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1 System Development Chapter 19 2 Objectives of This Chapter ` Understand outsourcing ` Describe techniques available for system development ` Describe.

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Presentation on theme: "1 System Development Chapter 19 2 Objectives of This Chapter ` Understand outsourcing ` Describe techniques available for system development ` Describe."— Presentation transcript:

1

2 1 System Development Chapter 19

3 2 Objectives of This Chapter ` Understand outsourcing ` Describe techniques available for system development ` Describe each step involve in the Systems Development Life Cycle (SDLC) ` Identify the activities involved in the implementation of new information systems.

4 3 Outsourcing

5 4 Outsourcing Forces Globalization, new competitors. Shorter product life-cycles, mass customization. Rapidly changing markets, flexible manufacturing. Pressure on profits. Need to focus on increasing revenues and decreasing fixed/semi-fixed costs. Need for flexibility and responsiveness. Outsource non-revenue generate functions (staff/operations) Desire to minimize amount of management time devoted to non-revenue generating functions. Economies of Scale - leverage expertise and methodologies. - invest in expensive technologies (state-of-the-art) - process-oriented approach Economies of Scope Want one vendor to provide multiple functions. Cost cutting, staff cuts, loss of middle management. Big Outsourcing Vendors & Big 6 Firms

6 5 Outsourcing Evaluation Specialized Talent Needed Complex Market Structure Security & Control Level of Technology Cost of reaching state of the art Fixed Costs When any of these characteristics increases (moves outwards), there is less reason to use outsourcing.

7 6 Benefits of Outsourcing ` Provide business solution ` Asset utilization ` Access to greater expertise and more advanced technology ` Lower Cost ` Improve development time ` Eliminate of peaks and valley usage ` Facilitation of downsizing

8 7 Risks of Outsourcing ` Inflexibility ` Loss of control ` Reduced competitive advantage ` locked-in system ` Unfulfilled goals

9 8 System Development

10 9 The Systems Approach to Problem Solving b b The Systems Approach to Problem Solving Involves a Five-Step Process b b Each Step Requires Managers and End Users to Ask Questions designed to Identify Areas of a Problem Clearly.

11 10 The Systems Approach to Problem Solving Design the Solution Design the Solution Define the Problem Define the Problem Develop Alternative Solutions Develop Alternative Solutions Select the Solution Select the Solution Implement the Solution Implement the Solution Monitor and Evaluate Results

12 11 Evaluating the System Components of a Sales System The Following Slide Illustrates the Sales Function of a Business as a System. The Following Slide Illustrates the Sales Function of a Business as a System. Notice How Questions Posed at Each Stage in the Process Attempt to Identify and Isolate the Causes of the Problem. Notice How Questions Posed at Each Stage in the Process Attempt to Identify and Isolate the Causes of the Problem.

13 12 A Systems Context Example Out-of-Date Sales Procedures ? Inadequate Selling Effort ? Poor Sales Performance ? Poor Sales Management ? Incorrect Sales Information? Feedback InputProcessingOutput Control

14 13 Once a poor system/process is identified, the next step is to develop a new system or modify the existing system

15 14 System Development Difficulties b b Most problems are so large that they have to be split into smaller pieces b b Each piece end up does not fit back together b b It was hard to coordinate and control the various programmers and analysts, so there are many duplicated efforts b b The initial development team leave the company

16 15 To reduce these difficulties, several techniques are adopted to control the system development effort

17 16 Techniques for System Development b System Development Life Cycle (SDLC) b Prototyping b Joint Application Development (JAD) b Object-Oriented Development b End User Development

18 17 Systems Development Life Cycle (SDLC) 1. Systems Investigation/Planning (Feasibility Study) 2. Systems Analysis 3. Systems Design 4. Systems Implementation 5. System Maintenance

19 18 The Systems Development Cycle Systems Implementation Product: Operational System Systems Implementation Product: Operational System Systems Investigation Product: Feasibility Study Systems Investigation Product: Feasibility Study Systems Analysis Product: Functional Requirements Systems Analysis Product: Functional Requirements Systems Design Product: System Specifications Systems Design Product: System Specifications Systems Maintenance Product: Improved System Systems Maintenance Product: Improved System Understand the Business Problem or Opportunity Develop an Information System Solution Implement the System Solution

20 19 Systems Development Life Cycle

21 20 Phase I System Investigation/Planning (Feasibility Study)

