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 Chapter

12
Developing Business/IT Solutions

McGraw-Hill/Irwin Copyright 2008

2008,The
TheMcGraw-Hill
McGraw-HillCompanies,
Companies,Inc.
Inc.All
Allrights
rightsreserved.
reserved.
 Learning Objectives

Use the systems development process outlined

in this chapter and the model of IS components
from Chapter 1 as problem-solving frameworks
to help you propose information systems
solutions to simple business problems
Describe and give examples to illustrate
how you might use each of the steps of the
information systems development cycle to
develop and implement a business information
system

12-3
 Learning Objectives

Explain how prototyping can be used as an

effective technique to improve the process
of systems development for end users and
IS specialists
Understand the basics of project management
and their importance to a successful system
development effort
Identify the activities involved in the
implementation of new information systems

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 Learning Objectives

Compare and contrast the four basic system

conversation strategies
Describe several evaluation factors that should
be considered in evaluating the acquisition of
hardware, software, and IS services

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 IS Development

When the systems approach is applied to

the development of an information systems
solution to business problems, it is called
information systems development or
application development

12-6
Case 1: Customer-Driven Development

At Intuit, development of new product ideas

are driven by a psychologist
Playing nice
Free-association sessions
Focus is always on the customer
Making pain points less painful
Capturing pencil-and-paper users
Follow-me-homes
Simplifying language

12-7
 Case Study Questions

Should Intuits far-out thinking and acceptance

of failure as part of the application software
development process be duplicated at large
software development companies like
Microsoft?
Should it be duplicated at the thousands of
small independent software companies that
exist?

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 Case Study Questions

Which do you prefer?

Intuits customer-driven development process
where hundreds of employees and managers
are sent to consult with customer in their homes
or places of business, or
Microsofts process of using professional
anthropologists to do such research

12-9
 Case Study Questions

Intuit developed the wildly successful

QuickBooks: Simple Start Edition, which
eliminated all accounting jargon
Could this idea be the foundation of a new
version of Intuits top-selling TurboTax software,
which removed all tax accounting jargon from
that product to reach the 20 million Americans
who do not use tax preparation software or a
professional tax preparer?
Would such a product be possible or successful?

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 The Systems Approach

A problem solving technique that uses a systems

orientation to define problems and opportunities
and develop appropriate and feasible solutions
Analyzing a problem and formulating a solution
involves these interrelated activities:
Recognize and define a problem or opportunity
using systems thinking
Develop and evaluate alternative system solutions
Select the solution that best meets your requirements
Design the selected system solution
Implement and evaluate the success of the system

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 What is Systems Thinking?

Seeing the forest and the trees in any situation

Seeing interrelationships among systems
rather than linear cause-and-effect chains
Seeing processes of change among systems
rather than discrete snapshots of change
See the system in any situation
Find the input, processing, output, feedback
and control components

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Systems Thinking Example

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 Systems Analysis and Design

SA&D is the overall process by which

information systems are designed and
implemented
Includes identification of business problems
Two most common approaches
Object-oriented analysis and design
Life cycle

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Systems Development Lifecycle (SDLC)

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 Systems Development Process

Systems Investigation
The first step in the systems development
process
May involve consideration of proposals
generated by a business/IT planning process
Also includes the preliminary feasibility study
of proposed information system solutions

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 Systems Development Process

Feasibility Studies: a preliminary study to

determine the
Information needs of prospective users
Resource requirements
Costs
Benefits
Feasibility
In some cases, a feasibility study is unnecessary

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 Operational Feasibility

How well the proposed system will

Support the business priorities of the
organization
Solve the identified problem
Fit with the existing organizational structure

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 Economic Feasibility

An assessment of
Cost savings
Increased revenue
Decreased investment requirements
Increased profits
Cost/benefit analysis

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 Technical Feasibility

Determine the following can meet the needs

of a proposed system and can be acquired or
developed in the required time
Hardware
Software
Network

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 Human Factors Feasibility

Assess the acceptance level of

Employees
Customers
Suppliers
Management support
Determine the right people for the various
new or revised roles

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 Legal/Political Feasibility

