redesigning the organization with information systems

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