14 redesigning the organization with information systems
TRANSCRIPT
1414REDESIGNING THE REDESIGNING THE
ORGANIZATION ORGANIZATION WITH WITH
INFORMATION INFORMATION SYSTEMSSYSTEMS
Business and systems planning Information System Plan IS organization change factors Systems Development process Systems life cycle Alternatives for building systems OOAD and RAD
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LEARNING OBJECTIVES
Systems as planned organizational change (GOAL) Link IS to Business Plan
Strategic Business Plan (Starting Point) Enterprise Analysis (Business system
planning) Look at organization in term of processes, workflow
and data. Critical Success Factors (more later)
Information Systems Plan Should provide details describing how the IS
function will serve the Strategic Business Plan.
INFORMATION SYSTEMS PLAN
Contents of IS Plan: A road map giving direction of information
systems development Defines current infrastructure and systems Linked with STRATEGIC BUSINESS PLAN Provides rationale for direction New developments Management strategy Implementation plans And budget
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Describes CURRENT SYSTEMS: Major systems supporting business functions & processes, major current capabilities (hardware, software, database, telecommunications), difficulties meeting requirements, anticipated future demands
Describes NEW DEVELOPMENTS: New system projects (project descriptions, business rationale), new capabilities required (hardware, software, database, telecommunications, internet)
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INFORMATION SYSTEMS PLAN
MANAGEMENT STRATEGY: Acquisition plans, milestones & timing, organizational realignment, internal reorganization, management controls, major training initiatives, personnel strategy
IMPLEMENTATION PLAN: Anticipated difficulties, progress reports
BUDGET REQUIREMENTS: Requirements, potential savings, financing, acquisition
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INFORMATION SYSTEMS PLAN
ENTERPRISE ANALYSIS (BUSINESS SYSTEMS PLANNING) ORGANIZATION-WIDE INFORMATION NEEDS
IN TERMS OF: ORGANIZATIONAL UNITS FUNCTIONS PROCESSES DATA ELEMENTS HELPS IDENTIFY KEY
ENTITIES & ATTRIBUTES IN ORGANIZATION’S DATA
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CRITICAL SUCCESS FACTORS (CSFs)
SMALL NUMBER, EASILY IDENTIFIABLE OPERATIONAL GOALS
SHAPED BY INDUSTRY, MANAGER, ENVIRONMENT
BELIEVED TO ASSURE FIRM’S SUCCESS USED TO DETERMINE ORGANIZATION’S
INFORMATION REQUIREMENTS*
GOALS (AUTOMOBILE INDUSTRY): Earnings per share, return on investment, market share, new product
CSF: Quality dealer system, cost control, energy standards
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CRITICAL SUCCESS FACTORSCRITICAL SUCCESS FACTORS Example:Example: PROFIT CONCERNPROFIT CONCERN
GOALS (Charities): Excellent client care, meeting government regulations, future care needs
CSF: Regional integration with other organizations, efficient use of resources, improved monitoring of regulations and funding
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CRITICAL SUCCESS FACTORSCRITICAL SUCCESS FACTORS Example:Example: NONPROFIT CONCERNNONPROFIT CONCERN
USING CSFs TO DEVELOP SYSTEMS
COLLECT MANAGERS’ CSFs AGGREGATE, ANALYZE INDIVIDUALS’ CSFs DEVELOP AGREEMENT ON COMPANY CSFs DEFINE COMPANY CSFs USE CSFs TO DEVELOP INFORMATION
SYSTEM PRIORITIES DEFINE DSS & DATABASES
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SPECTRUM OF ORGANIZATIONAL CHANGE
AUTOMATION: Using technology to perform tasks efficiently / effectively
RATIONALIZATION OF PROCEDURES: Streamline SOPs; eliminate bottlenecks
BUSINESS REENGINEERING: Radical redesign of processes to improve cost, quality, service; maximize benefits of technology
PARADIGM SHIFT*
PARADIGM SHIFT PARADIGM: A complete mental
model of how a complex system functions
A PARADIGM SHIFT: Involves rethinking the nature of the business, the organization; a complete reconception of how the system should function
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BUSINESS PROCESS REENGINEERING (BPR) REENGINEERING: Redesigning
business processes to lower cost, speed development
WORK-FLOW MANAGEMENT: Streamlining process to move documents easily, efficiently
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1. Develop business vision, process objectives
