13.

1
2007 by Prentice Hall
Building Systems
13.2
2007 by Prentice Hall
LEARNING OBJECTIVES
Demonstrate how building new systems produces
organizational change.
Identify and describe the core activities in the systems
development process.
Evaluate alternative methods for building information
systems.
Compare alternative methodologies for modeling systems.
Identify and describe new approaches for system-building
in the digital firm era.
13.3
2007 by Prentice Hall
SYSTEMS AS PLANNED
ORGANIZATIONAL CHANGE
IT can promote various degree of organizational change
from incremental to far reaching.

Four Kinds of Structural Change:
Automation: Mechanizing procedures to speed
up the performance of existing tasks

Rationalization of procedures: The
streamlining of standard operating procedures


13.4
2007 by Prentice Hall
Business process reengineering: Analysis and
redesign of business processes to reorganize
workflows and reduce waste and repetitive
tasks
Paradigm shift: Radical reconceptualization of
the nature of the business and the nature of the
organization
Four Kinds of Structural Change: (Continued)
13.5
2007 by Prentice Hall
Organizational Change Carries Risks and Rewards
13.6
2007 by Prentice Hall
BUSINESS PROCESS REENGINEERING AND
PROCESS IMPROVEMENT
Example of Business Process Reengineering
Leading mortgage banks reduced time to obtain
a mortgage from 6-8 weeks to one week, by
radically changing the workflow and document
management procedures
13.7
2007 by Prentice Hall
Steps to effective reengineering:
Understanding which processes need improvement

Measuring performance of existing processes as a
baseline

Allowing IT to influence process design from the start
13.8
2007 by Prentice Hall
Redesigning Mortgage Processing in the United States
13.9
2007 by Prentice Hall
Sees achievement of quality control as an end in
itself with responsibility shared by all people in an
organization

Focuses on a series of continuous improvements
rather than large change
Total Quality Management and Six Sigma
Total Quality Management (TQM):
13.10
2007 by Prentice Hall
A specific measure of quality, representing 3.4 defects
per million opportunities

Designates a set of methodologies and techniques for
improving quality and reducing costs

Uses statistical analysis to detect process flaws and
make minor adjustments
Six Sigma:
Total Quality Management and Six Sigma
13.11
2007 by Prentice Hall
Six Sigma defines a clear road map to achieve Total
Quality:

Leadership Commitment:
Customer Focus:
Strategic Deployment:
Integrated Infrastructure:
Disciplined Framework:
Education and Training:
13.12
2007 by Prentice Hall
Setting strict standards for products, services, or
activities and measuring organizational
performance against those standards
Benchmarking:
13.13
2007 by Prentice Hall
OVERVIEW OF SYSTEMS DEVELOPMENT
Systems development: The activities that go into
producing an information system 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

Feasibility study: As part of the systems analysis
process, the way to determine whether the solution is
achievable, given the organizations resources and
constraints
13.14
2007 by Prentice Hall
The Systems Development Process
Building a system can be broken down into six core activities.
13.15
2007 by Prentice Hall
System analysis : The analysis of a problem that the
organization will try to solve with an IS. The system
analysts creates a road map, analysis the existing
problems and also find-out the feasibility study by
examining documents, work-paper, and procedure.
System Design : How the system will fulfill the
objectives. SD is the overall plan or model for the
systems like blue print of a building or create design
specification
The Systems Development Process
13.16
2007 by Prentice Hall
Programming : The process of translating the systems
specifications prepared during the design stages into program
code.
Testing : the exhaustive and through process that determines
whether the systems produces the desired results under
known condition. Testing broken down into three activities
Unit Testing : The process of testing each program separately in the
system
System Testing :Tests the functioning of the information system as a
whole in order to determine if discrete modules will function together
as planned.
Acceptance Testing : Provide the final certification that the system is
ready to be used in a production setting
The Systems Development Process
13.17
2007 by Prentice Hall
Conversion : The process of changing from the old
systems to the new systems. Four types of Conversion
strategies can be employed.
Parallel Strategy
Direct cutover Strategy
Pilot Strategy
Phased approach Strategy
The Systems Development Process
13.18
2007 by Prentice Hall
Production : The stage after the new system is
installed and the conversion is complete; during this
time the system is reviewed by user and the technical
specialists to determine how well it has met its
original goals.
Maintenance : Changes in hardware, software,
documentation, or procedures to production system
to correct errors, meet new requirements, or improve
processing efficiency.
The Systems Development Process
13.19
2007 by Prentice Hall
ALTERNATIVE SYSTEMS-BUILDING
APPROACHES
Traditional methodology with sequential, formal stages
and a formal division of labor between end users and
information systems specialists
Systems life cycle:
Prototyping / Iterative processes:
Building an experimental system quickly and
inexpensively for demonstration and evaluation and used
as a template for the final system
13.20
2007 by Prentice Hall
ALTERNATIVE SYSTEMS-BUILDING
APPROACHES
Prototyping is most useful when there is some uncertainty
about requirements or design solutions.

Encourages end-user involvement and is more likely to
fulfill end-user requirements

Hastily constructed systems, however, may not
accommodate large quantities of data or numbers of
users.
Prototyping / Iterative Processes: (Continued)
13.21
2007 by Prentice Hall
The Prototyping Process
13.22
2007 by Prentice Hall
The development of information systems by end
users with little or no formal assistance from
technical specialists
End-User Development:
ALTERNATIVE SYSTEMS-BUILDING
APPROACHES
13.23
2007 by Prentice Hall
Prewritten, pre-coded application software
programs that are commercially available for
sale or lease
May include customization features allowing
the software to be modified for an
organizations unique requirements
Application Software Package:
ALTERNATIVE SYSTEMS-BUILDING
APPROACHES
Application Software Packages and Outsourcing
13.24
2007 by Prentice Hall
Package evaluation criteria: Functions, flexibility, user
friendliness, hardware and software resources, database
requirements, installation and maintenance efforts,
documentation, vendor quality, cost
Request For Proposal (RFP): A detailed list of questions
submitted to vendors of software or other services to
determine how well the vendors product will meet the
organizations specific requirements
ALTERNATIVE SYSTEMS-BUILDING APPROACHES
Application Software Package: (Continued)
13.25
2007 by Prentice Hall
Contracting computer center operations,
telecommunications networks, or applications
development to external vendors

Benefits from economies of scale and complementary
core competencies

Disadvantages may be hidden costs, loss of control
Outsourcing:
ALTERNATIVE SYSTEMS-BUILDING
APPROACHES
13.26
2007 by Prentice Hall
New approaches for System-building.
Application Development for the Digital Firm
RAD :uses object-oriented software, visual
programming, prototyping, and forth
generation tools for very rapid creation of
systems.
Agile development : Breaks a large projects
into a series of small sub-projects that are
completed in short periods of time using
iteration and continuous feedback.
13.27
2007 by Prentice Hall
Cont
Component Based Development : Expedites
application development by grouping objects
into suites of software components that can be
combined to create large-scale business
application.
Web Services : Provides a common set of
standards that enable organizations to link their
systems regardless to their technology platform
through standard plug-and-play architecture.