Slm Unit 05 Mbf203

7/31/2019 Slm Unit 05 Mbf203

1/22

Management Information System Unit 5

Sikkim Manipal University Page No. 69

Unit 5 MIS Planning and DevelopmentInformation System

Structure:5.1 Introduction

Objectives5.2 Planning and Development

Planning of Information SystemsDevelopment of Information Systems

5.3 Systems AnalysisIntroduction to Systems Analysis

SDLCRoles of Systems AnalystFeasibility of Systems

Types of Feasibility studyDFDData Dictionary

5.4 Systems DesignIntroduction to SD

Input DesignOutput Design

DevelopmentTestingImplementation and Maintenance

5.5 Summary5.6 Terminal Questions5.7 Answers to SAQs and TQs

5.1 Introduction

In the earlier unit you have learnt about the different methodologies to adaptto the changes in the organisation. In this unit you will learn about thesystem development life cycle and system design. Any enterprise requiresone or more systems for handling routine transaction processing. A systemwhich is made up of interrelated processes works towards achieving a goal.The system requires proper feed of information to function effectively.Hence it is important to plan the system properly and develop a process

7/31/2019 Slm Unit 05 Mbf203

2/22



concept into a reality in business. The success of any information system in

management depends upon how well the system has been planned anddeveloped.

Learning Objective After going through this unit, students will be able to understand

i) How planning of IS is doneii) Analysis of the systems andiii) Design of Systems

5.2 Planning and Development 5.2.1 Planning of Information Systems

a) Development of Long Range Plans of the MISMany organisations have purchased computers for data processing and formeeting the statutory requirements of filing the returns and reports to theGovernment. Computers are used mainly for computing and accounting thebusiness transactions and have not been considered as a tool forinformation processing.

The organisations have invested on computers and expanded its use byadding more or bigger computers to take care of the numerous transactionsin the business. In this approach, the information processing function of thecomputers in the organisation never got its due regard as an important assetto the organisation. In fact, this function is misinterpreted as data processingfor expeditious generation of reports and returns, and not as informationprocessing for management actions and decisions.

However, the scene has been changing since late eighties when thecomputers became more versatile, in the function of Storage,Communications, Intelligence and Language. The computer technology isso advanced that the barriers of storage, distance understanding oflanguage and speed are broken.

The computers have become user-friendly. They can communicate to any

distance and share data, information and physical resources of othercomputers. Computers can now be used as a tool for information processingand communication. It can be used for storing large database or knowledgebase . It can be used for knowing the current status of any aspect of thebusiness due to its online real time processing capability.

7/31/2019 Slm Unit 05 Mbf203

3/22



With the advancement of computer technology more popularly known as

information technology, it is now possible to recognise information as avaluable resource like money and capacity. It is necessary to link itsacquisition, storage, use, and disposal as per the business needs formeeting the business objectives. Such a broad-based activity can beexecuted only when it is conceived as a system. This system should dealwith management information and not with data processing alone. It shouldprovide support for management planning, decision making and action. Itshould support the needs of the lower management as well as that of thetop management. It should satisfy the needs of different people in theorganisation at different levels having varying managerial capabilities. Itshould provide support to the changing needs of business management.

In short, we need a Management Information System flexible enough to dealwith the changing information needs of the organisation. It should beconceived as an open system continuously interacting with the businessenvironment with a built-in mechanism to provide the desired information asper the new requirements of the management. The designing of such anopen system is a complex task. It can be achieved only if the MIS isplanned, keeping in view, the plan of the business management of theorganisation.

The plan of MIS is consistent to the business plan of the organisation. Theinformation needs for the implementation of the business plan should findplace in the MIS. To ensure such an alignment possibility, it is necessarythat the business plan strategic or otherwise, states the information needs.The information needs are then traced to the source data and the systemsin the organisation which generate such a data. The plan of development ofthe MIS is linked with the steps of the implementation in a businessdevelopment plan. The system of information generation is so planned thatstrategic information is provided for the strategic planning, controlinformation is provided for a short term planning and execution. The detailsof information are provided to the operations management to assess thestatus of an activity and to find ways to make up, if necessary. Once themanagement needs are translated into information needs, it is left to thedesigner to evolve a plan of MIS development and implementation.

