CHAPTER 13 "Building Information Systems"

13.1 Systems As Planned Organizational Change

Building a new information system is one kind of planned organizational change. The introduction of a new information system involves much more than new hardware and software. 

Systems Development and Organizational Change

There are four kinds of structural organizational change that are enabled by information technology: automation, rationalization, business process redesign, and paradigm shifts. Each carries different risks and rewards.

Automation involved assisting employees with performing their tasks more efficiently and effectively. A deeper form of organizational change—one that follows quickly from early automation—is rationalization of procedures. A more powerful type of organizational change is business process redesign, in which business processes are analyzed, simplified, and redesigned. A paradigm shift involves rethinking the nature of the business and the nature of the organization.


Business Process Redesign

Business process management provides a variety of tools and methodologies to analyze existing processes, design new processes, and optimize those processes. Companies practicing business process management go through the following steps:
  • Identify processes for change
  • Analyze existing processes
  • Design the new process
  • Implement the new process
  • Continuous measurement

Tools for Business Process Management
Over 100 software firms provide tools for various aspects of BPM, including IBM, Oracle, and TIBCO. These tools help businesses identify and document processes requiring improvement, create models of improved processes, capture and enforce business rules for performing processes, and integrate existing systems to support new or redesigned processes.


13.2 Overview of Systems Development

The activities that go into producing an information system solution to an organizational problem or opportunity are called systems development. Systems development is a structured kind of problem solved with distinct activities. These activities consist of systems analysis, systems design, programming, testing, conversion, and production and maintenance.


Systems Analysis

Systems analysis is the analysis of a problem that a firm tries to solve with an information system. It consists of defining the problem, identifying its causes, specifying the solution, and identifying the information requirements that must be met by a system solution. The systems analysis also includes a feasibility study to determine whether that solution is feasible, or achievable, from a financial, technical, and organizational standpoint. 

Establishing Information Requirements
At the most basic level, the information requirements of a new system involve identifying who needs what information, where, when, and how.


Systems Design

Systems design shows how the system will fulfill this objective. Like houses or buildings, information systems may have many possible designs. Each design represents a unique blend of all technical and organizational components.


Completing The Systems Development Process

The remaining steps in the systems development process translate the solution specifications established during systems analysis and design into a fully operational information system. These concluding steps consist of programming, testing, conversion, production, and maintenance.


Modeling and Designing Systems: Structured and Object-Oriented Methodologies

There are alternative methodologies for modeling and designing systems. Structured methodologies and object-oriented development are the most prominent.

Structured Methodologies
Structured methodologies are top-down, progressing from the highest, most abstract level to the lowest level of detail—from the general to the specific. The primary tool for representing a system’s component processes and the flow of data between them is the data flow diagram (DFD). The data flow diagram offers a logical graphic model of information flow, partitioning a system into modules that show manageable levels of detail.

Another tool for structured analysis is a data dictionary, which contains information about individual pieces of data and data groupings within a system. Process specifications describe the transformation occurring within the lowest level of the data flow diagrams. They express the logic for each process. In structured methodology, software design is modeled using hierarchical structure charts. The structure chart is a top-down chart, showing each level of design, its relationship to other levels, and its place in the overall design structure. 

Object-Oriented Development
Object-oriented development uses the object as the basic unit of systems analysis and design.

Computer-Aided Software Engineering
Computer-aided software engineering (CASE)—sometimes called computer-aided systems engineering—provides software tools to automate the methodologies we have just described to reduce the amount of repetitive work the developer needs to do.



13.3 Alternative Systems-Building Approaches

Traditional Systems Life Cycle

The systems life cycle is the oldest method for building information systems. The life cycle methodology is a phased approach to building a system, dividing systems development into formal stages. 

Prototyping

Prototyping consists of building an experimental system rapidly and inexpensively for end users to evaluate. The prototype is a working version of an information system or part of the system, but it is meant to be only a preliminary model. 

Steps in Prototyping
  • Identify the user’s basic requirements.
  • Develop an initial prototype.
  • Use the prototype.
  • Revise and enhance the prototype

Advantages and Disadvantages of Prototyping
Prototyping is most useful when there is some uncertainty about requirements or design solutions and often used for designing an information system’s end-user interface. However, rapid prototyping can gloss over essential steps in systems development.


End-User Development

Some types of information systems can be developed by end users with little or no formal assistance from technical specialists. This phenomenon is called end-user development. A series of software tools categorized as fourth-generation languages makes this possible. Fourth-generation languages are software tools that enable end users to create reports or develop software applications with minimal or no technical assistance.  End-user computing also poses organizational risks because it occurs outside of traditional mechanisms for information systems management and control.


Application Software Packages and Outsourcing

Application Software Packages
During the past several decades, many systems have been built on an application software package foundation. If a software package can fulfill most of an organization’s requirements, the company does not have to write its own software. If an organization has unique requirements that the package does not address, many packages include capabilities for customization. Customization features allow a software package to be modified to meet an organization’s unique requirements without destroying the integrity of the packaged software. 

Outsourcing
If a firm does not want to use its internal resources to build or operate information systems, it can outsource the work to an external organization that specializes in providing these services. Cloud computing and SaaS providers, are one form of outsourcing. Domestic outsourcing is driven primarily by the fact that outsourcing firms possess skills, resources, and assets that their clients do not have. In the case of offshore outsourcing, the decision tends to be much more cost-driven.


13.4 Application Development For The Digital Firm

In the digital firm environment, organizations need to be able to add, change, and retire their technology capabilities very rapidly to respond to new opportunities. 

Rapid Application Development (RAD)

The term rapid application development (RAD) is used to describe this process of creating workable systems in a very short period of time.  Sometimes a technique called joint application design (JAD) is used to accelerate the generation of information requirements and to develop the initial systems design. Agile development focuses on rapid delivery of working software by breaking a large project into a series of small subprojects that are completed in short periods of time using iteration and continuous feedback.


Component-Based Development and Web Services

To further expedite software creation, groups of objects have been assembled to provide software components for common functions such as a graphical user interface or online ordering capability that can be combined to create large-scale business applications. This approach to software development is called component-based development, and it enables a system to be built by assembling and integrating existing software components. 

Web Services and Service-Oriented Computing
In addition to supporting internal and external integration of systems, Web services can be used as tools for building new information system applications or enhancing existing systems. Web services can perform certain functions on their own, and they can also engage other Web services to complete more complex transactions, such as checking credit, procurement, or ordering products.




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source: "Management Information System" e-book, 12th edition, written by Kenneth C. Laudon and Jane P. Laudon.

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