11. Building Information Systems

1
11. REDESIGNING THE ORGANIZATION WITH INFORMATION
SYSTEMS
11.1
2
LEARNING OBJECTIVES

• EXPLAIN HOW ORGANIZATION CAN DEVELOP SUITABLE
  INFO SYSTEMS
• IDENTIFY CORE ACTIVITIES IN SYSTEMS DEVELOPMENT
  PROCESS

11.3
3
MANAGEMENT CHALLENGES

• OVERVIEW OF SYSTEMS DEVELOPMENT

11.4
4
INFORMATION SYSTEMS PLAN

• CHALLENGES
• RISKS AND UNCERTAINTIES IN SYSTEMS DEVELOPMENT

11.5
5
INFORMATION SYSTEMS PLAN

• DIRECTION OF SYSTEM DEVELOPMENT
• RATIONALE
• CURRENT SITUATION
• MANAGEMENT STRATEGY
• IMPLEMENTATION PLAN
• BUDGET

11.6
6
INFORMATION SYSTEMS PLAN

• 1. PURPOSE OF THE PLAN
• OVERVIEW OF PLAN CONTENTS
• CHANGES IN CURRENT SITUATION
• FIRMS STRATEGIC PLAN
• CURRENT ORGANIZATION
• MANAGEMENT STRATEGY

11.7
7
INFORMATION SYSTEMS PLAN

• 2. STRATEGIC BUSINESS PLAN
• CURRENT SITUATION
• CURRENT ORGANIZATION
• CHANGING ENVIRONMENT
• MAJOR GOALS OF PLAN

11.8
8
INFORMATION SYSTEMS PLAN

• 3. CURRENT SYSTEMS
• MAJOR SYSTEMS SUPPORTING BUSINESS FUNCTIONS
• MAJOR CURRENT CAPABILITIES
• HARDWARE
• SOFTWARE
• DATABASE
• TELECOMMUNICATIONS
• DIFFICULTIES MEETING REQUIREMENTS
• ANTICIPATED FUTURE DEMANDS

11.9
9
INFORMATION SYSTEMS PLAN

• 4. NEW DEVELOPMENTS
• NEW SYSTEM PROJECTS
• PROJECT DESCRIPTIONS
• BUSINESS RATIONALE
• NEW CAPABILITIES REQUIRED
• HARDWARE
• SOFTWARE
• DATABASE
• TELECOMMUNICATIONS

11.10
10
INFORMATION SYSTEMS PLAN

• 5. MANAGEMENT STRATEGY
• ACQUISITION PLANS
• MILESTONES TIMING
• ORGANIZATIONAL REALIGNMENT
• INTERNAL REORGANIZATION
• MANAGEMENT CONTROLS
• MAJOR TRAINING INITIATIVES
• PERSONNEL STRATEGY

11.11
11
IMPROVING INFORMATION TECHNOLOGY OUTCOMES

• Assessing Project Risk
• Assessing Portfolio Risk
• Management of Risk

12
FACTORS IN ASSESSINGIT PROJECT RISK

• Size
• Structure
• Experience With Technology
• Within Company
• Anywhere
• Commitment/Culture
• Interdependence
• Completion Interval

13
PORTFOLIO RISK

• Where Are You in Your Industry?
• About To Go Under
• Major Growth Opportunity
• Management Profile
• Risk Adverse (Willingness to Be Left Behind)
• Risk Takers (Willingness to Be It All)
• Timing (How Much, How Fast)

14
ENTERPRISE ANALYSIS

• (BUSINESS SYSTEMS PLANNING)
• ORGANIZATION-WIDE INFORMATION NEEDS IN TERMS OF
• ORGANIZATIONAL UNITS
• FUNCTIONS
• PROCESSES
• DATA ELEMENTS
• HELPS IDENTIFY KEY ENTITIES ATTRIBUTES IN
  ORGANIZATIONS DATA

11.12
15
SYSTEM DEVELOPMENT PROCESS

• SYSTEMS ANALYSIS
• SYSTEM DESIGN
• PROGRAMMING
• TESTING
• CONVERSION
• PRODUCTION MAINTENANCE

11.25
16
SYSTEMS ANALYSIS

• ANALYSIS OF PROBLEM TO BE SOLVED WITH AN
  INFORMATION SYSTEM
• FEASIBILITY STUDY CAN PROBLEM BE SOLVED
  WITHIN CONSTRAINTS?