7/31/2019 Slm Unit 05 Mbf203

4/22



b) Contents of the MIS Plan

A long range MIS plan provides direction for the development of thesystems, and provides a basis for achieving the specific targets or tasksagainst a time frame. The plan would have contents which will be dealt bythe designer under a support from the top management.

c) MS Goals and Objectives It is necessary to develop the goals and objectives for the MIS which willsupport the business goals. The MIS goals and objectives will considermanagement philosophy, policy constraints, business risks, internal andexternal environment of the organisation and the business.

The goals and the objectives of the MIS would be so stated that they can bemeasured. The typical statements of the goals are as under:

It should provide online information on the stock, markets and theaccounts balances.The query processing should not exceed more than three seconds.The focus of the system will be on the end user computing and accessfacilities.

Table 5.1: Business Plan vs. MIS Plan

Such statements of the goals and objectives enable the designer to set thedirection and design implementation strategies for the MIS Plan.

Business plan MIS plan

Business goals and objectives.

Business plan and strategy.

Management information system,

objectives, consistent to the businessgoals and objectives.

Strategy planning and decisions. Information strategy for the business planimplementation plays a supportive role.

Management plan for executionand control. Operation plan forthe execution.

1. Architecture of the ManagementInformation System to supportdecisions.

2. System development schedule,matching the plan execution.

3. Hardware and software plan for theprocurement and the implementation.

7/31/2019 Slm Unit 05 Mbf203

5/22



Strategy for the Plan Achievement

The designer has to take a number of strategic decisions for theachievement of the MIS goals and objectives. They are:a) Development strategy: An online, a batch, a real time technology

platform.b) System development strategy: Any approach to the system

development Operational vs. Functional; Accounting vs. Analysis;Database vs. Conventional approach; Distributed vs. Decentralisedprocessing; one Database vs. multiple databases SSAD vs. OOT.

c) Resources for system development: In house vs. external,customised development vs. the use of packages.

d) Manpower composition: Analyst, programmer skills and know-how.

The Architecture of the MISThe architecture of the MIS plan provides a system structure and their input,output and linkages. It also provides a way to handle the systems orsubsystems by way of simplification, coupling and decoupling ofsubsystems. It spells out in detail the subsystems from the data entry toprocessing, analysis to modelling, and storage to printing.

The System Development ScheduleA schedule is made for the development of the system. While preparing theschedule due consideration is given to the importance of the system in theoverall information requirement. Due regard is also given to logical systemdevelopment. For example, it is necessary to develop the accountingsystem first and then the analysis.

Further, unless the systems are fully developed their integration is notpossible. This development schedule is to be weighed against the timescale for achieving certain information requirement linked to a businessplan. If these are not fully met, it is necessary to revise the time scheduleand also the development schedule, whenever necessary.

Hardware and Software Plan

Giving due regard to the technical and operational feasibility, the economicsof investment is worked out. Then the plan of procurement is made afterselecting the hardware and software. One can take the phased approach ofinvestment starting from the lower configuration of hardware going over tohigher as development takes place. The process is to match the technical

7/31/2019 Slm Unit 05 Mbf203

6/22



decisions with the financial decisions. The system development schedule is

linked with the information requirements which in turn, are linked with thegoals and objectives of the business.

The selection of the architecture, the approach to the information systemdevelopment and the choice of hardware and software are the strategicdecisions in the design and development of the MIS in the organisation. Theorganisations which do not care to take proper decisions in these areassuffer from over-investment, under-utilisation and are not able to meet thecritical information requirements.

It is important to note the following points:1. The organisation's strategic plan should be the basis for the MIS

strategic plan.2. The information system development schedule should match with the

implementation schedule of the business plan.3. The choice of information technology is a strategic business decision

and not a financial decision. A model of MIS Plan is given in thefollowing table

Table 5.2: Model of the MIS Plan

Contents Particulars FocusCorporate

information

Business environment and

current operations.Information on KRA.

Where are we?

Corporate mission/ goals/ objectives

Current and new mission/ goals/objectives

Where do we want toreach?

Business risk andrewards

Clear quantitativestatements on these factorsshowing a trade off betweenthe risk and rewards.

What is the risk?Support information toresolve risk.

Business policy andstrategy Informationneeds

Details of the strategic andpolicy decisions affectingthe businessStrategic/planning,managerial operational.

How do we achieve thegoals and objectives?What is the keyinformation? CSF.

