System Development Strategy

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System Development Strategy

Prepared by

Parag Koradia (2918)Hiten Maniyar (2920)

Sharon Mecwan(2922)

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Learning Objectives

Role ofplanning in the business use ofinformationtechnology

Role ofplanning and business models in the development ofbusiness/IT strategies, architectures, and applications

Business Process Reengineering (BPR)

Information systems development cycle to develop andimplement a business information system

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Planning Fundamentals

Information technology has created a seismic shift in the way

companies do business

Just knowing the importance and structure of e-business is

not enough

You must create and implement an action plan that allows

you to make the transition from an old business design to

a new e-business design

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Organizational Planning

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Planning

Strategic Planning

Deals with the development ofan organizations mission,goals, strategies, and policies

Begins with strategic visioning questions

Tactical Planning

The setting ofobjectives and the development ofprocedures, rules, schedules, and budgets

Operational Planning

Done on a short-term basis to implement and control day-to-day operations

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Strategic Visioning Questions

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The Scenario Approach

Gaining in popularity as a less formal, but more realistic,

strategic planning methodology

Teams ofmanagers and planners participate in microworld

or virtual world exercises

Business scenarios are created and evaluated

Alternative scenarios are then created

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Trends that Affect Strategic Planning

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Planning for Competitive Advantage

Strategic business/IT planning

Involves evaluating the potential benefits and risks ofusing IT-based strategies and technologies for competitiveadvantage

The following models can help generate ideas for thestrategic use ofIT to support initiatives

Competitive forces

Competitors, Customers, Suppliers, New Entrants, and Substitutes

Competitive strategies

Cost Leadership, Differentiation, Growth, Innovation, and Alliance

Value chain

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Strategic Opportunities Matrix

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SWOT Analysis

SWOT stands for

Strengths: a companys core competencies and resources

Weaknesses: areas ofsubstandard business performancecompared toothers

Opportunities: potentialfor new business markets or

innovative breakthroughs that might expand currentmarkets

Threats: anything that has the potentialfor business andmarket losses

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Business Models and Planning

Fundamental components

Who are our customers?

What doour customers value? How much will it cost to deliver that value?

How do we make money in this business?

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Business Models as Planning Tools

A business modelforces rigorously and systematic thinking

about the value and viability ofbusiness initiatives

The strategic planning process is then used to develop

unique business strategies that capitalize on a businessmodel

The goal is to gain a competitive advantage in an industry

or marketplace

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The Business/IT Planning Process

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The Business/IT Planning

The business/IT planning process has three major components

Strategic development

Resource management

Technology architecture

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Information Technology Architecture

The IT architecture is a conceptual design that includes these

major components

Technology platform

Data resources

Application architecture

IT organization

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Identifying Business/IT Strategies

The most valuable Internet applications allow companies to

Transcend communication barriers

Establish connections that enhance productivity

Stimulate innovative development

Improve customer relations

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Strategic Positioning Matrix

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Strategic Matrix

Cost and Efficiency Improvements

Performance Improvement in Effectiveness

Global Market Penetration

Product and Service Transformation

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Implementing IT

Many businesses have undergone multiple majorreorganization since the early 1980s

Business process reengineering

Installation and upgrades ofan ERP system

Upgrading legacy systems to be Y2K compliant

Creating shared service centers

Just-in-time manufacturing

Sales force automation

Contract manufacturing

The introduction ofeuro currency

E-business is the latest organizational change

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Impact and Scope of Implementing IT

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Business Processes Reengineering

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Business Processes Reengineering

Called BPRor simply Reengineering

Fundamental rethinking and radical redesign ofbusiness

processes

Seeks to achieve improvements in cost, quality, speed, andservice

Potential payback is high, but so is risk ofdisruption and

failure

Organizational redesign approaches are an important enablerofreengineering

Includes use ofIT, process teams, case managers

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A Cross-Functional Process

Many processes are reengineered with

Enterprise resource planning software

Web-enabled electronic business and commerce systems

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Reengineering Order Management

IT that supports this process

CRM systems using intranets and the Internet

Supplier-managed inventory systems using the Internet

and extranets

Cross-functional ERP software to integrate manufacturing,

distribution, finance, and human resource processes

Customer-accessible e-commerce websites for order

entry, status checking, payment, and service

Customer, product, and order status databases accessed

via intranets and extranets

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Why Reengineering?

Customers

Demanding

Sophistication

Changing Needs Competition

Local

Global

Change

Technology

Customer Preferences

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Why Reengineering?

Complacency

Resistance

New Developments

Fear ofFailure

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What does it seek?

