Chapter 13
Chapter 13
Fifteenth edition
Chapter 13
Building Information Systems
Learning Objectives
•
13-1 How does building new systems produce organizational change?
•
13-2 What are the core activities in the systems development process?
•
13-3 What are the principal methodologies for modeling and designing systems?
•
13-4 What are alternative methods for building information systems?
•
13-5 What are new approaches for system building in the digital firm era?
Video Cases
• Case 1: IBM: Business Process Management in a SaaS
Environment
• Case 2: IBM Helps the City of Madrid with Real-Time BPM
Software
• Instructional Video 1: BPM Business Process Management
Customer Story
• Instructional Video 2: Workflow Management Visualized
Angostura Builds a Mobile Sales System (1 of 2)
• Problem
– Inefficient manual processes
• Solutions
– Redesign sales order process
– Mobile Sales Order System
– SAP ERP
– SAP NetWeaver Gateway software
– iPads
Angostura Builds a Mobile Sales System (2 of 2)
• Angostura uses SAP Netweaver Gateway to connect new, custom Mobile
Sales App to corporate ERP system
• Demonstrates IT’s role in helping organizations automate manual
procedures
• Illustrates the ability of IT systems to support efficiency and cost
reduction
Systems Development and Organizational Change (1 of 2)
• Programming
– System specifications from design stage are translated into software
program code
• Testing
– Ensures system produces right results
– Unit testing: Tests each program in system separately
– System testing: Test functioning of system as a whole
– Acceptance testing: Makes sure system is ready to be used in production
setting
– Test plan: All preparations for series of tests
Figure 13.5: A Sample Test Plan to Test a Record Change
• Conversion
– Process of changing from old system to new 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
Completing the Systems Development Process (3 of 3)
• Class discussion
– What were Fujitsu’s problems with its existing systems for the CPQ process? What was the
business impact of these problems?
– List and describe the most important information requirements you would expect to see in
Fujitsu’s RFP.
– Why was the FPX CPQ solution selected? Was it a good choice? Why or why not?
– Why would software as a service be an appropriate solution for Fujitsu? Should Fujitsu have built
its own CPQ system in-house?
– How much did FPX CPQ change the way Fujitsu ran its business?
Outsourcing (1 of 2)
• Several types
– Cloud and SaaS providers
• Subscribing companies use software and computer hardware provided by
vendors
– External vendors
• Hired to design, create software
• Domestic outsourcing
– Driven by firm’s need for additional skills, resources, assets
• Offshore outsourcing
– Driven by cost-savings
Outsourcing (2 of 2)
• Advantages
– Allows organization flexibility in IT needs
• Disadvantages
– Hidden costs, for example:
• Identifying and selecting vendor
• Transitioning to vendor
– Opening up proprietary business processes to third party
Figure 13.11: Total Cost of Offshore Outsourcing