1. Prof. Yuan-Shyi Peter Chiu
Introduction M.I.S.
2017/4/17
2017/4/17
Management Information Systems - Class Note # 3 (Chap-12)
Prof. Yuan-Shyi Peter Chiu
Feb
By: Dr. Y. Peter Chiu
Prof. Yuan-Shyi P. ChiuBy: Dr. Y. Peter Chiu

2. Redesigning the organization with information systems
Chap 12
Redesigning the organization with information systems
Systems as planned organizational change
Business process reengineering and Total Quality Management (TQM)
Overview of Systems Development
Alternative System-Building Approaches 2

3. ◇
12.1
How to develop an Information Systems Plan ~ Road Map indicating direction of System development :
PURPOSE OF THE PLAN
STRATEGIC BUSINESS PLAN
CURRENT SYSTEMS
NEW DEVELOPMENTS
MANAGEMENT STRATEGY
IMPLEMENTATION PLAN
BUDGET REQUIREMENTS
( see p.383 ) 3

4. ◇
12.1
Enterprise analysis
( Business Systems Planning )
Organization-wide Information Needs in terms of :
Organizational Units
Functions
Processes
Data Elements
Helps Identify Key Entities & Attributes in Organization’s Data 4

5. Critical Success Factors (CSFs)◇
12.1
Critical Success Factors (CSFs)
■ small number, easily identifiable operational goals
■ shaped by the industry, the firm, the manager, the broader environment
■ believed to assure firm’s success
■ used to determine organization’s information requirements 5

6. Critical Success Factors & Goals example: profit concern◇
12.1
Critical Success Factors & Goals example: profit concern
Goals (Automobile industry) :
Earnings per share, Return on investment, Market share, New product
CSF :
Styling, Quality dealer system, Cost control, Energy standards
(Also see Table 12-1) 6

7. Using CSFs to develop systems◇
12.1
Using CSFs to develop systems
Collect managers’ CSFs
Aggregate + analyze individuals’ CSFs
Develop agreement on company CSFs
Define company CSFs
Use CSFs to develop information system priorities
Define DSS & databases
(Also see Fig. 12-2) 7

8. Fig 12-2: Using CSFs to develop systems.◇
Fig 12-2: Using CSFs to develop systems. 8

9. Spectrum of Organizational Change◇
12.1
Spectrum of Organizational Change
AUTOMATION
Using technology to perform tasks efficiently / effectively
RATIONALIZATION OF PROCEDURES
Streamline SOPs ; Eliminate bottlenecks
BUSINESS REENGINEERING
Radical redesign of processes to improve cost, quality, service; maximize benefits of technology
PARADIGM SHIFT 9

10. Fig 12-3: Organizational change carries risks and rewards.◇
Fig 12-3: Organizational change carries risks and rewards. 10

11. ◇
12.1
Paradigm Shift
PARADIGM is a complete mental model of how a complex system functions
A PARADIGM SHIFT involves “rethinking” the nature of the business, the organization; a complete reconception of how the system should function 11

12. Business Process Reengineering (BPR) & TQM◇
12.2
Business Process Reengineering (BPR) & TQM
WORK-FLOW MANAGEMENT: Streamlining process to move documents easily, efficiently
REENGINEERING:
Redesigning business processes to lower cost, speed development 12

13. Process Improvement and Total Quality Management
12.2
Process Improvement and Total Quality Management
 Simplifying the Product or the Production Process.
 Benchmarking
 Use customer demands as a guide to improving products and services
 Reduce cycle time
 Improve the quality and precision of the design
 Increase the precision of production 13

14. Three basic solution alternatives◇
12.3
Three basic solution alternatives
exist for every systems problem
To Do
Nothing
To modify
or enhance
Existing
systems
To Develop
a New
system 14

15. Fig 12-5: Overview of System Development.
Introduction M.I.S.
12.3
2017/4/17
2017/4/17
Fig 12-5: Overview of System Development. 15
By: Dr. Y. Peter Chiu
Prof. Yuan-Shyi P. ChiuBy: Dr. Y. Peter Chiu

16. 12.3 Systems Development The activities that go into producing
An information systems solution to
an organizational problem or opportunity 16

17. 12.3 Systems Development 17 CORE ACTIVITY DESCRIPTION SYSTEMS ANALYSIS
IDENTIFY PROBLEM(S)
SPECIFY SOLUTIONS
ESTABLISH INFORMATION REQUIREMENTS
SYSTEMS DESIGN
CREATE LOGICAL DESIGN SPECS
CREATE PHYSICAL DESIGN SPECS
MANAGE TECHNICAL REALIZATION OF SYSTEM
PROGRAMMING
TRANSLATE DESIGN SPECS INTO
PROGRAM CODE 17