22 21 Feasibility Study b b A feasibility study is a quick examination of the problems, goals, and expected cost of the system b b In other words, to determine the scope of the project to gain a better idea of the costs, benefits, and objectives b b A planned schedule is also created to keep the project on track and to evaluate the progress of the MIS team

23 22 Four Types of Feasibility Study

24 23 Feasibility Study Organizational Feasibility Technical Feasibility Economic Feasibility Operational Feasibility

25 24 Feasibility Study b Organizational Feasibility Is the project aligned with the organization’s goal?Is the project aligned with the organization’s goal? b Economic Feasibility Is the project cost-effective?Is the project cost-effective? b Technical Feasibility Does the technology exist and does the firm have the staff to make the technology work?Does the technology exist and does the firm have the staff to make the technology work? b Operational Feasibility Will the project improve the operation of the firm?Will the project improve the operation of the firm?

26 25 Systems Project Proposals b Feasibility Factors Organizational Economic Technical Operational b Types of Systems Strategic Systems (necessary) Productivity Improvement (optional)

27 26 Once the project has been shown to be feasible and it is approved, the next step is to begin on the full-fledged system analysis

28 27 Phase II System Analysis

29 28 There are three important areas concerning this stage (System Analysis)

30 29 Systems Analysis Key Areas of Systems Analysis Organizational Functional Requirements Functional Requirements Present System Present System

31 30 System Analysis b The technique is to break the system into pieces. Smaller pieces are easier to understand and to explain to the others Each piece can be assigned to a different team b Diagrams are often created to illustrate the system b A variety of tools are available to enhance the system analysis

32 31 Visual Table of Contents (VTOC) Customer Order Entry Enter Salesperson Data Enter/Change Customer Data Enter Items Ordered Review and Print Forms Look up Item Numbers Check Inventory Status Special Orders Customer Order Copy Shipping List Back Order List

33 32 System Analysis b At this stage, users should verify that the system contains all of the desired functions, the system is easy to understand, and common tasks do not require an excessive number of keystroke b At the end of the analysis phase, the MIS team will have a complete description of the business requirement.

34 33 Phase III System Design

35 34 Systems Design Data Design Data Design User Interface Design User Interface Design Process Design Process Design

36 35 System Design b The objective of system design is to describe the new system as a collection of modules or subsystems b By subdividing the total project, each portion can be given to each developer b Once the designer has created base modules and sample inputs and outputs, the users are invited to a structured walkthrough

37 36 Structured Walkthrough b A structured walkthrough is a review process where the objective is to reveal: problemsproblems inaccuraciesinaccuracies ambiguitiesambiguities omissions in the system design before the program code is finalizedomissions in the system design before the program code is finalized

38 37 System Design b In term of physical design, the evaluation can be classified into: Hardware Evaluation Software Evaluation

39 38 Hardware Evaluation Hardware Evaluation Factors Support Cost Reliability Environmental Requirements Environmental Requirements Technology Connectivity Compatibility Performance

40 39 Software Evaluation Efficiency Flexibility Security Language Documentation Hardware Other Factors Software Evaluation Factors Software Evaluation Factors

41 40 Suite of Products - Examples b b Microsoft Corporation – –Word – –Excel – –PowerPoint b b Lotus Development Corporation – –AmiPro – –Lotus 1-2-3 – –Freelance b b Novell/Borland – –WordPerfect – –Borland – –dBaseIV

42 41 Suite of Products Advantages b b Integrated Document b b Economies of Scale b b Consolidated Training b b Shared Files Across Group

43 42 Suite of Products Disadvantages b b Choice Based upon Group Rather than Advantages of Individual Product b b “Locked In” to Product Company b b Difficulty in Matching Client Requirements

44 43 System Design b One of the difficulties in this stage is sometimes called “creeping elegance” At the system is being built, analyst, programmers, and users all want to include additional features The continual evolution causes additional delays Cost over budget b The output of this design stage consists of a complete technical specification of the new system

45 44 Phase IV System Implementation

46 45 The Implementation Process Conversion System Docu- mentation System Docu- mentation End User Training End User Training Development and Modification Development and Modification Acquisition Implementation Activities Implementation Activities

47 46 System Implementation b b System implementation involves installation and changeover from the previous system to the new one, including training users and making adjustments to the system b b The major difficulties to this stage is how to deal with users’ resistance to changes users are probably nervous about the change users might not want to learn the new thing

