MGMT2006 Unit 5 Management Information Systems I - PDF
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This document is an overview of Management Information Systems Unit 5. It outlines the key concepts, learning objectives, and resources for the unit. The structure of the unit is clearly defined with sections on building information systems and business process reengineering. References to various readings and resources are also present.
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UNIT 5 Systems Development Overview In Unit 4 we worked on cultivating some of the practical skills required to use Information Systems for operational excellence and managerial decision making. In this Unit 5, we look at what it takes to develop, acquire or replace information systems. We will...
UNIT 5 Systems Development Overview In Unit 4 we worked on cultivating some of the practical skills required to use Information Systems for operational excellence and managerial decision making. In this Unit 5, we look at what it takes to develop, acquire or replace information systems. We will examine the many important roles that business users (as opposed to developers, installers, servicers and other IT people) play in MIS projects. We will also revisit business processes introduced in Unit 2, and complete our “to-be” conversation by looking at the concept of business process reengineering. Learning Objectives By the end of this Unit you will be able to: 1. Examine approaches to building information systems. 2. Explore business roles in a software development or selection or replacement project. 3. Examine the concept of business process reengineering. ___________________________________________________________________________________________________ MGMT2006 – Management Information Systems I UNIT 5 - 1 VERSION1 This Unit is divided into three sessions as follows: Session 5.1: Building Information Systems Session 5.2: Team Roles in MIS Projects Session 5.3: Business Process Reengineering Readings & Resources Required Readings Bourgeois, D.T. (2014). Chapter 10: Information Systems Development. In: Information Systems for Business and Beyond. Available at https://bus206.pressbooks.com/chapter/chapter-10-information-systems- development/ Cook, R. (Jul 29, 2013). Configuration vs. Customization in ERP. Available at http://it.toolbox.com/blogs/inside-erp/configuration-vs-customization-in-erp- 56895?reftrk=no&trdref=4232425265674d61696c696e673a496e736964652d455250 Frost, R.D. (2011). Chapter 6: Build, Buy, or Reuse Solutions: Develop a Website to Market the App: “Build vs. Buy”. In: Business Information Systems: Design an App for That (v. 1.0). Available at https://saylordotorg.github.io/text_business-information-systems- design-an-app-for-that/s10-build-buy-or-reuse-solutions-d.html Gammie, G. (19 Aug 2015). Implementation Team Roles & Responsibility. Available at http://www.geotalent.com/blog/implementationroles/#.V5k8cqJ8k0U Jones, J., Aguirre, D., & Calderone, M. (n.d.). 10 Principles of Change Management. Available at http://www.strategy-business.com/article/rr00006?gko=643d0 Joyner, J. (n.d.). Accounting Information System Conversion Methods. Available at http://smallbusiness.chron.com/accounting-information-system-conversion-methods- 34569.html Linam, C. (11 Jun 2015). The Project Team Structure: ERP Project Team Roles and Responsibilities. Available at http://www.ultraconsultants.com/erp-project-team- roles-and-responsibilities/ Mind Tools. (n.d.). Change Management: Making Organization Change Happen Effectively. Available at https://www.mindtools.com/pages/article/newPPM_87.htm ___________________________________________________________________________________________________ MGMT2006 – Management Information Systems I UNIT 5 - 2 VERSION1 Qassim, A.A. (n.d.). Why Information System Projects Fail. Available at http://www.intosaiitaudit.org/intoit_articles/26_p12top17.pdf Rainer, R. and Turban, E. (2016). Chapter 14: Information Systems Development. In Management Information Systems, 4th Edition. Available at http://www.wiley.com/college/turban/0471073806/sc/ch14.pdf Sudhakar, G.P. (2010). The Role of IT in Business Process Reengineering. Œconomica, Vol 6, No 4. Pp.28-35. Available at http://journals.univ- danubius.ro/index.php/oeconomica/article/view/757/689 The Systems Development Life Cycle (and project management). Available at http://www.free-management-ebooks.com/news/systems-development-life-cycle/ ___________________________________________________________________________________________________ MGMT2006 – Management Information Systems I UNIT 5 - 3 VERSION1 Session 5.1 Building Information Systems Introduction In this session, we look at the ways companies build, acquire, or replace Information System. Systems development is the entire set of activities needed to construct an information systems solution to a business problem or opportunity. Here, we are not distinguishing between creating the system yourself or buying someone else’s solutions, because, for complex systems, the same level of rigor and analysis is required for both. Planning for Systems Changes Major MIS change does not just happen. Often this change is a direct expression of actions dictated by a company’s strategic planning. If done correctly, the organizational level strategic plan will be used to guide and align an overall IS plan, which will ultimately result in planned IS development projects. The IS strategic plan, is a set of long-range goals that describe the IT architecture