Presentation is loading. Please wait.

Presentation is loading. Please wait.

Alter – Information Systems 4th ed. © 2002 Prentice Hall 1 Understanding Systems From a Business Viewpoint.

Similar presentations


Presentation on theme: "Alter – Information Systems 4th ed. © 2002 Prentice Hall 1 Understanding Systems From a Business Viewpoint."— Presentation transcript:

1 Alter – Information Systems 4th ed. © 2002 Prentice Hall 1 Understanding Systems From a Business Viewpoint

2 Alter – Information Systems 4th ed. © 2002 Prentice Hall 2 Opening Case - Amazon How does Amazon.com provide value for customers?

3 Alter – Information Systems 4th ed. © 2002 Prentice Hall 3 Opening Case - Amazon At the beginning: Large discounts Focus on customer’s online shopping experience: easy search, varied information about books, customer profiles, etc. Very little inventory

4 Alter – Information Systems 4th ed. © 2002 Prentice Hall 4 An evolving business model: Large warehouses Branched into selling other types of products Service perceived as very reliable Not profitable!

5 Alter – Information Systems 4th ed. © 2002 Prentice Hall 5 Amazon.com The point of this case is not about technology essentially, rather it is about how information systems and information technology can transform business operations. How does Amazon.com provide value for its customers? What has “transformed” in this business? How has competitive advantage changed to competitive necessity?

6 Alter – Information Systems 4th ed. © 2002 Prentice Hall 6 The Work System Framework A useful way of thinking about information systems and their relationship to customers and participants from the perspective of a business professional. A work system is a system that produces products for internal and external customers through a business process performed by human participants with the help of information technology. An information system is a particular type of work system that uses information technology to capture transmit store, retrieve, manipulate, or display information, thereby supporting one or more other work systems.

7 Alter – Information Systems 4th ed. © 2002 Prentice Hall 7 The Work System Framework

8 Alter – Information Systems 4th ed. © 2002 Prentice Hall 8 Amazon.Com - WCA CUSTOMER Person who purchases books Wholesalers that supply the books Amazon.com’s shipping department PRODUCT Information about books that might be purchased Information describing each book order Books that are eventually delivered

9 Alter – Information Systems 4th ed. © 2002 Prentice Hall 9 Amazon.Com - WCA BUSINESS PROCESS Major Steps: Purchaser logs on to Purchaser identifies desired book or gives search criteria Purchaser looks at book-related information and decides what to order Purchaser enters order Amazon.com orders book from wholesaler Wholesaler sends book to Amazon.com Shipping department packages order and sends it to the purchaser Rationale: Instead of forcing book buyers to go to typical bookstores, permit them to use online access from home or from work.

10 Alter – Information Systems 4th ed. © 2002 Prentice Hall 10 Amazon.Com - WCA PARTICIPANTS People interested in purchasing books Order fulfillment department of wholesaler Shipping department of Amazon.com INFORMATION Orders for books Price and other information about each book Purchase history and Related information for Each customer TECHNOLOGY Personal computer used by purchaser Computers and networks used by Amazon.com for order Processing The Internet (Infrastructure)

11 Alter – Information Systems 4th ed. © 2002 Prentice Hall 11 Debate Topic: Is there any reason to believe that purely on- line retailers such as Amazon.com have major long-term advantages over retailers such as Barnes and Noble that have both physical stores and e-commerce sites?

12 Alter – Information Systems 4th ed. © 2002 Prentice Hall 12 The Need for Frameworks and Models Framework = a brief set of ideas & assumptions for thinking about a particular issue Model = a useful representation of some aspect of reality Typically based on a frameworks Emphasize some features of reality, while ignoring others

13 Alter – Information Systems 4th ed. © 2002 Prentice Hall 13 A Classification of Models Iconic Models Analog Models Mathematical Models Mental Models

