10.1 © 2002 by Prentice Hall c h a p t e r 10 REDESIGNING THE ORGANIZATION WITH INFORMATION SYSTEMS

10.2 © 2002 by Prentice Hall DEMONSTRATE HOW BUILDING NEW SYSTEMS CAN PRODUCE ORGANIZATIONAL CHANGEDEMONSTRATE HOW BUILDING NEW SYSTEMS CAN PRODUCE ORGANIZATIONAL CHANGE EXPLAIN INFORMATION SYSTEM DEVELOPMENT TO FIT BUSINESS PLANEXPLAIN INFORMATION SYSTEM DEVELOPMENT TO FIT BUSINESS PLAN IDENTIFY CORE ACTIVITIES IN SYSTEMS DEVELOPMENT PROCESSIDENTIFY CORE ACTIVITIES IN SYSTEMS DEVELOPMENT PROCESS* LEARNING OBJECTIVES

10.3 © 2002 by Prentice Hall LEARNING OBJECTIVES APPRAISE ALTERNATIVES FOR BUILDING SYSTEMSAPPRAISE ALTERNATIVES FOR BUILDING SYSTEMS EVALUATE OBJECT-ORIENTED DEVELOPMENT & RAPID APPLICATION DEVELOPMENTEVALUATE OBJECT-ORIENTED DEVELOPMENT & RAPID APPLICATION DEVELOPMENT*

10.4 © 2002 by Prentice Hall MANAGEMENT CHALLENGES SYSTEMS AS PLANNED ORGANIZATIONAL CHANGESSYSTEMS AS PLANNED ORGANIZATIONAL CHANGES PROCESS REENGINEERING & TOTAL QUALITY CONTROLPROCESS REENGINEERING & TOTAL QUALITY CONTROL OVERVIEW OF SYSTEMS DEVELOPMENTOVERVIEW OF SYSTEMS DEVELOPMENT ALTERNATIVE APPROACHESALTERNATIVE APPROACHES*

10.5 © 2002 by Prentice Hall INFORMATION SYSTEMS PLAN 1. PURPOSE OF THE PLAN: Overview of plan contents, changes in current situation, firm’s strategic plan, current organization, key business processes, management strategy 2. STRATEGIC BUSINESS PLAN: Current situation, current organization, changing environments, major goals of plan *

10.6 © 2002 by Prentice Hall 3. CURRENT SYSTEMS: Major systems supporting business functions & processes, major current capabilities (hardware, software, database, telecommunications), difficulties meeting requirements, anticipated future demands 4. NEW DEVELOPMENTS: New system projects (project descriptions, business rationale), new capabilities required (hardware, software, database, telecommunications, internet) * INFORMATION SYSTEMS PLAN

10.7 © 2002 by Prentice Hall 5. MANAGEMENT STRATEGY: Acquisition plans, milestones & timing, organizational realignment, internal reorganization, management controls, major training initiatives, personnel strategy 6. IMPLEMENTATION PLAN: Anticipated difficulties, progress reports 7. BUDGET REQUIREMENTS: Requirements, potential savings, financing, acquisition * INFORMATION SYSTEMS PLAN

10.8 © 2002 by Prentice Hall ENTERPRISE ANALYSIS (BUSINESS SYSTEMS PLANNING) (BUSINESS SYSTEMS PLANNING) ORGANIZATION-WIDE INFORMATION NEEDS IN TERMS OF: ORGANIZATIONAL UNITSORGANIZATIONAL UNITS FUNCTIONSFUNCTIONS PROCESSESPROCESSES DATA ELEMENTSDATA ELEMENTS HELPS IDENTIFY KEY ENTITIES & ATTRIBUTES IN ORGANIZATION’S DATA HELPS IDENTIFY KEY ENTITIES & ATTRIBUTES IN ORGANIZATION’S DATA*