and major IS initiatives needed to achieve the goals of the organization. The IS strategic plan must meet three objectives (Turban, 2008): It must be aligned with the organization’s strategic plan. It must provide for an IT architecture that enables users, applications, and databases to be seamlessly networked and integrated. It must efficiently allocate IS development resources among competing projects, so the projects can be completed on time, within budget, and have the required functionality. The IS strategic plan states the mission of the IS department, which defines the department’s underlying purpose. The mission helps to answer questions relating to three major issues (Turban, 2008): Efficiency. Does the IS function help the organization reach its goals with minimum resources? Effectiveness. Does the IS function help the functional area managers (and executives) do the right things? ___________________________________________________________________________________________________ MGMT2006 – Management Information Systems I UNIT 5 - 4 VERSION1 Competitiveness. Does the IS function engage in projects that will enhance the organization’s competitive position? The mission of the IS department requires a great deal of input from all of the organization’s functional area managers, and often from higher organizational officers as well. This input will help to define the appropriate role of the IS department in accomplishing the organization’s goals. All of these statement here link back to our discussions on aligning the companies Information Systems within the broader set of Work Systems to maximize value. The inclusion of an information system in any Organization must be planned to identify the direction of the development of the proposed system, its rationale, the current situation, the management strategy, the implementation plan, and of course, the budget allocated to such as system. The plan therefore indicates what needs to be done, who needs various aspects of information and indeed who creates this information. The end result of an information system is the alignment of many areas and levels that should or must work together seamlessly. Planning is at the heart of every good information system initiative. Read this case study of how CIMB Group Redesign Its Account Opening Process. The company launched a five-year information technology transformation initiative in January 2008 to align its information technology investments more closely with its resources. It used the ARIS business process management (BPM) tool from IDS Scheer to identify 25 different areas for improving technology, people, and processes. The ARIS software helped identify gaps and inefficiencies in existing processes. Read more at http://matakuunique.blogspot.com/2015/05/cimb-group- redesign-its-account-opening.html The CIMG Group example, gives us some of the steps needed to plan and build a new information system. Analyze what problems exist with the current Information System. Assess the new requirements. Select an appropriate solution. Redesign business processes and jobs. The new Information System represents a process of planned organizational change (Laudon 2006). In the next few sessions, we will examine some of the ways to implement this change. ___________________________________________________________________________________________________ MGMT2006 – Management Information Systems I UNIT 5 - 5 VERSION1 System Development and Organizational Change Given the tremendous influence MIS has on organizations, changing an Information System always promotes organizational change. This change can vary from mild impact, to a radical change in how the organization is structured and how it performs. The four types of change, arranged in order of both risk and return on investment are; Automation, Rationalization, Reengineering, and Paradigm Shifts. Figure 5.1: Types of Organizational change Source: http://i17.servimg.com/u/f17/14/07/92/07/pictur10.png Automation – this is the method of speeding up the performance of tasks by computerizing or mechanizing existing procedures. Rationalization of procedures – the streamlining of standard operating procedures including cutbacks, consolidations, changes in organizational structure etc. Business process reengineering – analysis and redesign of business processes to reorganize workflows and reduce waste and repetitive tasks Paradigm shift – radical reconceptualization of the nature of the business and the nature of the Organization. The first two forms of Organizational change above (automation and rationalization) are easier to do, offering modest rewards at relatively low risk. In contrast, reengineering and paradigm shift, are more difficult to do. They offer higher rewards but are more prone to failure. See more details in your readings. ___________________________________________________________________________________________________ MGMT2006 – Management Information Systems I UNIT 5 - 6 VERSION1 Paradigm shifts (risk, rewards and failures) One company that demonstrated the use of paradigm shifts to reinvent itself (some would argue to stave off its extinction) is Microsoft. Founded in 1975, Originally Microsoft invented itself as the maker of the operating system software – MS-DOS. The first paradigm occurred when Microsoft created Windows with its graphical user interface (GUI). The GUI killed MS-DOS as a product. The Company quickly added Word and then proceeded to establish other products, which went on to become the Office