Assess
Possible patent or copyright violations
Software licensing for developer side only
Governmental restrictions
Changes to existing reporting structure

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 Systems Analysis

An in-depth study of end user information needs

It produces the functional requirements used as
the basis for the design of an information system
It typically involves a detailed study of the
Information needs of a company and end users
Activities, resources, and products of one or more
of the information systems currently being used
Information system capabilities required to meet
the information needs of business stakeholders

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 Organizational Analysis

Study of the organization, including

Management structure
People
Business activities
Environmental systems
Current information systems
Input, processing, output, storage, and control

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 Analysis of the Present System

Before designing a new system, it is important

to study the system to be improved or replaced
Hardware and software
Network
People resources used to convert data
resources into information products
System activities of input, processing,
output, storage, and control

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 Logical Analysis

A logical model is a blueprint of the current

system
It displays what the current system does,
without regard to how it does it
It allows an analyst to understand the processes,
functions, and data associated with a system
without getting bogged down with hardware
and software

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 Functional Requirements

This step of systems analysis is one of the most

difficult
Determine what type of information each
business activity requires
Try to determine the information processing
capabilities required for each system activity
The goal is to identify what should be done,
not how to do it

12-27
 Examples of Functional Requirements

User Interface: automatic entry of product

data and easy-to-use data entry screens for
Web customers
Processing: fast, automatic calculation of sales
totals and shipping costs
Storage: fast retrieval and update of data from
product, pricing, and customer databases
Control: signals for data entry errors and quick
e-mail confirmation for customers

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 Systems Design

Systems design focuses on three areas

12-29
 Prototyping

Prototyping is the rapid development and

testing of working models
An interactive, iterative process used during
the design phase
Makes development faster and easier, especially
when end user requirements are hard to define
Has enlarged the role of business stakeholders

12-30
Prototyping Life Cycle

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 User Interface Design

Focuses on supporting the interactions between

end users and their computer-based applications
Designers concentrate on the design of attractive
and efficient forms of user input and output
Frequently a prototyping process
Produces detailed design specifications for
information products, such as display screens

12-32
 Checklist for Corporate Websites

Remember the customer

Aesthetics
Broadband content
Easy to navigate
Searchability
Incompatibilities
Registration forms
Dead links

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 System Specifications

Formalizing the design of

User interface methods and products
Database structures
Processing procedures
Control procedures

12-34
 Examples of System Specifications

User interface Use personalized screens that welcome repeat Web

specifications customers and that make product recommendations

Database Develop databases that use object/relational database

specifications management software to organize access to all customer
and inventory data and to multimedia product information
Software Acquire an e-commerce software engine to process all
specifications e-commerce transactions with fast responses, i.e., retrieve
necessary product data and compute all sales amounts in
less than one second

Hardware Install redundant networked Web servers and sufficient

and network high-bandwidth telecommunications lines to host the
specifications company e-commerce website
Personnel Hire an e-commerce manager and specialists and a
specifications webmaster and Web designer to plan, develop, and
manage e-commerce operations

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 End User Development

IS professionals play a consulting role, while

uses do their own application development
A staff of user consultants may be available
to help with analysis, design, and installation
Other support
Application package training
Hardware and software advice
Help gaining access to organization databases

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 Focus on IS Activities

End user development should focus on the

fundamental activities of an information system
Input
Processing
Output
Storage
Control

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Focus of End User Development

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 Doing End User Development

Application development capabilities built into

software packages make it easier for end users
to develop their own solutions

12-39
Encouraging End User Web Development

Look for tools that make sense

Some are more powerful or costly than needed
Spur creativity
Consider a competition among departments
Set some limits
Limit what parts of a web page or site can
be changed and who can do it
Give managers responsibility
Make them personally responsible for content

12-40
Encouraging End User Web Development

Make users comfortable

Training will make users more confident
It can save the IT department the trouble
of fixing problems later on
It can limit the need for continuous support

12-41
 Implementing New Systems

The systems implementation stage involves

Hardware and software acquisition
Software development
Testing of programs and procedures
Conversion of data resources
Conversion alternatives
Education/training of end users and
specialists who will operate the new system