Cost

Quality

Service

Speed, Improvements

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The Role of Information Technology

IT plays a major role in reengineering most business processes

Can substantially increase process efficiencies

Improves communication

Facilitates collaboration

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Key Steps

Select the Process and Appoint Team

Understand the Current Process

Develop & Communicate Vision ofImproved Process

Identify Action Plan Execute Plan

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Select the Process & Team

Review business strategy and customer requirements

Select core process

Understand customer needs

No assumption Select correct path for change

Ask- questions, meetings, focus

Identify process owner

Develop executive improvement team

Provide training to executive team

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Understanding Current Process

Develop a process overview

Clearly define the process

Mission

Scope Boundaries

Identify improvement opportunities

Quality

Rework

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Benefits from IT

Assists the implementation ofBusiness Process

Enables product & service innovation

Improve operational efficiency

Coordinate vendors & customers in the process chain

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Developing Business/IT Solutions

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Use the systems development to propose information

systems solutions to business problems

Describe and give examples to illustrate

how you might use each ofthe steps ofthe informationsystems development cycle to develop and implement a

business information system

Objectives

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Learning Objectives

Explain how prototyping can be used as an effective

technique to improve the process

ofsystems development for end users and

IS specialists

Identify the activities involved in the implementation ofnew

information systems

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Learning Objectives

Compare and contrast the four basic system conversation

strategies

Describe several evaluation factors that should be considered

in evaluating the acquisition ofhardware, software, and ISservices

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IS Development

When the systems approach is applied to

the development ofan information systems solution to

business problems, it is called information systems

development or application development

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The Systems Approach

A problem solving technique that uses a systems orientationto define problems and opportunities and develop

appropriate and feasible solutions

Analyzing a problem and formulating a solution involves these

interrelated activities:

Recognize and define a problem or opportunity using

systems thinking

Develop and evaluate alternative system solutions

Select the solution that best meets your requirements

Design the selected system solution

Implement and evaluate the success ofthe system

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What is Systems Thinking?

Seeing the forest andthe trees in any situation

Seeing interrelationships among systems

rather than linear cause-and-effect chains

Seeing processes ofchange among systemsrather than discrete snapshots ofchange

See the system in any situation

Find the input, processing, output, feedback

and control components

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Systems Thinking Example

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Systems Analysis and Design

SA&D is the overall process by which information systems are

designed and implemented

Includes identification ofbusiness problems

Two most common approaches

Object-oriented analysis and design

Life cycle

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Systems Development Lifecycle (SDLC)

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Systems Development Process

Systems Investigation

The first step in the systems development

process

May involve consideration ofproposals

generated by a business/IT planning process

Also includes the preliminary feasibility study

ofproposed information system solutions

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Systems Development Process

Feasibility Studies: a preliminary study to determine the

Information needs ofprospective users

Resource requirements

Costs

Benefits

Feasibility

In some cases, a feasibility study is unnecessary

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Economic Feasibility

An assessment of

Cost savings

Increased revenue

Decreased investment requirements

Increased profits

Cost/benefit analysis

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Technical Feasibility

Determine the following can meet the needs

ofa proposed system and can be acquired or

developed in the required time

Hardware

Software

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Human Factors Feasibility

Estimate the acceptance levelof

Employees

Customers

Suppliers

Management support

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Legal/Political Feasibility

Estimate

Possible patent or copyright violations

Software licensing for developer side only

Governmental restrictions

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Systems Analysis

An in-depth study ofend user information needs

It produces the functional requirements used as the basis

for the design ofan information system

It typically involves a detailed study ofthe

Information needs ofa company and end users

Activities, resources, and products ofone or more ofthe

information systems currently being used

Information system capabilities required to meet the

information needs ofbusiness stakeholders

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Organizational Analysis

Study ofthe organization, including

Management structure

People

Business activities

Environmental systems

Current information systems

Input, processing, output, storage, and control

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Analysis of the Present System

Before designing a new system, it is important

to study the system to be improved or replaced

Hardware and software

Network

People resources used to convert data

resources into information products

System activities ofinput, processing,

output, storage, and control

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Logical Analysis

A logical model is a blueprint ofthe current system

It displays what the current system does,

without regard to how it does it

It allows an analyst to understand the processes, functions,and data associated with a system without getting bogged

down with hardware

and software

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Functional Requirements

This step ofsystems analysis is one ofthe most difficult

Determine what type ofinformation each business activity

requires

Try to determine the information processing capabilitiesrequired for each system activity

The goal is to identify what should be done,

not how to do it

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Examples of Functional Requirements

User Interface:automatic entry ofproduct

data and easy-to-use data entry screens for

Web customers

Processing:fast, automatic calculation ofsales totals and

shipping costs

Storage:fast retrieval and update ofdata from product , and

customer databases

Control:signals for data entry errors and quick e-mail

confirmation for customers

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Systems Design

Systems design focuses on three areas

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Prototyping

Prototyping is the rapid development and testing ofworking

models

An interactive, iterative process used during the design

phase Makes development faster and easier, especially when end

user requirements are hard to define

Has enlarged the role ofbusiness stakeholders

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Prototyping Life Cycle

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User Interface Design

Focuses on supporting the interactions between end users

and their computer-based applications

Designers concentrate on the design ofattractive and

efficient forms ofuser input and output Frequently a prototyping process

Produces detailed design specifications for information

products, such as display screens

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Examples of System SpecificationsUser interface

