Professional Documents
Culture Documents
Systems Development: Unit 5
Systems Development: Unit 5
Systems Development
Overview
In Unit 4 we worked on cultivating some of the practical skills required to use Information
Systems for operational excellence and managerial decision making.
In this Unit 5, we look at what it takes to develop, acquire or replace information systems. We will
examine the many important roles that business users (as opposed to developers, installers,
servicers and other IT people) play in MIS projects. We will also revisit business processes
introduced in Unit 2, and complete our “to-be” conversation by looking at the concept of business
process reengineering.
Learning Objectives
___________________________________________________________________________________________________
MGMT2006 – Management Information Systems I UNIT 5 - 1
VERSION1
This Unit is divided into three sessions as follows:
Required Readings
Bourgeois, D.T. (2014). Chapter 10: Information Systems Development. In: Information
Systems for Business and Beyond. Available at
https://bus206.pressbooks.com/chapter/chapter-10-information-systems-
development/
Frost, R.D. (2011). Chapter 6: Build, Buy, or Reuse Solutions: Develop a Website to Market
the App: “Build vs. Buy”. In: Business Information Systems: Design an App for That (v.
1.0). Available at https://saylordotorg.github.io/text_business-information-systems-
design-an-app-for-that/s10-build-buy-or-reuse-solutions-d.html
Gammie, G. (19 Aug 2015). Implementation Team Roles & Responsibility. Available at
http://www.geotalent.com/blog/implementationroles/#.V5k8cqJ8k0U
Jones, J., Aguirre, D., & Calderone, M. (n.d.). 10 Principles of Change Management.
Available at http://www.strategy-business.com/article/rr00006?gko=643d0
Linam, C. (11 Jun 2015). The Project Team Structure: ERP Project Team Roles and
Responsibilities. Available at http://www.ultraconsultants.com/erp-project-team-
roles-and-responsibilities/
___________________________________________________________________________________________________
MGMT2006 – Management Information Systems I UNIT 5 - 2
VERSION1
Qassim, A.A. (n.d.). Why Information System Projects Fail. Available at
http://www.intosaiitaudit.org/intoit_articles/26_p12top17.pdf
Sudhakar, G.P. (2010). The Role of IT in Business Process Reengineering. Œconomica, Vol
6, No 4. Pp.28-35. Available at http://journals.univ-
danubius.ro/index.php/oeconomica/article/view/757/689
___________________________________________________________________________________________________
MGMT2006 – Management Information Systems I UNIT 5 - 3
VERSION1
Session 5.1
Introduction
In this session, we look at the ways companies build, acquire, or replace Information System.
Systems development is the entire set of activities needed to construct an information systems
solution to a business problem or opportunity. Here, we are not distinguishing between creating
the system yourself or buying someone else’s solutions, because, for complex systems, the same
level of rigor and analysis is required for both.
The IS strategic plan, is a set of long-range goals that describe the IT architecture and major IS
initiatives needed to achieve the goals of the organization. The IS strategic plan must meet three
objectives (Turban, 2008):
It must be aligned with the organization’s strategic plan.
It must provide for an IT architecture that enables users, applications, and databases to be
seamlessly networked and integrated.
It must efficiently allocate IS development resources among competing projects, so the
projects can be completed on time, within budget, and have the required functionality.
The IS strategic plan states the mission of the IS department, which defines the department’s
underlying purpose. The mission helps to answer questions relating to three major issues
(Turban, 2008):
Efficiency. Does the IS function help the organization reach its goals with minimum
resources?
Effectiveness. Does the IS function help the functional area managers (and executives) do the
right things?
___________________________________________________________________________________________________
MGMT2006 – Management Information Systems I UNIT 5 - 4
VERSION1
Competitiveness. Does the IS function engage in projects that will enhance the organization’s
competitive position?
The mission of the IS department requires a great deal of input from all of the organization’s
functional area managers, and often from higher organizational officers as well. This input
will help to define the appropriate role of the IS department in accomplishing the
organization’s goals.
All of these statement here link back to our discussions on aligning the companies
Information Systems within the broader set of Work Systems to maximize value.
The inclusion of an information system in any Organization must be planned to identify the
direction of the development of the proposed system, its rationale, the current situation, the
management strategy, the implementation plan, and of course, the budget allocated to such as
system. The plan therefore indicates what needs to be done, who needs various aspects of
information and indeed who creates this information. The end result of an information system is
the alignment of many areas and levels that should or must work together seamlessly.
