Chapter 7 DEVELOPING INFORMATION TECHNOLOGY SYSTEM

1.0 Introduction The planning process in developing Information Technology System (ITS) is very crucial. The goal is to create ITS Plan that outlines: a) What system you want to plan b) When to develop c) Disaster Recovery plan

1.2 Planning steps Planning process consists of 4 different steps : Gather all proposed systems Consider proposed system based from the organizational goals. Evaluation on the proposed systems. Plan for facing disaster.

The ITS proposed for development will be suggested by organization’s overall planning. Organization provide a mechanism to allow KWs to suggest the requirements for the new system. 1.3 Gathering all proposed system

1.4 Considering proposed system based on the organizational goal IT Fusion – Happens when the IT within the organization is identical between business process and the people who uses the IT. Critical Success Factor (CSF) – Factor simply critical to organizational success.

1.5 Evaluating proposed systems Consists of 3 types of analysis: 1. Cost-benefit analysis Evaluating process by comparing system costs with benefits. Cost and benefit includes:  Cost estimation for actual system development process.  Cost estimation for actual system operation, maintenance & support.  Cost estimation for actual system adaptation at different times in the future.  Tangible benefits.  Intangible benefits.

1.5 Evaluating proposed systems 2. IT Systems Risk Measured with risk analysis method is the possibility the system fail to achieve benefits predicted. 3. Capital Investment Analysis calculates a quantitative measure of systems value using a number of different financial models

1.6 Plan for facing disaster Disaster plan – Documentation on the possibility of losing an IT system and the procedures to minimize the damages. Disaster recovery cost curve chart includes the cost organization faces due to: Unavailability of information and technology in the organization. Recovering from a disaster.

2.0 THREE WAYS OF DEVELOPING A SYSTEM SDLC PROTOTYPING ERP

2.0 Introduction to system development process Regularly linked with “who is responsible in system development & what are the equipments used for it. People responsible for system developments are: IT Specialist (In-sourcing) – Internal IT expert Knowledge Workers (Self sourcing) – KWs builds system based on specification & requirement. Other Organization (Out-sourcing) – Using other organizations expertise to build the system.

2.1 Methods to build system There are 3 methods: Traditional SDLC – uses structural approach where KWs informs IT experts on what they want. Prototyping – building the systems model to determine the systems requirements and functions. ERP & Enterprise Software – Overall view of the organization, its processes & its information technology systems.

2.2 SYSTEM LIFE CYCLE SDLC

2.21 Traditional System Life Cycle Structured step by step approach to develop a system that has separation of duties among IT specialist & KWs There are 6 steps involved (PSADIM): Planning Scope Analysis Design Implementation Maintenance Knowledge workers IT Specialists

2.21a Planning Why planning is important ? Help to determine the type of system to be built & coordinate the ITS efficiently. Determine which procedure to be used: In-sourcing Self-sourcing Out-sourcing

2.21b Scope Focus on the chosen system development & determine the problems that may arise from it. Include the process of: Identify the business operation that will be affected by implementing the new system Gathering everyone involved in the project. Study existing application system to prepare new user interface that can be coordinated with current system. Developing project plan – involves list of people, cost estimation and the duration to build the system.

2.21c Analysis Determine logical requirement for system that will be built. Processes in analysis phase: Modeling, study and analysis – analyze old system & relate them in a flowchart. Determine the new information & processing requirement – make sure new system is not using information and other processing from current system. Modeling new system – a model that combines existing system with the new system information & processing Updating project programme & scope – Project planning and scope must be studied and it results in updated budget & time duration for developing the system

2.21d Design Detailed technical planning system that shows how the system operation is built. IT specialist will determine the software, hardware, telecommunication, the information, individual and methods suitable. Involves: Identifying the various types of technical implementation Analyzing and choosing the best implementation Updating project programme & scope

2.21e Implementation Built system is implemented in the organization & involves documentation and software testing. IT Specialist responsible to get the system running. Involves: Programming Gathering & Installing of hardware Testing Training

2.21f Conversion Switching or converting the old system with the new system. Types of conversion: Parallel Conversion- uses both new & old system. Plunge Conversion- delete the old system completely and switch to new one. Pilot Conversion- a group will use it first & if its successful then others uses it as well. Piecemeal Conversion- only part of the system will be used first and if its successful, whole system will be used.

2.21g Maintenance Last phase of SLDC & used to ensure that the system remains to fulfill its requirements. Support process: Act in making the changes of information and the processing if needed. Business changes = system changes!

2.3 PROTOTYPING

2.31 Prototyping A process of building the model to show the characteristics of the product/service. (A dummy system). Built based on basic requirements & improvised few times based on the evaluation and revision done by the KWs. It enables the KW to see, work, evaluate the model & make suggestions to improve the system.