14 Alter – Information Systems 4th ed. © 2002 Prentice Hall 14 Iconic and Analog Models Iconic (scale) models - the least abstract model, is a physical replica of a system, usually based on a different scale from the original. Iconic models can scale in two or three dimensions. Analog Models - Does not look like the real system, but behaves like it. Usually two-dimensional charts or diagrams. Examples: organizational charts depict structure, authority, and responsibility relationships; maps where different colors represent water or mountains; stock market charts; blueprints of a machine; speedometer; thermometer

15 Alter – Information Systems 4th ed. © 2002 Prentice Hall 15 Mathematical Models Mathematical (quantitative) models - the complexity of relationships sometimes can not be represented iconically or analogically, or such representations may be cumbersome or time consuming.A more abstract model is built with mathematics. Note: recent advances in computer graphics use iconic and analog models to complement mathematical modeling. Visual simulation combines the three types of models.

16 Alter – Information Systems 4th ed. © 2002 Prentice Hall 16 Mental Models People often use a behavioral mental model. A mental model is an unworded description of how people think about a situation. The model can use the beliefs, assumptions, relationships, and flows of work as perceived by an individual. Mental models are a conceptual, internal representation, used to generate descriptions of problem structure, and make future predications of future related variables. Support for mental models are an important aspect of Executive Information Systems. We will discuss this in depth later.

17 Alter – Information Systems 4th ed. © 2002 Prentice Hall 17 Examples of Models

18 Alter – Information Systems 4th ed. © 2002 Prentice Hall 18 The Work System Framework

19 Alter – Information Systems 4th ed. © 2002 Prentice Hall 19 The Work System Framework

20 Alter – Information Systems 4th ed. © 2002 Prentice Hall 20 Elements of the Work System Framework: The internal or external customers of the business process The products or services generated by the work system. The steps in the business process. The participants in the business process. The information the business process uses or creates. The technology the business process uses. Context = organizational, competitive, technical, and regulatory realm within which work system operates. Infrastructure = shared human or technical resourcs the work system relies on (even those those resources may be managed outside the work system).

21 Alter – Information Systems 4th ed. © 2002 Prentice Hall 21 The system actually performing the work Business process Participants Information Technology Outputs: Products & services used by the customers External factors Infrastructure Context

22 Alter – Information Systems 4th ed. © 2002 Prentice Hall 22 The business process is at the core of the work system The same process can be performed with drastically different results depending on Who does the work What information & technology is being used

23 Alter – Information Systems 4th ed. © 2002 Prentice Hall 23 Balance Between the Elements of a Work System The work system elements must be in balance A change in one element usually requires a change in other elements Well-intended changes may also have negative impacts

24 Alter – Information Systems 4th ed. © 2002 Prentice Hall 24 Viewing Information Systems and Projects As Work Systems Information system Information system = a work system devoted to capturing, transmitting, storing, retrieving, manipulating, and displaying information Software products (e.g. Oracle, Excel) are NOT information systems Project Project = a work system that is designed to produce a particular product and then go out of existence

25 Alter – Information Systems 4th ed. © 2002 Prentice Hall 25 Work System Principles

26 Alter – Information Systems 4th ed. © 2002 Prentice Hall 26 Work Systems Principles Please the customers (customers, products & services) Perform the work efficiently (business processes) Serve the participants Create Value from information Minimize effort consumed by technology Deploy infrastructure as a genuine resource Minimize unintended impacts and conflicts (context)

27 Alter – Information Systems 4th ed. © 2002 Prentice Hall 27 Information System vs. Work Systems Bar code scanners and computers identify the items sold and calculate the bill Work system supported by the information system: Performing customer checkout Aspects of the work system not included in the information system: Establishing personal contact with customers, putting the groceries in bags University registration system permits students to sign up for specific class sections Work system supported by the information system: Registering for classes Aspects of the work system not included in the information system: Deciding which classes to take and which sections to sign up for in order to have a good weekly schedule Word Processing system used for typing and revising chapters Work system supported by the information system: Writing a book Aspects of the work system not included in the information system: Deciding what to say in the book and how to say it

