9781423901785_PPT_ch12

Management Information Systems, Sixth EditionChapter 12: Systems Planning and Development

Management Information Systems, Sixth Edition

Management Information Systems, Sixth Edition*ObjectivesExplain the importance of and steps in IT planningDescribe the systems development life cycle, which is the traditional approach to systems developmentExplain the challenges involved in systems developmentList the advantages and disadvantages of different system conversion strategies


Management Information Systems, Sixth Edition*Objectives (continued)Enumerate and explain the principles of agile systems development methodsBe able to contribute a meaningful set of requirements when serving on a project development team for a new or modified ISExplain the concept of systems integrationDiscuss whether IS professionals should be certified


Management Information Systems, Sixth Edition*Planning Information SystemsEnterprise ISs are gaining in popularityHowever, they:Require a substantial investmentCarry a high risk in implementationSuccessful integration of the system is vitalMust align IT strategies with the overall organization strategiesCareful planning of an IS implementation is necessary


Management Information Systems, Sixth Edition*Steps in Planning Information SystemsIT planning includes several key steps:Create a corporate and IT mission statementArticulate the vision for IT within the organizationCreate IT strategic and tactical plansCreate a plan for operations to achieve the mission and visionCreate a budget to ensure that resources are available to achieve the mission and vision


Management Information Systems, Sixth Edition*


Management Information Systems, Sixth Edition*Steps in Planning Information Systems (continued)Mission statement: communicates the most important overarching goal of organizationIncludes how the goals will be achievedIS mission statement: describes the role of IT in the organizationShould be compatible with the organizational mission statementIncludes the ideal combination of hardware, software, and networking to support the mission


Management Information Systems, Sixth Edition*Steps in Planning Information Systems (continued)CIO develops a strategic plan for implementation of IT in the organization:What technology will be used by employees, customers, and suppliersGoals in the plan are broken down into objectives, such as:Resources to be acquired or developedTimetables for acquiring and implementing resourcesTraining


Steps in Planning Information Systems (continued)Objectives are broken down to operational detailsIT planning is similar to planning of other resource acquisitionsGrowing proportion of IT funds is spent on software in recent yearsMore purchasing and adapting of softwareLess developing in-house software



Management Information Systems, Sixth Edition*The Benefits of Standardization in PlanningOne major goal and advantage of planning is standardizationBenefits include:Cost savings: better bargaining power in purchasing and leasing hardware and softwareEfficient training: a smaller variety of software reduces employee training needsEfficient support: enables more staff specialization


Management Information Systems, Sixth Edition*From Planning to DevelopmentAfter planning, management must decide how to obtain the systems (usually software)Approaches to systems development are the same for in-house or purchased systemsTwo general approaches:Systems development life cycle (SDLC), the traditional approachNontraditional methods, including agile methodsPrototyping: fast development of an application based on initial user requirements


Management Information Systems, Sixth Edition*The Systems Development Life CycleLarge ISs are conceived, planned, and developed within the systems development life cycle (SDLC) frameworkAlso known as waterfall developmentConsists of four major sequential phases:AnalysisDesignImplementationSupport


Management Information Systems, Sixth Edition*AnalysisSystems analysis: a five-step processInvestigationTechnical feasibility studyEconomic feasibility studyOperational feasibility studyRequirements definition


Management Information Systems, Sixth Edition*Analysis (continued)InvestigationIs a system really necessary?Is the system, as conceived, feasible?Small ad hoc team usually performs a preliminary investigation by interviewing employeesFeasibility studies: a larger analysis conducted after preliminary results indicate an IS is warranted


Management Information Systems, Sixth Edition*Analysis (continued)Technical feasibility study:Determines if components exist or can be developed Determines if the organization has adequate hardwareEconomic feasibility study:Determines if the new IS is economically justifiedCost/benefit analysis: spreadsheet showing all costs and benefits of the proposed systemBenefits must outweigh the costs over the life of the system


Analysis (continued)Return on investment (ROI): most accurate economic analysisCalculates the difference between the stream of benefits and the stream of costs over the life of the systemMay be difficult to justify the cost of a new IS because many benefits are intangible and cannot be quantified in dollar termsExamples: business intelligence (BI) and knowledge management (KM) systems



Management Information Systems, Sixth Edition*Analysis (continued)Operational feasibility study:Determines how the new system will be usedOrganizational culture: general tone of the corporate environmentMust determine the new systems compatibility with the organizational cultureRequirements definition: details what the system should be able to doSystem requirements: detail the functions and features expected from the new system


Management Information Systems, Sixth Edition*DesignDesign: the second phase in systems developmentSystems design: includes three steps for devising the means to meet all the requirementsDescription of the componentsConstructionTestingIf purchasing a system: Design phase determines how to adapt the existing softwareConstruction: actual changes in program code


Management Information Systems, Sixth Edition*Design (continued)Symbols are used to communicate ideas about data, processes, and informationVisual information can be grasped more quicklyData flow diagram (DFD): describes the flow of data in a business operation using four symbolsExternal entities: individuals and groups external to the system (customers, employees, etc.)Processes: an event or events that affect dataData store: any form of data at restDirection of data flow: indicates how data moves


Management Information Systems, Sixth Edition*Design (continued)The simplicity of a DFD is its advantageDFD symbols are suitable for describing any IS, including noncomputer-based ISsCan help pinpoint weaknesses:Where processes can be automatedWhat is shared by different processesWhat can be changed to strengthen the ISA DFD cannot describe a system completelyDoes not depict computations within processes or timing relationships among data flows


