Management Information Systems ADM 2372 PDF

ADM 2372 Management Information Systems Mayur Joshi, PhD Assistant Professor of Information Systems [email protected] © Copyright. Mayur Joshi. 2024. and © 2024 John Wiley &...

ADM 2372 Management Information Systems Mayur Joshi, PhD Assistant Professor of Information Systems [email protected] © Copyright. Mayur Joshi. 2024. and © 2024 John Wiley & Sons Canada, Ltd. or the authors All Rights Reserved. No part of this document may be reproduced, stored in a retrieval system or transmitted in any form or b y any means, electronic, mechanical, photocopying, recording or otherwise without prior written permission from the professor. Shar ing course materials without permission or uploading course materials to a content sharing website may be treated as an instance of acad emic fraud as well as copyright infringement. 1  Week 11 Acquiring Information Systems (Chapter 13) 2 Agenda 1. IT Planning 2. Strategies for Acquiring IT Applications 3. Traditional Systems Development Life Cycle 4. Alternative Methods and Tools for Systems Development 3 Overall Planning Process 4 IS Strategic Plan Definition: a set of long-range goals that describe the IT infrastructure and identify the major IT initiatives needed to achieve the organization’s goals Three objectives: o It must be aligned with the organization’s strategic plan o It must provide for an IT architecture that seamlessly networks users, applications, and databases o It must efficiently allocate IS development resources among competing projects so the projects can be completed on time and within budget and still have the required functionality 5 IS Operational Plan Definition: a clear set of projects that the IS department and the functional area managers will execute in support of the IT strategic plan. Key elements: o Mission statement o IS environment (i.e., information needs) o Objectives of the IS function o Constraints of the IS function (tech, financial, human resource constraints) o The application portfolio (present and expected applications) o Resource allocation and project management (who will do what, how, and when) 6 Considerations in Executing IS Strategic and Operational Plans Assessing the costs o Fixed costs o Variable costs for maintaining, debugging, improving systems Assessing the benefits o Tangible benefits o Intangible benefits Conducting the cost-benefit analysis 7 Considerations in Executing IS Strategic and Operational Plans Conducting Cost Benefit Analysis o Analysts use the net present value (NPV) o Return on investment (ROI) o Breakeven analysis o Business case approach 8 Strategies for Acquiring IS Purchase (buy) a prewritten application – Purchase a commercial software package from a vendor (e.g., HR ERP Module from SAP) – Compared to developing your own application, purchasing is Cost effective Time saving – BUT the organization must ensure that the software package meets its current and future requirements 9 Strategies for Acquiring IS Advantages & disadvantages of the Purchase (Buy) option Advantages Disadvantages Many choices are available May not meet needs of Can test software before organization buying it Difficult to modify, may Save time require changes in Familiar product processes Eliminate need to hire Difficult to integrate with specialized personnel existing systems May be discontinued by vendor Controlled by another company Buyer has no knowledge of underlying technology 10 Strategies for Acquiring IS Customize a prewritten application – Purchase a commercial software package from a vendor and customise it – Only possible if software is customizable – Enables the organization to make the software fit its own processes (no need for process change) – Difficult to do – Customization may degrade the performance of the software – Every new version of the software must be customized 11 Strategies for Acquiring IS Use SaaS (software as a service) – Offered by a cloud vendor (e.g., Salesfore.com) – The vendor hosts the application and provides it as a service to client organizations over a network (e.g., the Internet) – Pay-as-you-go – No need for client organizations to install, run, and maintain the application on their own IT infrastructure – Customer saves money, time, cost of IT staff, etc. See chapter on Cloud Computing 12 Strategies for Acquiring IS Outsourcing – Third party company (e.g., IBM) takes care of developing, operating, an maintaining the software application for a client company – If outsourcing outside of the country, it is called offshoring (outsourcing offshore) – e.g., offshoring to India Risks of offshoring: communication issues, privacy of the data, security of the data, etc. 13 Strategies for Acquiring IS Custom development (build) – Organization custom builds the application itself (in-house) or by a third-party company – Time consuming – Costly – BUT: this method produces a better fit with the organization’s processes (the organization gets to keep its processes, especially if they represent a competitive advantage) 14 Strategies for Acquiring IS Purchase Customize Use SaaS Custom prewritten prewritten (software as a Outsourcing development application application service) Q: Which one is better? A: It depends on many organizational factors and resources: Time Money Expertise Processes that are specific and must not be changed Sensitivity of the data (privacy and security considerations) Etc. 15 Fundamental Decisions in Acquiring IT Applications How much computer code does the company want to write? How will the company pay for the application? Where will the application run? Where will the application originate? 