48 47 System Implementation Concerns b b Involve Users the users will get the system they need the users will understand the system better and it will be easier too use the users contributions provide a sense of ownership b b Education & Training the users will be less nervous if they learn more about the system b b Flexibility simple things like being able to change the colors can be critical to keeping users happy

49 48 Implementation Plans b Direct cutover drop the old system when the new one starts b Parallel the safest choice, both systems are operated at the same time b Pilot/Phased gradually install the new system (one store each time)

50 49 Implementation Options old new old new Direct cutover Parallel Pilot new Phased old dept or component 1 dept or component 2 dept or component 3 dept or component 4 store 1 store 2 store 3 store 4

51 50 Phase V System Maintenance

52 51 Software Maintenance b b Computer systems are constantly changing b b Hardware/Software upgrade b b The pressure for change are so great that 80% of staff today are devoted to modifying existing programs

53 52 Stage ProcedureApprox. Pct. Of Effort Analysis Feasibility 5 Requirements 15 Conceptual Design 5 Design Physical Design 20 Programming 25 Procedure Develop. 10 Implementation 15 Maintenance & Review 5 SDLC Effort

54 53 SDLC Advantages b Provide guidance and control b Formality Easier to train and evaluate the progress. Also ensure that steps are not skipped - such as user approval documentation, and testing b Adhering to standard It is easier to modify later b Ease of maintenance The internal consistency and documentation make it easier to modify

55 54 SDLC Disadvantages b Increased costs b Lengthen the development time A great deal of time is spent filling out forms and drawing diagrams b Requires definitions up front Users and managers need to know exactly what the system should do long before the system is created b Rigid

56 55 How to reduce the Development Time?

57 56 Computer-Aided System Engineering (CASE) Tool

58 57 CASE Tool b b The main objective of CASE tool is to help a firm design and build systems faster b b CASE tools help analysts draw and maintain several types of diagrams, including data flow diagrams b b One drawback to CASE tools is that they are relatively expensive, both for: cost of software cost of training

59 58 b Components of Computer-Aided Systems Engineering includes: workstations central repository numerous modeling tools project management Systems Development Life Cycle Support Prototyping Applications Software Design Features CASE Tool

60 59 Computer-Aided Systems Engineering Planning Toolset Analysis Toolset Design Toolset Information Integrator Workstation Repositories Code Generation Toolset Database Generation Toolset Public Interface Server Repository CASE

61 60 Prototyping

62 61 Common Steps of Prototyping 1. Talk with the users 2. Create roughly what the users want 3. Let users work with the prototype and then the users suggest changes 4. Make changes 5. Repeat steps 3 & 4 until the users are satisfied with the system or decides that the system is not worth pursuing

63 62 Build Initial Prototype Use Prototype Modify Prototype Request changes New Version MIS Designer User Initial Interview Process repeats until: 1) User is satisfied 2) User and designer give up 3) Formal system is built from prototype 4) Need for application is removed 5) Process never ends Prototyping

64 63 The Prototyping Process Use and Maintain the Accepted System Use and Maintain the Accepted System Identify an End User's Information Requirements Identify an End User's Information Requirements Develop Information System Prototype Develop Information System Prototype Revise the Prototype to Better Meet End User Requirements Revise the Prototype to Better Meet End User Requirements Prototyping Cycle Maintenance Cycle

65 64 Prototyping b Prototyping has been proposed as a method to use for systems that are not overly complex b The major advantage of prototyping is that the development time is much shorter than the SDLC b The drawback is the lack of formality and guideline: For example, if several users are involved, they might not agree on how the system should behave

66 65 Advantages of Prototyping ` Better definition of user needs ` Higher user involvement and satisfaction ` Faster development time ` Fewer errors ` More opportunity for changes ` Lee costly

67 66 Disadvantages of Prototyping ` Significant user time ` Less efficient use of system resources ` Incomplete systems development ` Inadequate tested and documented systems ` Negative behavior reactions ` Never ending development

68 67 Developing Systems with Teams Developing systems is generally a team effort among MIS developers and business users. Groupware, CASE, and development tools are often used to facilitate communication and coordination.