18. 12.3 Systems Development 18 CORE ACTIVITY DESCRIPTION TESTING
UNIT TEST
SYSTEMS TEST
ACCEPTANCE TEST
CONVERSION
PLAN CONVERSION
PREPARE DOCUMENTATION
TRAIN USERS & TECHNICAL STAFF
PRODUCTION &
OPERATE SYSTEM
MAINTENANCE
EVALUATE SYSTEM
MODIFY SYSTEM 18

19. 12.3 Systems Analysis Feasibility Study:
Analysis of Problem to be solved with an Information System
Feasibility Study:
Can problem be solved within constraints ? 19

20. 12.3
Feasibility Study as part of the systems analysis process , to determine whether the solution is achievable , given the organization’s resources and constraints
Technical
feasibility
Economic
feasibility
Operational
feasibility 20

21. 12.3 Feasibility TECHNICAL :
Available hardware, software, technical resources
ECONOMIC :
Will benefits outweigh costs
OPERATIONAL :
Is solution desirable within existing conditions?
INFORMATION REQUIREMENTS: Detailed statement of new system needs 21

22. ◇
12.3
System Design
Details how system will meet the information requirements
as determined by the systems analysis.
Considering alternative technology configurations
Management & control of the technical realization of systems
Details the system spec that will deliver the functions
Identified during systems analysis 22

23. Logical and Physical Design
12.3
Logical and Physical Design
Logical design
Lays out the components of the system and their relationship to each other as they would appear to Users .
Physical design
Produces the actual spec for Hardware, software, physical database, I/O media,
Manual procedures , and Specific controls.
See Table 12-4 for Design Specifications p.395 23

24. ◇ 12.3 Role of end users Users drive systems effort
Must have sufficient control to ensure system reflects business priorities, needs
Functional users drive system needs 24

25. Completing system development process
12.3
Completing system development process
Programming:
Translating needs to program code
Testing:
Does system produce desired results?
Conversion:
Changing from the old to the new 25

26. 12.3 Testing Unit Testing ( program testing ) System Testing
( functions)
Acceptance
Testing
( final
certification) 26

27. 12.3 Testing Test plan : Unit testing : Tests each unit separately
System testing :
Do modules function as planned?
Acceptance testing :
Final certification
Test plan :
Preparations for tests to be performed 27

28. 12.3 Conversion Parallel strategy Direct cutover Pilot study Phased
approach 28

29. 12.3 Conversion Documentation
Parallel : Old & new run same problems. Give same results?
Direct cutover : Risky conversion to new system
Pilot : Introduce into one area. Does it work? Yes: introduce into other area
Phased : Introduce in stages
Conversion plan : schedule for conversion
Documentation
Description of how system works 29

30. Production & Maintenance
12.3
Production & Maintenance
Production:
Constant review by users & operators. Does it meet goals?
Maintenance:
Upkeep; Update; Corrections over time 30

31. Alternative System-Building Approaches
12.4
Alternative System-Building Approaches
Systems lifecycle
Traditional methodology for developing information system
Partitions systems development process into formal stages that must be completed sequentially
See Table 12-6 for The Systems Lifecycle p.399 31

32. The Traditional System Lifecycle
12.4
The Traditional System Lifecycle
 Project Definition :
Is there a problem?
Can it be solved with a project ?
 System Study :
Analyze problems in existing systems; define objectives, evaluate alternatives
 Design :
Logical & physical specifications for systems solution
 Programming :
Develop software code 32

33. The Traditional System Lifecycle
12.4
The Traditional System Lifecycle
 Installation :
Construct, test, train, convert to new system
 Post-Implementation :
On-going evaluation, modifications for improvement to meet new requirements
Necessary for Large , Complex Systems & Projects 33

34. 12.4 Limitations of the LIFE CYCLE Approach
Building large TPS and MIS where
requirements are highly structured and well-defined
Very resource intensive : costly and time-consuming
Inflexible and inhibits change
Ill-suited to decision-oriented applications 34

35. Alternative System-building Approaches
12.4
Alternative System-building Approaches
 Prototyping
 Application Software Packages
 End-user Development
 Outsourcing 35