7/31/2019 Slm Unit 05 Mbf203

7/22



Architecture of the

plan

Information Technology

details

What are the tools for

achievement?Schedule ofdevelopment

Details of the systems andsub-systems and theirlinkages charted against theTime scale.

When and how will itbe achieved?

Organisation andexecution of the plan

Manpower and delegationdetails. Internal and externalresources.

Who will achieve it?

Budget and ROI Details on the investment

schedule and benefits.

How much will it cost?

Budget and ROI.

5.2.2 Development of Information Systemsa) Development and Implementation of the MISOnce the plan for MIS is made, the development of the MIS, calls fordetermining the strategy of development. As discussed earlier, the planconsists of various systems and subsystems. The development strategydetermines where to begin and in what sequence the development can takeplace with the sole objective of assuring the information support.

The choice of the system or the sub-system depends on its position in thetotal MIS plan, the size of the system, the user's understanding of thesystems and the complexity and its interface with other systems. Thedesigner first develops systems independently and starts integrating themwith other systems, enlarging the system scope and meeting the varyinginformation needs.

Determining the position of the system in the MIS is easy. The real problemis the degree of structure, and formalisation in the system and procedureswhich determine the timing and duration of development of the system.Higher the degree of structured-ness and formalisation, greater is the

stabilisation of the rules, the procedures, decision-making and theunderstanding of the overall business activity. Here, it is observed that theuser's and the designer's interaction is smooth, and their needs are clearlyunderstood and respected mutually. The development becomes a method ofapproach with certainty in input process and outputs.

7/31/2019 Slm Unit 05 Mbf203

8/22



b) Prototype Approach

When the system is complex, the development strategy is Prototyping of theSystem. Prototyping is a process of progressively ascertaining theinformation needs, developing methodology, trying it out on a smaller scalewith respect to the data and the complexity, ensuring that it satisfies theneeds of the users, and assess the problems of development andimplementation.

This process, therefore, identifies the problem areas, inadequacies in theprototype vis--vis fulfilment of the information needs. The designer thentakes steps to remove the inadequacies. This may call upon changing theprototype of the system, questioning the information needs, streamlining the

operational systems and procedures and move user interaction.In the prototyping approach, the designer's task becomes difficult, whenthere are multiple users of the same system and the inputs they use areused by some other users as well. For example, a lot of input data comesfrom the purchase department, which is used in accounts and inventorymanagement.

The attitudes of various users and their role as the originators of the dataneed to be developed with a high degree of positivism. It requires, of allpersonnel, to appreciate that the information is a corporate resource, and all

have to contribute as per the designated role by the designer to fulfil thecorporate information needs. When it comes to information the functional,the departmental, the personal boundaries do not exist. This call upon eachindividual to comply with the design needs and provide without fail thenecessary data inputs whenever required as per the specification discussedand finalised by the designer.

Bringing the multiple users on the same platform and changing theirattitudes toward information, as a corporate resource, is the managerial taskof the system designer. The qualification, experience, knowledge, of thestate of art, and an understanding of the corporate business, helps

considerably, in overcoming the problem of changing the attitudes of themultiple users and the originators of the data.

7/31/2019 Slm Unit 05 Mbf203

9/22



c) Life Cycle Approach

There are many systems or sub-systems in the MIS which have a life cycle,that is, they have birth and death. Their emergence may be sudden or maybe a part of the business need, and they are very much structured and rule-based. They have 100% clarity of inputs and their sources, a definite set ofoutputs in terms of the contents and formats. These details more or lessremain static from the day the system emerges and remains in that staticmode for a long time. Minor modifications or changes do occur but they arenot significant in terms of handling either by the designer or the user of thesystem. Such systems, therefore, have a life and they can be developed in asystematic manner, and can be reviewed after a year or two, for significantmodification, if any.

Fig. 5.1: Life Cycle Approach to the Development of MIS

Examples of such systems are pay roll, share accounting, basic financialaccounting, finished goods accounting and dispatching, order processing,and so on.

These systems have a fairly long duration of survival and they contribute ina big way as sources of data to the Corporate MIS. Therefore, their role isimportant and needs to be designed from the view point as an interface tothe Corporate MIS.

7/31/2019 Slm Unit 05 Mbf203

10/22



Table below shows the difference between the two approaches helping the

designer select an approach.

