in charge of planning the
conversion must establish the following"
The location of the data 1data for each record may be on one or more forms2
:hether the existing forms are suitable for data capture
:hether the data format and sequence is suitable for the computer system
:hether the existing records are maintained centrally or not
:hether each record is easily accessible
The volumes involved 1how many records of each type there are2
:hether the existing files are to be converted directly or amalgamated in way
$f the system is already computerised! the difficulties of file conversion will usually be reduced
and the above problems more easily established" +urthermore! when it comes to
transcription from the old files to the new computer files the use of a special program will
speed up the whole process" $t is important to note that! before starting to load live data
about customers! suppliers or employees etc! management should check whether the
system must be registered under the ata )rotection Act"
TRAININ'
Training is a key issue in the success of implementing a new system" The approach adopted
and the medium through which the training is given will vary depending on the target
audience" %enior management are more likely to be interested in the overall capabilities and
limitation of the system" The middle management would receive a more structured and more
tailored to the particular applications within their remit! while /unior staffs need to be taught
the functional aspects"
MAINTENANCE
The maintenance phase of a pro/ect starts when the users sign off the system during testing
and it becomes a live production system" $t involves reviewing the pro/ect and recording and
acting on problems with the system" After a system is live! there are liable to be some errors
that were not identified during testing and need to be remedied" :hen problems are
encountered! this presents a dilemma to the system manager! since they will have to balance
the need for a new release of the system against the severity of an error"
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$t is not practical or cost effective to introduce a new release of the software for every bug
found! since each release needs to be tested and installed and fresh problems may exist in
the new system" 8ost systems managers would aim not to make frequent! immediate
releases to correct problems because of the cost and disruption this causes" $nstead! faults
will be recorded and then fixed in a release that solves several ma/or problems"
This is known as a maintenance release and it might occur at monthly! six-monthly or yearly
intervals according to the stability of the system"
POST IMPLEMENTATION REVIEW
A post implementation review or pro/ect closedown review occurs several months after the
system has gone live" $ts purpose is to asses the success of the new system and decide on
any necessary corrective action" The review would include the following:
Ceview of faults and suggested enhancements with agreement on which need to be
implemented in a future release
Ceview the success of the system in meeting its budget and implementation timescale
targets
Ceview of the success of the system in meeting its business requirements ? has it
delivered the anticipated benefits described in the feasibility study
Ceview of development practices that worked well and poorly during the pro/ect
An addition reason for performing post implementation review is so that lessons can be
learnt from the pro/ect" 3ood practice can be applied to future pro/ects and attempts made to
avoid techniques which failed"
QUESTIONS FOR DISCUSSION
:hy would a small business be more constrained in its choice of software acquisition
method than a large organisation@ iscuss
iscuss the different alternatives for acquiring information systems
iscuss different approaches to changeover strategies
iscuss the factors influencing the choice of changeover strategies
*an a post implementation review add value to the organisation@! how@
:hat is the significance of the maintenance phase in the system implementation
process@
R2-*(s
#oci/! )"! et al"! =#usiness $nformation %ystems>! +inancial Times! 6EEE
3upta! U"! =$nformation %ystems>! )rentice ;all! 6EEE