Introduction to Information Systems Chapter 1 Chapter 12 Implementing Business/IT Solutions © 2002 McGraw-Hill Companies

Section 1 Developing Business Systems

II. The Systems Approach Uses a systems orientation to defining and solving problems and opportunities Problem Solving – there are specific steps in solving any problem Recognize/Define a Problem or Opportunity – recognize it exists Develop and Evaluate Alternative System Solutions – what are the different ways to solve this problem? Select the Best System Solution – decide which alternative is best Design the Selected System Solution – design the system for the chosen solution Implement and Evaluate the Success of the Designed System – put the solution into effect and monitor results for the outcome

II. The Systems Approach Systems Thinking

The Systems Development Life Cycle

Systems Development Lifecycle (SDLC) - Waterfall Development Methodology

VI. Systems Design The Prototyping Process

IV. Starting the Systems Development Process Systems development can be very costly, investigations are made to determine whether to proceed Feasibility Studies – identify needs, resources, costs, benefits Operational Feasibility – will the proposed system fit existing business environment and objectives? Technical Feasibility – degree to which current technical resources can be applied to the new system Human Factors Feasibility – assess the degree of approval/resistance to the new system

IV. Starting the Systems Development Process Economic Feasibility – the extent to which the proposed system will provide positive economic benefits to the organization Cost/Benefit Analysis – do the benefits justify the costs? Tangible Costs/Benefits – can be calculated/quantified (hardware, software, increase in payroll) Intangible Benefits – hard to calculate (customer approval, political feedback) Legal/Political Feasibility – what are the legal/political ramifications of the new system?

IV. Starting the Systems Development Process Feasibility Factors

Cost/Benefit Analysis Costs versus Benefits Tangible costs and benefits can be quantified with a high degree of certainty Example: decrease in operating costs Intangible costs and benefits are harder to estimate Example: improved customer service

Assess Financial Viability Net Present Value PV = Cash flow amount (1 + interest rate)n , where interest rate = required return n = number of years in future NPV =  PV(future cash inflows) –  PV(future cash outflows)

Assess Financial Viability Return on Investment ROI = NPV PV(cash outflows) Generally, if NPV>=0, Project is OK If NPV < 0, Project is unacceptable

VI. Systems Design Create a new system to solve the problem/opportunity Prototyping – create working models of the proposed system The Prototyping Process – prototypes are developed quickly for trial by users to obtain user feedback User Interface Design – critical because the interface is the part of the systems closest to the user System Specifications – listing of elements that formalize the design

Tracking Tasks Using Gantt Chart Task Week 2 3 4 5 6 7 8 9 10 11 12 13

Tracking Tasks Using PERT Chart Go to Library 4 weeks Select and purchase book 1 week Go to Bookstore Skim book 3 weeks Write Phase One 2 weeks Read book carefully Write Phase Two

Section 2 Implementing Strategic Business Systems

The Implementation Process May be difficult and time-consuming

Hardware Evaluation Factors Software Evaluation Factors IS Services Evaluation Factors Performance Cost Reliability Compatibility Technology Ergonomics Connectivity Scalability Software Support Quality Efficiency Flexibility Security Connectivity Maintenance Documentation Hardware Performance Systems development Maintenance Conversion Training Backup Accessibility Business Position Hardware Software Note that don’t just choose hardware on what’s fastest and cheapest

V. Other Implementation Activities Testing – testing and debugging are important, does the system work as it should? Data Conversion – new implementations often require replacing software and databases Documentation – an important means of communication, often overlooked Training – training users is vital, usually under-budgeted, and expensive

V. Other Implementation Activities System Conversion Strategies

V. Other Implementation Activities System Conversion Strategies – cutting over to the new system Parallel – most expensive but safest, run both systems until everyone is satisfied, then turn off old system Pilot – let only a select few users use the new system until they are happy, then implement the new system for everyone; best user representation can be selected for the trials Phased (Modular) – gradual conversion one module at a time, combines best of both direct and modular while minimizing risks Direct – simplest but most dangerous method, turn off the old system and turn on the new one

V. Other Implementation Activities Postimplementation Activities – Use and Maintenance – the longest and most costly phase of a system’s life; correct errors, improve performance, adapt to changes in the business environment Systems Maintenance – making changes to the system Corrective – fix errors Adaptive – adding new functionality Perfective – improve performance Preventative – reduce chances of future system failure Postimplementation Review – ensure the new system meets established business objectives