MANAGEMENT INFORMATION SYSTEMS

Managing the Digital Firm

Laudon and Laudon, 16th Edition

Chapter 13
BUILDING INFORMATION SYSTEMS
Overview of Systems Development
• Systems Development:
• Activities that go into producing an information system solution to
an organizational problem or opportunity
1. Systems Analysis
2. Systems Design
3. Programming
4. Testing
5. Conversion
6. Production and Maintenance
Overview of Systems Development
THE SYSTEMS
DEVELOPMENT
PROCESS

Figure 13.1
Building a system can be
broken down into six core
activities.
Overview of Systems Development
• Systems Analysis:
• Analysis of problem to be solved by new system
• Defining the problem and identifying causes
• Specifying solutions
• Systems proposal report identifies and examines alternative solutions
• Identifying information requirements
• Includes feasibility study
• Is solution feasible and good investment?
• Is required technology, skill available?
Overview of Systems Development
• Systems Design:
• Describes system specifications that will deliver functions
identified during systems analysis
• Should address all managerial, organizational, and technological
components of system solution
• Role of end users
• User information requirements drive system building
• Users must have sufficient control over design process to ensure system
reflects their business priorities and information needs
• Insufficient user involvement in design effort is major cause of system
failure
Overview of Systems Development
THE VARIOUS TYPES OUTPUT PROCESSING DOCUMENTATION
OF SPECIFICATIONS Medium
Content
Computations
Program modules
Operations documentation
Systems documents
Timing Required reports User documentation
Timing of outputs
INPUT CONVERSION
Origins MANUAL PROCEDURES Transfer files
Flow What activities Initiate new procedures
Data entry Who performs them Select testing method
When Cut over to new system
USER INTERFACE
How
Simplicity TRAINING
Where
Efficiency Select training techniques
Logic CONTROLS Develop training modules
Feedback Input controls (characters, limit, reasonableness) Identify training facilities
Errors Processing controls (consistency, record counts)
ORGANIZATIONAL CHANGES
Output controls (totals, samples of output)
DATABASE DESIGN Task redesign
Procedural controls (passwords, special forms)
Logical data model Job redesign
Volume and speed SECURITY Process design
requirements Access controls Organization structure design
File organization and Catastrophe plans Reporting relationships
Figure 13.2 design Audit trails
Record specifications
The lists the various types
of specifications that must
be detailed and describe in
a systems design
Overview of Systems Development
• Programming:
• System specifications from design stage are translated into
software program code
• Testing:
• Ensures system produces right results
• Unit testing: Tests each program in system separately
• System testing: Test functioning of system as a whole
• Acceptance testing: Makes sure system is ready to be used in production
setting
• Test plan: All preparations for series of tests
Overview of Systems Development
A SAMPLE TEST PLAN
TO TEST A RECORD
CHANGE

Figure 13.5
When developing a test
plan, it is imperative to
include the various
conditions to be tested, the
requirements for each
condition tested, and the
expected results. Test plans
require input from both
end users and information
systems specialists.
Overview of Systems Development
• Conversion:
• Process of changing from old system to new system
• Four main strategies
1. Parallel strategy
2. Direct cutover
3. Pilot study
4. Phased approach
• Requires end-user training
• Finalization of detailed documentation showing how
system works from technical and end-user standpoint.
Overview of Systems Development
• Production and Maintenance:
• System reviewed to determine if revisions needed
• May include post-implementation audit document
• Maintenance
• Changes in hardware, software, documentation, or procedures to a
production system to correct errors, meet new requirements, or improve
processing efficiency
• 20% debugging, emergency work
• 20% changes to hardware, software, data, reporting
• 60% of work: User enhancements, improving documentation, recoding for greater
processing efficiency
Overview of Systems Development
SUMMARY OF
SYSTEMS SUMMARY OF SYSTEMS DEVELOPMENT ACTIVITIES
DEVELOPMENT CORE ACTIVITY DESCRIPTION
ACTIVITIES Systems analysis Identify problem(s)
Specify solutions
Establish information requirements

Systems design Create design specifications

Programming Translate design specifications into

code

Testing Unit test

Systems test
Acceptance test

Conversion Plan conversion

Prepare documentation
Train users and technical staff
Figure 13.6
Production and Operate the system
The six stages in system maintenance Evaluate the system
development Modify the system
Overview of Systems Development
• Most prominent methodologies for modeling and designing
systems:
1. Structured methodologies
2. Object-oriented development
Overview of Systems Development
• Data Flow Diagram (DFD):
• Primary tool for representing system’s component processes and flow of data
between them
• Offers logical graphic model of information flow
• High-level and lower-level diagrams can be used to break processes down into
successive layers of detail
• Data dictionary: Defines contents of data flows and data stores
• Process specifications: Describe transformation occurring within lowest level of
data flow diagrams
• Structure chart: Top-down chart, showing each level of design, relationship to other
levels, and place in overall design structure
Overview of Systems Development
DATA FLOW
DIAGRAM FOR MAIL-
IN UNIVERSITY
REGISTRATION
SYSTEM

Figure 13.7
The system has three
processes: Verify
availability (1.0), Enroll
student (2.0), and Confirm
registration (3.0). The name
and content of each of the
data flows appear adjacent
to each arrow. There is one
external entity in this
system: the student. There
are two data stores: the
student master file and the
course file.
Overview of Systems Development
HIGH-LEVEL
STRUCTURE CHART
FOR A PAYROLL
SYSTEM

Figure 13.8
This structure chart shows
the highest or most
abstract level of design for
a payroll system, providing
an overview of the entire
system.
Overview of Systems Development
CLASS AND
INHERITANCE