28 Alter – Information Systems 4th ed. © 2002 Prentice Hall 28 Information System vs. Work Systems Interactive system top managers use to monitor their organization’s performance Work system supported by the information system: Keeping track of organizational performance Aspects of the work system not included in the information system: Talking to people to understand their views about what is happening System that identifies people by scanning and analyzing voice prints Work system supported by the information system: Preventing unauthorized access to restricted areas Aspects of the work system not included in the information system: Human guards, cameras, and other security measures

29 Alter – Information Systems 4th ed. © 2002 Prentice Hall 29 Relationships Between Work Systems and Information Systems

30 Alter – Information Systems 4th ed. © 2002 Prentice Hall 30 Reality Check: Identify some situations in which you have encountered information systems that support other work systems. Describe the areas of overlap and non-overlap between information systems and the work system.

31 Alter – Information Systems 4th ed. © 2002 Prentice Hall 31 Need for a Balanced View of a System – Figure 2.5

32 Alter – Information Systems 4th ed. © 2002 Prentice Hall 32 Need for a Balanced View of a System Focus on Business Results – Emphasize the customer’s satisfaction with whatever is being produced along with concern for the efficiency of the business process. Focus on People and Organization – Emphasize the work environment, job satisfaction, and whether the organization is operating smoothly. Focus on technology and organization – Emphasize the processing of information in databases, transmission of information, and whether the technology is operating efficiently and effectively.

33 Alter – Information Systems 4th ed. © 2002 Prentice Hall 33 Each of the three viewpoints is essential, but an excessive emphasis on any of them may lead to problems The importance of the ongoing collaboration between business and IT professionals. IT professionals may tend to look at the third viewpoint. It is important that business professionals make sure the first two perspectives are not lost.

34 Alter – Information Systems 4th ed. © 2002 Prentice Hall 34 Caution: Excessive Emphasis On… Business Results can lead to superficial analysis of organizational and technical capabilities and wishful thinking of the power of technology. People and Organization can generate too much concern on how people are getting along and not enough on business results and whether technology and information are adequate. Technology and Information can sometimes generate technology solutions to minor problems and have little impact on business results or internal operations.

35 Alter – Information Systems 4th ed. © 2002 Prentice Hall 35 The Principle-based Systems Analysis Method One of the possible ways to analyze a work system

36 Alter – Information Systems 4th ed. © 2002 Prentice Hall 36 The General Idea of Systems Analysis – Figure 2.6 Can be applied to the system as a whole and to its subsystems Iterative process Iterative process Shortcoming: no guidelines as to what has to be done at each step

37 Alter – Information Systems 4th ed. © 2002 Prentice Hall 37 Organizing the Analysis Around the Work System Principles The principle-based systems analysis TM (PBSA) practical approach A practical approach for analyzing systems at various levels of detail Combines the general system analysis concepts with the work system framework Converts the four steps of system analysis into three steps

38 Alter – Information Systems 4th ed. © 2002 Prentice Hall 38 Defining the Problem & the Work System The scope of the work system is not fixed Tradeoff between a too broad or too narrow a scope Work system snapshot – a tabular summary of the main aspects of the work system

39 Alter – Information Systems 4th ed. © 2002 Prentice Hall 39 Identify constraints and priorities Constraints Constraints = limitations that render certain options unfeasible Ex.: budgetary limits. Existing technology standards, etc. Priorities Priorities = statements about the relative importance of various goals A small number of high priority issues should remain the primary focus

40 Alter – Information Systems 4th ed. © 2002 Prentice Hall 40 Explore the Situation & Search for Possible Improvements Each principle is used in turn to focus on a different part of the work system Problems that were not included in the original problem definition may be uncovered Some potentially beneficial changes may negatively impact other parts of the system

41 Alter – Information Systems 4th ed. © 2002 Prentice Hall 41 Address the Problem While Supporting the Existing Priorities The recommendation: “What Should you do?” Clearly stated decision criteria to resolve the tradeoffs and uncertainties related to constraints, priorities, and implementation capabilities Tradeoffs: conflicting needs of work systems, performance vs. price, technical purity vs. business requirements, etc. Uncertainties: direction of future technology, what is best for the company, etc.