2. Identify process to be redesigned3. Understand, measure performance of
existing processes4. Identify opportunities for applying
information technology5. Build prototype of new process
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EFFECTIVE REENGINEERING STEPS:
Total Quality Management (TQM) Make quality part of the process and a
reasonability of all people in the organization Systems roles that support TQM:
Simplify processes Benchmarking (measure performance) Reduce Cycle time Increase precision of product Customer demand
Edward Deming’s Six Sigma 3.4defects per million Relationship with Continuous Quality Improvement
(CQI)
SYSTEMS DEVELOPMENT
CORE ACTIVITYCORE ACTIVITY DESCRIPTIONDESCRIPTION
SYSTEMS ANALYSISSYSTEMS ANALYSIS IDENTIFY PROBLEM(S)SPECIFY SOLUTIONSESTABLISH INFORMATION REQUIREMENTS
SYSTEMS DESIGNSYSTEMS DESIGN CREATE LOGICAL DESIGN SPECSCREATE PHYSICAL DESIGN SPECSMANAGE TECHNICAL REALIZATION OF SYSTEM
PROGRAMMINGPROGRAMMING TRANSLATE DESIGN SPECS INTOPROGRAM CODE
SYSTEMS DEVELOPMENTCORE ACTIVITYCORE ACTIVITY DESCRIPTIONDESCRIPTION
TESTINGTESTING UNIT TEST SYSTEMS TEST ACCEPTANCE TEST
CONVERSIONCONVERSION PLAN CONVERSION PREPARE DOCUMENTATION TRAIN USERS & TECHNICAL STAFF
PRODUCTION &PRODUCTION & OPERATE SYSTEMMAINTENANCEMAINTENANCE EVALUATE SYSTEM
MODIFY SYSTEM
ANALYSIS OF PROBLEM TO BE SOLVED WITH AN INFORMATION
SYSTEM
FEASIBILITY STUDY: Can problem be solved within constraints?
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SYSTEMS ANALYSIS
FEASIBILITY
TECHNICAL: Assess hardware, software, technical resources
ECONOMIC: Will benefits outweigh costs?
OPERATIONAL: Is solution desirable within existing conditions?
INFORMATION REQUIREMENTS: Detailed statement of new system needs
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SYSTEM DESIGN
DETAILS HOW SYSTEM WILL MEET NEEDS:
LOGICAL DESIGN: Components, data as needed by applications
PHYSICAL DESIGN: Physical location of components and data
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DESIGN SPECIFICATIONS
OUTPUT: Medium, content, timing INPUT: Origins, flow, data entry USER INTERFACE: Simplicity, efficiency, logic,
feedback, errors DATABASE DESIGN: Logical data relations, volume,
speed requirements, file organization & design, record specifications
PROCESSING: Computations, program modules, required reports, timing of outputs
MANUAL PROCEDURES: What activities, who performs them, how, where
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CONTROLS: Input, processing, output, procedural SECURITY: Access controls, catastrophe plans,
audit trails Manuals: Operations, systems, user CONVERSION: Transfer files, initiate new
procedures, select testing modules, cut over to new system
TRAINING: Select training techniques, develop training modules, identify training facilities
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Design and Documentation
ORGANIZATIONAL CHANGES: Task redesign, job design, process design, organization structure design, reporting relationships
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Design Organization Impact
ROLE OF END USERS
USERS DRIVE SYSTEMS EFFORT
MUST HAVE SUFFICIENT CONTROL TO ENSURE SYSTEM REFLECTS BUSINESS PRIORITIES, NEEDS
FUNCTIONAL USERS DRIVE SYSTEM NEEDS
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COMPLETING SYSTEM DEVELOPMENT PROCESS
PROGRAMMING: Translating needs to program code
TESTING: Does system produce desired results?
Implementation/CONVERSION: Changing from the old to the new
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UNIT TESTING: Tests each unit separately
SYSTEM TESTING: Do modules function as planned?
ACCEPTANCE TESTING: Final certification
TEST PLAN: Preparations for tests to be performed
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TESTING
Implementation/CONVERSION
PARALLEL: Old & new run same problems. Give same results?
DIRECT CUTOVER: Risky conversion to new system
PILOT: Introduce into one area. Does it work? Yes: introduce into other area
PHASED: Introduce in stages CONVERSION PLAN: Schedule for
conversion DOCUMENTATION: Description of how
system works*
PRODUCTION & MAINTENANCE
PRODUCTION: Constant review by users & operators. Does it meet goals?
MAINTENANCE: Upkeep, update, corrections over time
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SYSTEM LIFECYCLE
PROJECT DEFINITION: Is there a problem? Can it be solved with a project?
