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Prof. Yuan-Shyi Peter Chiu

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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


18 12.3 Systems Development 18 CORE ACTIVITY DESCRIPTION TESTING

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.

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

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