12.1 © 2003 by Prentice Hall 12 REDESIGNING THE ORGANIZATIONWITHINFORMATIONSYSTEMS Chapter

12.2 © 2003 by Prentice Hall How could building a new system change the way an organization works?How could building a new system change the way an organization works? How can a company make sure that the new information systems it builds fit its business plan?How can a company make sure that the new information systems it builds fit its business plan? What are the steps required to build a new information system?What are the steps required to build a new information system? Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems OBJECTIVES

12.3 © 2003 by Prentice Hall What alternative methods for building information systems are available?What alternative methods for building information systems are available? Are there any techniques or system- building approaches to help us buildAre there any techniques or system- building approaches to help us build e-commerce and e-business applications more rapidly? OBJECTIVES Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems

12.4 © 2003 by Prentice Hall Major risks and uncertainties in systems developmentMajor risks and uncertainties in systems development Controlling information systems development outside the information systems departmentControlling information systems development outside the information systems department MANAGEMENT CHALLENGES Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems

12.5 © 2003 by Prentice Hall Information systems plan Road map indicating direction of systems developmentRoad map indicating direction of systems development SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Linking Information Systems to the Business Plan

12.6 © 2003 by Prentice Hall Enterprise Analysis (Business Systems Planning) Analysis of organization-wide information requirementsAnalysis of organization-wide information requirements Identifies key entities and attributesIdentifies key entities and attributes SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Establishing Organizational Information Requirements

12.7 © 2003 by Prentice Hall SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Process/Data Class Matrix Figure 12-1

12.8 © 2003 by Prentice Hall Strategic Analysis or Critical Success Factors Small number of easily identifiable operational goalsSmall number of easily identifiable operational goals Shaped by industry, firm, manager, and broader environmentShaped by industry, firm, manager, and broader environment Used to determine information requirements of organizationUsed to determine information requirements of organization SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Establishing Organizational Information Requirements

12.9 © 2003 by Prentice Hall SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Using CSFs to Develop Systems Figure 12-2

12.10 © 2003 by Prentice Hall Automation : Speeding up performanceAutomation : Speeding up performance Rationalization of procedures: Streamlining of operating proceduresRationalization of procedures: Streamlining of operating procedures Business process reengineering: Radical design of business processesBusiness process reengineering: Radical design of business processes Paradigm shift: Radical reconceptualizationParadigm shift: Radical reconceptualization SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Systems Development and Organizational Change

12.11 © 2003 by Prentice Hall SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Organizational Change Carries Risks and Rewards Figure 12-3

12.12 © 2003 by Prentice Hall Work Flow Management Process of streamlining business proceduresProcess of streamlining business procedures Documents can be moved easily and efficiently from one location to anotherDocuments can be moved easily and efficiently from one location to another BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Business Process Reengineering

12.13 © 2003 by Prentice Hall BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Redesigning Mortgage Processing in the United States Figure 12-4a

12.14 © 2003 by Prentice Hall BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Redesigning Mortgage Processing in the United States Figure 12-4b

12.15 © 2003 by Prentice Hall Senior management needs to develop broad strategic visionSenior management needs to develop broad strategic vision Management must understand and measure performance of existing processes as baselineManagement must understand and measure performance of existing processes as baseline Information technology should be allowed to influence process design from startInformation technology should be allowed to influence process design from start IT infrastructure should be able to support business process changesIT infrastructure should be able to support business process changes BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Steps in Effective Reengineering

12.16 © 2003 by Prentice Hall How information systems contribute to Total Quality Management Simplify product or production processSimplify product or production process Enable benchmarkingEnable benchmarking Use customer demands as guide to improve products and servicesUse customer demands as guide to improve products and services Reduce cycle timeReduce cycle time BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Process Improvement and Total Quality Management (TQM)

12.17 © 2003 by Prentice Hall Systems development Activities that go into producing information systems solutionActivities that go into producing information systems solution Systems analysis Analysis of problems that organization aims to resolve using information systemsAnalysis of problems that organization aims to resolve using information systems OVERVIEW OF SYSTEMS DEVELOPMENT Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Overview

12.18 © 2003 by Prentice Hall BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems The Systems Development Process Figure 12-5

12.19 © 2003 by Prentice Hall Feasibility study Determining achievability of solutionDetermining achievability of solution Establishing information requirements Stating information needs that new system must satisfyStating information needs that new system must satisfy Identifying who, when, where and how components of informationIdentifying who, when, where and how components of information OVERVIEW OF SYSTEMS DEVELOPMENT Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Overview

12.20 © 2003 by Prentice Hall Details how system will meet information requirements as determined by systems analysisDetails how system will meet information requirements as determined by systems analysis Increases users’ understanding and acceptance of the systemIncreases users’ understanding and acceptance of the system Reduces problems caused by power transfers, intergroup conflict, and unfamiliarity with the new systemReduces problems caused by power transfers, intergroup conflict, and unfamiliarity with the new system BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Systems Design

12.21 © 2003 by Prentice Hall Programming Process of translating system specifications into program codeProcess of translating system specifications into program codeTesting Checks whether the system produces desired results under known conditionsChecks whether the system produces desired results under known conditions Unit testing, system testing, acceptance testing, test planUnit testing, system testing, acceptance testing, test plan BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Completing the Systems Development Process

12.22 © 2003 by Prentice Hall BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems A Sample Test Plan to Test a Record Change Figure 12-6

12.23 © 2003 by Prentice Hall Conversion Process of changing from old system to new systemProcess of changing from old system to new system Strategies:Strategies: –Parallel –Direct cutover –Pilot study –Phased approach –Documentation BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Completing the Systems Development Process

