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Building Information Systems-1

The document discusses how building information systems can enable four types of organizational change: automation, rationalization, business process reengineering, and paradigm shifts. It also describes the core activities in the systems development process, including systems analysis, systems design, programming, testing, conversion, and production and maintenance. Finally, the document outlines how information systems can support quality improvements and benchmarking standards within organizations.

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Apurva Negi
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182 views18 pages

Building Information Systems-1

The document discusses how building information systems can enable four types of organizational change: automation, rationalization, business process reengineering, and paradigm shifts. It also describes the core activities in the systems development process, including systems analysis, systems design, programming, testing, conversion, and production and maintenance. Finally, the document outlines how information systems can support quality improvements and benchmarking standards within organizations.

Uploaded by

Apurva Negi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Building Information systems

LEARNING OBJECTIVES

Understand how building new systems produces


organizational change.

Identify and describe the core activities in the systems


development process.

Describe the principal methodologies for modeling and


designing systems.
Systems as Planned Organizational
Change
Four kinds of structural organizational change enabled by
IT

1. Automation
Increase efficiency, replace manual tasks (Payroll applications)
2. Rationalization – improving the efficiency of processes
Streamline standard operating procedures (CIMB process change)
3. Business process reengineering (BPR)
Analyze, simplify, and redesign business processes (ATMs)
4. Paradigm shifts – a fundamental change in approach
Rethink nature of business, define new business model, change nature
of organization (for eg: internet banking and transfer of funds-NEFT)
Systems as Planned Organizational
Change
Organizational Change Carries Risks and Rewards

The most common forms of organizational change are automation and rationalization.
These relatively slow-moving and slow-changing strategies present modest returns but
little risk. Faster and more comprehensive change—such as reengineering and paradigm
shifts—carries high rewards but offers substantial chances of failure.
Systems as Planned Organizational Change

Business process reengineering (BPR)


Large payoffs or redistribution of man power can
result from redesigning business processes
(recall SAP implementation examples)
Home mortgage industry used IT to redesign mortgage application
process
BEFORE: 6- to 8-week process costing $3000
AFTER: 1-week process costing $1000
Work flow management: Process of streamlining
business procedures so documents can be
moved easily and efficiently
Systems as Planned Organizational Change

Steps in effective reengineering


• Determine which business processes should be improved
• Understand and measure performance of existing
processes as a baseline
• Understand how improving the identified processes will
help the firm execute its business strategy
• Set up the target state of the identified business
processes
Even with effective BPR, majority of reengineering projects
do not achieve breakthrough gains because of inadequate
change management
Systems as Planned Organizational Change

Business process management (BPM)


Helps firms manage incremental process changes
Uses process-mapping tools to:
• Identify and document existing processes
• Create models of improved processes that can be
translated into software systems
• Measure impact of process changes on key business
performance indicators
Systems as Planned Organizational Change

Quality management:
• Fine-tuning business processes to improve quality in their products,
services, and operations
• The earlier in the business cycle a problem is eliminated, the less it
costs the company
• Quality improvements raise level of product and service quality as well
as lower costs
Systems as Planned Organizational Change

Information systems support quality improvements by


helping firms:
• Simplify products or processes
• Make improvements based on customer demands
• Reduce cycle time
• Improve quality and precision of design and production
• Meet benchmarking standards

Benchmarking:
Setting strict standards for products, services, and other
activities, and then measuring performance against those
standards
Overview of Systems Development

Systems development: Activities that go into producing


an information system solution to an organizational
problem or opportunity
• Business case design and approval
• Systems analysis
• Systems design
• Programming
• Testing
• Conversion
• Production and maintenance
Overview of Systems Development
Summary of Systems Development Activities
CORE ACTIVITY DESCRIPTION
Systems analysis Identify problem(s)
Specify solutions
Establish information requirements
Systems design Create design specifications

Programming Translate design specifications into


code
Testing Unit test
Systems test
Acceptance test
Conversion Plan conversion
Prepare documentation
Train users and technical staff
Production and Operate the system
maintenance Evaluate the system
Modify the system
Overview of Systems Development

Systems analysis
Analysis of problem that will be solved by system
Defining the problem and identifying causes
Specifying solutions
Systems proposal report identifies and examines alternative
solutions
Identifying information requirements
Overview of Systems Development

System analysis (cont.)


Establishing information requirements
Who needs what information, where, when, and how

Define objectives of new/modified system

Detail the functions new system must perform

Faulty requirements analysis is leading cause of


systems failure and high systems development
cost
Overview of Systems Development

Systems design
Describe system specifications that will deliver functions identified
during systems analysis

Role of end users


User information requirements drive system building
Users must have sufficient control over design process to ensure that
system reflects their business priorities and information needs
Insufficient user involvement in design effort is major cause of system
failure
Overview of Systems Development
Programming:
• System specifications from design stage are translated into software
program code
• Software may be purchased, leased, or outsourced instead
Testing
To ensure system produces right results
• Unit testing
Tests each program in system separately
• System testing
Tests functioning of system as a whole
• Acceptance testing
Makes sure system is ready to be used in production setting
Overview of Systems Development
Conversion
Process of changing from old system to new system
(for eg moving from one system to another system)
Four main strategies
• Parallel strategy
• Direct cutover
• Pilot study
• Phased approach
Requires end-user training
Finalization of detailed documentation showing how system works
From technical and end-user standpoint
Overview of Systems Development

Production and maintenance


System reviewed to determine if any revisions needed

Maintenance
• Changes in hardware, software, documentation, or procedures to
a production system to correct errors, meet new requirements, or
improve processing efficiency
• 20% debugging, emergency work
• 20% changes to hardware, software, data, reporting
• 60% of work: User enhancements, improving documentation,
recoding for greater processing efficiency
CASE- 1 -- CIMB CASE
CASE - 2 -- ARE ELECTRONIC MEDICAL RECORDS
A CURE FOR HEALTH CARE?

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