12-42
Implementation Process

12-43
 Case 2: Managing Radical Change

HP is embarking on a makeover of its internal

tech systems
Replacing 85 loosely connected data centers
around the world with 6 cutting-edge facilities
Cutting thousands of smaller projects to focus
on a few corporate-wide initiatives
Scrapping 784 databases for one data warehouse
Laying off thousands of IT workers
Building its own fiber-optic network to connect
the six data centers

12-44
 Case Study Questions

Will the initiatives being undertaken by CIO

Randy Mott to implement major changes to the
IT function at HP make IT a more efficient and
vital contributor to HPs business success?
Defend your position on each of the major
initiatives he is implementing
Do you approve of the change management job
Mott is doing, including his meetings with HP
employees throughout the world, and having
coffee talks with them?

12-45
 Case Study Questions

Assume you have been hired as a management

consultant or coach to CIO Mott
What are several suggestions you might
give him to help him successfully implement
his ambitious plans for IT changes at HP?

12-46
 Project Management

The skills and knowledge necessary to be

a good project manager will translate into
virtually any project environment
The people who have acquired them
are sought after by most organizations

12-47
 What is a Project?

Every project has

A set of activities with a clear beginning and end
Goals
Objectives
Tasks
Limitations or constraints
A series of steps or phases
Managing a project effectively requires
Process
Tools
Techniques

12-48
Sample Implementation Process

12-49
 Phases of Project Management

There are five phases in most projects

Initiating/Defining
Planning
Executing
Controlling
Closing

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 Initiating/Defining Phase

Example activities
State the problem(s) and/or goal(s)
Identify the objectives
Secure resources
Explore the costs/benefits in the feasibility study

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 Planning Phase

Example activities
Identify and sequence activities
Identify the critical path
Estimate the time and resources needed for
project completion
Write a detailed project plan

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 Execution Phase

Example activities
Commit resources to specific tasks
Add additional resources and/or personnel
if necessary
Initiate work on the project

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 Controlling Phase

Example activities
Establish reporting obligations
Create reporting tools
Compare actual progress with baseline
Initiate control interventions, if necessary

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 Closing Phase

Example activities
Install all deliverables
Finalize all obligations and commitments
Meet with stakeholders
Release project resources
Document the project
Issue a final report

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Evaluating Hardware, Software, Services

Establish minimum physical and performance

characteristics for all hardware and software
Formalize these requirements in an RFP/RFP
Send RFQ to appropriate vendors
Evaluate bids when received
All claims must be demonstrated
Obtain recommendations from other users
Search independent sources for evaluations
Benchmark test programs and test data

12-56
 Hardware Evaluation Factors

Major evaluation factors

Performance
Cost
Reliability
Compatibility
Technology
Ergonomics
Connectivity
Scalability
Software
Support
12-57
 Software Evaluation Factors

Hardware evaluation factors apply to software,

as do these
Quality
Efficiency
Software that is slow,
Flexibility hard to use, bug-filled,
Security or poorly documented
is not a good choice
Connectivity at any price
Maintenance
Documentation
Hardware

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 Evaluating IS Services

Examples of IS services
Developing a company website
Installation or conversion of hardware/software
Employee training
Hardware maintenance
System design and/or integration
Contract programming
Consulting services

12-59
 IS Service Evaluation Factors

IS evaluation factors include

Performance
Systems development
Maintenance
Conversion
Training
Backup facilities and services
Accessibility to sales and support
Business position and financial strength
Hardware selection and compatibility
Software packages offered
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 Other Implementation Activities

The keys to successful implementation of

a new business system
Testing
Data conversion
Documentation
Training

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 System Testing

System testing may involve

Testing and debugging software
Testing website performance
Testing new hardware
Review of prototypes

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 Data Conversion

Data conversion includes

Converting data elements from the old database
to the new database
Correcting data errors
Filtering out unwanted data
Consolidating data from several databases
Organizing data into new data subsets
Improperly organized and formatted data is a
major cause of implementation failures

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 Documentation

User Documentation
Sample data entry screens, forms, reports
System operating instructions
Systems Documentation
Method of communication among those
developing, implementing, and maintaining
a computer-based system
Detailed record of the system design
Extremely important when diagnosing
problems and making system changes

