BUILDING INFORMATION SYSTEMS: CONTEMPORARY APPROACHES

1

• 11.
• BUILDING INFORMATION SYSTEMS CONTEMPORARY
  APPROACHES

11.1
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INFORMATION SYSTEMS PLAN

• DIRECTION OF SYSTEM DEVELOPMENT
• RATIONALE
• CURRENT SITUATION
• MANAGEMENT STRATEGY
• IMPLEMENTATION PLAN
• BUDGET

11.3
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ENTERPRISE ANALYSIS

• (BUSINESS SYSTEMS PLANNING)
• ORGANIZATION-WIDE INFORMATION NEEDS IN TERMS OF
• ORGANIZATIONAL UNITS
• FUNCTIONS
• PROCESSES
• DATA ELEMENTS
• HELPS IDENTIFY KEY ENTITIES ATTRIBUTES IN
  ORGANIZATIONS DATA

11.10
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CRITICAL SUCCESS FACTORS

• SMALL NUMBER, EASILY IDENTIFIABLE OPERATIONAL
  GOALS
• SHAPED BY INDUSTRY, MANAGER, ENVIRONMENT
• BELIEVED TO ASSURE FIRMS SUCCESS.
• USED TO DETERMINE ORGANIZATIONS INFORMATION
  REQUIREMENTS

11.11
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CRITICAL SUCCESS FACTORS

• Identify company mission and objectives
• Identify CSF to meet objectives
• Identify measures of performance for each CSF
• Select measures and ensure that the IS plan
  provides means for collecting the measures

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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 DATABASES

11.13
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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

11.14
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RISKS REWARDS
High
RISK
Low
Low
High
11.16
RETURN
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BUSINESS REENGINEERING STEPS

• 1. Develop Business Vision, Process Objectives
• 2. Identify Process to be Redesigned
• 3. Understand, Measure Performance of Existing
  Processes
• 4. Identify Opportunities for Applying
  Information Technology
• 5. Build PROTOTYPE of new Process

11.18
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PARADIGM SHIFT

• A PARADIGM SHIFT INVOLVES RETHINKING THE NATURE
  OF THE BUSINESS, THE ORGANIZATION A COMPLETE
  RECONCEPTION OF HOW THE SYSTEM SHOULD FUNCTION

11.15
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SYSTEM DEVELOPMENT PROCESS

• SYSTEMS ANALYSIS
• SYSTEM DESIGN
• PROGRAMMING
• TESTING
• CONVERSION
• OPERATION MAINTENANCE

11.19
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SYSTEMS ANALYSIS

• ANALYSIS OF PROBLEM TO BE SOLVED WITH AN
  INFORMATION SYSTEM
• FEASIBILITY STUDY CAN PROBLEM BE SOLVED
  WITHIN CONSTRAINTS?

11.20
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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

11.21
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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
• END USERS Needs Drive Design Must Have
  Input, Understand How Solution Meets Their Needs

11.22
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DESIGNER 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

11.23
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DESIGNER SPECIFICATIONS

• PROCESSING
• COMPUTATIONS
• PROGRAM MODULES
• REQUIRED REPORTS
• TIMING OF OUTPUTS
• MANUAL PROCEDURES
• WHAT ACTIVITIES
• WHO PERFORMS THEM
• WHO PERFORMS THEM
• HOW
• WHERE

11.24
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DESIGNER SPECIFICATIONS

• CONVERSION
• TRANSFER FILES
• INITIATE NEW PROCEDURES
• SELECT TESTING MODULES
• CUT OVER TO NEW SYSTEM
• TRAINING
• SELECT TRAINING TECHNIQUES
• DEVELOP TRAINING MODULES
• IDENTIFY TRAINING FACILITIES
• ORGANIZATIONAL CHANGES
• TASK REDESIGN
• JOB DESIGN
• PROCESS DESIGN
• OFFICE / ORGANIZATION STRUCTURE DESIGN
• REPORTING RELATIONSHIPS

11.25
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ROLE OF END USERS

• USERS DRIVE SYSTEMS EFFORT
• MUST HAVE SUFFICIENT CONTROL TO ENSURE SYSTEM
  REFLECTS BUSINESS PRIORITIES, NEEDS
• FUNCTIONAL USERS DRIVE SYSTEM NEEDS

11.26
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COMPLETING SYSTEM DEVELOPMENT PROCESS

• PROGRAMMING Translating needs to Program Code
• TESTING Does System Produce Desired Results?

11.27
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TESTING

• 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

11.28
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CONVERSION

• PARALLEL Old New Run Same Problems. Give Same
  Results?
• DIRECT 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

11.29
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OPERATION MAINTENANCE

• OPERATION Constant Review by Users Operators.
  Does it Meet Goals?
• MAINTENANCE Upkeep Update Corrections Over
  Time

11.30
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UNDERSTANDING BUSINESS VALUE OF INFO SYSTEMS

• CAPITAL BUDGETING
• CASH FLOW
• LIMITATIONS
• Assume all Relevant Alternatives have been
  Examined Cost Benefits can be Expressed as
• Ignore Intangible Benefits

11.32
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CAPITAL BUDGET

• PROCESS OF ANALYZING, SELECTING CAPITAL
  EXPENDITURES
• Payback Method
• Return on Investment
• Cost-Benefit Ratio
• Net Present Value
• Profitability Index
• Internal Rate of Return

11.33
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COSTS BENEFITS

• COSTS
• HARDWARE
• SOFTWARE
• SERVICES
• PERSONNEL

11.35
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COSTS BENEFITS

• TANGIBLE BENEFIT
• INCREASED PRODUCTIVITY
• LOW OPERATING COSTS
• REDUCED WORK FORCE
• LOWER COMPUTER EXPENSES
• LOWER VENDOR COSTS
• LOWER CLERICAL/PROFESSIONAL COSTS
• REDUCED GROWTH OF EXPENSES
• REDUCED FACILITY COSTS

11.36
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COSTS BENEFITS

• INTANGIBLE BENEFIT
• IMPROVED ASSET USE RESOURCE CONTROL PLANNING
• INCREASED FLEXIBILITY
• MORE TIMELY INFORMATION
• INCREASED LEARNING
• ATTAIN LEGAL REQUIREMENTS
• ENHANCED EMPLOYEE GOODWILL, JOB SATISFACTION,
  DECISION MAKING, OPERATIONS
• HIGHER CLIENT SATISFACTION
• BETTER CORPORATE IMAGE

11.37
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PORTFOLIO ANALYSIS

• ANALYSIS OF POTENTIAL APPLICATIONS TO DETERMINE
  RISKS BENEFITS
• DETERMINE DESIRABLE FEATURES, ACCEPTABLE RISKS OF
  REQUIRED SYSTEM
• GENERATE PORTFOLIO OF CHARACTERISTICS, RISKS FOR
  EACH ALTERNATIVE

11.38
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SCORING MODEL

• DETERMINE CRITERIA FOR EVALUATION
• SCORE CRITERIA FOR EACH ALTERNATIVE
• ACCUMULATE SCORE
• SELECT HIGHEST SCORING ALTERNATIVE

11.38