Fundamentals of Information Systems Management 4H2MSI PDF

Fundamentals of Information Systems Management 4H2MSI Course Objectives & Roadmap 1 Fundamentals of Information Systems, including their composition and functions in organizations 2 Integrated Mgt. Systems & Software (ERP, CRM, SCM, etc.) are applied in organizations 3 Foundations of Data Management...

Fundamentals of Information Systems Management 4H2MSI Course Objectives & Roadmap 1 Fundamentals of Information Systems, including their composition and functions in organizations 2 Integrated Mgt. Systems & Software (ERP, CRM, SCM, etc.) are applied in organizations 3 Foundations of Data Management including data Security, Ethics and Sustainability considerations 3 4 Analysis and evaluation of Information Systems Acquisition and Deployment in Organizations Today we are here! 4H2MSI: Fundamentals of Information Systems Management Course Evaluation Group Work 2 [25%]: Analysis & Evaluation of an IS Project Harvard Business Case Final Exam/Quiz [50%] 4H2MSI: Fundamentals of Information Systems Management Group Work Assignment 2 Planning for and Justifying IS Applications ▪ Part 1: IS Strategic Planning ▪ Part 2: Strategies for Acquiring IS Applications ▪ Part 3: Systems Development 4H2MSI: Fundamentals of Information Systems Management Part 1: IS Strategic Planning IS Strategic Planning: Structure & Key Terms Organization Strategic Plan: Identifies the firm’s overall mission, the goals that follow from that mission, and the broad steps required to reach these goals. IS Strategic Plan: a set of long-range goals that describe the IT infrastructure and identify the major IT initiatives needed to achieve the organization’s goals. IS Steering Committee: comprised of a group of managers and staff who represent the various functional areas, is created to establish IT priorities and to ensure that the IS function is meeting the organization’s needs. IS Operational Plan: consists of a clear set of projects that the IS department and the functional area managers will execute in support of the IS strategic plan. 4H2MSI: Fundamentals of Information Systems Management Organization Mission Business Assessment Organizational Strategic Plan IS Strategic Plan New I systems IS Operational Plan IS Development Projects Current Info Systems IS Strategic Planning Goals § Strategy Involves planning the use of one’s resources in order to meet objectives. Plans Business Assessment Organizational Strategic Plan IS Strategic Plan § Three key ingredients to strategy: New IS systems Planning Objectives or Goals Resources IS Operational Plan Resources 4H2MSI: Fundamentals of Information Systems Management Organization Mission IS Development Projects Current Info Systems IS Strategic Planning: Current Systems Assessment IS/IT Portfolio Matrix: Current systems assessment Strategic IS/IT that are critical to sustaining future business strategy IS/IT which the organization currently depends on for success Key Operational Organization Mission Business Assessment High Potential IS/IT that may be important in achieving future success Organizational Strategic Plan IS Strategic Plan New IS systems IS/IT that are valuable but not critical to success Support 4H2MSI: Fundamentals of Information Systems Management IS Operational Plan IS Development Projects John Ward, Joe Peppard (2013). Strategic Planning for Information Systems. 3rd Edition. Wiley. https://www.wiley.com/enus/Strategic+Planning+for+Information+Systems%2C+3rd+Edition-p-9781118585252 Current Info Systems IS Strategic Planning: Current Systems Assessment S.W.O.T. Analysis: Current systems assessment Organization Mission Business Assessment Organizational Strategic Plan IS Strategic Plan New IS systems IS Operational Plan IS Development Projects 4H2MSI: Fundamentals of Information Systems Management Current Info Systems IS Strategic Planning: Future Systems Projection IS/IT Portfolio Matrix: Future Systems Projection Strategic High AIM: Competitive Advantage Low Organization Mission High Potential AIM: Exploratory and uncertain -> innovation Approach: Competitive, with effectiveness focus Approach: Competitive, with a pro-active focus (anticipating future strategic needs) AIM: Improve performance AIM: Reduce costs Approach: Reactive, with IT and efficiency focus Approach: Reactive, with effectiveness focus Key Operational Support High 4H2MSI: Fundamentals of Information Systems Management Business Assessment Organizational Strategic Plan Alignment is critical because the organization’s information systems must support the organization’s strategies. IS Strategic Plan New IS systems IS Operational Plan IS Development Projects Low John Ward, Joe Peppard (2013). Strategic Planning for Information Systems. 