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Chap 11
Chap 11
LEARNING OBJECTIVES
DEMONSTRATE HOW BUILDING
NEW SYSTEMS CAN PRODUCE
ORGANIZATIONAL CHANGE
COMPARE ROLE OF COMPUTER IN
TOTAL QUALITY MANAGEMENT,
BUSINESS PROCESS
REENGINEERING
*
11.2
LEARNING OBJECTIVES
EXPLAIN HOW ORGANIZATION CAN
DEVELOP SUITABLE INFO SYSTEMS
IDENTIFY CORE ACTIVITIES IN
SYSTEMS DEVELOPMENT
PROCESS
EVALUATE MODELS FOR
DETERMINING BUSINESS
VALUE OF INFO SYSTEMS
11.3
*
MANAGEMENT CHALLENGES
SYSTEMS AS PLANNED
ORGANIZATIONAL CHANGES
SYSTEMS DEVELOPMENT &
ORGANIZATIONAL CHANGES
OVERVIEW OF SYSTEMS
DEVELOPMENT
UNDERSTANDING BUSINESS
VALUE OF INFO SYSTEMS
11.4
*
11.5
11.8
ENTERPRISE ANALYSIS
11.12
GOALS
CSF
PROFIT
EARNINGS/SHARE
AUTOMOTIVE INDUSTRY:
CONCERN
RETURN ON INVESTMENT
STYLING
MARKET SHARE
NEW PRODUCT
NONPROFIT
IMPROVED MONITORING OF
REGULATIONS
11.14
SPECTRUM OF
ORGANIZATIONAL CHANGE
AUTOMATION: Using technology to
perform tasks efficiently / effectively
RATIONALIZATION OF PROCEDURES:
Streamline SOPs; eliminate bottlenecks
BUSINESS REENGINEERING: Radical
redesign of processes to improve cost,
quality, service; maximize benefits of
technology
PARADIGM SHIFT
11.16
*
PARADIGM SHIFT
PARADIGM IS A COMPLETE
MENTAL MODEL OF HOW A
COMPLEX SYSTEM FUNCTIONS
A PARADIGM SHIFT INVOLVES
RETHINKING THE NATURE OF THE
BUSINESS, THE ORGANIZATION; A
COMPLETE RECONCEPTION OF
HOW THE SYSTEM SHOULD
FUNCTION
11.17
*
RISK
Low
11.18
Low
RETURN
High
IT CAPABILITIES &
IMPACTS
ANALYTICAL: Can bring complex
analytical methods to bear on
process
INFORMATIONAL: Makes vast
amounts of detailed information
available
SEQUENTIAL: Enables changes in
sequence, parallel tasks
11.19
* New Industrial Engineering(1990)
Source: Davenport & Short The
IT CAPABILITIES &
IMPACTS
KNOWLEDGE MANAGEMENT:
Allows capture, dissemination of
knowledge, expertise
TRACKING: Allows detailed tracking
of task status, inputs, outputs
DISINTERMEDIATION: Connects
parties who otherwise depend on an
intermediary
11.20
* New Industrial Engineering(1990)
Source: Davenport & Short The
BUSINESS PROCESS
REENGINEERING (BPR)
WORK-FLOW MANAGEMENT:
Streamlining process to move
documents easily, efficiently
REENGINEERING
*
11.21
BUSINESS
REENGINEERING STEPS:
1. Develop business vision, process
objectives
2. Identify process to be redesigned
3. Understand, measure performance
of existing processes
4. Identify opportunities for applying
information technology
5. Build PROTOTYPE of new process
*
11.22
TOTAL QUALITY
MANAGEMENT (TQM)
RESPONSIBILITY FOR QUALITY
SHARED BY ALL PEOPLE IN
ORGANIZATION
*
11.23
CONTRIBUTIONS OF TQM
SIMPLIFY PRODUCT OR PROCESS
BENCHMARKING: Strict standards
for measuring performance
LISTEN TO CUSTOMER DEMANDS
REDUCE CYCLE TIME
IMPROVE DESIGN
INCREASE PRECISION OF
PRODUCTION
11.24
*
SYSTEMS ANALYSIS
SYSTEM DESIGN
PROGRAMMING
TESTING
CONVERSION
PRODUCTION & MAINTENANCE
*
11.25
SYSTEMS ANALYSIS
ANALYSIS OF PROBLEM TO BE
SOLVED WITH AN INFORMATION
SYSTEM
FEASIBILITY STUDY: CAN PROBLEM
BE SOLVED WITHIN CONSTRAINTS?
*
11.26
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
*
SYSTEM DESIGN
DETAILS HOW SYSTEM WILL MEET NEEDS:
11.28
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
*
DESIGN SPECIFICATIONS
PROCESSING
COMPUTATIONS
PROGRAM MODULES
REQUIRED REPORTS
TIMING OF OUTPUTS
MANUAL PROCEDURES
WHAT ACTIVITIES
WHO PERFORMS THEM
HOW
WHERE
*
11.30
DESIGN SPECIFICATIONS
CONTROLS
INPUT
PROCESSING
OUTPUT
PROCEDURAL
SECURITY
ACCESS CONTROLS
CATASTROPHE PLANS
AUDIT TRAILS
*
11.31
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
*
11.33
COMPLETING SYSTEM
DEVELOPMENT PROCESS
PROGRAMMING: Translating
needs to program code
TESTING: Does system produce
desired results?
*
11.34
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
*
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
*
11.37
SYSTEMS DEVELOPMENT
CORE ACTIVITY
DESCRIPTION
SYSTEMS ANALYSIS
IDENTIFY PROBLEM(S)
SPECIFY SOLUTIONS
ESTABLISH INFORMATION REQUIREMENTS
SYSTEMS DESIGN
PROGRAMMING
11.38
SYSTEMS DEVELOPMENT
CORE ACTIVITY
DESCRIPTION
TESTING
UNIT TEST
SYSTEMS TEST
ACCEPTANCE TEST
CONVERSION
PLAN CONVERSION
PREPARE DOCUMENTATION
TRAIN USERS & TECHNICAL STAFF
PRODUCTION &
MAINTENANCE
OPERATE SYSTEM
EVALUATE SYSTEM
MODIFY SYSTEM
11.39
UNDERSTANDING BUSINESS
VALUE OF INFO SYSTEMS
CAPITAL BUDGETING MODELS
LIMITATIONS:
Assume all relevant alternatives have
been examined; cost & benefits can
be expressed as $$
Ignore intangible benefits
*
11.40
CAPITAL BUDGET:
*
11.41
PORTFOLIO ANALYSIS:
ANALYSIS OF POTENTIAL APPLICATIONS TO
DETERMINE RISKS & BENEFITS
DETERMINE DESIRABLE FEATURES,
ACCEPTABLE RISKS OF REQUIRED SYSTEM
GENERATE PORTFOLIO OF CHARACTERISTICS,
RISKS FOR EACH ALTERNATIVE
SCORING MODEL
*
11.45
SCORING MODEL:
IDENTIFY DESIRABLE FEATURES
PROVIDE WEIGHTS FOR EACH (ADD TO
1.00)
LOOK AT EACH ALTERNATIVE:
WHICH FEATURES ARE PRESENT?
TO WHAT EXTENT (as an amount)?
SCORE THE ALTERNATIVE
RANK-ORDER THE ALTERNATIVES
SELECT HIGHEST RANKED OPTION
*
11.46
11.48