11.26
17
FEASIBILITY

• TECHNICAL Assess hardware, software, technical
  resources
• ECONOMIC Will benefits outweigh costs
• OPERATIONAL Is solution desirable within
  existing conditions?
• INFORMATION REQUIREMENTS Detailed statement of
  new system needs

11.27
18
SYSTEM DESIGN

• DETAILS HOW SYSTEM WILL MEET NEEDS
• LOGICAL DESIGN Components, data as needed by
  applications
• PHYSICAL DESIGN Physical location of components
  and data

11.28
19
DESIGN SPECIFICATIONS

• OUTPUT
• MEDIUM CONTENT TIMING
• INPUT
• ORIGINS FLOW DATA ENTRY
• USER INTERFACE
• SIMPLICITY EFFICIENCY LOGIC
• FEEDBACK ERRORS
• DATABASE DESIGN
• LOGICAL DATA RELATIONS
• VOLUME, SPEED REQUIREMENTS
• FILE ORGANIZATION DESIGN
• RECORD SPECIFICATIONS

11.29
20
DESIGN SPECIFICATIONS

• PROCESSING
• COMPUTATIONS
• PROGRAM MODULES
• REQUIRED REPORTS
• TIMING OF OUTPUTS
• MANUAL PROCEDURES
• WHAT ACTIVITIES
• WHO PERFORMS THEM
• HOW
• WHERE

11.30
21
DESIGN SPECIFICATIONS

• CONTROLS
• INPUT
• PROCESSING
• OUTPUT
• PROCEDURAL
• SECURITY
• ACCESS CONTROLS
• CATASTROPHE PLANS
• AUDIT TRAILS

11.31
22
DESIGN SPECIFICATIONS

• CONVERSION
• TRANSFER FILES
• INITIATE NEW PROCEDURES
• SELECT TESTING MODULES
• CUT OVER TO NEW SYSTEM
• TRAINING
• SELECT TRAINING TECHNIQUES
• DEVELOP TRAINING MODULES
• IDENTIFY TRAINING FACILITIES
• ORGANIZATIONAL CHANGES
• TASK REDESIGN
• JOB DESIGN
• PROCESS DESIGN
• OFFICE / ORGANIZATION STRUCTURE DESIGN
• REPORTING RELATIONSHIPS

11.32
23
ROLE OF END USERS

• USERS DRIVE SYSTEMS EFFORT
• MUST HAVE SUFFICIENT CONTROL TO ENSURE SYSTEM
  REFLECTS BUSINESS PRIORITIES, NEEDS
• FUNCTIONAL USERS DRIVE SYSTEM NEEDS

11.33
24
COMPLETING SYSTEM DEVELOPMENT PROCESS

• PROGRAMMING Translating needs to program code
• TESTING Does system produce desired results?

11.34
25
TESTING

• UNIT TESTING Tests each unit separately
• SYSTEM TESTING Do modules function as planned?
• ACCEPTANCE TESTING Final certification
• TEST PLAN Preparations for tests to be
  performed

11.35
26
CONVERSION

• PARALLEL Old new run same problems. Give same
  results?
• DIRECT CUTOVER Risky conversion to new system
• PILOT Introduce into one area. Does it work?
  Yes introduce into other area
• PHASED Introduce in stages
• CONVERSION PLAN Schedule for conversion
• DOCUMENTATION Description of how system works

11.36
27
PRODUCTION MAINTENANCE

• PRODUCTION Constant review by users
  operators. Does it meet goals?
• MAINTENANCE Upkeep Update Corrections over
  time

11.37
28
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
PROGRAMMING
TRANSLATE DESIGN SPECS INTO
PROGRAM CODE
11.38
29
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
11.39