3rd Edition. Wiley. https://www.wiley.com/enus/Strategic+Planning+for+Information+Systems%2C+3rd+Edition-p-9781118585252 Current Info Systems IS Operations Planning: Cost Analysis Approaches for Cost Analysis: Calculating the monetary value of IT investments is not as simple as it may seem. One of the major challenges --> allocating fixed costs among different IT projects. Consider: § Fixed Costs: are those costs that remain the same regardless of any change in the company's activity level (e.g., costs associated with infrastructure, IT services, and IT management. § Recurring costs: The running costs of maintaining IT systems. They come from maintenance, updates, upgrades, licenses § IT deployment chosen: Costs heavily depend on type of client-vendor option chosen, inhouse or cloudbased, regular consultancy, licensing options, etc. 4H2MSI: Fundamentals of Information Systems Management Organization Mission Business Assessment Organizational Strategic Plan IS Strategic Plan New IS systems IS Operational Plan IS Development Projects Current Info Systems IS Operations Planning: Cost-Benefit Analysis Four Common Approaches for Cost-Benefit Analysis: Net Present Value (NPV): Convert future values of benefits to their equivalent present-value by discounting them at the organization's cost of funds. This is compared with the cost required to achieve those benefits to determine whether the benefits exceed the costs. Organization Mission Return on Investment (ROI): Calculated ratio between income and investment => divide the net income generated by a project by the average cost of IT assets assets invested. Breakeven Analysis: determines the point at which the cumulative value of the benefits from a project equals the investment made in the project. Business Case Approach: system developers write a business case to justify funding one or more specific IS/IT systems / projects. IS professionals often write business cases explaining what, why, how, when new IS are required. 4H2MSI: Fundamentals of Information Systems Management Business Assessment Organizational Strategic Plan IS Strategic Plan New IS systems IS Operational Plan IS Development Projects Current Info Systems IS Operations Planning: Benefits Analysis Approaches for Benefits Analysis: Benefits Dependency Network Benefits may be more difficult to quantify, especially because many of them are intangible. A benefits dependency network is a useful way to illustrate benefits 4H2MSI: Fundamentals of Information Systems Management Ward and Peppard (2002), Chapter 9, Page 445 Full textbook: https://www.wiley.com/enus/Strategic+Planning+for+Information+Systems%2C+3rd+Edition-p-9781118585252 IS Operations Planning: Benefits Analysis Benefits Dependency Network Approaches for Benefits Analysis: Benefits may be more difficult to quantify, especially because many of them are intangible. A benefits dependency network is a useful way to illustrate benefits 4H2MSI: Fundamentals of Information Systems Management Source: R. David 2015 Part 2: Strategies for Acquiring IS Applications Strategies for Acquiring IS Applications § Purchase a Prewritten Application § Lease the Application § Customize a Prewritten Application § Write an Application in-house § License from Application Service Providers (ASPs) or Software-as-a-Service (SaaS) Vendors § Open-source vs. Proprietary 4H2MSI: Fundamentals of Information Systems Management Pre-written “Off the Shelf” Purchase a Prewritten Application: Many commercial software packages contain the standard features required to support basic processes and operations within an Information System of an organization. Purchasing an existing package can be a cost-effective and time-saving strategy compared with customdeveloping the application in-house. 4H2MSI: Fundamentals of Information Systems Management § § § § § Be-spoke Off the Shelf Pre-Written Pre-Packaged Canned Pre-written “Off the Shelf” Benefits Drawbacks § Many different types of off-the-shelf software are available. § The company can try out the software before purchasing it. § The company can save time by buying rather than building. § The company can know beforehand, what it’s getting before investing. § Purchased software may eliminate the need to hire personnel specifically dedicated to a project. § Software may be too generic and not exactly meet the company’s needs. § Software may be difficult or impossible to modify, or it may require huge business process changes to implement. § The company will have no control over software improvements and new versions. § Software is controlled by another company with its own priorities and business considerations. Vendors may discontinue a product or go out of business. § Purchased software can be difficult to integrate with existing systems. 