Building Information Systems

Building Information Systems

1. Planned Organisational Change

   • Building a new information system will involve changes in job, skills, management and organisation as well. 
   • 1. Automation
     • - Increase effectiveness and efficiency  - Calculating payroll, instant access to customer's records
   • 2. Rationalisation
     • Streamlining of standard operating procedures.  - Total quality management: make achieving quality an end and responsibility of all people 
   • 3. Redesign
     • Business processes are analysed, simplified and redesigned. 
     • Business process management: 1. Identify processes for change 2. Analyse existing processess  3. Redesign the new process - reduces time and cost or enhance customer service and value.  4. Implement the new process 5. Continuous measurement - process may deteriorate over time or they may lose effectiveness if the business experiences other changes 
     • BPM tools helps  1. Identify inefficiencies using software to connect with systems in the company. (AIC, cannadian mutual fund company - Sajus BPM monitoring software to check inconsistencies in its process for updating accounts after transactions.  2. Automates some business process. (American National Insurance Company - Pega BPM to streamline Customer service processes across different business groups.  3. Helps business integrate existing systems to support process improvements 
     • Ford Motor Company
       • - Invoiceless processing.  - Reduce accounts payable clerks 
   • 4. Paradigm Shifts
     • Rethinking the nature of the business and organisation - Extensive organisational change 

2. Overview of System Development

   • 1. System Analysis
     • Analysis of a problem that firm tries to solve with an information system.  - Defining problem, identify cause, specifying solution, identify the information requirements - Identify users - Includes feasible study to determine if solution is feasible - financial, technical and organisational standpoint - Written report stating benefits and costs, advantage and disadvantage of each alternatives. 
     • Establish information requirements
       • Can be a challenge. - Need detailed description of the functions  - Faulty requirement analysis leads to system failure and high cost of development 
   • 2. System Design
     • Shows how the system will fulfil the objectives of the functions of a system.  - overall plan or model  - details the specifications that will deliver the functions identified in step 1.  - Superior design => ease and efficiency that fulfils requirements within a specific set of technical, organisational, financial and time constraints.
   • 3. Programming
     • System specifications that were prepared during the designing stage are translated into software program code. - buy/outsource software from external sources 
   • 4. Testing
     • Test to check whether the system produces the right results. (Test plan)  - Time consuming  1. Unit testing: testing each program separately  2. System testing: tests the functioning of the IS as a whole.  3. Acceptance testing: final certification that the system is ready to be used in a production setting. Evaluated by users and managers 
   • 5. Conversion
     • Process of changing from the old system to new system.  1. Parallel strategy: old and new system runs tgt until everyone is assured new one is run smoothly. Ad: safest. Dis: expensive, additional resources and staffs needed 2. Direct cutover strategy: replaces entirely. Dis: risky, might incur even more costs if theres problem  3. Pilot study strategy: introduce new system in a limited area/one department, continue in stages if run smoothly 4. Phased Approached strategy: introduce new system in stages, either by function or by units  
     • Detailed documentation is needed to show how the system works from technical and end users POV during conversion time for future training and operation purposes. 
   • 6. Production and Maintenance
     • Reviewed and check if revisions or modifications are in order.  - Maintain to correct errors, meet requirements or improve processing efficiency 

3. Modeling and Designing Systems

   • Structured Methodologies
     • - Step by step, building on the previous step  - top-down, progressing from the highest, most abstract level to the lowest level of detail - Process orientated, separate data and process 
     • Tools:  - Data flow diagram (DFD) - logical graphic model of information flow, partitioning a system into modules that show manageable levels of detail.  - Data dictionary: contain information about individual pieces of data and data groupings within a system - Structure chart
   • Object-oriented Methodologies
     • Combine data and the specific processes that operate on those data.  - Based on the concepts of class and inheritance.  - Objects group to class with same features 

4. System Building Approaches

   • Traditional Systems Life Cycle
     • - Waterfall method - Large complex system- Divide building a system in multiple stages- Not flexible, complete one stage in order to proceed on to another- Heavy documentation: formal specification and paperwork - Structured, tight controlled 
   • Prototyping
     • Building an experimental system rapidly and inexpensively for users to evaluate.  - Iterative process  - Actively promotes system changes 
     • 1. Identify basic requirement 2. Develop initial prototype 3. Testing  4. Revise and enhance 
     • Advantages:  - uncertainty with requirements or design solution  - Intense end users involvement - will lIkely meet users' requirement in the end  Disadvantages: - Lack of testing and analysing  - Might not be able to accommodate huge data or many users 
   • End-user Development
     • Develop information system with little or no formal assistance from technical specialist.  - using tools such as: 4th generation language  - Build system faster. - Cannot handle the processing of large numbers of transactions or applications with extensive procedural logic and updating requirement  - Control over data may be lost - Lack of testing and documentation 
   • Software Package/Outsourcing
     • - Using pre-developed, predesigned software for common procedures - payroll/inventory control  - Customisation of features may be available  - Adopt to the software package instead of being tailored made 
     • - outsource to external organisation that specialising in building system.  - Cheaper, minimise temporary employees (who might need training)  - Offshore outsourcing - cheaper - However, might incur additional cost dealing with cultural differences/Human resources issues 
     • General Motors Corporation
       • - outsourced 90% of IT services - Taking back control of IS  - Bringing it back In house - complete IT projects more quickly 
   • Rapid Application Development (RAD)
     • describe the process of creating workable system in a very short period of time.  - Joint application design (JAD): brings end users and information specialists tgt in an interactive session to discuss the design. Speed up the process of designing the system 
     • - Agile development: breaking a large project to smaller project that are completed in a shorter time period, emphasise face to face communication over documentation. - More flexible  - Involve end users  - Iteration and feedback 
   • Mobile Application
     • Responsive web design: enables website to automatically change the layout and according to screen solutions or devices  - Eliminate needs for separate design and development work for each device.