Figure 13.9
This figure illustrates how
classes inherit the common
features of their superclass.
Alternative Systems Building
Approaches
• Prototyping
• End-user Development
• Application Software Packages
• Outsourcing
Alternative Systems Building
Approaches
• Prototyping:
• Building experimental system rapidly and inexpensively for end
users to evaluate
• Prototype: Working but preliminary version of information system
• Approved prototype serves as template for final system
• Steps in prototyping
1. Identify user requirements
2. Develop initial prototype
3. Use prototype
4. Revise and enhance prototype
Alternative Systems Building
Approaches
THE PROTOTYPING
PROCESS

Figure 13.10
The process of developing
a prototype can be broken
down into four steps.
Because a prototype can be
developed quickly and
inexpensively, systems
builders can go through
several iterations,
repeating steps 3 and 4, to
refine and enhance the
prototype before arriving
at the final operational
one.
Alternative Systems Building
Approaches
• Advantages of prototyping
• Useful if some uncertainty in requirements or design solutions
• Often used for end-user interface design
• More likely to fulfill end-user requirements
• Disadvantages of prototyping
• May gloss over essential steps
• May not accommodate large quantities of data or large number of
users
• May not undergo full testing or documentation
Alternative Systems Building
Approaches
• End-user Development:
• Uses Fourth Generation Languages to allow end-users to develop systems
with little or no help from technical specialists
• Fourth Generation Languages: Less procedural than conventional
programming languages
• PC software tools
• Query languages
• Report generators
• Graphics languages
• Application generators
• Application software packages
• Very high-level programming languages
Alternative Systems Building
Approaches
• End-user Development:
• Advantages:
• More rapid completion of projects
• High-level of user involvement and satisfaction
• Disadvantages:
• Not designed for processing-intensive applications
• Inadequate management and control, testing, documentation
• Loss of control over data
• Managing end-user development
• Require cost-justification of end-user system projects
• Establish hardware, software, and quality standards
Alternative Systems Building
Approaches
• Application Software Packages
• Save time and money
• Many offer customization features
• Software can be modified to meet unique requirements without destroying integrity of
package software
• Evaluation criteria for systems analysis include
• Functions provided by the package, flexibility, user friendliness, hardware and software
resources, database requirements, installation and maintenance efforts, documentation,
vendor quality, and cost
• Request for Proposal (RFP)
• Detailed list of questions submitted to packaged-software vendors
• Used to evaluate alternative software packages
Alternative Systems Building
Approaches
• Outsourcing:
• Several types
• Cloud and SaaS providers
• Subscribing companies use software and computer hardware provided by
vendors
• External vendors
• Hired to design, create software
• Domestic outsourcing
• Driven by firms need for additional skills, resources, assets
• Offshore outsourcing
• Driven by cost-savings
Alternative Systems Building
Approaches
• Outsourcing:
• Advantages
• Allows organization flexibility in IT needs
• Disadvantages
• Hidden costs, e.g.
• Identifying and selecting vendor
• Transitioning to vendor
• Opening up proprietary business processes to third party
Systems Development life Cycle: an overview
After identifying the problem, an
analyst or team of analysts
assesses the current and future
needs of the organization or a
specific group of users by
answering the following
questions:
• Why is this information system
being developed?
• Who are the system’s current
and future users?
• Is the system new, or is it an upgrade
or extension of an existing system?
• Which functional areas (departments)
will be using the system
Systems Development life Cycle: an overview
• As part of this assessment, analysts must examine the organization’s strategic goals, how the proposed
system can support these goals, which factors are critical to the proposed system’s success, and the criteria
for evaluating the proposed system’s performance. Establishing evaluation criteria ensures objectivity
throughout the SDLC process. In addition, analysts must get feedback from users on the problem and the
need for an information system. During this phase, they need to make sure users understand the four Ws:
• Why—Why is the system being designed? Which decisions will be affected?
• Who—Who is going to use the system? Is it going to be used by one decision maker or a group of
decision makers? This question is also about types of users. For example, will the Marketing
Department be using the system? And will the Manufacturing Department be using the system as
suppliers or as consumers of information?
• When—When will the system be operational? When in the business process (in what stages) will the
system be used?
• What—What kind of capabilities will the system provide? How will these capabilities be used?
Systems Development life Cycle: an overview
• The end result of this phase should give users and top management a clear view of what the problem is and how
the information system will solve the problem. As an example, here is a look at how ABC Furniture is planning for an
information system to solve the problem of inaccurate inventory forecasts. Currently, ABC Furniture buys wood from
New England Wood (NEW).
• Why—ABC Furniture needs an information system to track inventory, generate a more accurate forecast of product
demand, and track requirements for wood to be ordered from NEW. Clearly, a more accurate inventory will help
reduce inventory costs, improve BC Furniture’s relationship with NEW and with distributors, ensure the company’s
products are available for retailers, and improve ABC’s image in the marketplace .
• Who—The main users of the information system will be the procurement group responsible for placing orders with
NEW, the manufacturing division responsible for tracking inventory and ensuring that demand for finished goods is
met, the sales personnel who take orders from distributors, and possibly distributors who take orders from retailers.
• When—The system must become operational within the next four months because the company’s main competitor
is planning to open a new store in six months. Furthermore, the system must support the materials-ordering stage,
the production-planning stage, and the shipping stage of the manufacturing process.
• What—On the inbound side, the system must track pending and received deliveries, quantities of raw materials,
orders placed for raw materials, and raw material levels from all of ABC’s suppliers, including NEW. On the
operations side, the system must provide information on inventory levels of all products, raw materials, work in
progress at each stage of manufacturing, quality of raw materials received, quality of finished goods inspected, and
rejects.
Thank you
Chapter 13