36. Fig 12-7: The prototyping process.36

37. 12.4 Advantages & Disadvantages of Prototyping
Most useful when there is some uncertainty about
requirements or design solutions
Especially valuable for the design of the end-user interface
of an information system, decision-support applications
May not be appropriate for all applications,
Better suited for smaller applications
Often not being fully documented and tested,
not being carried out as a polished production system 37

38. 12.4 Developing systems with Application Software Packages
under the following circumstances
Where functions are common to many companies
Where information systems resources for in-house
development are in short supply
When desktop microcomputer applications are
being developed for end users 38

39. ◇ 12.4 Advantages of Packages
Design activities may easily consume up to 50
percent or more of the development effort
Testing the installed package can be accomplished
in a relatively shorter period
Vendor is responsible for making changes to keep the
system in compliance with change; and enhancements
Cut the costs and free up internal staff for other
applications; System and user documentation are
prewritten and kept up to date by the vendor. 39

40. ◇ 12.4 Disadvantages of Packages Hamper the development effort by
raising conversion costs
May not meet all of an organization’s requirements
Vendor refuses to support their products if changes have
been made that altered the package’s source code
Customization may be so expensive and time-consuming 40

41. A Substantially Customized Package◇
12.4
A Substantially Customized Package
Front-end programs
Package
Back-end programs 41

42. Package Evaluation Criteria Request For Proposal ( RFP)◇
12.4
Package Evaluation Criteria Request For Proposal ( RFP)
Vendor
Quality
Functions
Included
Database
/ File
Characteristics
Hardware
& Software
Resources
Cost
Flexibility
Documentation
User-
Friendliness
Installation
Effort
Maintenance 42

43. ◇
Fig.12-8: The effects of customizing a software package on total implementation costs. 43

44. ◇ Staff End-User development Minutes or days
Traditional systems (Life Cycle) Development
Staff
Information
System
management
Systems
analyst
programmer
Middle or senior management
Design Program Test
Weeks or months
End-User development
End-user computing tools
Query languages
Graphics languages
Report generators
Application generators
Very-high-level languages
Microcomputer tools
Staff
Middle or senior management
Minutes or days 44
Fig.12-9: End-user versus system lifecycle development

45. ◇ 12.4 Advantages of End-user-developed I.S.
Improved requirement determination
User involvement and satisfaction
Control of the systems development process
by users
Reduced application backlog 45

46. ◇ 12.4 Disadvantages of End-user-developed I.S.
Insufficient review and analysis
Lack of proper quality assurance standards
and controls
Uncontrolled data
Proliferation of “private” information systems ■ 46

47. When to use outsourcing
12.4
When to use outsourcing
Low reward
for
excellence
Not
critical
Will not
affect future
information
systems
innovation
The firm’s
existing
information
systems
capabilities
are limited 47

48. Advantages of Outsourcing I.S.◇
12.4
Advantages of Outsourcing I.S.
Economy
Service
Quality
Flexibility
Predictability
Making fixed
costs variable
Freeing up
Human
resources
Freeing up
Financial capital 48

49. Disadvantages of Outsourcing I.S.◇
12.4
Disadvantages of Outsourcing I.S.
Loss of
control
Vulnerability
of strategic
information
Dependency ■ 49

50. ◇ 12.4 Management Challenges on alternative systems building methods
Introduction M.I.S.
2017/4/17
2017/4/17 ◇
12.4
Management Challenges on
alternative systems building methods
Determining the right systems development
strategy to use
Controlling information systems development
outside the I.S.Dept.
Selecting a system development strategy that fits into
the firm’s information architecture and strategic plan 50
By: Dr. Y. Peter Chiu
Prof. Yuan-Shyi P. ChiuBy: Dr. Y. Peter Chiu

51. Alternative systems building methods
12.4
Summary
Alternative systems building methods
Distinguish
between
the various
alternatives
Understand
strengths
and
limitations
of each
approach
Understand
types of
problems
for which
each is best
suited
Solutions to
management
problems
created by
these
approaches 51

52. THE END Homework for Chapter 12 ◇
Introduction M.I.S.
2017/4/17
2017/4/17
Homework for Chapter 12 ◇
#1 Describe the critical success factors? And how to use CSFs to develop systems?
#2 Describe how information systems contribute to TQM?
#3 What are the major stages of systems development?
#4 In systems analysis, what main considerations are when determining its feasibility?
#5 What is the difference between logical design and physical design?
#6 Name and describe the three stages of testing for an information system?
#7 Name and describe briefly five alternative system- building approaches.
THE END 52
By: Dr. Y. Peter Chiu
Prof. Yuan-Shyi P. ChiuBy: Dr. Y. Peter Chiu