42 Alter – Information Systems 4th ed. © 2002 Prentice Hall 42 Complete recommendations may include: Recommended changes in work systems elements. Clarification of work system vs. information systems changes. Explanation of how proposed improvements will address important parts of the problem. Justification in terms of organizational priorities and feasibility Identification of meaningful alternatives Timelines and required resources Tentative project plan and deliverables

43 Alter – Information Systems 4th ed. © 2002 Prentice Hall 43 Applying PBSA to Work Systems, Information Systems, and Projects – Figure 2.7

44 Alter – Information Systems 4th ed. © 2002 Prentice Hall 44 Limitations & Pitfalls of PBSA Compromise between complexity and completeness Works well when the business process consists of identifiable steps that produce a recognizable output Does not work so well when applied to activities such as “management” or “communication”

45 Alter – Information Systems 4th ed. © 2002 Prentice Hall 45 The Work System Framework

46 Alter – Information Systems 4th ed. © 2002 Prentice Hall 46 Common Systems Analysis Pitfalls Related to Elements of the Work System Framework

47 Alter – Information Systems 4th ed. © 2002 Prentice Hall 47 Common Pitfalls – Work System Elements Customer ignore customer and the fact that the customer should evaluate the product. Treating managers as customers even though they don’t use the product directly. Product forget that the purpose is to produce a product or service for a customer. Forget that the product of a work system is often not the product of the organization.

48 Alter – Information Systems 4th ed. © 2002 Prentice Hall 48 Common Pitfalls… Business Process Define process so narrowly that improvement is of little consequence. Define process to widely that it is too complex. Confuse business process measures(consistency and productivity) with product measures (cost to the customer and quality perceived by customer). Think of business process as theory and ignore its support by participants, information, and technology Participants ignore incentives and other pressures focus on users rather than participants.

49 Alter – Information Systems 4th ed. © 2002 Prentice Hall 49 Common Pitfalls… Information assume better information generates better results. Ignoring the importance of “soft” information not captured by formal systems. Technology Believing that the technology is the system. assume better technology generates better results. Focus on the technology without thinking about whether it makes a difference in the work system.

50 Alter – Information Systems 4th ed. © 2002 Prentice Hall 50 Common Pitfalls… Context Ignoring context issue such as organizational culture and politics, organizational policies, the competitive environment, and government and industry standards and regulations. Ignoring non-participant stakeholders. Infrastructure Ignoring possible failures in technical infrastructure (what happens when the Internet is down?) Ignoring the need for human infrastructure to keep the work system in operation (Who does on-going training of new staff).

51 Alter – Information Systems 4th ed. © 2002 Prentice Hall 51 Measuring Work System Performance

52 Alter – Information Systems 4th ed. © 2002 Prentice Hall 52 System architecture = the system’s main components, how they are linked, and how they operate together System performance = how well the system, its components, and its products operate

53 Alter – Information Systems 4th ed. © 2002 Prentice Hall 53 Typical Performance Variables Customer satisfaction Cost Quality Responsiveness Reliability Conformance to standards and regulations Activity Rate Output rate Consistency Productivity Cycle Time Down time Security Skills Involvement Commitment Job satisfaction Quality Accessibility Presentation Security Functional Capabilities Ease of Use Cost of Ownership Compatibility Maintainability

54 Alter – Information Systems 4th ed. © 2002 Prentice Hall 54 Some important issues to keep in mind: Separately evaluate the performance of different elements, because improvements in one area may not be beneficial in others More is not always better More is not always better is For some performance variables (e.g., customer satisfaction) more is better is often not For others, such as consistency, rapid delivery, etc., more is often not better

55 Alter – Information Systems 4th ed. © 2002 Prentice Hall 55 Efficiency vs. effectiveness EFFICIENCY involves doing things the right way An internal view Focus on how well resources are being used to produce the outputs Ex.: productivity, cycle time, etc. EFFECTIVENESS involves doing the right things An external view Focus on improving customer satisfaction Ex.: cost, quality, responsiveness, etc.