69 68 Joint Application Development (JAD)

70 69 JAD b b A technique known as JAD was created to speed up the design stage b b JAD use a Conceptual Systems Design Model which consist of Data Flow Diagram Entity Relationship Diagram Decision Table Screen Prototype Decision Tree

71 70 Common Steps of JAD b With JAD, the main system is designed in an intense three to five days workshop b By putting all of the decision makers in one room at the same time, conflicts are identified and resolved faster b The drawbacks are: It requires getting everyone together at the same time for an extended period of time An effective facilitator is needed

72 71 Object-Oriented Development

73 72 b b An object can be anything from an icon on a computer to an accounting statement b b Objects have sets of characteristics or attributes, and methods or operations that can be performed on objects b b With objects, all functions are embedded in the definition of the object Object-Oriented Development

74 73 Object Example Object Classes Customers Name Address Phone Change Address Add New Customer Delete Customer Commercial Contact Account Representative Assign Account Rep Frequent Contact Account Representative Year Started Assign Account Rep Individual Object Properties/ Attributes Methods/ Functions

75 74 Object-Oriented Approach b Classes Set of Objects that share common structure and behavior b Inheritance Objects receive attributes and operations from other objects Add more attributes and operations of their own b Polymorphism Ability of object to respond to and implement each object

76 75 Object-Oriented Steps b Identify Object Class b Identify Relationships b Identify Attributes b Determine Inheritance Relationships b Build Class Hierarchy

77 76 Object Example Object Classes Customers Name Address Phone Change Address Add New Customer Delete Customer Commercial Contact Account Representative Assign Account Rep Frequent Contact Account Representative Year Started Assign Account Rep Individual Object Properties/ Attributes Methods/ Functions

78 77 When a certain event occurs, data elements will be changed or added automatically Objects & Events Driven Systems

79 78 Objects & Events Driven Systems EventsMethodsObjects Sale Record Sale Update Inventory Notify Customer Service Inventory Customers Employees (commissions) Inventory Order/JIT Notify Suppliers Schedule Payment Accounts & Ledgers Suppliers Shipping/Receiving

80 79 End-user Development

81 80 End-User Development b Users do all the development work themselves b The main advantage is the users get what they want b the end-user development become popular because Increase waiting time for MIS personnel More powerful tools are available and easier to use

82 81 Advantages of End-user Development b b User creation, control, and implementation b b Systems that meet user needs b b Timeliness b b Freeing up IS resource b b Versatility and ease of use

83 82 Risks of End-user Development b Logic and development errors b Inadequate tested applications b Inefficient systems b Poorly controlled and documented systems (hard to modify by others) b System incompatibilities b Duplication of systems and data and wasted resources b Increased costs (users’ time)

84 83 Project Management Skills b Planning States what should be doneStates what should be done Estimates how long it will takeEstimates how long it will take Estimates what it will costEstimates what it will cost b Leading Adapts to dynamics of enterprise and deals with setbacksAdapts to dynamics of enterprise and deals with setbacks Guides and induces people to perform at maximum abilitiesGuides and induces people to perform at maximum abilities b Controlling Monitors Progress Reports and Documented DeliverablesMonitors Progress Reports and Documented Deliverables Compares Plans with ActualsCompares Plans with Actuals b Organizing Staffs a Systems Project TeamStaffs a Systems Project Team Brings together users, managers, and team membersBrings together users, managers, and team members

85 84 Choosing Methodologies SDLCPrototyping JAD Objects End User Controlformaluser joint standards user Time framelongshort medium any short Usersmanyone or two few varies one MIS staffmanyone or two few split none Trans./DSSTrans.DSS DSS both DSS Interfaceminimalcrucial crucial Windows crucial Document. & Trainingvitalweak limited in objects none Integrity & Securityvitalweak limited in objects weak Re-usabilitylimitedweak limited vital none

86 85 SDLC v.s. Object-Oriented

87 86 Unsuccessful Systems b b Systems were developed which did not support business strategies and objectives. b b Poor systems planning and inadequate project management. b b Failure to define or understand user requirements. b b Negligence in estimating costs and benefits of the systems project. b b Creation of a myriad of design defects and errors.

88 87 Unsuccessful Systems b Acquisition of computers and software that no one needs or knows how to use. b Installation of incompatible or inadequate technology. b Negligence in implementing adequate controls. b Development of unstructured, unmaintainable software. b Inadequate implementation tasks.