productivity suite we all know so well. In the meantime, a new paradigm had taken hold. It was called the Internet. Originally Microsoft missed the boat – the emergence of the Internet paradigm and the “sudden” appearance of many new rivals – and appeared headed for the doldrums. Then, in 1995, Bill Gates issued the now famous “Internet Tidal Wave” memo. Within a year Microsoft transformed itself into an Internet company. “Internet awareness” was built right into the operating system (Windows) making it possible for every program to be internet aware. Microsoft entered into a browser war with Netscape – which Internet Explorer won, and Netscape lost (do any of you know about Netscape? https://www.engadget.com/2014/05/10/history-of-netscape/ The Bing search engine was the company’s response to Google, but it looks like Google won that battle. Microsoft now has Cloud based, software as a service (SAAS) applications – Office 365, Power-BI and many more. All to compete with IBM, Amazon and others for the lion share of the quickly emerging cloud computing market. The company also dipped its toes into the lucrative gaming sector (USD $1.81 trillion in 2016) when it invented the Xbox gaming system to compete against Sony’s PlayStation and Nintendo consoles. Analyzing for Change When it comes to analyzing organizations to effect a change, there are two main approaches. Enterprise Analysis, an inward looking approach and, Strategic Analysis with Critical Success Factors, which focuses on environmental issues. 1. Enterprise analysis, also known as business systems planning, looks at the entire business in terms of the individual units within the business. For example, the functions, processes, data elements and even the departments are scrutinized to identify the Organisation’s data (entities and attributes). Read more here. 2. Strategic Analysis with Critical Success Factors (CSFs) looks at the external environment to identify threats and opportunities. Two techniques PESTLE Analysis and Porter’s Five Forces Analysis are used to examine the business environment. The ___________________________________________________________________________________________________ MGMT2006 – Management Information Systems I UNIT 5 - 7 VERSION1 company then develops a list of Critical Success Factors. Critical Success factors (CSFs) are a few key factors that organisations should focus on to be successful. Traditional System Development Life Cycle Definition: The systems development life cycle (SDLC), also referred to as the application development life-cycle, is a term used in systems engineering, information systems and software engineering to describe a process for planning, creating, testing, and deploying an information system. The SDLC has historically been used to develop large systems. It tends to be rigid and documentation heavy. It is called a “Waterfall” method because you are expected to complete one phase before moving onto the next phase. You can have iterations, but this normally requires you to go back and update all your documentation before you can move forward again. Whether you create your own IS (build) or buy a solution from someone else, the method follows the same general steps. Table 5.1: Steps in the SDLC Build Buy Systems Analysis – Requirements Systems Analysis – Requirements gathering, decide what you want gathering followed, by system the system to do selection Systems Design – decide what it (systems design ) Blueprinting – how will look like well does it fit Programming – built it to be what (programming) Configuration and/or you want Customization– tweak/set it up to be what you want Testing Testing Conversion Conversion Production (go live) Production (go live) Maintenance Maintenance Systems analysis is the study and analysis of problems of existing systems and the identification of requirements for their solutions. Systems design provides the specifications for an information system solution, showing how its technical and organizational components fit together. In a blueprinting exercise you do a gap analysis ___________________________________________________________________________________________________ MGMT2006 – Management Information Systems I UNIT 5 - 8 VERSION1 to see how well the systems meets your needs. Programming (or configuration) in the process of creating (or tweaking) the final solution based on the requirements that have been gathered. Testing is the process that validates if the system is preforming as designed and as required. There are three (3) levels of testing. Unit testing which checks for programming bugs and logic errors; Integration testing to make sure the modules are working together and that the system is doing what it says it will do; Acceptance testing, business process by business process testing – not only must the system do what it says it will do, but more importantly, what it does MUST give you your desired result. The developer/implementer could deliver the perfect car when the customer really wanted a boat!! Conversion is the process of switching from the old (computer or manual) system to the new Information System. There are four conversion methods. Parallel conversion. Where you run both the new and the old for a time before switching off the old. Pilot conversion. Where you implement and test the new system, on a small scale in one business unit, then you expand the conversion to include all of the other business units. Phased conversion. Where over time you gradually use more of the new and less