Table 5.3: Comparison of Approaches

Prototyping approach Life cycle approach

Open system with a highdegree of uncertainty aboutthe information needs.Necessary to try out theideas, application andefficiency of the informationas a decision support.Necessary to control the costof the design anddevelopment before thescope of the system and itsapplication is fullydetermined. Experimentationis necessary.User of the system wants totryout the system before hecommits the specification andthe information requirements.The system and application ishighly custom oriented.

Closed systems with little or nouncertainty about the informationneeds. The system remains validfor a long time with no significantchange. The design would remainstable. No need to try out theapplication of the information as itis already proven.Scope of the design and theapplication is fully determined withclarity and experimentation is| notnecessary.The user is confident and confirmsthe specifications and theinformation needs.The system and application isuniversal and governed by theprinciples and practices.

d) Implementation of the Management Information SystemThe implementation of the system is a management process. It brings aboutorganisational change; it affects people and changes their work style. Theprocess evokes a behaviour response which could be either favourable orunfavourable depending upon the strategy of system implementation.

In the process of implementation, the system designer acts as a changeagent or a catalyst. For a successful implementation he has to handle thehuman factors carefully.

The user of the system has a certain fear complex when a certain culturalwork change is occurring. The first and the foremost fear is about the

7/31/2019 Slm Unit 05 Mbf203

11/22



security to the person if the change-over from the old to new is not a smooth

one. Care has to be taken to assure the user that such fears are baselessand the responsibility, therefore, rests with the designer.

The second fear is about the role played by the person in the organisationand how the change affects him. On many occasions, the new role mayreduce his importance in the organisation, the work design may make thenew job impersonal, and a fear complex may get reinforced that the careerprospects may be affected.

There are certain guidelines for the systems designer for successfulimplementation of the system. The system designer should not questionbeyond a limit the information need of the user.

1. Not to forget that his role is to offer a service and not to demand terms.

2. Remember that the system design is for the use of the user and it isnot the designer's prerogative to dictate the design features. In short,the designer should respect the demands of the user.

3. Not to mix up technical needs with the information needs. He shouldtry to develop suitable design with appropriate technology to meet theinformation needs. The designer should not recommend modificationsof the needs, unless technically infeasible.

4. Impress upon the user the global nature of the system design which is

required to meet the current and prospective information need.5. Not to challenge the application of the information in decision-making.

It is the sole right of the user to use the information the way he thinksproper.

6. Impress upon the user that the quality of information depends on thequality of input.

7. Impress upon the user that you are one of the users in theorganisation and that the information is a corporate resource and he isexpected to contribute to the development of the MIS.

8. Ensure that the user makes commitment to all the requirements of thesystem design specifications. Ensure that he appreciates that hiscommitments contribute largely to the quality of the information andsuccessful implementation of the system.

7/31/2019 Slm Unit 05 Mbf203

12/22



9. Ensure that the overall system effort has the management's

acceptance.10. Enlist the user's participation from time to time, so that he is

emotionally involved in the process of development.

11. Realise that through serving the user, he is his best guide on thecomplex path of development.

12. Not to expect perfect understanding and knowledge from the user ashe may be the user of a non-computerised system. Hence, thedesigner should be prepared to change the system specifications oreven the design during the course of development.

13. Impress upon the user that the change, which is easily possible inmanual system, is not as easy in the computer system as it calls forchanges in the programs at cost.

14. Impress upon the user that perfect information is non-existent; his roletherefore still has an importance in the organisation.

15. Ensure that the other organisation problems are resolved first beforethe MIS is taken for development.

16. Conduct periodical user meetings on systems where you get theopportunity to know the ongoing difficulties of the users.

17. Train the user in computer appreciation and systems analysis as his

perception of the computerised information system will fall short of thedesigner's expectation.

Implementation of the MIS in an organisation is a process whereorganisational transformation takes place. This change can occur in anumber of ways.

The Lewin's model suggests three steps in this process. The first step isUnfreezing the organisation to make the people more receptive andinterested in the change. The second step is choosing a course of actionwhere the process begins and reaches the desired level of stability, and the

third step is Refreezing , where the change is consolidated and equilibriumis reinforced. Many a times, this process is implemented through an externalchange agent, such as a consultant playing the role of a catalyst.

