1. 14 REDESIGNING THE ORGANIZATION WITH INFORMATION SYSTEMS

2. Business and systems planning Information System Plan IS organization change factors Systems Development process Systems life cycle Alternatives for building systems OOAD and RAD * LEARNING OBJECTIVES

3. Systems as planned organizational change (GOAL) Link IS to Business Plan Strategic Business Plan (Starting Point) Enterprise Analysis (Business system planning) Look at organization in term of processes, workflow and data. Critical Success Factors (more later) Information Systems Plan Should provide details describing how the IS function will serve the Strategic Business Plan.

4. INFORMATION SYSTEMS PLAN Contents of IS Plan: A road map giving direction of information systems development Defines current infrastructure and systems Linked with STRATEGIC BUSINESS PLAN Provides rationale for direction New developments Management strategy Implementation plans And budget *

5. Describes CURRENT SYSTEMS: Major systems supporting business functions & processes, major current capabilities (hardware, software, database, telecommunications), difficulties meeting requirements, anticipated future demands Describes NEW DEVELOPMENTS: New system projects (project descriptions, business rationale), new capabilities required (hardware, software, database, telecommunications, internet) * INFORMATION SYSTEMS PLAN

6. MANAGEMENT STRATEGY: Acquisition plans, milestones & timing, organizational realignment, internal reorganization, management controls, major training initiatives, personnel strategy IMPLEMENTATION PLAN: Anticipated difficulties, progress reports BUDGET REQUIREMENTS: Requirements, potential savings, financing, acquisition * INFORMATION SYSTEMS PLAN

7. 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 *

8. CRITICAL SUCCESS FACTORS (CSFs) SMALL NUMBER, EASILY IDENTIFIABLE OPERATIONAL GOALS SHAPED BY INDUSTRY, MANAGER, ENVIRONMENT BELIEVED TO ASSURE FIRM’S SUCCESS USED TO DETERMINE ORGANIZATION’S INFORMATION REQUIREMENTS *

9. GOALS (AUTOMOBILE INDUSTRY): Earnings per share, return on investment, market share, new product CSF: Quality dealer system, cost control, energy standards * CRITICAL SUCCESS FACTORS Example: PROFIT CONCERN

10. GOALS (Charities): Excellent client care, meeting government regulations, future care needs CSF: Regional integration with other organizations, efficient use of resources, improved monitoring of regulations and funding * CRITICAL SUCCESS FACTORS Example: NONPROFIT CONCERN

11. 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 *

12. 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 *

13. PARADIGM: 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 *

14. BUSINESS PROCESS REENGINEERING (BPR) REENGINEERING: Redesigning business processes to lower cost, speed development WORK-FLOW MANAGEMENT: Streamlining process to move documents easily, efficiently *

15. 1. Develop business vision, process objectives 2. Identify process to be redesigned 3. Understand, measure performance of existing processes 4. Identify opportunities for applying information technology 5. Build prototype of new process * EFFECTIVE REENGINEERING STEPS:

16. Total Quality Management (TQM) Make quality part of the process and a reasonability of all people in the organization Systems roles that support TQM: Simplify processes Benchmarking (measure performance) Reduce Cycle time Increase precision of product Customer demand Edward Deming’s Six Sigma 3.4defects per million Relationship with Continuous Quality Improvement (CQI)

17. SYSTEMS DEVELOPMENT 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 PROGRAMMINGTRANSLATE DESIGN SPECS INTO PROGRAM CODE

18. SYSTEMS DEVELOPMENT 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

19. ANALYSIS OF PROBLEM TO BE SOLVED WITH AN INFORMATION SYSTEM FEASIBILITY STUDY: Can problem be solved within constraints? * SYSTEMS ANALYSIS

20. FEASIBILITY TECHNICAL: Assess 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. SYSTEM DESIGN DETAILS HOW SYSTEM WILL MEET NEEDS: LOGICAL DESIGN: Components, data as needed by applications PHYSICAL DESIGN: Physical location of components and data *

22. DESIGN SPECIFICATIONS OUTPUT: Medium, content, timing INPUT: Origins, flow, data entry USER INTERFACE: Simplicity, efficiency, logic, feedback, errors DATABASE DESIGN: Logical data relations, volume, speed requirements, file organization & design, record specifications PROCESSING: Computations, program modules, required reports, timing of outputs MANUAL PROCEDURES: What activities, who performs them, how, where *

23. CONTROLS: Input, processing, output, procedural SECURITY: Access controls, catastrophe plans, audit trails Manuals: Operations, systems, user CONVERSION: Transfer files, initiate new procedures, select testing modules, cut over to new system TRAINING: Select training techniques, develop training modules, identify training facilities * Design and Documentation

24. ORGANIZATIONAL CHANGES: Task redesign, job design, process design, organization structure design, reporting relationships * Design Organization Impact

25. ROLE OF END USERS USERS DRIVE SYSTEMS EFFORT MUST HAVE SUFFICIENT CONTROL TO ENSURE SYSTEM REFLECTS BUSINESS PRIORITIES, NEEDS FUNCTIONAL USERS DRIVE SYSTEM NEEDS *

26. COMPLETING SYSTEM DEVELOPMENT PROCESS PROGRAMMING: Translating needs to program code TESTING: Does system produce desired results? Implementation/CONVERSION: Changing from the old to the new *

