Management

Information
Systems

James A. O'Brien, and George M. Marakas 2007.

Dinar Rahayu, S.ST., M.Kom.
Chapter 13

Developing Business/
IT Solutions
James A. O'Brien, and George M. Marakas 2007.
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

Chapter 12 Developing Business/IT Solutions 3

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 interrelationships among systems
rather than linear cause-and-effect chains
Seeing processes of change among systems
rather than discrete snapshots of change
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 IS 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

Chapter 12 Developing Business/IT Solutions 9

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 IS
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

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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

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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

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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

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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

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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 IS
Input
Processing
Output
Storage
Control

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Focus of End User Development

Chapter 12 Developing Business/IT Solutions 31

Doing End User Development

Application development capabilities built into

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

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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
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
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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

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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

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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
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Sample Implementation Process

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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

Chapter 12 Developing Business/IT Solutions 39

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

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Hardware Evaluation Factors
Major evaluation factors
Performance
Cost
Reliability
Compatibility
Technology
Ergonomics
Connectivity
Scalability
Software
Support
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Software Evaluation Factors
Hardware evaluation factors apply to software,
as do these
Quality
Efficiency Software that is slow,
Flexibility hard to use, bug-filled,
or poorly documented
Security 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

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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

Chapter 12 Developing Business/IT Solutions 61