4H2MSI: Fundamentals of Information Systems Management Custom Software Develop a Custom Software § Custom software is developed, deployed and sustained to meet a company’s specific needs § Developing custom software is often done to support operations and processes that are (i) unique to a company, for (ii) security reasons, and for (iii) strategic control of innovation § Custom software can be built in-house or outsourced to third-party developers or more usually, a combination of both internal IT staff and external consultants 4H2MSI: Fundamentals of Information Systems Management Custom vs Pre-Written Custom Pre-Written § High upfront cost § Tailor made to meet specialized needs § Flexible as it can be modified to match changing needs unlike pre-packaged solutions § Guaranteed on-going support § High control over the development process, customization and functionality of the solution, § Scalable, allowing you to change and grow, from a small-sized business. § Custom solution helps you to gain a competitive edge through its exclusive and unique features. § Low up-front costs § Trial for a limited time can help to test whether it fits the needs of a company or not § Off-the-shelf software generally contains many features as it is made keeping in mind the requirements of many businesses § Best when time is limited to deploy a required software § Off-the-shelf software has already been tried and tested; there are reviews from other businesses. § Off-the-shelf software is often quicker to deploy; and upgrades are provided at a reduced cost 4H2MSI: Fundamentals of Information Systems Management Off the Shelf – Modified Customize a Prewritten Application: § Customizing existing software is an especially attractive option if the software vendor allows the company to modify the application to meet its needs. § This option may not be attractive in cases where customization is the only method of providing the necessary flexibility to address the company's needs. § It also is not the best strategy when the software is either very expensive or likely to become obsolete in a short time. 4H2MSI: Fundamentals of Information Systems Management Leasing from ASP An Application Service Provider (ASP) is a vendor that assembles the software needed by enterprises and offers it via the internet. § Compared with the buy option and the option to develop applications in-house, the lease option can save a company both time and money. § Leased packages (like purchased packages) may not exactly fit the company's application requirements. § Leasing can be especially attractive to small and SMEs that cannot afford major investments in IT software. 4H2MSI: Fundamentals of Information Systems Management Operations of an Application Service Provider Leasing from SaaS Provider Software-as-a-Service (SaaS) is a method of delivering software in which a vendor hosts the applications and provides them as a service to customers over a network, typically the Internet. § Customers do not own the software; rather, they pay for using it. SaaS eliminates the need for customers to install and run the application on their own computers. § Therefore, SaaS customers save the expense (money, time, IT staff) of buying, operating, and maintaining the software. 4H2MSI: Fundamentals of Information Systems Management Operations of an SAAS Service Provider Open-Source Software Open-Source Software (OSS) refers to software whose source code is made available to the public, allowing anyone to view, modify, and distribute it freely. Key Characteristics: § Transparency: Full access to source code. § Collaboration: A global community of developers. § Cost: Typically free to use and distribute. § Examples of OSS: § Linux (Operating System) § Mozilla Firefox (Web Browser) § Apache HTTP Server (Web Server) 4H2MSI: Fundamentals of Information Systems Management Proprietary Software Proprietary software is developed and owned by a single organization or company. Its source code is typically closed and not accessible to the public. Key Characteristics: § Closed Source: Source code is not publicly available. § Licensing: Users must pay for licenses. § Support: Typically provided by the software vendor. § Examples of Proprietary Software: § Microsoft Windows (Operating System) § Microsoft Office (Productivity Suite) § Adobe Photoshop (Image Editing Software) 4H2MSI: Fundamentals of Information Systems Management Open Source vs. Proprietary Software Licensing & Cost: Security: 1. Open Source: Typically free, no licensing fees. 2. Proprietary: Requires purchasing licenses, often with ongoing costs. Customization: 1. Open Source: Highly customizable due to access to source code. 2. Proprietary: Limited customization options. 1. Open Source: Transparent code allows for security scrutiny by the community. 2. Proprietary: Security depends on the vendor's efforts. Community & Support: 1. Open Source: Strong community support, forums, and user-contributed resources. 2. Proprietary: Vendor-provided support with paid contracts. Use Cases: 1. Open Source: Ideal for tech-savvy organizations looking for customization. 2. Proprietary: Common in business environments requiring guaranteed support. 4H2MSI: Fundamentals of Information Systems Management Part 3: Systems Development Traditional Software Development Life Cycle 1. 2. 3. 4. 5. 