of the old until you are completely converted. Direct (Plunge in diagram) conversion. Where you switch off the old and switch on the new at the same time. Figure 5.2: System conversion methods Source: O’Brien & Marakas (2006, p. 424) Production. The system is said to be in “Production” when you have finished the conversion ___________________________________________________________________________________________________ MGMT2006 – Management Information Systems I UNIT 5 - 9 VERSION1 process, and you are processing live transactions. Maintenance. All system projects end. At the end of the project, the system goes into use, and enters steady state maintenance. This can last for years or until the next organizational change cycle begins. Alternative Life Cycles The SDLC is an older well established model for developing or changing a system. However it is traditionally slow and several alternatives have been developed to provide businesses with faster solutions Rapid Application Development models Prototyping End user development (e.g. excel macros) Outsourcing Find further information on these in your readings. Build vs. Buy A final word on Build vs. Buy: Let’s start this Session with a fairly long but important analogy. Most people or organizations don’t build their own car. Of course there are companies/governments/navies etc. that have very specific transportation needs and may commission the creation of a new vehicle; or a Formula One racing team will have mechanical and electrical engineers on board and access to a state - of-the-art machine shop to manufacture anything they want; but, by and large most people don’t build their own car. People will however customize their car. I am sure you know that guy (or girl) who has installed a (pun) deaf-defying stereo system; or have replaced the off-the-rack rims because (let’s face it), off the rack rims are ugly; or have retrofitted enough hydraulics to move a small elevator; or … you get the picture. The car industry has matured to the point where only the hobbyist or enthusiast would weld together a chassis, construct a fiberglass body and assemble their own car. What is more typical, the car user: Selects a car. Tweaks the configuration slightly, or a lot. o Colour, rims, body kit, A/C, power windows, spoiler, stereo, new exhaust system etc. Maintains the car on a regular basis until it is time to start over again. ___________________________________________________________________________________________________ MGMT2006 – Management Information Systems I UNIT 5 - 10 VERSION1 The same type of analogy applies to business information systems. The business MIS landscape has matured to the point where most companies would not think of building their own information system from scratch. Occasionally a business will do something innovative – e.g. Walmart’s spawning of the supply chain logistics model contributed to major innovations in ERP software to support the model. However, what is more typical for most businesses that you will encounter is: Select a pre-existing system Modify/localize/customize the system (this varies from zero changes to heavy customization) Implement the system using one of the methods discussed (phased, parallel, direct cut over etc.) Enter into steady state maintenance until it is time to start over again. Applications Software Packages These packages are prewritten, pre-coded application software programs that are commercially available for sale or lease. However, their strength lies in the fact that users may customize certain features thus allowing the software to be modified for an Organization’s unique requirements. In order to evaluate which application is suitable for the task, certain criteria are necessary. These include, knowing the functions of the applications, the flexibility of the application to adapt to other applications, user friendliness, hardware and software resources, database requirements, installation and maintenance efforts, documentation, vendor quality, and of course cost of the program. ___________________________________________________________________________________________________ MGMT2006 – Management Information Systems I UNIT 5 - 11 VERSION1 LEARNING ACTIVITY 5.1 TASK A Readings Read Chapter 14 in Information Systems Development. Available at: http://www.wiley.com/college/turban/0471073806/sc/ch14.pdf Configuration vs. Customization in ERP. Available at: http://it.toolbox.com/blogs/inside-erp/configuration-vs-customization-in-erp- 56895?reftrk=no&trdref=4232425265674d61696c696e673a496e736964652d455250 Read the section on “Build vs. Buy”. Available at: https://saylordotorg.github.io/text_business-information-systems-design-an- app-for-that/s10-build-buy-or-reuse-solutions-d.html System Conversion Methods. Available at: http://smallbusiness.chron.com/accounting-information-system-conversion- methods-34569.html Information Systems for Business and Beyond. Available at: https://bus206.pressbooks.com/chapter/chapter-10-information-systems- development/ TASK B In a Discussion forum: Summarize the main points, express how they relate to a situation you encountered, share with your paired colleagues and critique what they have written in the relevant discussion forum. Refer to the literature you have read when you make your critique. TASK C In a Discussion forum: Explain which of the conversion methods would be suitable for the following. Justify your choice: Upgrading the software for an Automatic Banking Machine (ABM/ATM) Adding a new inventory