16 Systems Development Systems development means: – The activities that go into producing an information system (IS) to address an organizational problem or to take advantage of an opportunity – Problem: e.g., customers leaving > Solution: CRM – Opportunity: e.g., growth possibility > Solution: e-commerce 17 Systems Development The challenges of systems development include: – Time, Cost – Organizational changes associated with new IS – Deciding where and how to use the new IS New IS should help an organization become more productive; otherwise, it may damage productivity – It is hard to establish the information requirements of the organization – New IS should evolve as the organization and its business evolve 18 Systems Development The more an organization relies on IS, the higher the consequences of IS successes and failures – Increase or decrease revenue Nike’s poorly designed SCM delayed orders, increased excess inventories, and caused earnings to fall 24% below expectations – Prevent or incur liabilities FoxMeyer sued SAP for $500 million for an ERP failure – Increase or decrease productivity Defective software accounts for 45% of computer downtime – Repair or damage brand reputation Imagine how you’d feel if your bank’s website goes down 19 Systems Development Life Cycle (SDLC) Video: https://www.youtube.com/watch?v=i-QyW8D3ei0 20  Systems Development Life Cycle (SDLC) Systems Development Lifecycle (SDLC) - the overall process for developing information systems SDLC is the foundation for many systems development methods such as waterfall, agile, SDLC Process etc. 21  SDLC: Investigation The main task of the Investigation phase is the Feasibility Study – The feasibility study helps the organization choose from three options: Do nothing and continue to use the existing system unchanged Modify or enhance the existing system Develop a new system 22  SDLC: Investigation The Feasibility Study provides an assessment of the project’s: Technical feasibility: determines whether the company can develop and/or acquire the hardware, software, and communications components needed to solve the business problem Economic feasibility: determines whether the project is an acceptable financial risk and, if so, whether the organization has the necessary time and money to successfully complete the project Behavioral feasibility: addresses the human (people) issues of the systems development project 23  SDLC: Analysis Systems Analysis: examine the business problem that the organization plans to solve with an IS Gather information about existing system to determine requirements for the new or improved system Deliverable: User requirements: specific requirements that the system must satisfy This is the most difficult task in systems development 24  SDLC: Design Systems design describes how the system will resolve the business problem Deliverables: set of technical system specifications: – System outputs, inputs, calculations or processing, and user interfaces – Hardware, software, databases, telecommunications, personnel, and procedures – A blueprint of how these components are integrated 25  SDLC: Programming Programming - involves taking all the detailed design documents from the design phase and transforming them into the actual system – Translating a system’s design into computer code IT specialists perform most tasks associated with this phase Primary development activities include: – Develop the IT infrastructure – Develop the database and programs 26  SDLC: Testing Testing phase - involves bringing all the project pieces together into a special testing environment to test for errors (bugs) and interoperability, in order to verify that the system meets all the business requirements defined in the analysis phase 27 SDLC: Implementation Implementation phase - involves placing the system into production (going live) so users can begin to perform actual business operations with the system Primary implementation activities include: – Write detailed user documentation – Provide user training – Determine conversion strategy (see next slide) 28  SDLC: Implementation There are 4 main conversion strategies (a) Parallel conversion (b) Direct conversion (c) Phased conversion (d) Pilot conversion Question: which one is better? 