89 88 Techniques and Activities used to Minimize End User Resistance to Changes

90 89 Minimizing End User Resistance to Change Stages Activity Goal Pre- Implementation Pre- Implementation Human Design Human Design Marketing Education Gather Data Determine Alternatives, Needed Resources, and Possible Roadblocks Determine Alternatives, Needed Resources, and Possible Roadblocks Study Automation and Establish Criteria for Its Human Design Eliminate Deterrents and Establish Incentives Develop and Implement Strategy for "Selling" Technical Systems Introduce Technology So Workers "Buy and Own" the System Educate Workers About the Demands of the New Technology Reduce Stress and Increase Confidence

91 90 Minimizing End User Resistance to Change Stages Activity Goal Training Documentation Develop and Implement Skills Growth Program Develop Minimal Competence Develop & Distribute Adequate Documentation on How the System Works Human Communication Human Communication Post Implementation Post Implementation Establish and Maintain Open Channels of Communication Create Opportunities for Dialogue with Users Evaluate Each Phase of the Process Feedforward Results as Input to Next Technology Implementation Provide Easy Access and Effective Assistance

92 91 Organizing IS Resources

93 92 Managing Information Technology Managing Information Technology Managing Information Technology SupplierCustomer Superfast Producers Cross-Functional Integration Business PressuresTechnology Base

94 93 Some MIS Roles Network and Telecommunications Hardware Repair Training and User Support

95 94 CIO Roles

96 95 Five Leadership Roles b b Understand the business b b Establish credibility of the systems department b b Increase the technological maturity of the firm b b Create a vision of the future and sell it b b Implement an information system architecture

97 96 Five waves of innovation b Wave 1: Reducing cost b Wave 2: Leveraging investments b Wave 3: Enhancing products and services b Wave 4: Enhancing executive decision- making b Wave 5: Reaching the consumer

98 97 Five attitudes toward IT b b The majority of CEOs interviewed -- 52% to be exact -- are neutral, believing they do not have enough knowledge to direct IT investments. b b Quadrant 1: High degree of confidence in receiving benefits from IT investments. 12% b b Quadrant 2: Aware that implementation problems can destroy that potential. 26% b b Quadrant 3: Pessimistic,All systems will be delivered over- budget. 8% b b Quadrant 4: IT is harmful because it introduces chaos and too much change for people to cope well. 2%

99 98 Centralization vs. Decentralization

100 99 Complete Centralization Data and software MIS personnel Hardware User departments

101 100 Complete Decentralization MIS personnel are members of user departments Marketing Finance Accounting Human Resource Management

102 101 Hardware Centralization Advantages b b Easier to share Data Expensive hardware (printers) b b Easier to control Purchases Usage b b Less duplication b b Efficiency — less unused resources

103 102 Hardware Decentralization Advantages b Less chance of total breakdown b Users get personalized equipment b Micros are cheaper than mainframes

104 103 Software Centralization Advantages b b Compatibility b b Bulk buying discounts b b Easier training b b Ease of maintenance & upgrades

105 104 Software Decentralization Advantages b b Different users have different preferences b b Easier access b b Customization without affecting others b b Can overcome objections Lower prices minimize benefits of bulk purchases. Similarities of packages make training easier. Conversion tools enable sharing.

106 105 Data Centralization Advantages b b Easy backup b b Easier to Share b b Less duplication b b Security control\monitoring

107 106 Data Decentralization Advantages b Not all data needs to be shared b Easier find and access b Control & politics

108 107 Personnel Centralization Advantages b b Workers with similar backgrounds b b Easier training b b Straightforward growth path b b Specialized staff b b Easier to see/control costs

109 108 Personnel Decentralization Advantages b b Closer to users Faster response More time spent with users Better understanding/communication b b Different career path

110 109 Decentralization Summary Organizational Are operations interdependent? -planning -development -physical resources -operations Can subunits relate solely through information & messages? Does corporate culture support decentralization? Strengths End users gain control. Supports workgroups. Enables new organizational structures. Increased organizational flexibility. Weaknesses Possible short term bias in decision making. Might not be optimal use of resources for corporation. IS staff might lose cohesiveness and support.

111 110 Intermediate (Client-Server) Marketing Accounting Finance Human Resource Management Central MIS staff: Operations, network and systems programmers Server Hardware Shared Data & Software MIS support Transaction processing Corporate standards Network management Shared databases

112 111 Client-Server Benefits


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