system along with new computerized cash registers in a supermarket Implementing a student course management system in a university List four reasons why your participation as a user of an information system is critical during the systems development life cycle. TASK D In a Discussion forum: The organizers of a local comedy show plan to implement a software package that can take requests for bookings as well as print tickets for the various shows. ___________________________________________________________________________________________________ MGMT2006 – Management Information Systems I UNIT 5 - 12 VERSION1 Describe two other benefits of this application to the organizers. Explain two factors that could cause this package not to function properly. TASK E In a Discussion forum: How would you characterize the following changes? Adding electronic scoreboards to a cricket grounds. A Telco consolidating call centres in one country. A Telco installing fibre-to-the-home to replace copper wires. A Telco launching a TV service. TASK F In a Discussion forum: Discuss the factors that may influence the decision to consider implementing an application software package, developing the solution in-house or outsourcing the development to an offshore company. Session 5.1 Summary In this session, we looked at how companies plan for and implement Information System changes. We examined the traditional SDLC method of developing new information systems, and we also looked at alternative methods to the traditional SDLC. ___________________________________________________________________________________________________ MGMT2006 – Management Information Systems I UNIT 5 - 13 VERSION1 Session 5.2 Team Roles in MIS Projects Introduction In this session, we will look at the very important roles business users play in software selection and implementation projects. When working on large system projects, end user involvement is vital if the projects are to succeed. Business People Who Support MIS Projects As a potential player in the SDLC you could end up with one of the following (non-IT) roles: End User – the person who enters transactions or uses the reporting and decision support aspects of the MIS Tester – the person who test various aspects of how well the MIS is functioning Trainer – the persons who trains others on how to use the MIS Subject Matter Expert (SME) – the person who knows (intimately) the business processes Project Manager – responsible for managing the delivery of the project Sponsor – an executive who brings senior level leadership and commitment and champions the project. Most of you will not participate in a system development project where new software is written. What is more likely, is that you will participate in a system selection project (i.e. Buy not Build). However, while you don’t write your own software, all of the requirements gathering and analysis and testing in the SDLC are still necessary (you do want to buy rims that fit the car yes? and you do have to think about which rims you do or don’t like yes?) A company implementing QuickBooks may have a small (or one person) project team to implement the entire system – sometimes in just a few days. On the other hand, imagine implementing PeopleSoft (now owned by Oracle) or SAP (Oracle's direct competitor), two of the largest ERP systems in the world; or ADP a leading automotive software platform. These projects can be multi-year in nature and require a very large project team, with Subject Matter Experts ___________________________________________________________________________________________________ MGMT2006 – Management Information Systems I UNIT 5 - 14 VERSION1 (SMEs) from many functional areas and levels in the organization. Understand that this team of business users complements a team of technical implementers – the people who actually know the MIS from the technical side. Given the number of testers and SMEs etc., the business team is often much larger than the technical team from the implementer’s side. Often business people seconded to large projects teams, stay on after the project is officially over. Companies realize that to be successful with ERP projects they need dedicated teams with expert knowledge, creating a Centre of Excellence if you will. (http://whatis.techtarget.com/definition/center-of-excellence-CoE). In conclusion, you should now realize that successful Information Systems really have two types of people. 1. The people in IT who were introduced in Unit 1. These range from the truly techni cal like a security systems technician, or systems analyst programmer; to more business focus jobs like a project manager, or a business analyst. Included here also are implementers, e.g. external consultants who implement ERPs. 2. The people in Business who support Information Systems. These are the people introduced in this session. – The testers, SMEs and sponsors etc. of information systems. These people need to be experts in both the business processes of the company, as well as how the MIS is aligned to effectively deliver those business processes. If you think it through, you will realize we are just talking about the managers, clerks, knowledge workers, etc. who are in the business, and who bring their expert knowledge to align the MIS with the business processes, to create value and achieve the desired results. LEARNING ACTIVITY 5.2 TASK A Read: Implementation Team Roles & Responsibilities. Available at: http://www.geotalent.com/blog/implementationroles/#.V5k8cqJ8k0U The Project