Planning is at the heart of every good information system initiative. Read this
case study of how CIMB Group Redesign Its Account Opening Process. The
company launched a five-year information technology transformation initiative in
January 2008 to align its information technology investments more closely with
its resources. It used the ARIS business process management (BPM) tool from
IDS Scheer to identify 25 different areas for improving technology, people, and
processes. The ARIS software helped identify gaps and inefficiencies in existing
processes. Read more at http://matakuunique.blogspot.com/2015/05/cimb-group-
redesign-its-account-opening.html
The CIMG Group example, gives us some of the steps needed to plan and build a new
information system.
The new Information System represents a process of planned organizational change (Laudon
2006). In the next few sessions, we will examine some of the ways to implement this change.
___________________________________________________________________________________________________
MGMT2006 – Management Information Systems I UNIT 5 - 5
VERSION1
System Development and Organizational Change
Given the tremendous influence MIS has on organizations, changing an Information System
always promotes organizational change. This change can vary from mild impact, to a radical
change in how the organization is structured and how it performs. The four types of change,
arranged in order of both risk and return on investment are; Automation, Rationalization,
Reengineering, and Paradigm Shifts.
Paradigm shift – radical reconceptualization of the nature of the business and the nature of the
Organization.
The first two forms of Organizational change above (automation and rationalization) are easier to
do, offering modest rewards at relatively low risk. In contrast, reengineering and paradigm shift,
are more difficult to do. They offer higher rewards but are more prone to failure. See more details
in your readings.
___________________________________________________________________________________________________
MGMT2006 – Management Information Systems I UNIT 5 - 6
VERSION1
Paradigm shifts (risk, rewards and failures)
One company that demonstrated the use of paradigm shifts to reinvent itself (some would argue
to stave off its extinction) is Microsoft.
Founded in 1975, Originally Microsoft invented itself as the maker of the operating system
software – MS-DOS.
The first paradigm occurred when Microsoft created Windows with its graphical user interface
(GUI). The GUI killed MS-DOS as a product.
The Company quickly added Word and then proceeded to establish other products, which went
on to become the Office productivity suite we all know so well.
In the meantime, a new paradigm had taken hold. It was called the Internet. Originally Microsoft
missed the boat – the emergence of the Internet paradigm and the “sudden” appearance of many
new rivals – and appeared headed for the doldrums. Then, in 1995, Bill Gates issued the now
famous “Internet Tidal Wave” memo. Within a year Microsoft transformed itself into an Internet
company. “Internet awareness” was built right into the operating system (Windows) making it
possible for every program to be internet aware.
Microsoft entered into a browser war with Netscape – which Internet Explorer won, and
Netscape lost (do any of you know about Netscape?
https://www.engadget.com/2014/05/10/history-of-netscape/
The Bing search engine was the company’s response to Google, but it looks like Google won that
battle.
Microsoft now has Cloud based, software as a service (SAAS) applications – Office 365, Power-BI and
many more. All to compete with IBM, Amazon and others for the lion share of the quickly emerging cloud
computing market.
The company also dipped its toes into the lucrative gaming sector (USD $1.81 trillion in 2016)
when it invented the Xbox gaming system to compete against Sony’s PlayStation and Nintendo
consoles.
___________________________________________________________________________________________________
MGMT2006 – Management Information Systems I UNIT 5 - 7
VERSION1
company then develops a list of Critical Success Factors. Critical Success factors (CSFs)
are a few key factors that organisations should focus on to be successful.
The SDLC has historically been used to develop large systems. It tends to be rigid and
documentation heavy. It is called a “Waterfall” method because you are expected to complete one
phase before moving onto the next phase. You can have iterations, but this normally requires you
to go back and update all your documentation before you can move forward again.
Whether you create your own IS (build) or buy a solution from someone else, the method follows
the same general steps.
Build Buy
Testing Testing
Conversion Conversion
Maintenance Maintenance
Systems analysis is the study and analysis of problems of existing systems and the identification
of requirements for their solutions.
Systems design provides the specifications for an information system solution, showing how its
technical and organizational components fit together. In a blueprinting exercise you do a gap analysis
___________________________________________________________________________________________________
MGMT2006 – Management Information Systems I UNIT 5 - 8
VERSION1
to see how well the systems meets your needs.
Programming (or configuration) in the process of creating (or tweaking) the final solution based
on the requirements that have been gathered.
Testing is the process that validates if the system is preforming as designed and as required.
There are three (3) levels of testing.