56 Alter – Information Systems 4th ed. © 2002 Prentice Hall 56 Performance Variables Performance variables can be described or measured at different levels of clarity. Quality experts are adamant that careful performance measurement is essential for process improvement. Note differences between vague description and measurements.

57 Alter – Information Systems 4th ed. © 2002 Prentice Hall 57 Comparing Vague Descriptions, Measurements, and Interpretations ACCURACY OF INFORMATION Vague description: The information doesn’t seem very accurate. Measurement: 97.5% of the readings are correct within 5%. Interpretation:This is (or is not) accurate enough, given the way the information will be used. SKILLS OF PARTICIPATION Vague description: The sales people are very experienced. Measurement: Every salesperson has 5 or more years of experience; 60% have more than 10 years. Interpretation:This system is (or is not) appropriate for such experienced people. CYCLE TIME OF BUSINESS PROCESS Vague description: This business process seems to take a long time. Measurement: The three major steps take an average of 1.3 days each, but the waiting time between the steps is around 5 days. Interpretation:This is (or is not) better than the average for this industry, but we can (or cannot) improve by eliminating some of the waiting time. QUALITY OF THE WORK SYSTEM OUPUT Vague description: We produce top quality frozen food, but our customer’s aren’t enthusiastic. Measurement:65% of our customers rate it average or good even though our factory defect rate is only.003% Interpretation: Our manufacturing process does (or doesn’t) seem O.K., but we do (or don’t) need to improve customer satisfaction.

58 Alter – Information Systems 4th ed. © 2002 Prentice Hall 58 Important Point Improvements in a work system can often be found by looking at relationships between architecture and performance issues. Customer satisfaction is largely determined by product performance (effectiveness). Product performance is often determined by a combination of product architecture and the internal work system performance(efficiency). Note: efficiency vs. effectiveness

59 Alter – Information Systems 4th ed. © 2002 Prentice Hall 59 From work system architecture to customer satisfaction

60 Alter – Information Systems 4th ed. © 2002 Prentice Hall 60 Clarifications Related to the Elements of a Work System

61 Alter – Information Systems 4th ed. © 2002 Prentice Hall 61 Internal vs. External Customers External customers - individuals or representatives of other firms or government organizations The reason the firm exists Internal customers – work for the firm & participate in other work system Also important for the firm as a whole

62 Alter – Information Systems 4th ed. © 2002 Prentice Hall 62 Multiple Customers With Different Concerns – Figure 2.8

63 Alter – Information Systems 4th ed. © 2002 Prentice Hall 63 Transforming Customers Into Participants Self-service work systems Ex.: ATMs, Web sites, etc. May be beneficial to both firm and customers Cost reductions Better feedback, etc.

64 Alter – Information Systems 4th ed. © 2002 Prentice Hall 64 Products & Services Customers evaluate the product Several areas of of product performance, such as: Cost Perceived quality Reliability, etc. Separate consideration of each factor helps in devising new ways to improve customer satisfaction

65 Alter – Information Systems 4th ed. © 2002 Prentice Hall 65 Participants The people that perform the work process Difference between work system participants and IT users Focus on work-related aspects as opposed to the information system itself

66 Alter – Information Systems 4th ed. © 2002 Prentice Hall 66 Data, Information, Knowledge – Figure 2.10 Data Data – facts, images, or sounds that may or may not be pertinent or useful for a particular task Information Information – data whose form or content are appropriate for a particular use Knowledge Knowledge – instincts, ideas, rules, and procedure that guide actions and decisions

67 Alter – Information Systems 4th ed. © 2002 Prentice Hall 67 Hard and Soft Data Hard data Hard data = clearly defined data generated by formal systems Soft data Soft data = intuitive or subjective information obtained by informal means Often essential for understanding what really happened, or whether proposed actions might encounter resistance