2.31 Prototypes can be used for various functions Identify Basic Requirement Assisting In Determining Requirement Prove That The System Can Be Built Informing The Others Of System Concerned

2.32 Phases in prototyping process Identifying basic requirement – basic requirement such as input & output gets identified. Build prototype – build initial prototype covering the user interface. Value / reviewing by KW – check and give suggestions. Prototype will be re-examined to raise capability – changed based on proposal given by KW.

2.33 Advantages of Prototyping Requires entire KW involved in the process of system development. Help in setling conflict between KWs. KW will see or try the new system being built thus he/she will understand clearly on the requirement of the system. Help the public to understand why new system is needed, how it operates and proves the success of the system.

2.34 Weakness of Prototyping Public might misunderstand that the system is ready for use or prepared in short time. (prototype is model for the system & not the system itself!) No indication of performance under operational. Completed system will not be re-examined & there would no documentation on the flow of developing the system.

3.0 SELF-SOURCING

3.1 Self-sourcing process Using KWs in the organization to build & support the system with or without the help of IT specialist. The 7 processes involved: Scope Analysis Identify basic requirement Develop initial prototype KWs reviewing Revise & enhance the prototype Support

3.2 Key tasks in self-sourcing Scope Determine system objective. Compose project planning. Identify any system that needs interface Required types of foreign support in developing the new system. Analysis Study the existing system’s model Understand the interface of the system clearly Defines & determines the requirement of the system Support Documentate the system & continuous maintenance

3.3 Advantages of self- sourcing To upgrade the information requirement. Increase KWs cooperation. Improve the system development process.

3.4 Disadvantages of self- sourcing System may not be complete in time due to KW’s lack of IT expertise. Lack of focus in the organization might cause the new system fail to interact or information used gets repeated. Incomplete analysis in determining the software design and hardware in developing the system by the inexperienced KWs. Lack of system documentation and maintenance of the system.

4.0 OUT-SOURCING

4.1 Out-sourcing Defined as using another organization’s service or the outside workforce to build the system. It will course work delegation to a third party at specific cost, at specific level of service and in specific time period.

4.2 Out-sourcing perspective Out-sourcing can be seen from 4 different perspective: Purchase existing software off the shelf. Purchase existing software & pay the publisher to make some modification. Purchase existing software & pay the publisher for the right to make some modification. Outsource the development of entirely new system.

4.3 Out-souring process Planning Scope Select target system Establish logical requirements Develop a request for proposal (RFP) Evaluate RFP return & choose vendor Test & accept solution Monitor & re- evaluate

4.4 Out-sourcing process 1. Planning time period needed to build system. 2. Scope choose system & evaluate cost, time & technical capability. 3. Select Target System Ensure the system is suitable to be build based on its size, routine support & non-sensitive business function. 4. Establish Logical Requirements Analyze what is required by the system

4.4 Out-sourcing process 5. Develop RFP Telling other organizations what you need. RPF is a formal document that describes in detail the logical requirements proposed for the new system & invite outsourcing organizations to submit bids. 6. Evaluate RFP & Choose vendor The RPF returned will be analyzed & selected based on cost, time & scoring mechanism. Then, a legal & binding contract that states the features of the system, extra cost, time frame, acceptance criteria & criteria for breaking the contract for non-performance & non-compliance will be made.

4.4 Out-sourcing process 7. Test & accept solution Test the system & accepting it when it performs to meet expectation & vendor has met its contract so far. 8. Monitor & re-evaluate Making sure that the new system continues to perform the needed functions.

4.5 Advantages of out- sourcing Allows company to focus on unique care competencies Using expertise from other organizations Better prediction of future cost Acquire leading-edge technology Reduce the cost Improves implementation responsibility

4.6 Disadvantages of out- sourcing Reduce information technology experts shows your organization doesn’t have expertise in particular field when you out-source. Reduce degree of control Increase vulnerability of strategic information. Increase dependency toward other vendor/vendor.

5.0 Enterprise Resource Planning (ERP) Coordinated planning of all the organization’s resources involving production, development, selling & servicing of good & services. Enterprise software: A set of common business application Tools for modeling how the entire organization works. Development tools for building applications unique to the organization.

5.1 Advantages of ERP Models the entire organization Generate processes & information technology systems based on organization’s model. Make changes to organizations model Regenerate new processes & information technology systems based on the organizations model.

5.2 CASE CASE is a software that is used to control the development of software system SDLC. Assist in modeling & storing the information pertinent to specific system Assist in carrying out development system task that conveys information to new system. There are 3 types of CASE: Integrated CASE – support whole SDLC processes. Upper CASE – support early SDLC such as planning, scope, analysis & design. Lower CASE – support final SDLC such as design, implementation & support.