Unit testing which checks for programming bugs and logic errors;
Integration testing to make sure the modules are working together and that the system is
doing what it says it will do;
Acceptance testing, business process by business process testing – not only must the
system do what it says it will do, but more importantly, what it does MUST give you your
desired result. The developer/implementer could deliver the perfect car when the customer really
wanted a boat!!
Conversion is the process of switching from the old (computer or manual) system to the new
Information System. There are four conversion methods.
Parallel conversion. Where you run both the new and the old for a time before switching
off the old.
Pilot conversion. Where you implement and test the new system, on a small scale in one
business unit, then you expand the conversion to include all of the other business units.
Phased conversion. Where over time you gradually use more of the new and less of the
old until you are completely converted.
Direct (Plunge in diagram) conversion. Where you switch off the old and switch on the
new at the same time.
Production. The system is said to be in “Production” when you have finished the conversion
___________________________________________________________________________________________________
MGMT2006 – Management Information Systems I UNIT 5 - 9
VERSION1
process, and you are processing live transactions.
Maintenance. All system projects end. At the end of the project, the system goes into use, and
enters steady state maintenance. This can last for years or until the next organizational change
cycle begins.
Prototyping
Outsourcing
Selects a car.
Maintains the car on a regular basis until it is time to start over again.
___________________________________________________________________________________________________
MGMT2006 – Management Information Systems I UNIT 5 - 10
VERSION1
The same type of analogy applies to business information systems. The business MIS landscape
has matured to the point where most companies would not think of building their own
information system from scratch.
Occasionally a business will do something innovative – e.g. Walmart’s spawning of the supply
chain logistics model contributed to major innovations in ERP software to support the model.
However, what is more typical for most businesses that you will encounter is:
Select a pre-existing system
Implement the system using one of the methods discussed (phased, parallel, direct cut
over etc.)
Enter into steady state maintenance until it is time to start over again.
___________________________________________________________________________________________________
MGMT2006 – Management Information Systems I UNIT 5 - 11
VERSION1
LEARNING ACTIVITY 5.1
TASK A
Readings
Read Chapter 14 in Information Systems Development. Available at:
http://www.wiley.com/college/turban/0471073806/sc/ch14.pdf
Configuration vs. Customization in ERP. Available at:
http://it.toolbox.com/blogs/inside-erp/configuration-vs-customization-in-erp-
56895?reftrk=no&trdref=4232425265674d61696c696e673a496e736964652d455250
Read the section on “Build vs. Buy”. Available at:
https://saylordotorg.github.io/text_business-information-systems-design-an-
app-for-that/s10-build-buy-or-reuse-solutions-d.html
System Conversion Methods. Available at:
http://smallbusiness.chron.com/accounting-information-system-conversion-
methods-34569.html
TASK B
In a Discussion forum: Summarize the main points, express how they relate to a
situation you encountered, share with your paired colleagues and critique what
they have written in the relevant discussion forum. Refer to the literature you have
read when you make your critique.
TASK C
In a Discussion forum: Explain which of the conversion methods would be
suitable for the following. Justify your choice:
Upgrading the software for an Automatic Banking Machine (ABM/ATM)
Adding a new inventory system along with new computerized cash registers
in a supermarket
Implementing a student course management system in a university
List four reasons why your participation as a user of an information system is
critical during the systems development life cycle.
TASK D
In a Discussion forum: The organizers of a local comedy show plan to
implement a software package that can take requests for bookings as well as print
tickets for the various shows.
___________________________________________________________________________________________________
MGMT2006 – Management Information Systems I UNIT 5 - 12
VERSION1
Describe two other benefits of this application to the organizers.
Explain two factors that could cause this package not to function properly.
TASK E
In a Discussion forum: How would you characterize the following changes?
Adding electronic scoreboards to a cricket grounds.
A Telco consolidating call centres in one country.
A Telco installing fibre-to-the-home to replace copper wires.
A Telco launching a TV service.
TASK F
In a Discussion forum: Discuss the factors that may influence the decision to
consider implementing an application software package, developing the solution
in-house or outsourcing the development to an offshore company.
In this session, we looked at how companies plan for and implement Information System
changes. We examined the traditional SDLC method of developing new information systems, and
we also looked at alternative methods to the traditional SDLC.
___________________________________________________________________________________________________
MGMT2006 – Management Information Systems I UNIT 5 - 13
VERSION1
Session 5.2
Introduction
In this session, we will look at the very important roles business users play in software selection
and implementation projects. When working on large system projects, end user involvement is
vital if the projects are to succeed.