Team Structure: ERP Project Team Roles and Responsibilities. Available at: http://www.ultraconsultants.com/erp-project-team-roles-and- responsibilities/ SDLC and project management. Available at: http://www.free-management- ebooks.com/news/systems-development-life-cycle/ TASK B In a Discussion forum, summarize the main points, express how they relate to a situation you encountered, share with your paired colleagues and critique what they have written in the relevant discussion forum. Refer to the literature you have ___________________________________________________________________________________________________ MGMT2006 – Management Information Systems I UNIT 5 - 15 VERSION1 read when you make your critique. TASK C In a Discussion forum, Link the concepts of user involvement and change management in a software implementation project. Session 5.2 Summary In this session we examined the many important roles that business users play in system selections and implementation projects. ___________________________________________________________________________________________________ MGMT2006 – Management Information Systems I UNIT 5 - 16 VERSION1 Session 5.3 Business Process Reengineering Introduction As this term implies, business process reengineering is all about attempting to reengineer or retool the processes in a business. This would certainly imply that the business was probably not performing at its best or the environment in which the business was operating had changed and thus the business needed to either keep up with the competition or change its outdated processes. In any event, the need for BPR would have been the result of some problem or series of issues in the current operation of the business. The result of BPR can often be seen in businesses that shorten the time to have products and services delivered to customers. A typical example is the reduction in time taken to issue insurance policies or process bank loans from five weeks to two weeks. The main steps in BPR involve understanding which processes need improvement, measuring performance of existing processes as a baseline, and allowing information technology to influence process design from the start of the reengineering procedure. Major Steps in BPR Main steps in a business process redesign effort: Identify the Processes to redesign. Laudon (2006) argues that choosing the right business process to improve is even more important that choosing which MIS a company will install. Analyse the existing process. Here we document, paying attention to workflows, process times, wait times, bottle necks, redundant steps, resources, inputs and output etc. We also produce an “as is” diagram of the process. Design the new processes. Create the “to be” process, improving for the desired outcome(s) – simplification, less redundancy, better customer experience, less paperwork, improved workflow, less cost and resources etc. Test. Test and retest. As process change is never smooth and problem free. These test are similar to the test done in the SDLC. Redesign. If necessary, go back, redesign and retest. Do this until you are satisfied that the new process is giving the desired results. Implement. This is similar to “go live” – replace the old process with the new process. ___________________________________________________________________________________________________ MGMT2006 – Management Information Systems I UNIT 5 - 17 VERSION1 Change management. Poor change management is one of the major reasons why reengineering (and MIS) change generally fail. Further information on change management can be found in the reading. Before-and-After Process Diagrams Figure 5.3 shows a business process for purchasing a book from a physical bookstore. The customer must go to the store and search for the book. If the customer can’t find the book then a clerk is asked for help. If the book is found the customer buys it. If the book is not found the customer can go to another store or place an order for the book. If an order was placed then, when the book arrives, the store informs the customer, who returns and completes the purchase. Figure 5.2 The "as is" process to buy a book Remember, you redesign the process, based on what outcome(s) you want to achieve. This is your call. Let’s say we want three (3) outcomes: A better customer experience Reduced cost to the bookstore A self-service business process The below redesign, figure 5.4, achieves all three objectives. The business process is now an online self-service portal. The cost of a clerk is removed from the process. The customer experience has also improved, saving time and improving convenience. Now, the customer sits at home and searches an online catalogue for the book. If found the customer buys the book. If the customer can’t find the book in the store, then the customer simply goes to the next online store until the book is found. ___________________________________________________________________________________________________ MGMT2006 – Management Information Systems I UNIT 5 - 18 VERSION1 Figure 5.3. The "to be" process to buy a book LEARNING ACTIVITY 5.3 TASK A Read: The Role of IT in business process reengineering. Available at: http://journals.univ-danubius.ro/index.php/oeconomica/article/view/757/689 Change management. Available at: https://www.mindtools.com/pages/article/newPPM_87.htm 10 Principles of change management. Available at: http://www.strategy-business.com/article/rr00006?gko=643d0 Why Information System Projects Fail. Available at: http://www.intosaiitaudit.org/intoit_articles/26_p12top17.pdf TASK B In a Discussion forum, summarize the main points, express how they relate to a situation you encountered, share with your paired colleagues and critique what they have written in the relevant discussion forum. Refer to the literature you have read when you make your critique TASK C In a Discussion forum,-Why is it so important to understand how a business process works when trying to develop a new information system? TASK D In a Discussion forum: The organizers of a local comedy show plan to implement ___________________________________________________________________________________________________ MGMT2006 – Management Information Systems I UNIT 5 - 19 VERSION1 a software package that can take requests for bookings as well as print tickets for the various shows. 1. Describe two other benefits of this application to the organizers. 2. Explain two factors that could cause this package not to function properly. Why Information System Projects Fail Traditionally 80% of SDLC projects fail to deliver the expected benefits. There are many reasons and these are well documented in your readings. Table 5.2 below shows a sampling of some common problems, but you are encouraged to add to this list! Table 5.2 Common Causes of Information Systems Failure Stage Examples of Failure Analysis – Lack of involvement of users and staff in the initial stages – Not enough members in project team – Not enough time spent analysing the old system to understand the new requirements Design – Lack of involvement of users and staff – System inflexible to adapt to future changes – Unreasonable demands for the system Programming – Inadequate time to complete all programming requirements – Programmes not properly documented – Personnel lack adequate programming skills – Insufficient money allocated Testing – Test plan not adequate or complete – Lack of involvement of users Conversion – Lack of funds for suitable conversion method – Lack of user involvement – Performance not adequately monitored ___________________________________________________________________________________________________ MGMT2006 – Management Information Systems I UNIT 5 - 20 VERSION1 Session 5.3 Summary In this session we looked at how companies use business process reengineering to change processes, thus providing new benefits to all organizational stakeholders. Unit 5 Summary In this unit we examined the many important issues that surround Information Systems Development. We looked at the importance of planning and aligning the IS strategic plan to the company level strategic plan. We looked at how organizations change and the several models for implementing new systems i.e. the SDLC and several alternatives. We looked at the important roles that business users play during information systems projects and we looked at Business Process Reengineering and as a methodology to change and improve business processes. ___________________________________________________________________________________________________ MGMT2006 – Management Information Systems I UNIT 5 - 21 VERSION1 References Bourgeois, D.T. (2014). Information Systems for Business and Beyond, Chapter 10. Retrieved from https://bus206.pressbooks.com/chapter/chapter-10-information-systems- development/ Cook, R. (Jul 29, 2013). Configuration vs. Customization in ERP. Retrieved from http://it.toolbox.com/blogs/inside-erp/configuration-vs-customization-in-erp- 56895?reftrk=no&trdref=4232425265674d61696c696e673a496e736964652d455250 Frost, R.D. (2011). Business Information Systems: Design an App for That (v. 1.0). Chapter 6. Retrieved from https://saylordotorg.github.io/text_business-information-systems- design-an-app-for-that/s10-build-buy-or-reuse-solutions-d.html Gammie, G. (19 Aug 2015). Implementation Team Roles and Responsibility. Retrieved from http://www.geotalent.com/blog/implementationroles/#.V5k8cqJ8k0U Jones, J., Aguirre, D., & Calderone, M. (n.d.). 10 Principles of Change Management. Available at http://www.strategy-business.com/article/rr00006?gko=643d0 Joyner, J. (n.d.). Accounting Information System Conversion Methods. Retrieved from http://smallbusiness.chron.com/accounting-information-system-conversion-methods- 34569.html Laudon, K. & Laudon, J. (2010). Management Information Systems: Managing the Digital Firm, 11th edition. Pearson. Linam, C. (11 Jun 2015). The Project Team Structure: ERP Project Team Roles and Responsibilities. Retrieved from http://www.ultraconsultants.com/erp-project-team- roles-and-responsibilities/ Mind Tools. (n.d.). Change Management: Making Organization Change Happen Effectively. Retrieved from https://www.mindtools.com/pages/article/newPPM_87.htm Qassim, A.A. (n.d.). Why Information System Projects Fail. Retrieved from http://www.intosaiitaudit.org/intoit_articles/26_p12top17.pdf Rainer, R. & Turban, E. (2016). Management Information Systems, 4th Edition. Chapter 14. Retrieved from http://www.wiley.com/college/turban/0471073806/sc/ch14.pdf Sudhakar, G.P. (2010). The Role of IT in Business Process Reengineering. Œconomica, Vol 6, No 4. Pp.28-35. Retrieved from http://journals.univ- danubius.ro/index.php/oeconomica/article/view/757/689 The Systems Development Life Cycle (and project management). Retrieved from http://www.free-management-ebooks.com/news/systems-development-life-cycle/ ___________________________________________________________________________________________________ MGMT2006 – Management Information Systems I UNIT 5 - 22 VERSION1