SESSION 12 REDESIGNING THE ORGANIZATIONWITH INFORMATION SYSTEMS

Building a new information system is planned organizational changeBuilding a new information system is planned organizational change Develop an Information Systems Plan that supports their overall business planDevelop an Information Systems Plan that supports their overall business plan Understand the essential information requirement of the organization to develop an effective information system planUnderstand the essential information requirement of the organization to develop an effective information system plan SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Linking Information Systems to the Business Plan

Enterprise Analysis (Business Systems Planning) Analysis of organization-wide information requirements that examines the entire org. in terms of organizational units, processes and data elementsAnalysis of organization-wide information requirements that examines the entire org. in terms of organizational units, processes and data elements Identifies key entities and attributesIdentifies key entities and attributes Establishing Organizational Information Requirements SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE

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 Establishing Organizational Information Requirements SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE

Using CSFs to Develop Systems Figure 13-2 SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE

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 Development and Organizational Change SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE

Organizational Change Carries Risks and Rewards Figure 13-3 SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE

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 Steps in Effective Reengineering BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM)

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 Improve the quality and precision of designImprove the quality and precision of design Increase the precision of productionIncrease the precision of production Process Improvement and Total Quality Management (TQM) BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM)

Systems development Activities that go into producing information systems solution to an organizational problem or opportunityActivities that go into producing information systems solution to an organizational problem or opportunity Structured problem solving with distinct activitiesStructured problem solving with distinct activities OVERVIEW OF SYSTEMS DEVELOPMENT Overview

The Systems Development Process Figure 13-5 OVERVIEW OF SYSTEMS DEVELOPMENT

1. Systems analysis Analysis of problems that organization aims to resolve using information systemsAnalysis of problems that organization aims to resolve using information systems Feasibility studyFeasibility study Determining achievability of solutionDetermining achievability of solution Establishing information requirementsEstablishing 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

Details how system will meet information requirements as determined by systems analysisDetails how system will meet information requirements as determined by systems analysis Consists of all the system specifications that will deliver the functions identified during system analysisConsists of all the system specifications that will deliver the functions identified during system 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 2. Systems Design OVERVIEW OF SYSTEMS DEVELOPMENT

3. Programming Process of translating system specifications into program codeProcess of translating system specifications into program code 4. Testing Checks whether the system produces desired results under known conditionsChecks whether the system produces desired results under known conditions Unit testing, system testing, acceptance testingUnit testing, system testing, acceptance testing OVERVIEW OF SYSTEMS DEVELOPMENT

5. 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 OVERVIEW OF SYSTEMS DEVELOPMENT

6. 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 OVERVIEW OF SYSTEMS DEVELOPMENT

Traditional Systems lifecycle Traditional methodology for developing information systemTraditional methodology for developing information system Partition systems development process into formal stages that must be completed sequentiallyPartition systems development process into formal stages that must be completed sequentially ALTERNATIVE SYSTEM-BUILDING APPROACHES

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 evaluationIterative 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

The Prototyping Processes Figure 13-7 ALTERNATIVE SYSTEM-BUILDING APPROACHES

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 Advantages and Disadvantages of Prototyping ALTERNATIVE SYSTEM-BUILDING APPROACHES

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 Application Software Packages ALTERNATIVE SYSTEM-BUILDING APPROACHES

The Effects of Customizing a Software Package on Total Implementation Costs Figure 13-8 ALTERNATIVE SYSTEM-BUILDING APPROACHES

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 Improves requirements gathering leading to higher level of user involvement and satisfactionImproves requirements gathering leading to higher level of user involvement and satisfaction End-User Development ALTERNATIVE SYSTEM-BUILDING APPROACHES

Cannot easily handle processing of large numbers of transactions or applicationsCannot easily handle processing of large numbers of transactions or applications Occurs outside the management controlOccurs outside the management control Testing and documentation may be inadequateTesting and documentation may be inadequate Control over data can be lostControl over data can be lost End-User Development ALTERNATIVE SYSTEM-BUILDING APPROACHES

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 Outsourcing ALTERNATIVE SYSTEM-BUILDING APPROACHES