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

2. Section 1 Developing Business Systems

3. 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

4. II. The Systems Approach
Systems Thinking

5. The Systems Development Life Cycle

6. Systems Development Lifecycle (SDLC) - Waterfall Development Methodology

8. VI. Systems Design
The Prototyping Process

9. 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

10. 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?

11. IV. Starting the Systems Development Process
Feasibility Factors

12. 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

13. 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)

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

15. 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

16. Tracking Tasks Using Gantt Chart
Task Week

17. 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

18. Section 2 Implementing Strategic Business Systems

20. The Implementation Process
May be difficult and time-consuming

21. 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

22. 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

23. V. Other Implementation Activities
System Conversion Strategies

24. 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

25. 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