29 SDLC: Operation & Maintenance Maintenance - involves performing changes, corrections, additions, and upgrades to ensure the system continues to meet the business goals Types of maintenance Adaptive - making changes to meet new business requirements Corrective - repairs defective systems Perfective - making changes to enhance the system (e.g., processing performance) Preventive - making changes to reduce the chance of future system failures 30 Comparison of user and developer involvement over the SDLC. 31 Alternative Methods for Systems Development Waterfall Joint Application Design (JAD) Agile Development End-User Development 32 Waterfall Methodology Waterfall methodology - sequential, activity-based SDLC phases process in which each phase in the SDLC is performed sequentially Problems with this methodology: Time – assumes users can specify The success rate of software development all requirements in projects that follow the waterfall advance methodology is only about 10% – assumes requirements do Failure does not necessarily mean a not change over time project is abandoned. It can mean over budget, late delivery, does not meet all requirements, etc. 33 Waterfall Methodology Video: https://www.youtube.com/watch?v=Y_A0E1ToC_I 34 Joint Application Design (JAD) Focusses on the 2 SDLC phases analysis and design Involves group meetings of systems analysts and users (those who will use the system) Goal: define and agree on systems requirements 35 Agile Development Agile development methods – Focus on early & continuous delivery of system components that … meet minimum requirements – Divide project into smaller, Iteration 1 Iteration 2 … more manageable, more efficient, lower cost A series of smaller more manageable projects – the smaller the project, the projects that achieve rapid greater the success rate feedback & acceptance – Use an iterative approach 36 Agile Development Video: https://www.youtube.com/watch?v=-zDct5d2smY 37 Agile Development A scrum approach A key principle of scrum is that, during a project, users can change their minds about what they want and need. Roles: Scrum master: Maintains the processes (typically replaces a project manager) Product owner: Represents the business users and any other stakeholders in the project Team: A cross-functional group of about seven people who perform the actual analysis, design, coding, implementation, and testing 38 Agile Development Video: https://www.youtube.com/watch?v=N4NQ6rZiQ5Q 39 Agile Values and Principles Agile Manifesto Created by 17 software developers in 2001, to address shortcomings of the Waterfall model. Agile Values Individuals and Interactions Over Processes and Tools Working Software Over Comprehensive Documentation Customer Collaboration Over Contract Negotiation Responding to Change Over Following a Plan 40 Agile Values and Principles Agile Principles Customer satisfaction through early and continuous delivery of valuable software Welcome changing requirements, even late in development Deliver working software frequently Business people and developers must work together daily Build projects around motivated individuals. The most efficient and effective method of conveying information is face-to-face conversation Working software is the primary measure of progress Agile processes promote sustainable development Continuous attention to technical excellence and good design enhances agility Simplicity—the art of maximizing the amount of work not done—is essential The best architectures, requirements, and designs emerge from self-organizing teams Regularly, the team reflects on how to become more effective, then tunes and adjusts its behavior accordingly 41 Agile Values and Principles Video: https://www.youtube.com/watch?v=Z9QbYZh1YXY 42 End-User Development Development is done by people who use the system End-users build and maintain the system without much support from IT Ranges from simple Excel worksheet templates to complex systems including prototypes Advantages: – Meeting user requirements – Sense of ownership by users – Faster development Disadvantages – Problems due to lack of development expertise – Not consistent with organizational goals – Lack documentation 43 End-User Development Video: https://www.youtube.com/watch?v=pio2tW9lb_k 44 System Development Methods Systems Development Lifecycle (SDLC) Waterfall Joint Agile End-User each phase in the SDLC Application early and continuous delivery of Development is performed Design (JAD) users design useful software components with few sequentially, without active involvement of features; develops the system in their own revisiting previous users iterations (whereas waterfall only systems using phases does one iteration) simple tools 45 Tools for Systems Development Design thinking o Empathize: Empathy is the ability to see how a situation could feel to another person o Define: In the Define stage, the problem is defined from the perspective of the user that the developers empathized with in the first stage o Ideate: Brainstorming comes in many forms and methods o Prototype and Test Prototyping o The prototyping approach defines an initial list of user requirements, builds a model of the system, and then refines the system in several iterations based on users’ feedback. Integrated computer-assisted software engineering (CASE) tools o a group of tools that automate many of the tasks in the SDLC Component-based development o uses standard components to build applications. Components are reusable applications that generally have one specific function, such as a shopping cart, user authentication, or a catalogue. 46