7/31/2019 Slm Unit 05 Mbf203

13/22



The significant problem in this task is the resistance to change. The

resistance can occur due to three reasons, viz., the factors internal to theusers of information, the factors inherent in the design of the system and thefactors arising out of the interaction between the system and its users. Theproblem of resistance can be handled through education, persuasion, andparticipation. This itself can be achieved by improving the human factors,and providing incentives to the users, and eliminating the organisationalproblems before implementing the system.

Self Assessment Questions: True or False

1. A long range MIS plan provides direction for the development of thesystems, and provides a basis for achieving the specific targets or tasksagainst a time frame.

2. The organisation's strategic plan need not be the basis for the MISstrategic plan.

5.3 Systems Analysis

5.3.1 Introduction to Systems AnalysisSystem analysis is the survey and planning of the project, the study andanalysis of the existing business and information system and the definitionof business requirements. System analysis involves two phases: study

phase and definition phase.A repository is a collection of databases associated with the application andproject.

7/31/2019 Slm Unit 05 Mbf203

14/22



Fig. 5.2: Diagrammatic representation of System analysis

Survey phase The purpose of the survey phase is to determine theworthiness of the project and to create a plan to complete those projects,deemed worthy. To accomplish the survey phase objectives, the systemanalyst will work with the system owner, system users, IS manager and ISstaff to:

Survey problems, opportunities and solutionsNegotiate project scopePlan the projectPresent the project

5.3.2 SDLCSystem development cycle stages are sometimes known as system study.System concepts which are important in developing business informationsystems expedite problem solving and improve the quality of decision-making. The system analyst has to do a lot in this connection. They areconfronted with the challenging task of creating new systems an planning

major changes in the organization. The system analyst gives a systemdevelopment project, meaning and direction.

The typical breakdown of an information systems life cycle includes afeasibility study, requirements, collection and analysis, design, prototyping,

Survey phasePlan theproject

Study phaseAnalyze theexisting system

Definition phasePrioritize the businessrequirement

Repository

Project &

SystemScope

System

ImprovementObjectives

Documentation

Documentation Documentation Systemdesign phase

7/31/2019 Slm Unit 05 Mbf203

15/22



implementation, validation, testing and operation. It may be represented in

the form of a block diagram as shown below:

Fig. 5.3: SDLC

a) Feasibility study It is concerned with determining the costeffectiveness of various alternatives in the designs of the informationsystem and the priorities among the various system components.

b) Requirements, collection and analysis It is concerned withunderstanding the mission of the information systems, that is, theapplication areas of the system within the enterprise and the problemsthat the system should solve.

c) Design It is concerned with the specification of the information

systems structure. There are two types of design: database design andapplication design. The database design is the design of the databasedesign and the application design is the design of the applicationprograms.

Feasibility study

Requirements collection andanalysis

Design

Prototyping Implementation

Validation andtesting

Operation

7/31/2019 Slm Unit 05 Mbf203

16/22



d) Prototyping A prototype is a simplified implementation that is

produced in order to verify in practice that the previous phases of thedesign were well conducted.

e) Implementation It is concerned with the programming of the finaloperational version of the information system. Implementationalternatives are carefully verifies and compared.

f) Validation and testing It is the process of assuring that each phase ofthe development process is of acceptable quality and is an accuratetransformation from the previous phase.

5.3.3 Roles of Systems AnalystSystem analysts are the facilitators of the study of the problem and needs ofa business to determine how the business systems and informationtechnology can best solve the problem and accomplish improvements forthe business.

The system analyst is responsible for examining the total flow of datathroughout the organization. Various aspects of an organization likepersonnel interactions and procedures for handling problems of thecomputer are studied by him. The person involved in the systemdevelopment is known as system analyst. His main role is as consultant,supporting and maintenance expert, he should work with a cross section of

people and should have the experience of working with computers. He is aproblem solver and takes problem as a challenge and enjoys meetingchallenges. He knows how to use the right tools, techniques and experienceat the right time.

5.3.4 Feasibility of SystemsFeasibility is a measure of how beneficial the development of an informationsystem would be to an organization. Feasibility analysis is the activity bywhich the feasibility is measured.