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 Training

End users must be trained to operate a new

business system or its implementation will fail
May involve only activities, such as data entry,
or all aspects of system use
Managers and end users must understand how
the new technology impacts business operations
System training should be supplemented with
training related to
Hardware devices
Software packages

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Major System Conversion Strategies

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 Direct Conversion

Direct conversion
The simplest conversion strategy
The most disruptive to the organization
Sometimes referred to as the slam dunk or
cold-turkey strategy
May be the only viable solution in cases of
emergency implementation or if the old and
new system cannot coexist
Has the highest risk of failure
Involves turning off the old system and turning
on the new one

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 Parallel Conversion

Old and new systems are run simultaneously

until everyone is satisfied that
The new system functions correctly
The old system is no longer needed
Conversion to new system can be single
cutover or phased cutover
Has the lowest risk, but the highest cost
Can cost 4 times more than using the old system
Best choice where an automated system is
replacing a manual one
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 Pilot Conversion

Scenarios best suited to a pilot conversion

Multiple business locations
Geographically diverse locations
Advantages of single location conversion
Can select a location that best represents
the conditions across the organization
Less risky in terms of loss of time or delays
in processing
Can be evaluated and changed before further
installations

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 Phased Conversion

A phased or gradual conversion

Takes advantage of both the direct and parallel
approaches
Minimizes the risks involved
Allows the new system to be brought online
as logically ordered functional components
Disadvantages
Takes the most time
Created the most disruption to the organization
over time

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 Post-Implementation Activities

The single most costly activity

Correcting errors or faults in the system
Improving system performance
Adapting the system to changes in the operating
or business environment
Requires more programmers than does
application development
May exist for years

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 Systems Maintenance

There are four basic categories of system

maintenance
Corrective: fix bugs and logical errors
Adaptive: add new functionality
Perfective: improve performance
Preventive: reduce chances of failure

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 Post-Implementation Review

Ensures that the newly implemented system

meets the established business objectives
Errors must be corrected by the maintenance
process
Includes a periodic review/audit of the system
as well as continuous monitoring

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Case 3: Indiana University Financial Aid

Success or failure is in the eye of the beholder

A PeopleSoft implementation at Indiana
University resulted in denials of financial aid
Contributors to the problem
Software did not align with business processes
Limited time for testing and training
Interface issues between the loan systems at
lending institutions and the university
Transactions blocked for minor exceptions
Poor project management and tracking

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Case 3: Indiana University Financial Aid

Project management violations

Poor or no due diligence
No user training
Absence of system alerts
System interface problems were ignored
The complex project wasnt broken down
into smaller, progressively delivered chunks

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 Case Study Questions

As with any story, there are always two sides.

Indiana University sees the problem as a
surprise; outside observers see the problem as
predictable and preventable
What do you think?
Is it possible that some implementation problems
cannot be easily foreseen or prevented?

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 Case Study Questions

What could Indiana University have done

differently to prevent this unfortunate even
from occurring?
Is there evidence to suggest that it learned
from this experience?

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 Case 4: In-House Development

Custom code continues to be the secret sauce

that gives many businesses an edge
Making business processes faster and more
efficient
Delivering new services
Improving customer support
Innovation in other ways, usually something
unique

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 Case 4: In-House Development

The do-it-yourself approach isnt cheap

High salaries for developers and IT managers
Dozens or hundreds of personnel needed
Before, computer hardware dictated the choice
of operating systems and development software
Developing in C++ costs half as much as
developing in Cobol
Newer packages unhitch programmers from
mainframes and proprietary platforms

12-79
 Case Study Questions

Jeff Brandmaier, senior VP and CIO at H&R

Block Inc., describes in-house developed
applications as the stuff that gives you
competitive advantage.
Why do you think he feels this way?
Can a modern organization be competitive
without developing any applications in-house?

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 Case Study Questions

The case points out that despite the use of vendor

applications, there is still a lot of manually
intensive work that goes on in the development
process.
Why do you think vendor applications still
require in-house developers?

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