27. 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 * TESTING

28. Implementation/ CONVERSION 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. PRODUCTION & MAINTENANCE PRODUCTION: Constant review by users & operators. Does it meet goals? MAINTENANCE: Upkeep, update, corrections over time *

30. 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 *

31. SYSTEM LIFECYCLE INSTALLATION: Construct, test, train, convert to new system POSTINSTALLATION (Maintenance): On- going evaluation, modifications for improvement to meet new requirements Deprecation: When the system has completed it life cycle and needs to be removed. (sometimes not as easy as it sounds) NECESSARY FOR LARGE, COMPLEX SYSTEMS & PROJECTS *

32. ALTERNATIVE SYSTEM- BUILDING APPROACHES PROTOTYPING APPLICATION SOFTWARE PACKAGES In-house / END-USER DEVELOPMENT OUTSOURCING *

33. PROTOTYPING PROCESS OF BUILDING EXPERIMENTAL SYSTEM TO DEMONSTRATE, EVALUATE APPROACH; USERS REFINE NEEDS PROTOTYPE: Preliminary working version of information system for demonstration, evaluation purposes ITERATIVE PROCESS *

34. STEPS IN PROTOTYPING 1. IDENTIFY USER’S REQUIREMENTS 2. DEVELOP PROTOTYPE 3. USE PROTOTYPE 4. REVISE & ENHANCE PROTOTYPE BEST FOR DESIGN OF END-USER INTERFACE: How end-user interacts with system *

35. APPLICATION SOFTWARE PACKAGES PREWRITTEN, PRECODED APPLICATION SOFTWARE, COMMERCIALLY AVAILABLE FOR SALE OR LEASE GEARED TO COMMON REQUIREMENTS CUSTOMIZATION: Modification of software to meet organization’s needs MUST WEIGH COSTS / BENEFITS REQUEST FOR PROPOSAL (RFP): Detailed questions sent to vendors *

36. CUSTOMIZATION MODIFYING SOFTWARE PACKAGE TO MEET ORGANIZATION’S UNIQUE REQUIREMENTS WITHOUT DESTROYING INTEGRITY OF PACKAGE RAISES DEVELOPMENT COSTS *

37. END-USER DEVELOPMENT END-USERS DEVELOP INFORMATION SYSTEM WITH LITTLE HELP FROM TECHNICAL SPECIALISTS USING 4th GENERATION TOOLS *

38. END-USER DEVELOPMENT STRENGTHS: Improved requirements determination, increased user involvement & satisfaction, reduced application backlog WEAKNESSES: Relatively inefficient, slow transaction processing, may carry high cost, large files can degrade performance, nonprocedural approach may hamper logic & updating requirements *

39. OUTSOURCING CONTRACTING: COMPUTER CENTER OPERATIONS TELECOMMUNICATIONS NETWORKS APPLICATION DEVELOPMENT TO EXTERNAL VENDORS *

40. OUTSOURCING WHEN TO OUTSOURCE: IF FIRM WON’T DISTINGUISH ITSELF BY DEVELOPING APPLICATION IF PREDICTABILITY OF UNINTERRUPTED SERVICE NOT IMPORTANT IF EXISTING SYSTEM IS LIMITED, INEFFECTIVE, INFERIOR *

41. OBJECT - ORIENTED SOFTWARE DEVELOPMENT DE-EMPHASIZES PROCEDURES SHIFTS FOCUS FROM MODELS & DATA TO OBJECTS, WHICH COMBINE DATA & PROCEDURES OBJECTS REUSABLE SYSTEM: Classes, objects, relationships REDUCES DEVELOPMENT TIME & COST *

42. RAPID APPLICATION DEVELOPMENT (RAD) DEVELOP SYSTEM RAPIDLY: PROTOTYPING 4th GENERATION TOOLS CLOSE TEAMWORK AMONG USERS & SPECIALISTS *

43. 14 REDESIGNING THE ORGANIZATION WITH INFORMATION SYSTEMS

44. Project description (1/4) A short paragraph describing the type of project to be completed.

45. Project Requirements (2/4) Provide a page describing the following for your mock company: Critical Success Factors Key business data Organizational impact of business solution Describe the testing that will be done on the final site to assure quality Also provide a numbered list of requirements and how these support the companies business need.

46. Design document (3/4) Include a design specification for each Web page, table or spreadsheet See examples in text and on following slides Include a design illustration like A story board for a web site A flow chart for a program A table schema for a database or excel workbook

47. For each page, table or spreadsheet provide Design specs Home Page OUTPUT: This will display general company information for site visitors. INPUT: User will select a menu link USER INTERFACE: Include lots of images to hold users interest and or describe products. DATABASE DESIGN: No data is collected on this page. {Other pages may have data collection describe them here} PROCESSING: Any computations that are required. {You should list computations you would like to add these even if your web page will not really compute the values} MANUAL PROCEDURES: This page should be updated daily with a featured product. … one for each page/ table or spreadsheet

48. Design Document – Story board for web site Home Page: Display organization logo Display menu in vertical frame Try to encourage visitor to stay and visit often Give organization general information Include footer with contact information Product Page: Display a list of products with prices, Show a picture of each product Also include delivery times Provide a link to order form … One for each page

49. Final Solution (4/4) Due the day of final exam at latest