10.9 © 2002 by Prentice Hall CRITICAL SUCCESS FACTORS (CSFs) SMALL NUMBER, EASILY IDENTIFIABLE OPERATIONAL GOALSSMALL NUMBER, EASILY IDENTIFIABLE OPERATIONAL GOALS SHAPED BY INDUSTRY, MANAGER, ENVIRONMENTSHAPED BY INDUSTRY, MANAGER, ENVIRONMENT BELIEVED TO ASSURE FIRM’S SUCCESSBELIEVED TO ASSURE FIRM’S SUCCESS USED TO DETERMINE ORGANIZATION’S INFORMATION REQUIREMENTSUSED TO DETERMINE ORGANIZATION’S INFORMATION REQUIREMENTS*

10.10 © 2002 by Prentice Hall GOALS (AUTOMOBILE INDUSTRY): Earnings per share, return on investment, market share, new productGOALS (AUTOMOBILE INDUSTRY): Earnings per share, return on investment, market share, new product CSF: Styling, quality dealer system, cost control, energy standardsCSF: Styling, quality dealer system, cost control, energy standards* CRITICAL SUCCESS FACTORS Example: PROFIT CONCERN

10.11 © 2002 by Prentice Hall GOALS (HOSPITAL): Excellent health care, meeting government regulations, future health needsGOALS (HOSPITAL): Excellent health care, meeting government regulations, future health needs CSF: Regional integration with other hospitals, efficient use of resources, improved monitoring of regulationsCSF: Regional integration with other hospitals, efficient use of resources, improved monitoring of regulations* CRITICAL SUCCESS FACTORS Example: NONPROFIT CONCERN

10.12 © 2002 by Prentice Hall USING CSFs TO DEVELOP SYSTEMS COLLECT MANAGERS’ CSFsCOLLECT MANAGERS’ CSFs AGGREGATE, ANALYZE INDIVIDUALS’ CSFsAGGREGATE, ANALYZE INDIVIDUALS’ CSFs DEVELOP AGREEMENT ON COMPANY CSFsDEVELOP AGREEMENT ON COMPANY CSFs DEFINE COMPANY CSFsDEFINE COMPANY CSFs USE CSFs TO DEVELOP INFORMATION SYSTEM PRIORITIESUSE CSFs TO DEVELOP INFORMATION SYSTEM PRIORITIES DEFINE DSS & DATABASESDEFINE DSS & DATABASES*

10.13 © 2002 by Prentice Hall SPECTRUM OF ORGANIZATIONAL CHANGE AUTOMATION: Using technology to perform tasks efficiently / effectivelyAUTOMATION: Using technology to perform tasks efficiently / effectively RATIONALIZATION OF PROCEDURES: Streamline SOPs; eliminate bottlenecksRATIONALIZATION OF PROCEDURES: Streamline SOPs; eliminate bottlenecks BUSINESS REENGINEERING: Radical redesign of processes to improve cost, quality, service; maximize benefits of technologyBUSINESS REENGINEERING: Radical redesign of processes to improve cost, quality, service; maximize benefits of technology PARADIGM SHIFTPARADIGM SHIFT*

10.14 © 2002 by Prentice Hall PARADIGM SHIFT PARADIGM SHIFT PARADIGM: A complete mental model of how a complex system functionsPARADIGM: 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 functionA PARADIGM SHIFT: Involves rethinking the nature of the business, the organization; a complete reconception of how the system should function*

10.15 © 2002 by Prentice Hall BUSINESS PROCESS REENGINEERING (BPR) REENGINEERING: Redesigning business processes to lower cost, speed developmentREENGINEERING: Redesigning business processes to lower cost, speed development WORK-FLOW MANAGEMENT: Streamlining process to move documents easily, efficientlyWORK-FLOW MANAGEMENT: Streamlining process to move documents easily, efficiently*

10.16 © 2002 by Prentice Hall 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: EFFECTIVE REENGINEERING STEPS:

10.17 © 2002 by Prentice Hall ANALYSIS OF PROBLEM TO BE SOLVED WITH AN INFORMATION SYSTEM ANALYSIS OF PROBLEM TO BE SOLVED WITH AN INFORMATION SYSTEM FEASIBILITY STUDY: Can problem be solved within constraints? FEASIBILITY STUDY: Can problem be solved within constraints?* SYSTEMS ANALYSIS

10.18 © 2002 by Prentice Hall FEASIBILITY TECHNICAL: Assess hardware, software, technical resourcesTECHNICAL: Assess hardware, software, technical resources ECONOMIC: Will benefits outweigh costs?ECONOMIC: Will benefits outweigh costs? OPERATIONAL: Is solution desirable within existing conditions?OPERATIONAL: Is solution desirable within existing conditions? INFORMATION REQUIREMENTS: Detailed statement of new system needs *

10.19 © 2002 by Prentice Hall SYSTEM DESIGN DETAILS HOW SYSTEM WILL MEET NEEDS: DETAILS HOW SYSTEM WILL MEET NEEDS: LOGICAL DESIGN: Components, data as needed by applicationsLOGICAL DESIGN: Components, data as needed by applications PHYSICAL DESIGN: Physical location of components and dataPHYSICAL DESIGN: Physical location of components and data*

10.20 © 2002 by Prentice Hall DESIGN SPECIFICATIONS OUTPUT: Medium, content, timingOUTPUT: Medium, content, timing INPUT: Origins, flow, data entryINPUT: Origins, flow, data entry USER INTERFACE: Simplicity, efficiency, logic, feedback, errorsUSER INTERFACE: Simplicity, efficiency, logic, feedback, errors DATABASE DESIGN: Logical data relations, volume, speed requirements, file organization & design, record specificationsDATABASE DESIGN: Logical data relations, volume, speed requirements, file organization & design, record specifications PROCESSING: Computations, program modules, required reports, timing of outputsPROCESSING: Computations, program modules, required reports, timing of outputs MANUAL PROCEDURES: What activities, who performs them, how, whereMANUAL PROCEDURES: What activities, who performs them, how, where*

10.21 © 2002 by Prentice Hall CONTROLS: Input, processing, output, proceduralCONTROLS: Input, processing, output, procedural SECURITY: Access controls, catastrophe plans, audit trailsSECURITY: Access controls, catastrophe plans, audit trails DOCUMENTATION: Operations, systems, userDOCUMENTATION: Operations, systems, user CONVERSION: Transfer files, initiate new procedures, select testing modules, cut over to new systemCONVERSION: Transfer files, initiate new procedures, select testing modules, cut over to new system TRAINING: Select training techniques, develop training modules, identify training facilitiesTRAINING: Select training techniques, develop training modules, identify training facilities* DESIGN SPECIFICATIONS

10.22 © 2002 by Prentice Hall ORGANIZATIONAL CHANGES: Task redesign, job design, process design, organization structure design, reporting relationshipsORGANIZATIONAL CHANGES: Task redesign, job design, process design, organization structure design, reporting relationships* DESIGN SPECIFICATIONS

10.23 © 2002 by Prentice Hall ROLE OF END USERS USERS DRIVE SYSTEMS EFFORTUSERS DRIVE SYSTEMS EFFORT MUST HAVE SUFFICIENT CONTROL TO ENSURE SYSTEM REFLECTS BUSINESS PRIORITIES, NEEDSMUST HAVE SUFFICIENT CONTROL TO ENSURE SYSTEM REFLECTS BUSINESS PRIORITIES, NEEDS FUNCTIONAL USERS DRIVE SYSTEM NEEDSFUNCTIONAL USERS DRIVE SYSTEM NEEDS*

10.24 © 2002 by Prentice Hall COMPLETING SYSTEM DEVELOPMENT PROCESS PROGRAMMING: Translating needs to program codePROGRAMMING: Translating needs to program code TESTING: Does system produce desired results?TESTING: Does system produce desired results? CONVERSION: Changing from the old to the newCONVERSION: Changing from the old to the new*