Most of you will not participate in a system development project where new software is written.
What is more likely, is that you will participate in a system selection project (i.e. Buy not Build).
However, while you don’t write your own software, all of the requirements gathering and
analysis and testing in the SDLC are still necessary (you do want to buy rims that fit the car yes? and
you do have to think about which rims you do or don’t like yes?)
A company implementing QuickBooks may have a small (or one person) project team to
implement the entire system – sometimes in just a few days. On the other hand, imagine
implementing PeopleSoft (now owned by Oracle) or SAP (Oracle's direct competitor), two of the
largest ERP systems in the world; or ADP a leading automotive software platform. These projects
can be multi-year in nature and require a very large project team, with Subject Matter Experts
___________________________________________________________________________________________________
MGMT2006 – Management Information Systems I UNIT 5 - 14
VERSION1
(SMEs) from many functional areas and levels in the organization.
Understand that this team of business users complements a team of technical implementers – the
people who actually know the MIS from the technical side. Given the number of testers and SMEs
etc., the business team is often much larger than the technical team from the implementer’s side.
Often business people seconded to large projects teams, stay on after the project is officially over.
Companies realize that to be successful with ERP projects they need dedicated teams with expert
knowledge, creating a Centre of Excellence if you will.
(http://whatis.techtarget.com/definition/center-of-excellence-CoE).
In conclusion, you should now realize that successful Information Systems really have two types
of people.
1. The people in IT who were introduced in Unit 1. These range from the truly techni cal like
a security systems technician, or systems analyst programmer; to more business focus jobs
like a project manager, or a business analyst. Included here also are implementers, e.g.
external consultants who implement ERPs.
2. The people in Business who support Information Systems. These are the people
introduced in this session. – The testers, SMEs and sponsors etc. of information systems.
These people need to be experts in both the business processes of the company, as well as
how the MIS is aligned to effectively deliver those business processes. If you think it
through, you will realize we are just talking about the managers, clerks, knowledge
workers, etc. who are in the business, and who bring their expert knowledge to align the
MIS with the business processes, to create value and achieve the desired results.
TASK A
Read:
Implementation Team Roles & Responsibilities. Available at:
http://www.geotalent.com/blog/implementationroles/#.V5k8cqJ8k0U
The Project Team Structure: ERP Project Team Roles and Responsibilities.
Available at: http://www.ultraconsultants.com/erp-project-team-roles-and-
responsibilities/
SDLC and project management. Available at: http://www.free-management-
ebooks.com/news/systems-development-life-cycle/
TASK B
In a Discussion forum, summarize the main points, express how they relate to a
situation you encountered, share with your paired colleagues and critique what
they have written in the relevant discussion forum. Refer to the literature you have
___________________________________________________________________________________________________
MGMT2006 – Management Information Systems I UNIT 5 - 15
VERSION1
read when you make your critique.
TASK C
In a Discussion forum, Link the concepts of user involvement and change
management in a software implementation project.
In this session we examined the many important roles that business users play in system
selections and implementation projects.
___________________________________________________________________________________________________
MGMT2006 – Management Information Systems I UNIT 5 - 16
VERSION1
Session 5.3
Introduction
As this term implies, business process reengineering is all about attempting to reengineer or
retool the processes in a business. This would certainly imply that the business was probably not
performing at its best or the environment in which the business was operating had changed and
thus the business needed to either keep up with the competition or change its outdated processes.
In any event, the need for BPR would have been the result of some problem or series of issues in
the current operation of the business. The result of BPR can often be seen in businesses that
shorten the time to have products and services delivered to customers. A typical example is the
reduction in time taken to issue insurance policies or process bank loans from five weeks to two
weeks.
The main steps in BPR involve understanding which processes need improvement, measuring
performance of existing processes as a baseline, and allowing information technology to influence
process design from the start of the reengineering procedure.
___________________________________________________________________________________________________
MGMT2006 – Management Information Systems I UNIT 5 - 17
VERSION1
Change management. Poor change management is one of the major reasons why
reengineering (and MIS) change generally fail. Further information on change management
can be found in the reading.
Remember, you redesign the process, based on what outcome(s) you want to achieve. This is your
call.
The below redesign, figure 5.4, achieves all three objectives. The business process is now an online
self-service portal. The cost of a clerk is removed from the process. The customer experience has
also improved, saving time and improving convenience. Now, the customer sits at home and
searches an online catalogue for the book. If found the customer buys the book. If the customer
can’t find the book in the store, then the customer simply goes to the next online store until the
book is found.