Management Information Systems, Sixth Edition*Design (continued)Unified modeling language (UML): de facto standard for visualizing, specifying, and documenting softwareHelps developers communicate and logically validate desired featuresIs independent of programming languagesProvides standard symbols and notations for depicting object-oriented elements


Design (continued)UML consists of diagrams:Use case: an activity of the system in response to the user (an actor)Class: describes class structure and contentsInteraction: describes interactions of objects and the sequence of their activitiesState charts: indicate the states through which objects pass and their responses to stimuliActivity: represents highly active states triggered by completion of other actionsPhysical diagrams: high-level descriptions of software modules



Management Information Systems, Sixth Edition*Design (continued)ConstructionConsists of mostly programming activitiesMay take months or yearsCompleted modules are tested via a walk-through of the program logic or a simulation of actual program executionSystem testingTests the entire integrated system, comparing results to the system requirementsTesting period often is the victim of schedule or budget compression, resulting in poor testing


Management Information Systems, Sixth Edition*ImplementationImplementation: delivery of a new systemConsists of two steps:ConversionTrainingTraining may or may not precede conversionConversion: switching from the old system to the new systemCan be a very difficult time


Implementation (continued)Four basic conversion strategies:Parallel conversion: the old system is used simultaneously with the new system at firstPhased conversion: breaks the new IS into modules and integrates one at a timeReduces risk but delays some benefitsCut-over conversion (or flash cut conversion): immediately replaces all modulesRisky but may be inexpensivePilot conversion: introduces the IS into one business unit at a timeBeta site: a site that tests the new system



Management Information Systems, Sixth Edition*SupportSupport: begins after delivery, and includes two responsibilitiesMaintenance: postimplementation debugging, updates, and adding postponed featuresUser helpMaintenance comprises up to 80% of IS budgetsSupport is the longest phase of the system life cycleEffective maintenance requires good system documentation


Management Information Systems, Sixth Edition*Agile MethodsAgile methods: alternative development methodsTreat software development as series of contacts with usersGoal: fast development of softwareImprove software after user requests for modifications receivedAgile methods use iterative programming


Management Information Systems, Sixth Edition*Agile Methods (continued)Popular agile methods include:Extreme programming (XP)Adaptive software development (ASD)Lean development (LD)Rational unified process (RUP)Feature driven development (FDD)Dynamic systems development method (DSDM)ScrumCrystal


Management Information Systems, Sixth Edition*Agile Methods (continued)Major advantage of agile methods: Fast development of application softwareAgile method risks include:Analysis phase is limited or eliminated, increasing the risk of incompatibilitiesMore emphasis on programming, resulting in less documentation, which may make it difficult or impossible to make later modifications


Agile Methods (continued)Manifesto for Agile Software Development expresses these priorities: Individuals and interactions over processesWorking software over comprehensive documentationCustomer collaboration over contract negotiationResponding to change over following a planAgile methods aim to have light but sufficient development processes



Management Information Systems, Sixth Edition*Agile Methods (continued)User involvement is encouraged throughout the processModules are tested immediately after completionCommunication with users is informalExtreme programming uses two programmers per module working on the same computerFosters constructive criticism and feedbackDominos Pizza successfully implemented XP method; DaimlerChrysler did not


Management Information Systems, Sixth Edition*When to Use Agile MethodsAgile methods are best used:When a desired system is smallAnalysis is less importantRequires a smaller investment of resourcesFor unstructured problemsFor developing user interfacesWhen users cannot specify all requirements at the start of the projectThey may be unfamiliar with the technologyRequirements may be difficult to conceptualize


Management Information Systems, Sixth Edition*When Not to Use Agile MethodsDo not use agile methods when:The desired system is large or complexSystem failure entails great financial lossThe desired system must interface with other systemsSDLC recommended for complex systemsDocumentation is key for integration


Project Planning and Management ToolsSeveral tools exist to help plan and manage a development project, including IS projectsIBMs Rational Portfolio Manager:Helps plan investment in a new system and manage the development project and deliveryPrimaveras ProSight:Helps plan and manage application portfolios, resources, budgets, and compliance with government regulationsManagement Information Systems, Sixth Edition*


Project Planning and Management Tools (continued)Primaveras eProject:Web-based tool that allows members and customers to define tasks and manage projectsManagement Information Systems, Sixth Edition*


Management Information Systems, Sixth Edition*Systems IntegrationSystems integration:Examines the needs of entire organizationProduces a plan to combine disparate systems to allow data to flow between unitsSome service companies specialize in systems integrationIntegration is more challenging than developmentLegacy systems may need to be interfaced with new systems


Management Information Systems, Sixth Edition*Systems Integration (continued)Systems integrators must be skilled in hardware and softwareMay be difficult to overcome hardware and software incompatibility issues between systemsSystems integration may span several organizations, requiring integration using telecommunications


Management Information Systems, Sixth Edition*SummaryIT planning is important because of high investment costs and high risk in implementing enterprise applications Standardization is an important part of IT planningSystems development life cycle (SDLC) has well-defined phases: analysis, design, implementation, and supportPurpose of systems analysis is to determine what needs the system will satisfy


Management Information Systems, Sixth Edition*Summary (continued)Feasibility studies determine if a proposed system is possible and desirableSystem requirements detail the features neededDevelopers outline system components graphically using tools like UMLUnified Modeling Language (UML) is used to create model of desired systemImplementation includes training and conversion from the old system to the new system


Management Information Systems, Sixth Edition*Summary (continued)Support entails maintenance and satisfying changing needsAgile methods are a popular alternative to traditional systems development life cycleTools help plan and manage development projectsSystems integration may be more complicated than systems developmentGreat responsibility of IS professionals results in the desirability of certification


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9781423901785_PPT_ch12

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