INFO 0107

INTRODUCTION TO
MANAGEMENT
INFORMATION SYSTEMS
Module 3 - Developing and Acquiring Information
Systems
 Module Objectives
 Systems Development and Organizational Change
• Developing an IS that fits the business plan
 Overview of Systems Development
• Identify core activities in the systems development process
 Design Considerations for Developing BI Tools

2
System Development and
Organizational Change
 New systems helps work to flow more smoothly within an
organization.
• Problem: Manual procedures are inefficient and prone to human
error
• Solution: Eliminate manual procedures, design new processes (or re-
engineer existing processes) and develop and implement system

3
Types Of I.T. Enabled
Organizational Change
Automation Rationalization
 Increases efficiency  Streamline standard
 Replaces manual tasks operating procedures
 Often found in programs
https://medium.com/ that foster continuous
@kamila/10-examples-of- quality improvements
automation-7326ef303772 • e.g. Total Quality
Management (TQM) and
Six Sigma

4
Types Of I.T. Enabled Organizational
Change – Cont.

Business Process Re- Paradigm Shift

engineering  Rethink nature of business,
 Analyze, simplify and  Define new business model,
redesign business  Change the nature of the
processes organization
 Reorganize workflows,
combine steps, eliminate
repetition

5
Types Of I.T. Enabled Organizational
Change – Cont.

6
Business Process Management (BPM)

 Includes a variety of
tools, methodologies to
analyze, design and
optimize processes
 Used by firms to manage
business process
redesign.

7
Steps in BPM

Identify processes for change

Analyze existing processes

Design the new process

8
Steps in BPM – Cont.
Implement the new process

Continuous measurement

9
Steps in BPM – Cont.

Analy
se

Business Process for Purchasing a Book from a Physical

Bookstore 10
Steps in BPM – Cont.

Desig
n

Redesigned Process for Purchasing a

Book Online

11
Tools for Business Process
Management
 Identify and document existing processes
• Identify inefficiencies
 Create models of improved processes
 Capture and enforce business rules for performing, automating
processes
 Integrate existing systems to support process improvements
 Verify that new processes have improved
 Measure impact of process changes on key business
performance indicators
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Systems Development
 Activities that go into producing an information system solution
to an organizational problem or opportunity
• Systems analysis
• Systems design
• Programming
• Testing
• Conversion
• Production and maintenance

13
Systems Development – Cont.

Systems Development
Process 14
Systems Development – Cont.
Core Activity Core Activity
Systems analysis Identify problem(s), Specify solutions, Establish information
requirements
Systems design Create design specifications
Programming Translate design specifications into program code
Testing Perform unit testing, Perform systems testing, Perform
acceptance testing
Conversion Plan conversion, Prepare documentation, Train users and
technical staff
Production and Operate the system, Evaluate the system, Modify the system
maintenance

Systems Development
Process

15
Systems Development –
Cont.
System Analysis
 Analysis of problem to be solved by new system
 Defining the problem
 Identifying causes
 Specifying solutions
 Identifying information requirements

16
Systems Development –
Cont.
System Analysis – Cont.
 Feasibility study
 Systems proposal report
 Information requirements
• Who needs what information? Where? When? And How
• Define objectives of new/modified systems
• Detail the functions the new system must perform
NOTE! - Faulty requirements analysis is a leading cause of
systems failure and high systems development costs 17
Systems Development – Cont.

System Design
 Describes system specifications that will deliver functions
identified during systems analysis
 Should address all managerial, organizational, and technological
components of system solution
 Define role of end users
• User information requirements drive system building
• Users must have sufficient control over design process to ensure
system reflects their business priorities and information needs
• Insufficient user involvement in design effort is major cause of
system failure 18
Systems Development – Cont.
Category Specifications
Output Medium, Content, Timing
Input Origins, Flow, Data entry
User Interface Simplicity, Efficiency, Logic, Feedback, Errors
Database Design Logical data model, Volume and speed requirements, File
organization and design, Record specifications
Processing Computations, Program modules, Required reports, Timing of
outputs
Manual Procedures What activities, Who performs them, When, How, Where
Controls Input controls (characters, limit, reasonableness), Processing
controls (consistency, record counts), Output controls (totals,
samples of output), Procedural controls (passwords, special
forms)