68 Alter – Information Systems 4th ed. © 2002 Prentice Hall 68 Technology INFORMATION TECHNOLOGY = computer and communication hardware and software IT has no impact unless it is used within a business process

69 Alter – Information Systems 4th ed. © 2002 Prentice Hall 69 Infrastructure The shared human, informational, and technical resources on which a work system relies in order to operate These resources exist and are managed outside the work system Ex.: a shared corporate database, a computer network, a support & training organization The infrastructure should be operated and managed like any other work system

70 Alter – Information Systems 4th ed. © 2002 Prentice Hall 70 Technology vs. Infrastructure Guidelines: Infrastructure if: Infrastructure if: It is shared between many work systems It is owned/managed by a centralized authority Details are generally hidden from users Not included in the infrastructure if: Not included in the infrastructure if: Owned & controlled within the work system Its hands-on users need to understand the technical details

71 Alter – Information Systems 4th ed. © 2002 Prentice Hall 71 Human Infrastructure Often less noticed than the hardware & software components, but equally important Responsibilities include: Managing the IT facilities Training Enforcing standards, etc.

72 Alter – Information Systems 4th ed. © 2002 Prentice Hall 72 Information Infrastructure Codified information that is shared across the company This type of high level of information sharing is still rare

73 Alter – Information Systems 4th ed. © 2002 Prentice Hall 73 Context The organizational, competitive, technical, and regulatory environment within which the work system operates Includes: External stakeholders Organizational policies, practices, and culture Business pressures, etc. May create both incentives and obstacles

74 Alter – Information Systems 4th ed. © 2002 Prentice Hall 74 Another Way to Look at This – From Alter’s 3 rd Edition - Five Perspectives for Looking at a Work System

75 Alter – Information Systems 4th ed. © 2002 Prentice Hall 75 WCA framework for thinking about any system in business

76 Alter – Information Systems 4th ed. © 2002 Prentice Hall 76 Five Perspectives for Understanding a Work System ARCHITECTURE What are the components of the system that performs the work and who uses the work product? How are the components linked? How do the components operate together? PERFORMANCE How well do the components operate individually? How well does the system operate? (How well is the work performed?) How well should the system operate? INFRASTRUCTURE What technical and human infrastructure does the work rely on? In what ways does infrastructure present opportunities or obstacles? CONTEXT What are the impacts of the organizational and technical context? In what ways does the context present opportunities or obstacles ? RISKS What foreseeable things can prevent the work from happening, can make the work inefficient, or can cause defects in the work product? What are the likely responses to these problems?

77 Alter – Information Systems 4th ed. © 2002 Prentice Hall 77 Important Point Improvements in a work system are usually related to the links between the architecture and the performance perspectives. Customer satisfaction is largely determined by product performance. Product performance is determined by a combination of product architecture and the internal work system performance. Note: efficiency vs. effectiveness

78 Alter – Information Systems 4th ed. © 2002 Prentice Hall 78 From work system architecture to customer satisfaction

79 Alter – Information Systems 4th ed. © 2002 Prentice Hall 79

80 Alter – Information Systems 4th ed. © 2002 Prentice Hall 80 Detailed Discussion of the Five Perspectives: Architecture Performance Infrastructure Context Risks

81 Alter – Information Systems 4th ed. © 2002 Prentice Hall 81 Architecture, Perspective #1 Architecture is a summary of how a work system operates. It focuses on the components of the system and how those components are linked, and how they operate together to produce outputs. It is not merely a technical issue; IT and business professional involved with a system need to understand how it operates. It is impossible to build an information system without detailed documentation of information and technology components of the architecture. We use successive decomposition for documenting and summarizing architecture. Process operation and process characteristics

82 Alter – Information Systems 4th ed. © 2002 Prentice Hall 82 Architecture, Perspective #1

83 Alter – Information Systems 4th ed. © 2002 Prentice Hall 83 Architecture, Perspective #1 CUSTOMER Customer’s entire cycle of involvement with the product Requirements Acquisition Use Maintenance Retirement PRODUCT Components Information content Physical Content Service content (more in Chapter 6)

84 Alter – Information Systems 4th ed. © 2002 Prentice Hall 84 Architecture, Perspective #1 BUSINESS PROCESS Process operation: Processes providing inputs Sequence and scheduling of major steps Processes receiving the outputs Process characteristics: Degree of structure Range of involvement Level of integration Complexity Degree of reliance on machines Linkage of planning, execution, and control Attention to exceptions, errors, and malfunctions More to be covered in Chapter 3….