___________________________________________________________________________________________________
MGMT2006 – Management Information Systems I UNIT 5 - 18
VERSION1
Figure 5.3. The "to be" process to buy a book
TASK A
Read:
The Role of IT in business process reengineering. Available at:
http://journals.univ-danubius.ro/index.php/oeconomica/article/view/757/689
Change management. Available at:
https://www.mindtools.com/pages/article/newPPM_87.htm
10 Principles of change management. Available at:
http://www.strategy-business.com/article/rr00006?gko=643d0
Why Information System Projects Fail. Available at:
http://www.intosaiitaudit.org/intoit_articles/26_p12top17.pdf
TASK B
In a Discussion forum, summarize the main points, express how they relate to a
situation you encountered, share with your paired colleagues and critique what
they have written in the relevant discussion forum. Refer to the literature you have
read when you make your critique
TASK C
In a Discussion forum,-Why is it so important to understand how a business
process works when trying to develop a new information system?
TASK D
In a Discussion forum: The organizers of a local comedy show plan to implement
___________________________________________________________________________________________________
MGMT2006 – Management Information Systems I UNIT 5 - 19
VERSION1
a software package that can take requests for bookings as well as print tickets for
the various shows.
1. Describe two other benefits of this application to the organizers.
2. Explain two factors that could cause this package not to function properly.
___________________________________________________________________________________________________
MGMT2006 – Management Information Systems I UNIT 5 - 20
VERSION1
Session 5.3 Summary
In this session we looked at how companies use business process reengineering to change
processes, thus providing new benefits to all organizational stakeholders.
Unit 5 Summary
In this unit we examined the many important issues that surround Information Systems
Development. We looked at the importance of planning and aligning the IS strategic plan to the
company level strategic plan. We looked at how organizations change and the several models for
implementing new systems i.e. the SDLC and several alternatives. We looked at the important
roles that business users play during information systems projects and we looked at Business
Process Reengineering and as a methodology to change and improve business processes.
___________________________________________________________________________________________________
MGMT2006 – Management Information Systems I UNIT 5 - 21
VERSION1
References
Bourgeois, D.T. (2014). Information Systems for Business and Beyond, Chapter 10. Retrieved
from https://bus206.pressbooks.com/chapter/chapter-10-information-systems-
development/
Cook, R. (Jul 29, 2013). Configuration vs. Customization in ERP. Retrieved from
http://it.toolbox.com/blogs/inside-erp/configuration-vs-customization-in-erp-
56895?reftrk=no&trdref=4232425265674d61696c696e673a496e736964652d455250
Frost, R.D. (2011). Business Information Systems: Design an App for That (v. 1.0). Chapter 6.
Retrieved from https://saylordotorg.github.io/text_business-information-systems-
design-an-app-for-that/s10-build-buy-or-reuse-solutions-d.html
Gammie, G. (19 Aug 2015). Implementation Team Roles and Responsibility. Retrieved
from http://www.geotalent.com/blog/implementationroles/#.V5k8cqJ8k0U
Jones, J., Aguirre, D., & Calderone, M. (n.d.). 10 Principles of Change Management.
Available at http://www.strategy-business.com/article/rr00006?gko=643d0
Laudon, K. & Laudon, J. (2010). Management Information Systems: Managing the Digital
Firm, 11th edition. Pearson.
Linam, C. (11 Jun 2015). The Project Team Structure: ERP Project Team Roles and
Responsibilities. Retrieved from http://www.ultraconsultants.com/erp-project-team-
roles-and-responsibilities/
Qassim, A.A. (n.d.). Why Information System Projects Fail. Retrieved from
http://www.intosaiitaudit.org/intoit_articles/26_p12top17.pdf
Rainer, R. & Turban, E. (2016). Management Information Systems, 4th Edition. Chapter 14.
Retrieved from http://www.wiley.com/college/turban/0471073806/sc/ch14.pdf
Sudhakar, G.P. (2010). The Role of IT in Business Process Reengineering. Œconomica, Vol
6, No 4. Pp.28-35. Retrieved from http://journals.univ-
danubius.ro/index.php/oeconomica/article/view/757/689
The Systems Development Life Cycle (and project management). Retrieved from
http://www.free-management-ebooks.com/news/systems-development-life-cycle/
___________________________________________________________________________________________________
MGMT2006 – Management Information Systems I UNIT 5 - 22
VERSION1