System Design
Specifications 19
Systems Development – Cont.
Category Specifications
Security Access controls, Catastrophe plans, Audit trails
Documentation Operations documentation, Systems documents, User
documentation

Conversion Transfer files, Initiate new procedures, Select testing method

Cut over to new system

Training Select training techniques, Develop training modules, Identify

training facilities

Organizational Changes Task redesign, Job redesign, Process design, Organization

structure design, Reporting relationships

System Design
Specifications

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Systems Development – Cont.

System Design – cont.

 Most prominent methodologies for modelling and designing
systems
• Structured methodologies
 Techniques are step by step, progressive
 Techniques are process oriented focused on modelling processes
or actions that manipulate data
• Object Oriented Methodologies

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Systems Development –
Cont.
Programming
 System specifications from design stage are translated into
software program code.
 May involve either:
• In house programming
• Outsourcing firms to develop customer application software or
• Purchase of the software package from commercial software
vendor.

22
Systems Development –
Cont.
Testing
 Ensures the system produces the right results
 Involves preparation of Test Plans which covers a series of
testing approaches for:
• 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
23
Systems Development –
Cont.

A Sample Test Plan to Test a Record Change 24

Systems Development –
Cont.
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
 Includes finalization of detailed documentation showing how system
works from technical and end-user standpoint 25
Systems Development –
Cont.
Production & Maintenance
 System reviewed to determine if revisions needed
 May include post-implementation audit document
 Maintenance
• Changes in hardware, software, documentation, or procedures to a
production system to correct errors, meet new requirements, or
improve processing efficiency
 20 percent debugging, emergency work
 20 percent changes to hardware, software, data, reporting
 60 percent of work: user enhancements, improving documentation, recoding
for greater processing efficiency 26
System Design Tools and
Framework
Structured - Data Flow Diagram (DFD)
 Primary tool for representing system’s component processes
and flow of data between them
• Offers logical graphic model of information flow between
processes
• High level and lower-level diagrams can be used to break
processes down into successive layers of detail

27
System Design Tools and
Framework – Cont.

DFD for College Registration System 28

System Design Tools and
Framework – Cont.
Structured - Data Dictionary
 Contains information about individual pieces of data and data
groupings within a systems

29
System Design Tools and
Framework – Cont.
Structured - Structure Charts
 Top-down chart showing each level of design, its relationship
to other levels and its place in the overall design structure.
 First considers the main function of a program or system then
decomposes it into several subfunctions until the lowest levels
are reached

30
System Design Tools and
Framework – Cont.

High Level Structure Chart

31
System Design Tools and
Framework – Cont.
Object Oriented Development
 Uses objects as basic unit of system analysis and design
• Combining data and specific processes (object behaviors) that
operate on the data
 Object oriented modelling based on concepts of classes and
inheritance.
• Objects belong to a certain class and have features of that class
• May inherit structures and behaviors of a more general parent
class.
32
System Design Tools and
Framework – Cont.

Class Diagram 33
System Design Tools and
Framework – Cont.
Object Oriented Development
 More iterative and incremental than traditional structured
development
• System Analysis: interactions between systems and users
analyzed to identify objects and their associated characteristics
and behaviors.
• Design Phase: describes how objects will behave and interact.
Grouped into classes, subclasses and hierarchies
• Implementation: some classes may be reused from existing
library of classes, others created or inherited
34
System Design Tools and
Framework – Cont.
Object Oriented Development
 Objects are reusable
• Object-oriented development can potentially reduce time and
cost of development

35
Computer-Aided Software
Engineering
 Software tools to automate development and reduce repetitive
work, including:
• Graphics facilities for producing charts and diagrams
• Screen and report generators, reporting facilities
• Analysis and checking tools
• Data dictionaries
• Code and documentation generators
 Support iterative design by automating revisions and changes
and providing prototyping facilities
 Require organizational discipline to be used effectively 36
Traditional Systems Life
Cycle
 Oldest method for building information systems
 Phased approach
• Development divided into formal stages
• “Waterfall” approach: One stage finishes before next stage begins
 Formal division of labor between end users and information
systems specialists
 Emphasizes formal specifications and paperwork
 Still used for building large complex systems
 Can be costly, time-consuming, and inflexible
37
Traditional Systems Life
Cycle – Cont.