SYSTEM STUDY: Analyze problems in existing systems; define objectives evaluate alternatives
DESIGN: Logical & physical specifications for systems solution
PROGRAMMING: Develop software code*
SYSTEM LIFECYCLE
INSTALLATION: Construct, test, train, convert to new system
POSTINSTALLATION (Maintenance): On-going evaluation, modifications for improvement to meet new requirements
Deprecation: When the system has completed it life cycle and needs to be removed. (sometimes not as easy as it sounds)
NECESSARY FOR LARGE, COMPLEX SYSTEMS & PROJECTS
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ALTERNATIVE SYSTEM-BUILDING APPROACHES PROTOTYPING APPLICATION SOFTWARE
PACKAGES In-house / END-USER
DEVELOPMENT OUTSOURCING
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PROTOTYPING
PROCESS OF BUILDING EXPERIMENTAL SYSTEM TO DEMONSTRATE, EVALUATE
APPROACH; USERS REFINE NEEDS PROTOTYPE: Preliminary working
version of information system for demonstration, evaluation purposes
ITERATIVE PROCESS*
STEPS IN PROTOTYPING
1. IDENTIFY USER’S REQUIREMENTS2. DEVELOP PROTOTYPE3. USE PROTOTYPE4. REVISE & ENHANCE PROTOTYPE BEST FOR DESIGN OF END-USER
INTERFACE: How end-user interacts with system
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APPLICATION SOFTWARE PACKAGES
PREWRITTEN, PRECODED APPLICATION SOFTWARE, COMMERCIALLY AVAILABLE FOR SALE OR LEASE
GEARED TO COMMON REQUIREMENTS CUSTOMIZATION: Modification of software
to meet organization’s needs MUST WEIGH COSTS / BENEFITS REQUEST FOR PROPOSAL (RFP): Detailed
questions sent to vendors*
CUSTOMIZATION
MODIFYING SOFTWARE PACKAGE TO MEET ORGANIZATION’S UNIQUE
REQUIREMENTS WITHOUT DESTROYING INTEGRITY OF
PACKAGE RAISES DEVELOPMENT COSTS
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END-USER DEVELOPMENT
END-USERS DEVELOP INFORMATION SYSTEM WITH LITTLE HELP FROM TECHNICAL SPECIALISTS USING 4th GENERATION TOOLS
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END-USER DEVELOPMENT
STRENGTHS: Improved requirements determination, increased user involvement & satisfaction, reduced application backlog
WEAKNESSES: Relatively inefficient, slow transaction processing, may carry high cost, large files can degrade performance, nonprocedural approach may hamper logic & updating requirements
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OUTSOURCING
CONTRACTING: COMPUTER CENTER OPERATIONS TELECOMMUNICATIONS NETWORKS APPLICATION DEVELOPMENT TO EXTERNAL VENDORS
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OUTSOURCING
WHEN TO OUTSOURCE: IF FIRM WON’T DISTINGUISH ITSELF BY
DEVELOPING APPLICATION IF PREDICTABILITY OF UNINTERRUPTED
SERVICE NOT IMPORTANT IF EXISTING SYSTEM IS
LIMITED, INEFFECTIVE, INFERIOR
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OBJECT - ORIENTED SOFTWARE DEVELOPMENT
DE-EMPHASIZES PROCEDURES SHIFTS FOCUS FROM MODELS & DATA TO OBJECTS, WHICH COMBINE DATA &
PROCEDURES OBJECTS REUSABLE SYSTEM: Classes, objects, relationships
REDUCES DEVELOPMENT TIME & COST *
RAPID APPLICATION DEVELOPMENT (RAD)
DEVELOP SYSTEM RAPIDLY: PROTOTYPING 4th GENERATION TOOLS CLOSE TEAMWORK AMONG USERS
& SPECIALISTS*
1414REDESIGNING THE REDESIGNING THE
ORGANIZATION ORGANIZATION WITH WITH
INFORMATION INFORMATION SYSTEMSSYSTEMS
Project description (1/4) A short paragraph describing the
type of project to be completed.
Project Requirements (2/4) Provide a page describing the following for
your mock company: Critical Success Factors Key business data Organizational impact of business solution Describe the testing that will be done on the final
site to assure quality
Also provide a numbered list of requirements and how these support the companies business need.
Design document (3/4) Include a design specification for each Web
page, table or spreadsheet See examples in text and on following slides Include a design illustration like
A story board for a web site A flow chart for a program A table schema for a database or excel workbook
For each page, table or spreadsheet provide Design specs Home Page
OUTPUT: This will display general company information for site visitors.
INPUT: User will select a menu link USER INTERFACE: Include lots of images to hold users
interest and or describe products. DATABASE DESIGN: No data is collected on this page.
{Other pages may have data collection describe them here} PROCESSING: Any computations that are required. {You
should list computations you would like to add these even if your web page will not really compute the values}
MANUAL PROCEDURES: This page should be updated daily with a featured product.
… one for each page/ table or spreadsheet
Design Document – Story board for web site
Home Page:Display organization logoDisplay menu in vertical frameTry to encourage visitor to stay and visit oftenGive organization general informationInclude footer with contact information
Product Page:Display a list of products with prices, Show a picture of each productAlso include delivery timesProvide a link to order form
… One for each page
Final Solution (4/4) Due the day of final exam at latest