10.25 © 2002 by Prentice Hall UNIT TESTING: Tests each unit separatelyUNIT TESTING: Tests each unit separately SYSTEM TESTING: Do modules function as planned?SYSTEM TESTING: Do modules function as planned? ACCEPTANCE TESTING: Final certificationACCEPTANCE TESTING: Final certification TEST PLAN: Preparations for tests to be performed * TESTING

10.26 © 2002 by Prentice Hall CONVERSION PARALLEL: Old & new run same problems. Give same results?PARALLEL: Old & new run same problems. Give same results? DIRECT CUTOVER: Risky conversion to new systemDIRECT CUTOVER: Risky conversion to new system PILOT: Introduce into one area. Does it work? Yes: introduce into other areaPILOT: Introduce into one area. Does it work? Yes: introduce into other area PHASED: Introduce in stagesPHASED: Introduce in stages CONVERSION PLAN: Schedule for conversionCONVERSION PLAN: Schedule for conversion DOCUMENTATION: Description of how system worksDOCUMENTATION: Description of how system works*

10.27 © 2002 by Prentice Hall PRODUCTION & MAINTENANCE PRODUCTION: Constant review by users & operators. Does it meet goals?PRODUCTION: Constant review by users & operators. Does it meet goals? MAINTENANCE: Upkeep, update, corrections over timeMAINTENANCE: Upkeep, update, corrections over time*

10.28 © 2002 by Prentice Hall 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

10.29 © 2002 by Prentice Hall 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

10.30 © 2002 by Prentice Hall SYSTEM LIFECYCLE PROJECT DEFINITION: Is there a problem? Can it be solved with a project?PROJECT DEFINITION: Is there a problem? Can it be solved with a project? SYSTEM STUDY: Analyze problems in existing systems; define objectives evaluate alternativesSYSTEM STUDY: Analyze problems in existing systems; define objectives evaluate alternatives DESIGN: Logical & physical specifications for systems solutionDESIGN: Logical & physical specifications for systems solution PROGRAMMING: Develop software codePROGRAMMING: Develop software code*

10.31 © 2002 by Prentice Hall SYSTEM LIFECYCLE INSTALLATION: Construct, test, train, convert to new systemINSTALLATION: Construct, test, train, convert to new system POSTINSTALLATION: On-going evaluation, modifications for improvement to meet new requirementsPOSTINSTALLATION: On-going evaluation, modifications for improvement to meet new requirements NECESSARY FOR LARGE, COMPLEX SYSTEMS & PROJECTS NECESSARY FOR LARGE, COMPLEX SYSTEMS & PROJECTS*

10.32 © 2002 by Prentice Hall ALTERNATIVE SYSTEM- BUILDING APPROACHES PROTOTYPINGPROTOTYPING APPLICATION SOFTWARE PACKAGESAPPLICATION SOFTWARE PACKAGES END-USER DEVELOPMENTEND-USER DEVELOPMENT OUTSOURCINGOUTSOURCING*

10.33 © 2002 by Prentice Hall PROTOTYPING PROCESS OF BUILDING EXPERIMENTAL SYSTEM TO DEMONSTRATE, EVALUATE APPROACH; USERS REFINE NEEDS PROCESS OF BUILDING EXPERIMENTAL SYSTEM TO DEMONSTRATE, EVALUATE APPROACH; USERS REFINE NEEDS PROTOTYPE: Preliminary working version of information system for demonstration, evaluation purposesPROTOTYPE: Preliminary working version of information system for demonstration, evaluation purposes ITERATIVE PROCESSITERATIVE PROCESS*

10.34 © 2002 by Prentice Hall 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 BEST FOR DESIGN OF END-USER INTERFACE: How end-user interacts with system*