12.24 © 2003 by Prentice Hall Production and maintenance Production is stage after new system is installed and the conversion is completeProduction is stage after new system is installed and the conversion is complete Maintenance is changes in hardware, software, documentation, or procedures of production system to correct errorsMaintenance is changes in hardware, software, documentation, or procedures of production system to correct errors BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Completing the Systems Development Process

12.25 © 2003 by Prentice Hall Systems lifecycle Traditional methodology for developing information systemTraditional methodology for developing information system Partitions systems development process into formal stages that must be completed sequentiallyPartitions systems development process into formal stages that must be completed sequentially ALTERNATIVE SYSTEM-BUILDING APPROACHES Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Traditional Systems Lifecycle

12.26 © 2003 by Prentice Hall Prototyping Process of building experimental system quickly and inexpensively for demonstration and evaluationProcess of building experimental system quickly and inexpensively for demonstration and evaluationPrototype Preliminary working version of information system for demonstration and evaluationPreliminary working version of information system for demonstration and evaluation ALTERNATIVE SYSTEM-BUILDING APPROACHES Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Prototyping

12.27 © 2003 by Prentice Hall Iterative A process of repeating over and over again the steps to build systemA process of repeating over and over again the steps to build system ALTERNATIVE SYSTEM-BUILDING APPROACHES Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Prototyping

12.28 © 2003 by Prentice Hall ALTERNATIVE SYSTEM-BUILDING APPROACHES Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems The Prototyping Processes Figure 12-7

12.29 © 2003 by Prentice Hall 1.Identifying user’s basic requirements 2.Developing initial prototype 3.Using prototype 4.Revising and enhancing prototype ALTERNATIVE SYSTEM-BUILDING APPROACHES Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Steps in Prototyping

12.30 © 2003 by Prentice Hall Advantage Useful in designing information system’s end-user interfaceUseful in designing information system’s end-user interfaceDisadvantage Rapid prototyping can gloss over essential steps in systems developmentRapid prototyping can gloss over essential steps in systems development ALTERNATIVE SYSTEM-BUILDING APPROACHES Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Advantages and Disadvantages of Prototyping

12.31 © 2003 by Prentice Hall Application software packages Set of prewritten, precoded application software programs commercially available for sale or leaseSet of prewritten, precoded application software programs commercially available for sale or leaseCustomization Modification of software package to meet organization’s unique requirements without destroying the software’s integrityModification of software package to meet organization’s unique requirements without destroying the software’s integrity ALTERNATIVE SYSTEM-BUILDING APPROACHES Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Application Software Packages

12.32 © 2003 by Prentice Hall ALTERNATIVE SYSTEM-BUILDING APPROACHES Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems The Effects of Customizing a Software Package on Total Implementation Costs Figure 12-8

12.33 © 2003 by Prentice Hall Request for Proposal (RFP) Detailed list of questions submitted to vendors of software or other servicesDetailed list of questions submitted to vendors of software or other services Determines how well vendor’s product can meet organization’s specific requirementsDetermines how well vendor’s product can meet organization’s specific requirements ALTERNATIVE SYSTEM-BUILDING APPROACHES Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Application Software Packages

12.34 © 2003 by Prentice Hall Development of information systems by end users with little or no formal assistance from technical specialistsDevelopment of information systems by end users with little or no formal assistance from technical specialists Allows users to specify their own business needsAllows users to specify their own business needs ALTERNATIVE SYSTEM-BUILDING APPROACHES Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems End-User Development

12.35 © 2003 by Prentice Hall ALTERNATIVE SYSTEM-BUILDING APPROACHES Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems End-User Versus System Lifecycle Development Figure 12-9

12.36 © 2003 by Prentice Hall Improves requirements gathering leading to higher level of user involvement and satisfactionImproves requirements gathering leading to higher level of user involvement and satisfaction Cannot easily handle processing of large numbers of transactions or applicationsCannot easily handle processing of large numbers of transactions or applications ALTERNATIVE SYSTEM-BUILDING APPROACHES Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems End-User Development

12.37 © 2003 by Prentice Hall Practice of contracting computer center operations, telecommunications networks, or applications development to external vendorsPractice of contracting computer center operations, telecommunications networks, or applications development to external vendors ALTERNATIVE SYSTEM-BUILDING APPROACHES Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Outsourcing

12.38 © 2003 by Prentice Hall Approach for software developmentApproach for software development De-emphasizes proceduresDe-emphasizes procedures Shifts focus from modeling business processes and data to combining data and procedures to create objectsShifts focus from modeling business processes and data to combining data and procedures to create objects APPLICATION DEVELOPMENT FOR THE DIGITAL FIRM Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Object-Oriented Software Development

12.39 © 2003 by Prentice Hall Process for developing systems in short time periodProcess for developing systems in short time period Uses prototyping, fourth-generation tools, and close teamworkUses prototyping, fourth-generation tools, and close teamwork APPLICATION DEVELOPMENT FOR THE DIGITAL FIRM Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Rapid Application Development (RAD)

12.40 © 2003 by Prentice Hall Software components deliverable over InternetSoftware components deliverable over Internet Enable one application to communicate with another with no translation requiredEnable one application to communicate with another with no translation required APPLICATION DEVELOPMENT FOR THE DIGITAL FIRM Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Web Services

12.41 © 2003 by Prentice Hall E-commerce and e-business require systems planning and systems analysis based on a broader view of organizationE-commerce and e-business require systems planning and systems analysis based on a broader view of organization APPLICATION DEVELOPMENT FOR THE DIGITAL FIRM Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Looking Beyond the Organization

12.42 © 2003 by Prentice Hall 12 REDESIGNING THE ORGANIZATIONWITHINFORMATIONSYSTEMS Chapter