38
Prototyping
 Building experimental system rapidly and inexpensively for end
users to evaluate
 Prototype: Working but preliminary version of information
system
• Approved prototype serves as template for final system
 Steps in prototyping
• Identify user requirements
• Develop initial prototype
• Use prototype
• Revise and enhance prototype 39
Prototyping – Cont.
 Different Types
• Throw away
• Incremental

40
Prototyping – Cont.

41
Prototyping – Cont.
Advantages
1. This model is flexible in design.
2. We can find missing functionality easily.
3. There is scope of refinement, it means new requirements can be
easily accommodated.
4. It can be reused by the developer for more complicated projects in
the future.
5. It ensures a greater level of customer satisfaction and comfort.
6. It helps developers and users both understand the system better.
7. It can actively involve users in the development phase. 42
Prototyping – Cont.
Disadvantages
1. It has poor documentation because of continuously changing
customer requirements.
2. There may be too much variation in requirements.
3. Customers sometimes demand the actual product to be
delivered soon after seeing an early prototype.
4. May encourage scope creep in the project

43
Rapid Application
Development (RAD)
 Process creates workable systems in a very short period.
 Utilizes object-oriented software tools, reusable software,
prototyping and fourth generation language tools to rapidly
build systems.
 The components or functions are developed in parallel, and it
can handle small project as well as medium project.

44
Rapid Application
Development (RAD) – Cont.

45
Rapid Application
Development (RAD) – Cont.
Typical RAD Scenario
 Appropriate for systems that can be modularized to be
delivered in an incremental manner.
 Should only be used if there is a high availability of designers
for modelling.
 It should be used only if the budget permits use of automated
code generating tools
 Should be used where the requirements change during the
project and working prototypes are to be presented to
customer in small iterations of 2 3 months 46
Rapid Application
Development (RAD) – Cont.
Advantages
1. Changing requirements can be accommodated.
2. Iteration time can be short with use of powerful RAD tools
3. Productivity with fewer people in a short time
4. Reduced development time
5. Increases reusability of components
6. Encourages end user feedback

47
Rapid Application
Development (RAD) – Cont.
Disadvantages
1. Dependency on technically strong team members for
identifying business requirements high dependency on
modelling skills.
2. Requires highly skilled developers / designers.
3. Cost of modelling and automated code generation is very high.
4. Requires user involvement throughout the life cycle.

48
Spiral
 Combines the idea of iterative development with the
systematic, controlled aspects waterfall model.
 Consists of four iterative phases
1. Requirements Analysis
2. Design
3. Construct / Build
4. Evaluation and Risk Analysis

49
Spiral – Cont.

50
Spiral – Cont.
Typical Spiral Scenario
 When there is a budget constraint and risk evaluation is important.
 For medium to high-risk projects.
 Long term project commitment because of potential changes to
economic priorities as the requirements change with time.
 Customer is not sure of their requirements which is usually the case.
 Requirements are complex and need evaluation to get clarity.
 New product line which should be released in phases to get enough
customer feedback.
 Significant changes are expected in the product during the
development cycle. 51
Spiral – Cont.
Advantages
1. Changing requirements can be accommodated.
2. Allows extensive use of prototypes.
3. Requirements can be captured more accurately.
4. Users see the system early.
5. Development can be divided into smaller parts and the risky
parts can be developed earlier which helps in better risk
management.

52
Spiral – Cont.
Disadvantages
1. Management and process is more complex.
2. End of the project may not be known early.
3. Not suitable for small or low risk projects and could be
expensive for small projects.
4. Spiral may go on indefinitely.
5. Large number of intermediate stages requires excessive
documentation.