10.35 © 2002 by Prentice Hall APPLICATION SOFTWARE PACKAGES PREWRITTEN, PRECODED APPLICATION SOFTWARE, COMMERCIALLY AVAILABLE FOR SALE OR LEASE PREWRITTEN, PRECODED APPLICATION SOFTWARE, COMMERCIALLY AVAILABLE FOR SALE OR LEASE GEARED TO COMMON REQUIREMENTSGEARED TO COMMON REQUIREMENTS CUSTOMIZATION: Modification of software to meet organization’s needsCUSTOMIZATION: Modification of software to meet organization’s needs MUST WEIGH COSTS / BENEFITSMUST WEIGH COSTS / BENEFITS REQUEST FOR PROPOSAL (RFP): Detailed questions sent to vendorsREQUEST FOR PROPOSAL (RFP): Detailed questions sent to vendors*

10.36 © 2002 by Prentice Hall CUSTOMIZATION MODIFYING SOFTWARE PACKAGE TO MEET ORGANIZATION’S UNIQUE REQUIREMENTS WITHOUT DESTROYING INTEGRITY OF PACKAGE RAISES DEVELOPMENT COSTS *

10.37 © 2002 by Prentice Hall END-USER DEVELOPMENT END-USERS DEVELOP INFORMATION SYSTEM WITH LITTLE HELP FROM TECHNICAL SPECIALISTS USING 4th GENERATION TOOLS END-USERS DEVELOP INFORMATION SYSTEM WITH LITTLE HELP FROM TECHNICAL SPECIALISTS USING 4th GENERATION TOOLS*

10.38 © 2002 by Prentice Hall 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 *

10.39 © 2002 by Prentice Hall OUTSOURCING CONTRACTING: COMPUTER CENTER OPERATIONSCOMPUTER CENTER OPERATIONS TELECOMMUNICATIONS NETWORKSTELECOMMUNICATIONS NETWORKS APPLICATION DEVELOPMENTAPPLICATION DEVELOPMENT TO EXTERNAL VENDORS TO EXTERNAL VENDORS*

10.40 © 2002 by Prentice Hall OUTSOURCING WHEN TO OUTSOURCE: IF FIRM WON’T DISTINGUISH ITSELF BY DEVELOPING APPLICATIONIF FIRM WON’T DISTINGUISH ITSELF BY DEVELOPING APPLICATION IF PREDICTABILITY OF UNINTERRUPTED SERVICE NOT IMPORTANTIF PREDICTABILITY OF UNINTERRUPTED SERVICE NOT IMPORTANT IF EXISTING SYSTEM IS LIMITED, INEFFECTIVE, INFERIORIF EXISTING SYSTEM IS LIMITED, INEFFECTIVE, INFERIOR*

10.41 © 2002 by Prentice Hall SYSTEMS LIFECYCLE PHASES: PROJECT DEFINITIONPROJECT DEFINITION SYSTEM STUDYSYSTEM STUDY DESIGNDESIGN PROGRAMMINGPROGRAMMING INSTALLATIONINSTALLATION POST-IMPLEMENTATIONPOST-IMPLEMENTATION*

10.42 © 2002 by Prentice Hall OBJECT - ORIENTED SOFTWARE DEVELOPMENT DE-EMPHASIZES PROCEDURESDE-EMPHASIZES PROCEDURES SHIFTS FOCUS FROM MODELS & DATASHIFTS FOCUS FROM MODELS & DATA TO OBJECTS, WHICH COMBINE DATA & PROCEDURESTO OBJECTS, WHICH COMBINE DATA & PROCEDURES OBJECTS REUSABLEOBJECTS REUSABLE SYSTEM: Classes, objects, relationshipsSYSTEM: Classes, objects, relationships REDUCES DEVELOPMENT TIME & COST *

10.43 © 2002 by Prentice Hall RAPID APPLICATION DEVELOPMENT (RAD) DEVELOP SYSTEM RAPIDLY: PROTOTYPINGPROTOTYPING 4th GENERATION TOOLS4th GENERATION TOOLS CLOSE TEAMWORK AMONG USERS & SPECIALISTSCLOSE TEAMWORK AMONG USERS & SPECIALISTS*

10.44 © 2002 by Prentice Hall c h a p t e r 10 REDESIGNING THE ORGANIZATION WITH INFORMATION SYSTEMS