85 Alter – Information Systems 4th ed. © 2002 Prentice Hall 85 Architecture, Perspective #1 PARTICIPANTS Formal and informal organization: Job responsibility Organization chart INFORMATION Major data files in the database: Data organization and access TECHNOLOGY Major components: Hardware Software

86 Alter – Information Systems 4th ed. © 2002 Prentice Hall 86 Performance, Perspective #2 Performance - How well the system operates. A complete analysis involves qualitative and quantitative measurements. Consider some performance variables….

87 Alter – Information Systems 4th ed. © 2002 Prentice Hall 87 Performance, Perspective #2

88 Alter – Information Systems 4th ed. © 2002 Prentice Hall 88 Performance, Perspective #2 CUSTOMER Customer Satisfaction PRODUCT Cost Quality Responsiveness Reliability Conformance to standards and regulations

89 Alter – Information Systems 4th ed. © 2002 Prentice Hall 89 Performance, Perspective #2 BUSINESS PROCESS Rate of output Consistency Productivity Cycle time Flexibility Security

90 Alter – Information Systems 4th ed. © 2002 Prentice Hall 90 Performance, Perspective #2 PARTICIPANTS Skills Involvement Commitment Job satisfaction INFORMATION Quality Accessibility Presentation Prevention of unauthorized access TECHNOLOGY Functional capabilities Ease of use Compatibility Maintainability

91 Alter – Information Systems 4th ed. © 2002 Prentice Hall 91 Comparing Vague Descriptions, Measurements, and Interpretations ACCURACY OF INFORMATION Vague description: The information doesn’t seem very accurate. Measurement: 97.5% of the readings are correct within 5%. Interpretation:This is (or is not) accurate enough, given the way the information will be used. SKILLS OF PARTICIPATION Vague description: The sales people are very experienced. Measurement: Every salesperson has 5 or more years of experience; 60% have more than 10 years. Interpretation:This system is (or is not) appropriate for such experienced people. CYCLE TIME OF BUSINESS PROCESS Vague description: This business process seems to take a long time. Measurement: The three major steps take an average of 1.3 days each, but the waiting time between the steps is around 5 days. Interpretation:This is (or is not) better than the average for this industry, but we can (or cannot) improve by eliminating some of the waiting time. QUALITY OF THE WORK SYSTEM OUPUT Vague description: We produce top quality frozen food, but our customer’s aren’t enthusiastic. Measurement:65% of our customers rate it average or good even though our factory defect rate is only.003% Interpretation: Our manufacturing process does (or doesn’t) seem O.K., but we do (or don’t) need to improve customer satisfaction.

92 Alter – Information Systems 4th ed. © 2002 Prentice Hall 92 Infrastructure, Perspective #3 Infrastructure: Essential Resources shared with other systems. Infrastructure failures may partially be beyond the control of people who rely on it (e.g. power outages). Evaluation is difficult because the same infrastructure may support some applications excessively and others insufficiently. Critical mass, having enough users to attain desired benefits, may be a key infrastructure issue. Distinguish between infrastructure and the supporting technology (laptops used in the sales process vs. used for company ).

93 Alter – Information Systems 4th ed. © 2002 Prentice Hall 93 Infrastructure, Perspective #3 Technology can be infrastructure if it is outside the work system, shared between work systems, owned and managed by a central authority, or when details are largely hidden from users. Business professionals are often surprised at the amount of effort and expense absorbed by human infrastructure.