53
Dynamic System Development
Methods (DSDM)
 A framework that is made up of eight principles, a lifecycle and
products, roles and responsibilities and several best practice
techniques.
 Advocates the use of several proven practices:
• Facilitated Workshops (JAD)
• Modelling and Iterative Development
• MoSCoW Prioritization
• Time Boxing

54
Dynamic System Development
Methods (DSDM) – Cont.

55
Dynamic System Development
Methods (DSDM) – Cont.
Advantages
1. Users are highly involved in the development.
2. Basic functionality is delivered within very short time.
3. Provides easy access for Developers to end user
4. Utilizes prototyping
5. Suitable for fixed and changing requirement

56
Dynamic System Development
Methods (DSDM) – Cont.
Disadvantages
1. Experienced and skilled team is required.
2. Complex processes require full application of principles, as well
as knowledge and skills to apply

57
SCRUM
 A framework for effective team collaboration on complex
products.

58
SCRUM – Cont.

59
Acquiring Information
Systems
 Systems differ in terms of
• Their size and technological complexity
• The organizational problems they are meant to solve
• Several approaches exist to ensure the most appropriate I.S. is
acquired to meet the needs of the organization

60
Acquiring Information
Systems – Cont.
Approaches to IS Acquisition
 Custom (in-house) Development
 Application Software Packages and Cloud Software Services
 Outsourcing
 Component Based Development and Web Services

61
Custom (in-house)
Development
 Adapts and applies a framework to guide the analysis, design
and development of the system.
 Integrates project management principles and product
methodologies which align with the core
System Development Life Cycle (SDLC) phases of product
development.

62
Application Software Packages
and Cloud Software Services
 Software purchased from external sources.
 Many applications common to all business organizations
payroll, accounts receivable, general ledger, or inventory
control.
• Generalized systems for universal functions with standard
processes that do not change or differ from organization to
organization
• Saves time and money
• Many packages offer customization features

63
Application Software Packages and
Cloud Software Services – Cont.
 Requires thorough evaluation of the systems in the system
analysis process
 Criteria defined in a Request for Proposal (RFP)
• Detailed list of questions submitted to packaged-software
vendors
• Used to evaluate alternative software packages
 Evaluation utilizes a scoring model to determine suitability

64
Application Software Packages and
Cloud Software Services – Cont.

65
Outsourcing
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
66
• Driven by cost-savings
Outsourcing – Cont.
Advantages
 Allows organization flexibility in IT needs

Disadvantages
 Hidden costs, for example:
• Identifying and selecting vendor
• Transitioning to vendor
 Opening proprietary business processes to third party
67
Component-Based Development
and Web Services
Component-based development
 Groups of objects that provide software for common functions
(e.g., online ordering) and can be combined to create large-
scale business applications
Web services
 Reusable software components that use X M L and open
Internet standards (platform independent)
 Enable applications to communicate with no custom
programming required to share data and services
 Can engage other web services for more complex transactions 68
Mobile Application
Development
 Mobile websites
 Mobile web apps
 Native apps
 Special requirements for mobile platform
• Smaller screens, keyboards, multitouch gestures, saving
resources (memory, processing)
 Responsive web design
• Websites programmed so that layouts change automatically
according to user’s computing device
69
Interactive Session
Class discussion
 What is business process redesign? Why might BPR fail in an
organization?
 What are the four types of organizational change?
• Give an example of each type.

70
Interactive Session: Organizations:
Business Process Redesign at DP World
Class discussion
 How did DP World’s previous processes affect its operations?
 Describe the role of AI and IoT in improving how DP World
handles cargo.
 How would business process redesign enable digitized global
trade?

71
References
 Laudon & Laudon (2016): Management Information Systems :
Managing the Digital Firm. Chapter 13
 https://www.tutorialspoint.com/sdlc/sdlc_overview.htm
 https://www.agilebusiness.org/page/whatisdsdm

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Thank you
Kerry-Ann Xavier
[email protected]