Feasibility study is a preliminary study which investigates the informationneeds of prospective users and determines the resource requirements,costs, benefits and feasibility of a proposed project. The data is firstcollected for the feasibility study. Later on, the findings of the study areformalized in a written report that includes preliminary specifications and adevelopment plan for the proposed system. If the management approves

7/31/2019 Slm Unit 05 Mbf203

17/22



these recommendations of the report the development process can

continue.5.3.4.1 Types of feasibility studyThe goal of feasibility study is to evaluate alternative systems and topropose the most feasible and desirable system for development. Thefeasibility of a proposed system can be evaluated in four major categories:

a) Technical feasibility: It is a measure of a technologys suitability to theapplication being designed or the technologys ability to work with other technologies. It measures the practicality of a specified technicalsolution.

b) Economic feasibility: It is the measure of the cost effectiveness of aproject. It is also known as cost-benefit analysis.

c) Operational feasibility: It is a measure of how comfortable themanagement and users are with the technology.

d) Schedule feasibility: It is a measure of how reasonable the projectschedule is.

5.3.5 DFDData flow diagrams represent the logical flow of data within the system. DFDdo not explain how the processes convert the input data into output. Theydo not explain how the processing takes place.

DFD uses few symbols like circles and rectangles connected by arrows torepresent data flows. DFD can easily illustrate relationships among data,flows, external entities an stores. DFD can also be drawn in increasinglevels of detail, starting with a summary high level view and proceeding omore detailed lower level views.

Rounded rectangles represent processes that transform flow ofdata or work to be done.

Rectangle represents external agents- the boundary of thesystem. It is source or destination of data.The open-ended boxes represent data stores, sometimescalled files or databases. These data stores correspond to allinstances of a single entity in a data model.Arrow represents data flows, inputs and outputs to end fromthe processes.

7/31/2019 Slm Unit 05 Mbf203

18/22



A number of guidelines should be used in constructing DFD.

Choose meaningful names for the symbols on the diagram.Number the processes consistently. The numbers do not imply thesequence.Avoid over complex DFD.Make sure the diagrams are balanced.

5.3.6 Data DictionaryThe data dictionary is used to create and store definitions of data, location,format for storage and other characteristics. The data dictionary can beused to retrieve the definition of data that has already been used in anapplication. The data dictionary also stores some of the description of datastructures, such as entities, attributes and relationships. It can also havesoftware to update itself and to produce reports on its contents and toanswer some of the queries.

Self Assessment Questions: True or False

3. Feasibility is a measure of how beneficial the development of aninformation system would be to an organization.

4. The goal of feasibility study is to evaluate alternative systems and topropose the most feasible and desirable system for development.

5. DFD uses few symbols like circles and rectangles connected by arrows

to represent information flows.

5.4 Systems Design

5.4.1 Introduction to SDThe business application system demands designing of systems suitable tothe application in project. The major steps involved in the design are thefollowing:

Input Design Input design is defined as the input requirementspecification as per a format required. Input design begins long before the

data arrives at the device. The analyst will have to design sourcedocuments, input screens and methods and procedures for getting the datainto the computer.

Output Design The design of the output is based on the requirement ofthe user manager, customer etc. The output formats have to very friendly

7/31/2019 Slm Unit 05 Mbf203

19/22



to the user. Therefore the designer has to ensure the appropriateness of the

output format.Development When the design and its methodology is approved, thesystem is developed using appropriate business models. The developmenthas to be in accordance to a given standard. The norms have to be strictlyadhered to.

Testing Exhaustive and thorough testing must be conducted to ascertainwhether the system produces the right results. Testing is time consuming:Test data must be carefully prepared, results reviewed and correctionsmade in the system. In some instances, parts of the system may have to beredesigned. Testing an information system can be broken down into threetypes of activities: unit testing, system testing and acceptance test. Unittesting or program testing consists of testing each program separately in thesystem. The purpose of such testing is to guarantee that programs are errorfree, but this goal is realistically impossible. Instead, testing should beviewed as a means of locating errors in programs, focusing on finding allways to make a program fail. Once pinpointed, problems can be corrected.System testing tests the functioning of the information system as a whole. Ittries to determine if discrete modules will function together as planned andwhether discrepancies exist between the way the system actually works andthe way it was conceived. Among the areas examined are performancetime, capacity for file storage and handling peak loads, recovery and restartcapabilities and manual procedures. Acceptance testing provides the finalcertification that the system is ready to be used in a production setting.Systems tests are evaluated by users and reviewed by management. Whenall parties are satisfied that the new system meets their standards, thesystem is formally accepted for installation.