6. Systems Investigation & Planning Systems Analysis Systems Design Programming and Testing Implementation Operation & Maintenance 4 H 2 M S I : Fundamentals of Information Systems Management SDLC: Investigation & Planning Systems Investigation : Primarily done to assess the feasibility of implementing a new system based in the current one. Technical Feasibility: determines whether the company has the right Infrastructure and IT environment (e.g., hardware, software, and networking components needed to support the new solution) Economic Feasibility: determines if new system is an acceptable financial risk and there is time & money to successfully develop and implement it. Behavioural Feasibility: addresses the human issues of the systems development, including skills, competencies and resistance to change 4 H 2 M S I : Fundamentals of Information Systems Management SDLC: Investigation & Planning Systems Investigation : Primarily done to assess the feasibility of implementing a new system based in the current one. Three basic outcomes (1) do nothing and continue to use the existing system unchanged (2) modify or enhance the existing system (3) develop a new system. 4 H 2 M S I : Fundamentals of Information Systems Management SDLC: Systems Analysis Systems analysis: the process whereby systems analysts examine the business problem that the organization plans to solve with an information system. Systems analysis deliverable is a set of system requirements. User Requirements: identifying business requirements the system must satisfy which is provided by users. This is often the most difficult task in systems analysis. Deliverable: A set of system requirements (or User Requirements) 4 H 2 M S I : Fundamentals of Information Systems Management SDLC: Systems Design – key terms Systems Design: describes how the system will resolve the business problem. Technical specifications include following: System outputs, inputs, and user interfaces Hardware, software, databases, networks, personnel, and procedures A blueprint of how these components are integrated Deliverable: a set of technical system specifications. 4 H 2 M S I : Fundamentals of Information Systems Management SDLC: Systems Programming and Testing Programming: involves translating the design specifications into computer code. Testing: the process that assesses whether the computer code will produce the expected and desired results. 4 H 2 M S I : Fundamentals of Information Systems Management SDLC: Implementation Implementation: the process of deploying a new system - often to replace an old one Major Implementation Strategies: Direct: The old system is cut off, and the new system is turned on at a certain point in time. This type of deployment is the most risky. Parallel: old and new systems operate simultaneously for a time to ensure that the new system works well and there is no down time for clients. 4 H 2 M S I : Fundamentals of Information Systems Management SDLC: Implementation Major Implementation Strategies: Pilot: Introduces the new system in one part of the organization, such as in one division or one functional area. The new system runs for some time and is then assessed. If the assessment confirms that the system is working properly, then the system is implemented in other parts of the organization. Phased: introduces components of the new system, such as individual modules, in stages. Each module is assessed. If it works properly, then other modules are introduced, until the entire new system is operational. 4 H 2 M S I : Fundamentals of Information Systems Management SDLC: Operations and Maintenance Once a new system’s operations are stabilized, the company performs audits to assess the system’s capabilities and to determine if it is being utilized correctly. Systems Require Several Types of Maintenance: Debugging: (the system) a process that continues throughout the life of the system. Updating: (the system) to accommodate changes in business conditions (e.g., adjusting to new governmental regulations). Adding: new functions added to the existing system without disturbing its operation 4 H 2 M S I : Fundamentals of Information Systems Management SDLC: Traditional/Waterfall The major concern is limited iterations between steps 4 H 2 M S I : Fundamentals of Information Systems Management Alternative Methods for Systems Development Agile D e v e l o p m e n t : a software development methodology that delivers functionality in rapid iterations, which are usually measured in weeks 4 H 2 M S I : Fundamentals of Information Systems Management Alternative Methods for Systems Development 1. When a customer describes what s/he wants, it tends to be true that s/he always overstates it. 2. The product owner gathers the customer's requirement and summaries it. 3. Engineers follow PO's summary and make it work. Well, to some extent... 4. Then programmers will write it. However, when you test it, it is not workable. 5. Finally, we have a product, so the sales can start their job by exaggerating its features. 6. When you want to check the document, it is always nowhere to be found. 7. What the operations build is simply a rope. Gosh, I don't know what to say. 8. Customers are billed for extraordinary experiences. 9. The way Helpdesk solves problems is just simple and "radical". 10. Voila! It turns out what the customer truly wants is just a simple tire swing. 4 H 2 M S I : Fundamentals of Information Systems Management https://pmac-agpc.ca/project-management-tree-swing-story Agile manifesto 4 H 2 M S I : Fundamentals of Information Systems Management https://agilemanifesto.org Group Work Assignment 2 Thank you for your attention!