specifications

Use personalized screens that welcome repeatWeb customers

and that make product recommendations

Database

specifications

Develop databases that use object/relational database

management software toorganize access to all customer and

inventory data and to multimedia product information

Software

specifications

Acquire an e-commerce software engine to process all

e-commerce transactions with fast responses, i.e., retrieve

necessary product data and compute all sales amounts in less

than one second

Hardware

and network

specifications

Install redundant networked Web servers and sufficient high-

bandwidth telecommunications lines to host the company e-

commerce website

Personnel

specifications

Hire an e-commerce manager and specialists and a webmaster

andWeb designer to plan, develop, and manage e-commerce

operations

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End User Development

IS professionals play a consulting role, while you do their own

application development

A staffofuser consultants may be available

to help with analysis, design, and installation

Other support

Application package training

Hardware and software advice

Help gaining access toorganization databases

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Focus on IS Activities

End user development should focus on the fundamental

activities ofan information system

Input

Processing

Output

Storage

Control

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Focus of End User Development

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Doing End User Development

Application development capabilities built into software

packages make it easier for end users

to

develo

p theiro

wn sol

utio

ns E.g. Microsoft front page for designing Web Pages

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Encouraging End User Web

Development Make users comfortable Training will make users more confident

It can save the IT department the trouble offixing

problems later on

It can limit the need for continuous support

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Implementing New Systems

The systems implementation stage involves

Hardware and software acquisition

Software development

Testing ofprograms and procedures

Conversion ofdata resources

Conversion alternatives

Education/training ofend users andspecialists who willoperate the new system

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Implementation Process

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Sample Implementation Process

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Hardware Evaluation Factors

Major evaluation factors

Performance

Cost

Reliability Compatibility

Technology

Human friendly

Connectivity

Scalability

Software

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Software Evaluation Factors

Hardware evaluation factors apply to software, as do these

Quality

Efficiency

Flexibility Security

Connectivity

Maintenance

Documentation

Hardware

Software that is slow,hard to use, bug-filled,

or poorly documented is

not a good choice

at any price

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Evaluating IS Services

Examples ofIS services

Developing a company website

Installation or conversion ofhardware/software

Employee training

Hardware maintenance

System design and/or integration

Contract programming

Consulting services

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IS Service Evaluation Factors

IS evaluation factors include

Performance

Systems development

Maintenance Training

Backup facilities and services

Business position and financial strength

Hardware selection and compatibility

Software packages offered

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Other Implementation Activities

The keys to successful implementation of

a new business system

Testing- should be throughout sys. Development process

Data conversion- old database format to new databaseformat.

Documentation

Training how the new system impacts the companys

business operations.

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Data Conversion

Data conversion includes

Converting data elements from the old database to the

new database

Correcting data errors Filtering out unwanted data

Consolidating data from several databases

Organizing data into new data subsets

Improperly organized and formatted data is a major cause of

implementation failures

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Documentation

User Documentation

Sample data entry screens, forms, reports

System operating instructions

Systems Documentation

Method ofcommunication among those developing,

implementing, and maintaining

a computer-based system

Detailed record ofthe system design

Extremely important when diagnosing

problems and making system changes

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Training

End users must be trained tooperate a new business system

or its implementation willfail

May involve only activities, such as data entry, or all

aspects ofsystem use

Managers and end users must understand how the new

technology impacts business operations

System training should be supplemented with training related

to Hardware devices

Software packages

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Major System Conversion Strategies

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Direct Conversion

Direct conversion

The simplest conversion strategy

The most disruptive to the organization

Sometimes referred to as the slam dunk orcold-turkey strategy

May be the only viable solution in cases ofemergency

implementation or ifthe old and

new system cannot coexist

Has the highest risk offailure

Involves turning offthe old system and turning on the new

one

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Parallel Conversion

Old and new systems are run simultaneously until everyone is

satisfied that

The new system functions correctly

The old system is nolonger needed

Conversion to new system can be single

cutover or phased cutover

Has the lowest risk, but the highest cost

Can cost 4 times more than using the old system Best choice where an automated system is replacing a manual

one

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Pilot Conversion

Scenarios best suited to a pilot conversion

Multiple business locations

Geographically diverse locations

Advantages ofsingle location conversion

Can select a location that best represents the conditions

across the organization

Less risky in terms ofloss oftime or delays in processing

Can be evaluated and changed before further installations

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Phased Conversion

A phased or gradual conversion

Takes advantage ofboth the direct and parallel approaches

Minimizes the risks involved

Allows the new system to be brought onlineas logically ordered functional components

Disadvantages

Takes the most time

Created the most disruption to the organization over time

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Post-Implementation Activities

The single most costly activity

Correcting errors or faults in the system

Improving system performance

Adapting the system to changes in the operating or

business environment

Requires more programmers than does application

development

May exist for years

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Systems Maintenance

There are four basic categories ofsystem maintenance

Corrective:fix bugs and logical errors

Adaptive: add new functionality

Perfective: improve performance

Preventive: reduce chances offailure

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Post-Implementation Review

Ensures that the newly implemented system meets the

established business objectives

Errors must be corrected by the maintenance process

Includes a periodic review/audit ofthe systemas well as continuous monitoring

Documents

System Development Strategy