Implementation and MaintenanceConversion Conversion is the process of changing from the old system tothe new system. Four main conversion strategies can be employed. They

are the parallel strategy, the direct cutover strategy, the pilot strategy andthe phased strategy.

In a parallel strategy both the old system and its potential replacement arerun together for a time until everyone is assure that the new one functionscorrectly. This is the safest conversion approach because, in the event of

7/31/2019 Slm Unit 05 Mbf203

20/22



errors or processing disruptions, the old system can still be used as a

backup. But, this approach is very expensive, and additional staff orresources may be required to run the extra system.

The direct cutover strategy replaces the old system entirely with the newsystem on an appointed day. At first glance, this strategy seems less costlythan the parallel conversion strategy. But, it is a very risky approach that canpotentially be more costly than parallel activities if serious problems with thenew system are found. There is no other system to fall back on.Dislocations, disruptions and the cost of corrections are enormous.

The pilot study strategy introduces the new system to only a limited area ofthe organization, such as a single department or operating unit. When this

version is complete and working smoothly, it is installed throughout the restof the organization, either simultaneously or in stages.

The phased approach strategy introduces the new system in stages, eitherby functions or by organizational units. If, for example, the system isintroduced by functions, a new payroll system might begin with hourlyworkers who are paid weekly, followed six months later by adding salariedemployees (who are paid monthly) to the system. If the system is introducedby organizational units, corporate headquarters might be converted first,followed by outlying operating units four months later.

Moving from an old system to a new system requires that end users betrained to use the new system. Detailed documentation showing how thesystem works from both a technical and end-user standpoint is finalizedduring conversion time for use in training and everyday operations. Lack ofproper training and documentation contributes to system failure, so thisportion of the systems development process is very important.

Production and maintenanceAfter the new system is installed and conversion is complete, the system issaid to be in production. During this stage the system will be reviewed byboth users and technical specialists to determine how well it has met its

original objectives and to decide whether any revisions or modifications arein order. In some instances, a formal post implementation audit documentwill be prepared. After the system has been fine-tuned, it will need to bemaintained while it is in production to correct errors, meet requirements orimprove processing efficiency.

7/31/2019 Slm Unit 05 Mbf203

21/22



Once a system is fully implemented and is being used in business

operations, the maintenance function begins. Systems maintenance is themonitoring, or necessary improvements. For example, the implementation ofa new system usually results in the phenomenon known as the learningcurve. Personnel who operate and use the system will make mistake simplybecause they are familiar with it. Though such errors usually diminish asexperience is gained with a new system, they do point out areas where asystem may be improved.

Maintenance is also necessary for other failures and problems that ariseduring the operation of a system. End-users and information systemspersonnel then perform a troubleshooting function to determine the causes

of and solutions to such problems.Maintenance also includes making modifications to an established systemdue to changes in the business organizations, and new e-business and e-commerce initiatives may require major changes to current businesssystems.

Self Assessment Questions:

6. ________ is defined as the input requirement specification as per aformat required.

7. _______ is the process of changing from the old system to the new

system.8. _________ is also necessary for other failures and problems that ariseduring the operation of a system.

5.5 Summary

After going through this units student would have understood the concept ofplanning and developing an information system for an organization. Theconcept of systems analysis and system design is explained in detail. Theprocedure for the analysis is explained. Student also would have learntabout the systems implementation and its maintenance.

Activity 1

Participate in the crossword on Planning anddevelopment of IS under MB 0031- unit 5

7/31/2019 Slm Unit 05 Mbf203

22/22



5.6 Terminal Questions

1. Write a note on the planning aspects of Information Systems2. Write a note on the development aspects of Information Systems.3. Explain the system development life cycle.4. What is meant by feasibility of a system? What are its various types?5. Explain DFD and Data Dictionary.

5.7 Answers

Answers to Self Assessment Questions

1. True2. False3. True4. True5. False6. Input Design7. Conversion8. Maintenance

Answers to Terminal Questions

1. Refer 5.2.12. Refer 5.2.23. Refer 5.3.24. Refer 5.3.45. Refer 5.3.5 and 5.3.6

Documents

Slm Unit 05 Mbf203