Managing Is Development

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Managing Is Development
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Information Systems Plan

• A road map indicating the direction of systems
  development, the rationale, the current
  situation, the management strategy, the
  implementation plan and the budget

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Information Systems Plan

• Purpose of the Plan
• Overview of plan contents
• Changes in firms current situation
• Firms strategic plan
• Current business organization
• Management Strategy
• 2. Strategic Business Plan
• Current Situation
• Current Business Organization
• Changing environments
• Major goal of the business plan

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Information Systems Plan

• Current Systems
• Major supporting business functions
• Major current capabilities
• Difficulties meeting business requirements
• Anticipated future demands
• 4. New Developments
• New system projects
• New Capabilities Required

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Information Systems Plan

• 5. Management Strategy
• Acquisition plans
• Milestones and timing
• Organizational realignment
• Internal reorganization
• Management controls
• Major training initiatives
• Personnel strategy
• 6. Implementation plan
• 7. Budget requirements

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• Business System Planning
• enterprise analysis An analysis of
  organization-wide information requirements by
  looking at the entire organizational units,
  functions, processes, and data elements
• Strategic Analysis
• critical success factors A small number of
  easily identifiable operational goals shaped by
  the industry, the firm, the manager, and the
  broader environment

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Critical Success Factors and Organizational Goals
(Table 11.2)
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Using CFSs to develop systems
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System Development and Organizational Change
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IT capabilities their Organizational Impacts
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Steps in Business Reengineering

• Develop the business vision and process
  objectives
• Identify the process to be redesigned
• Understand and measure the performance of
  existing processes
• Identify the opportunities for applying
  information technologies
• Build a prototype of the new process

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• Automation Using computer to speed up existing
  tasks
• Rationalization of procedures streamline
  procedures, eliminate bottlenecks
• Business reengineering Radical redesigning of
  business processes, combining steps to cut waste,
  eliminate repetitive tasks to improve cost,
  quality and maximize the benefits
• Paradigm shift Radical reconceptualization of
  the nature of the business and organization

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Redesigning the Business Process

• A set of logically related tasks performed to
  achieve a defined business outcome
• Combine steps
• Eliminate repetitive steps
• Paralellization of steps

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Before Reengineering
Desk-to-desk approach
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After Reengineering
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Total Quality Management (TQM)

• TQM A concept that makes quality control a
  responsibility to be shared by all people in an
  organization
• IS contributes to TQM
• Simplifying the product production
• Benchmarking Setting strict standards for
  products, services or activities and measuring
  organizational performance against those
  standards
• Use customer demand as a guide to improve product
  and services
• Reduce cycle time
• Improve the quality and precision of design
• Increase the precision of products

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System Development

• System Development The activities that go into
  producing an information systems solution to an
  organizational problem or opportunity
• Systems analysis The analysis of a problem that
  the organization will try to solve with an
  information system

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Feasibility

• Determining whether a solution is achievable
  given the organizational resources constraints
• Technical Available technical resources
• Economic costs vs. benefits ?
• Operational fits the organization ?

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Information Requirements

• A detailed statement of the information needs
  that a new system must satisfy
• Who needs what information, when, how?
• Basis for the system design details how a new
  system will meet requirements
• Logical design Lays out the components of the
  information system and their relationship to each
  other as they would appear to users
• Physical design The process of translating the
  abstract logical model into the specific
  technical design for the new system.

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Design Specifications

• Output medium, content, timing
• Input origins, low, data entry
• User interface simplicity, efficiency, logic
• Database design logical data relations
• Processing computations, program modules
• Manual procedures activities, performers, when
• Controls input, processing, output, procedural
• Security access, catastrophe plans, audit trails
• Documentation operations, systems, user
• Conversion transfer files, new procedures
• Training techniques, modules, facilities
• Organizational changes task, job, process
  redesigns

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Programming

• Testing Determining whether the system
  procedures the desired results
• Unit testing Each program separately
• System testing The whole system
• Acceptance testing Final certification that the
  system is ready
• Test plan Preparation of tests and the order in
  which they will be carried

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Conversion

• The process of changing from the old system to
  the new system
• Parallel strategy old and new system run
  together
• Direct cutover strategy The new system replaces
  the old system completely
• Pilot study strategy Limited area of the
  organization
• Phased approach strategy Either by functions or
  by organizational units
• Conversion plan A schedule of all activities to
  install a new system
• Production The stage after the new system is
  installed
• Maintenance Changes in hardware, software,
  documentation, or procedures

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Value of Information Systems

• Tangible Benefits
• Cost savings
• Increased productivity
• Low operational costs
• Reduced work force
• Lower computer expenses
• Lower vendor costs
• Reduced facility costs

• Intangible Benefits
• Improved asset utilization
• Improved resource control
• Improved organizational planning
• More timely information
• More information
• Increased organizational learning
• Legal requirements attained
• Enhanced employee goodwill
• Increased job satisfaction
• Improved operations
• Higher client satisfaction
• Better corporate image

• CostsHardware, Telecom, Software, Services
  Personnel

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Managing Change

• Portfolio Analysis An analysis of the portfolio
  of potential applications within a firm to
  determine the risks and benefits and select among
  alternatives for information systems
• Scoring Model A quick method for deciding among
  alternative systems based on a system of ratings
  for selected objectives

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Scoring Model
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Cost and Benefit Analysis (Figure 11.7)
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Cost and Benefit Analysis (Figure 11.7)

• The Payback Method A measure of the time
  required to pay back the initial investment of a
  project.
• Accounting Rate of Return on Investment (ROI)
  Calculation of the rate of return from an
  investment by adjusting cash inflows

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Cost and Benefit Analysis (Figure 11.7)

• Present Value The value, in current dollars, of
  a payment or stream of payments to be received in
  the future
• Cost-Benefit Ratio A method for calculating the
  returns from a capital expenditure by dividing
  total benefits by total costs (1.65)

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Cost and Benefit Analysis (Figure 11.7)

• Profitability Index Used to compare the
  profitability of alternative investments
• Internal Rate of Return (IRR) The rate of return
  or profit that an investment is expected to earn

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Management Challenges

• Major risks and uncertainties in system
  development
• Determining the benefits of a system when they
  are largely intangible
• Developing an effective information systems plan