94 Alter – Information Systems 4th ed. © 2002 Prentice Hall 94 Infrastructure, Perspective #3

95 Alter – Information Systems 4th ed. © 2002 Prentice Hall 95 Infrastructure, Perspective #3 CUSTOMER Technical and human infrastructure the customer must have to use the product PRODUCT Infrastructure related to information content Infrastructure related to physical content Infrastructure related to service content

96 Alter – Information Systems 4th ed. © 2002 Prentice Hall 96 Infrastructure, Perspective #3 BUSINESS PROCESS Infrastructure related to internal operation of the process Infrastructure related to inputs from other processes Infrastructure related to transferring the product to other processes

97 Alter – Information Systems 4th ed. © 2002 Prentice Hall 97 Infrastructure, Perspective #3 PARTICIPANTS Shared human infrastructure INFORMATION Shared information infrastructure TECHNOLOGY Shared technology infrastructure

98 Alter – Information Systems 4th ed. © 2002 Prentice Hall 98 Context, Perspective #4. The organizational, competitive, and regulatory environment surrounding the system. The environment around the system may create incentives and even urgency for change. The personal, organizational, and economic parts of the context have direct impact through resource availability. Even with enough monetary resources, context factors ranging from historical precedents and budget cycles to internal politics can be stumbling blocks. Incentives Organizational Culture Stakeholders

99 Alter – Information Systems 4th ed. © 2002 Prentice Hall 99 Context, Perspective #4

100 Alter – Information Systems 4th ed. © 2002 Prentice Hall 100 Context, Perspective #4 CUSTOMER Issues in the customer’s environment that may affect satisfaction or use Business and competitive climate PRODUCT Substitute products Ways the customer might bypass this type of product altogether

101 Alter – Information Systems 4th ed. © 2002 Prentice Hall 101 Context, Perspective #4 BUSINESS PROCESS Organizational culture Concerns of stakeholders Organizational policies and initiatives Government regulations and industry standards

102 Alter – Information Systems 4th ed. © 2002 Prentice Hall 102 Context, Perspective #4 PARTICIPANTS Incentives Other responsibilities and job pressures INFORMATION Policies and practices regarding information sharing, privacy, etc. TECHNOLOGY Technology policies and practices Technology that may become available soon

103 Alter – Information Systems 4th ed. © 2002 Prentice Hall 103 Risk, Perspective #5 Risks: Foreseeable Things that can go wrong in terms of: accidents and malfunctions computer crime project failure (To be considered again in Chapter 13….)

104 Alter – Information Systems 4th ed. © 2002 Prentice Hall 104 Risk, Perspective #5

105 Alter – Information Systems 4th ed. © 2002 Prentice Hall 105 Risk, Perspective #5 CUSTOMER Customer dissatisfaction Interference by other stakeholders PRODUCT Inadequate or unreliable products Fraudulent products

106 Alter – Information Systems 4th ed. © 2002 Prentice Hall 106 Risk, Perspective #5 BUSINESS PROCESS Operator error Sloppy procedures Inadequate backup and recovery Mismatch between process requirements and participant’s abilities Unauthorized access to computers, programs, data

107 Alter – Information Systems 4th ed. © 2002 Prentice Hall 107 Risk, Perspective #5 PARTICIPANTS Crime by insiders or outsiders Inattention by participants Failure to follow procedures Inadequate training INFORMATION Data errors Fraudulent data Data theft TECHNOLOGY Equipment failure Software bugs Inadequate performance Inability to build common sense into information systems

108 Alter – Information Systems 4th ed. © 2002 Prentice Hall 108 Work Systems Principles Please the customers (customers, products & services) Perform the work efficiently (business processes) Serve the participants Create Value from information Minimize effort consumed by technology Deploy infrastructure as a genuine resource Minimize unintended impacts and conflicts (context)

109 Alter – Information Systems 4th ed. © 2002 Prentice Hall 109


Download ppt "Alter – Information Systems 4th ed. © 2002 Prentice Hall 1 Understanding Systems From a Business Viewpoint."

Similar presentations


Ads by Google